Class-A multifamily cap rates compressed roughly 30 basis points in the first quarter of 2026 according to CBRE's quarterly Cap Rate Survey, ending an 18-month run of expansion. National average cap rates now sit near 5.1%, with Sun Belt markets — Austin, Phoenix, Nashville — leading the move.
The shift reflects renewed buyer confidence as Fed funds futures price in 75–100 basis points of cuts before year-end. Transaction volume rose 22% year-over-year, though still well below 2021 peak.
For sellers, the move means modestly higher exit pricing. For buyers, the window to lock in 6%+ cap rates may be closing in the strongest growth markets.