After years of record construction, multifamily developers and lenders are pulling back sharply, with new starts down significantly and capital flowing only to the most credit-worthy projects in the strongest markets. Investors are scrutinizing lease-up assumptions and concession levels more carefully, demanding realistic underwriting after years of overly optimistic projections. The discipline is expected to help the market absorb current oversupply faster, setting the stage for improved conditions in 2027 and beyond.
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