Multifamily housing. The U.S. multifamily market continued moving toward a better balance of supply and demand in the third quarter of 2026. Slower construction deliveries narrowed the gap between new supply and renter demand to its lowest level since late 2015, easing competition from newly delivered properties.
Senior housing. The senior housing sector continued gaining momentum, supported by favorable demographic trends, rising occupancy, and limited new development. Strong demand and constrained supply have renewed institutional investor interest, while elevated construction costs and financing challenges continue to limit new projects.
Office. The office market continued to strengthen in the third quarter, supported by increased leasing demand, improving occupancy, and limited new construction. Conversions and removals continued to outpace new deliveries, reducing office inventory and gradually tightening conditions across markets.
Retail. The retail real estate market entered Q3 with relatively favorable fundamentals, supported by historically limited construction activity, resilient tenant demand, and healthy occupancy levels. Unlike other major sectors that have experienced fluctuations in supply and demand, retail has benefited from a prolonged period of limited development that continues to support existing properties.
Industrial. The U.S. industrial market showed further signs of stabilization in the quarter, as leasing activity and net absorption improved. Slower construction deliveries and steady demand helped bring supply and demand into better balance, although vacancy remained above recent historical averages.
Capital markets. Real estate capital markets faced growing challenges in the third quarter, as deteriorating conditions raised concerns about future transactions and refinancing risks. While capital remains available and creative financing solutions offer opportunities, the outlook heading into year-end has become more challenging.
