In this data-driven episode, Michael Blank is joined by returning guest Neal Bawa, one of the most analytical minds in multifamily real estate. Neal breaks down why the market has failed to rebound as many expected, why 2026 may remain a “muddling” year, and how excess supply, construction costs, and policy decisions are reshaping rents and underwriting assumptions. This conversation offers a clear-eyed, numbers-based outlook on what investors should realistically expect over the next several years.

1. The market is behaving rationally, not emotionally — despite abundant capital, investors remain cautious due to fundamentals, not fear.
2. Three consecutive years of oversupply broke historical patterns, causing Class B and C assets to feel pressure previously thought impossible.
3. Rent growth is slowly returning, with projections around ~1.5% in 2026 and normalization closer to 2.5% beyond that.
4. Many deals will never return to original pro formas, requiring investors to reset expectations and focus on survivability over returns.
5. Rising construction costs from labor shortages and tariffs are likely to suppress new development and benefit existing assets long term.
6. 2027–2029 may see meaningful upside, as reduced supply finally meets sustained housing demand.

For full episode show notes visit: https://themichaelblank.com/podcasts/session511/

In this candid and wide-ranging conversation, Michael Blank reconnects with Rod Khleif, multifamily investor, educator, and entrepreneur, to unpack what’s really happened in real estate over the past few years. Together, they discuss the current multifamily downturn, rising expenses, distressed assets, and why pain in the market often creates the greatest opportunities. The episode also explores alternative asset classes, operating businesses, syndication beyond apartments, and how investors can position themselves for what’s coming next.

1. Multifamily is going through a real reckoning, driven by rising interest rates, expenses, and maturing debt—not a broken asset class.
2. Separating the past from the future is critical — what happened over the last two years doesn’t define the next cycle.
3. Syndication is the transferable skill, applicable to real estate, senior housing, self-storage, and even operating businesses.
4. Distress creates opportunity, especially with forced sales, refinancing challenges, and upcoming loan maturities.
5. Partner selection matters more than ever — misaligned or weak partners can destroy otherwise solid deals.
6. Diversification across asset classes and strategies can create resilience during volatile market cycles.

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For full episode show notes visit: https://themichaelblank.com/podcasts/session510/

In this solo episode, Michael Blank breaks down what really happened in multifamily during 2025 and what investors should expect in 2026. He unpacks supply and demand trends, rent growth, interest rate expectations, and the affordability crisis shaping renter behavior. While the last few years have been challenging, Michael explains why 2026 is likely a year of stability that sets the stage for long-term growth—and why today’s risk-adjusted returns may be better than they’ve been in years.

1. 2025 was a year of absorption, not growth — record demand was offset by an unprecedented wave of new supply, keeping rents flat to down.
2. New construction is falling sharply, with permits dropping and high interest rates making most projects uneconomical.
3. Affordability favors renting, as buying a home now costs significantly more than renting, supporting long-term rental demand.
4. 2026 consensus outlook is stability with modest rent growth, likely around 2%, setting up normalized growth in 2027 and beyond.
5. Interest rates are expected to be flat to slightly down, a meaningful shift from the uncertainty of the past three years.
6. Lower leverage and better pricing improve risk-adjusted returns, making today’s environment healthier than the frothy market of 2021–2022

Facebook

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YouTube

TikTok

TheFreedomPodcast.com

Access the #1 FREE Apartment Investing Course (Apartments 101)

Schedule a Free Strategy Session with Michael's Team of Advisors

Explore Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Review the Podcast on Apple Podcasts

Syndicated Deal Analyzer

Get the Book, Financial Freedom with Real Estate Investing by Michael Blank

For full episode show notes visit: https://themichaelblank.com/podcasts/session509/