If you invest in multifamily real estate, you know the cycle matters. The best opportunities often show up right after the market bottoms—not when headlines are optimistic again.

The newest CoStar U.S. Multifamily Market Report gives us a clear story in the Sales section:

• Apartment values peaked in the boom years,
  
• dropped meaningfully as rates rose,
  
• hit a bottom and stabilized in 2024,
  
• and are now trending upward.
  
  

For investors interested in apartment syndication and passive real estate investing, that “stabilize then rise” phase is important. It’s often when you can still buy at a discount, but the market is no longer sliding underneath you.

‍

1) What happened to apartment values since 2021?

‍

CoStar’s repeat-sale index shows that apartment values declined after the peak and stabilized in the first half of 2024 after falling about 27% from the 2022 peak. 

That’s the reset. It’s what happens when borrowing costs rise and buyers and sellers need time to agree on pricing.

Now here’s the key: CoStar says values are about 21% below peak levels today. That suggests we’re no longer in the “free fall” stage—we’re in the “early recovery” stage. 

For anyone looking to buy apartment buildings or invest in a multifamily real estate investment this is the zone where patient capital often gets paid.

‍

2) Why the bottom matters more than the headlines

When values are falling fast, it’s hard to know what a deal is really worth. Buyers hesitate, sellers anchor to yesterday’s pricing, and transactions slow.

CoStar notes that multifamily started 2026 with momentum: January sales were up 27% from a year ago, and the market is expected to transact at an increasing pace as pricing becomes clearer. 

That matters because more sales = more price certainty. And more certainty = more capital willing to move.

‍

3) Why “early rebound” is often the best time for multifamily investing

In simple terms, there are usually three stages:

1. Peak pricing (late 2021 / early 2022)
   
2. Correction (values fall as rates rise)
   
3. Early rebound (prices stabilize, then slowly lift)
   
   

The early rebound stage can be powerful for commercial real estate multifamily investors because you still have:

• pricing that’s below the peak, and
  
• improving market confidence and liquidity.
  
  

CoStar also points out that financing conditions have become more supportive, and cap rates have stabilized in many quality segments. 

That’s usually what you want before you go on offense.

‍

4) Why value-add apartments are well-positioned right now

Even when the market is recovering, we don’t rely on the market alone. We focus on value-add apartments, where returns come from improving the property.

That means:

• upgrading interiors people pay for (kitchens, flooring, lighting)
  
• improving the resident experience (smart access, packages, pet features)
  
• tightening operations (renewals, service, maintenance response time)
  
  

When you combine:

• a market that’s starting to rise again, and
  
• a plan that creates value through execution,
  

…it’s a strong setup for multifamily investing in 2026.

‍

5) What investors should do next

If you’re considering passive investing in apartments through a group like Faris Capital Partners, this is the simple question to ask:

Do I want to wait until values are back at the peak—or invest while the rebound is just starting?

The CoStar sales data suggests we’re no longer in the “falling knife” phase. We’ve moved into a period where values stabilized in 2024 and are now showing a trend toward recovery. 

That’s exactly when serious investors start leaning in—because the upside comes from being early, not being loud.

‍

Bottom Line

Apartment prices ran up into 2021-2022, dropped through the rate spike, and hit a low point in 2024. The data now shows the market starting to rise again—often a great time to buy before prices fully recover.

👉 If you’d like to be added to our investor list to see future opportunities like this one, please schedule a call with our team.