Multifamily Buyer Sentiment Improves for Core Assets

Multifamily Buyer Sentiment Improves for Core Assets
News| March 6, 2026| Amy Wolff Sorter
Apartment Buildings

CBRE’s recently released Core Multifamily Buyer Sentiment for Q4 2025 survey unveiled the following:

  • Core buyer sentiment improved quarter over quarter, while negative sentiment was unchanged
  • Positive sentiment among value-add buyers fell during the same time period
  • Underwriting assumptions held steady for the second consecutive quarter

Overall, “this increased positivity contributed to a 9% year-over-year rise in multifamily volume last year, with a similar gain expected in 2026,” CBRE analysts said. At the same time, bd/ask spreads are narrowing, though “some investors remain reluctant to sell.” However, the analysts indicated more selling activity for the remainder of 2026 “as buyers take advantage of a more liquid debt market with attractive financing options.”

In the area of cap rates, the survey indicated that:

  • The average going-in cap rates for core multifamily increased by 2 basis points (bps) to 4.75%, while the average exit cap rate remained steady at 4.95%
  • Core unlevered internal rate of return (IRR) targets remained at 7.7% for the third consecutive quarter
  • The average going-in cap rate for value-add assets increased by 3 bps quarter over quarter, ending up at 5.26%, while exit cap rates remained steady at 5.38%

Unlevered IRR targets for value-add multifamily fell for the eighth straight quarter, ending up at 9.36%

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