Gray Capital Releases 2026 Midwest Multifamily Forecast, Revealing Region's Outsized Strength Amid National Slowdown

INDIANAPOLIS, Nov. 19, 2025 /PRNewswire/ -- Multifamily investment firm Gray Capital has released its latest research report, presenting forward-looking projections for rent growth, vacancy levels, and supply trends across the Midwest through 2026. The report, "2026 Midwest Multifamily Forecast," outlines how the region continues to diverge from national performance as the U.S. multifamily market works through the effects of several years of elevated construction and softening rent growth.

"The Midwest is emerging as one of the most attractive real estate investment regions in the US after being described as no more than 'flyover-country' in the past. Job growth driven by advanced and re-shored manufacturing, and population growth driven by affordability and key contributing factors," said Spencer Gray, President and CEO of Gray Capital. 

Drawing from proprietary research and extensive market data, the report identifies a Midwest market environment that remains comparatively well-balanced, with steady demand, moderating new development, and healthier fundamentals than many coastal and Sunbelt regions. While national rent growth has slowed amid a substantial wave of new supply, the Midwest's overall performance is expected to remain more resilient as construction activity pulls back and market conditions normalize.

Gray Capital's forecasting approach incorporates machine learning to analyze historical trend analysis, regional economic indicators, vacancy patterns, and construction pipeline data to provide a clear picture of where the multifamily market is headed over the next 12 months.

"This report exemplifies Gray Capital's ambitions to be not only one of the leading multifamily investment firms in the nation, but also a leader in the area of real estate research and market intelligence," said Spencer Gray, President and CEO of Gray Capital.

The report's findings suggest that investment conditions across the Midwest will continue to strengthen as supply levels recede, valuations adjust, and operators benefit from improving operational efficiencies. While national trends point toward a year of rebalancing, the Midwest is positioned to enter 2026 with a competitive advantage and a more stable outlook than many other regions.

For Gray Capital's full projections and market commentary, download the complete report at www.GrayCapitalLLC.com/2026-Multifamily-Forecast. To learn more about Gray Capital, visit www.GrayCapitalLLC.com or follow Gray Capital on LinkedIn, Instagram, and YouTube.

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SOURCE Gray Capital