Multifamily Equity is Back—and Here's Why We're All In

Message from our CEO

Forum Investment Group has thrived through innovative investments and discipline. Our track record shows agility and foresight in navigating market cycles. Today, I believe it’s time to shift our focus back to multifamily equity real estate——an asset class we haven’t acquired in over five years, not by chance, but because market conditions did not support the economic rationale, or our investor return expectations.

The landscape has changed. Recent inflation, interest rate hikes, and new tariffs have reintroduced uncertainty, effectively freezing private markets. Global markets question the U.S. Treasury’s safety, and 10-year yields remain elevated. Tariffs drive up costs for homebuilders and consumers. This turbulence, coupled with investor fatigue in volatile equities and bonds, I believe makes multifamily real estate a compelling choice for stable, less volatile, and fairly priced assets.

Several structural tailwinds support this opportunity. High-interest rates have locked homeowners into low-rate mortgages, fueling renter demand as mobility stalls. Multifamily debt maturities force sales, creating acquisition opportunities for well-capitalized buyers. While supply peaked in Q4 2024, absorption remains strong, especially in Class A properties with 2.2% year-over-year rent growth. Class B and C property rents lag, with Class C facing oversupply pressure. Wage growth continues to outpace rent growth, supporting investor returns.

Multifamily real estate contrasts with equities, which have experienced long-term growth but now face heightened volatility. The volatility index signals turbulent markets for the next 2-4 years, prompting investor caution. Non-traded REITs (NTRs), offering greater potential for stability and tax advantages, are poised for resurgence. Capital has shifted to private credit, business development companies, and interval funds yielding 10% returns, but as volatility spikes and credit defaults increase, I anticipate capital flowing back to NTRs to diversify equity and provide higher total returns.

My 20% ownership in our Forum Flagship vehicle reflects my conviction in multifamily real estate as a resilient investment option amidst speculative equity markets. The Trump administration’s efforts to stimulate the economy with lower 10-year Treasury yields face challenges from global uncertainty and tariffs. However, I believe multifamily benefits from these conditions, offering stable cash flows, tax advantages, and cost predictability.

Forum Investment Group has a history of capitalizing on opportunities. Real estate remains our cornerstone, and we believe it will outperform again. I believe now is the time to seize equity gains and redeploy capital into multifamily properties or portfolios——a proven asset class poised for growth.

We are positioning Forum Investment Group to lead in this space. I look forward to sharing more as we execute our vision.

Darren Fisk
Founder & CEO

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