Episode 69: 50% of Phoenix Rentals Offering Free Rent — Class A's Problem

In this episode, we break down Class A vs B vs C multifamily performance and pick a clear winner for 2026.WHAT'S HOT:Class B workforce housing holding strong with better occupancy, healthier renewals, and steady leasing velocityRent growth projected at 2% nationally in 2026 — Class B capturing recovery without concession pressureFannie and Freddie each have $88 billion in lending capacity for 2026Agency debt available in high-4% rangeBanks, life companies, and debt funds actively seeking quality Class B loansWHAT'S NOT:Class A vacancy finished 2025 at 8.1% — well above historical normsClass A rent growth essentially flat at -0.1%50%+ of Phoenix rentals offering at least one month free rentSun Belt concessions averaging 5 weeksClass C facing forced sales and capital constraints — sub-90% occupancy deals in troubleInsurance costs surged 172% over past decade, hitting Class C hardestWHY IT MATTERS:Only 270,000 new units slated for 2026 — the slowest supply growth in over a decade. Completions dropping 24% from 2025. Class B is best positioned to capture the recovery.VERDICT: Class B = Strongest | Class A = Challenged (Sun Belt) | Class C = WeakestINVESTOR TAKEAWAY: Class B workforce housing offers stable cash flows, strong tenant demand, and favorable capital markets access. Avoid Class A in high-supply Sun Belt markets until concessions burn off. Be very selective on Class C.#Multifamily #ClassBMultifamily #WorkforceHousing #ApartmentInvesting #SunBeltRealEstate #PhoenixRealEstate #CRE #CommercialRealEstate #RealEstateInvesting #MultifamilyInvesting #RentGrowth #ClassAMultifamily #RealEstate2026 #PropertyInvesting #MultifamilyMarket]]>