Shafiq Hirani CCIMReal Estate Advisor, REMAX Distinctive · Real Estate Advisor at RE/MAX Distinctive Commercial | Washington, DC | Your Guide To Profitable Real Estate Ventures

Real Estate Crash? What Headlines Get WRONG! #shorts

11 Jul 2026 · 1 min

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1:06

In this short commentary aimed at owners of small and midsize apartment buildings, the speaker refutes mainstream headlines about an imminent real‑estate crash. He explains that distress is highly concentrated—about 80% of new multifamily delinquencies are confined to New York, New Jersey, and Houston—and is driven by operators who overpaid, over‑leveraged, or inflated rent rolls during the boom, representing a correction of poor underwriting rather than a market‑wide collapse. Well‑run, stabilized properties in most other markets are largely untouched. The speaker emphasizes that apartment demand is structural: roughly 77% of households cannot afford the median new home, making the U.S. increasingly a renter nation and providing a durable demand floor for existing assets. Finally, he notes that new apartment construction has fallen to its lowest level since 2011—over 70% below the recent peak—so the lack of new supply continues to enhance the value of existing buildings.

Chapters

Here is what the crash headlines get wrong, and this is the part that matters most if you own a small or midsize apartment building. First, the distress is concentrated, not widespread. Nearly 80% of new multifamily delinquencies are in just 2 markets: New York, New Jersey, and Houston. And most of them are operators who overpaid, overleveraged, or inflated rent rolls during the boom. That is not a market crash. That is a correction of bad underwriting. Well-run, stabilized buildings in most markets are not in the same conversation. Third, apartment demand is structural, not cyclical. 77% of households cannot afford the median new home. America is becoming a renter nation, not by choice, but by math. The demand floor under your building is not going away. And fourth, the supply side is working in your favor. New apartment construction has dropped to its lowest level since 2011, down more than 70% from the peak. Every month that passes without new competition being built is another month your existing building becomes more valuable.