Renting by choice ‘is really taking over the world’: Korman Communities exec

Why this matters

The growing prominence of “renting by choice” as described by a leading multifamily executive signals a structural shift in US residential real estate that carries broad implications for institutional capital allocation. As homeownership becomes less attainable or less desirable for certain demographics, the multifamily sector is increasingly positioned not as a fallback but as a preferred lifestyle option. This evolution supports sustained demand fundamentals, even as rising construction costs and higher interest rates complicate deal execution and compress underwriting margins. For institutional investors and lenders, the persistence of renter preference underlines the resilience of multifamily assets amid macroeconomic headwinds. It suggests that capital flows may continue to favor well-located, professionally managed rental communities that can command stable occupancy and rental growth. However, the challenges cited in closing large transactions highlight the tightening of lending conditions and the need for more disciplined underwriting. The sector’s ability to absorb cost inflation without eroding returns will be critical in maintaining investor appetite. Ultimately, the narrative of renting by choice reframes multifamily from a cyclical play to a structural growth story, reinforcing its role as a core allocation within diversified CRE portfolios.

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On the RET wire

• Disclosed multifamily deal value tracked in July 2026: $12.3B across 146 reported transactions. All Multifamily coverage →

Computed from Real Estate Trail’s own tracked coverage

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