2026 Multifamily market: Unlocking financial growth with scalable fiber internet (Part 2)

Continuing to report solid economic numbers, multifamily was the most preferred asset class for commercial real estate investors in 2025, according to CBRE Group, Inc. an American commercial real estate services and investment firm. The multifamily vacancy rate is expected to decline to 4.9 percent by the end of 2025, and annual rent revenues to grow 2.6 percent.

The National Apartment Association concurs, concluding in its 2025 Apartment Housing Outlook that the multifamily market is growing slowly but steadily. Despite increasing construction costs, uncertain interest rates, and economic fluctuations, demand for rental apartments is healthy. This is expected to continue into 2026.

The financial payback

High-speed connectivity isn’t just your residents’ preference. The payback for it is measurable. A Fiber Broadband Association survey found that multifamily renters are willing to pay nearly 13 percent more in rent for an apartment with fiber installed. The same survey also showed that single-family home properties can also gain value, with homebuyers being willing to spend almost an additional 5 percent for fiber.

A recent National Multifamily Housing Council (NMHC) / Grace Hill Renter Preferences Survey asked 172,000 renters across more than 4,200 communities how they felt about connectivity. It turned out that 90 percent were, “interested in or would not rent without high-speed internet access.”

Fiber also means investors’ multifamily assets can retain or even grow their value for the long term. According to the Fiber Broadband Association, multifamily communities that have installed fiber realize stronger property valuations and higher resale prices. They are also more attractive to lenders, who increasingly recognize technology infrastructure as a factor to consider when underwriting and making cap-rate assessments.

Scalability and operational efficiency

One of the biggest benefits of fiber is its scalability. Fiber infrastructure makes it possible for owners to scale with their residents’ ever-increasing bandwidth demands as well as their rising expectations of lightning-fast service and reliability.

Because bandwidth requirements rise annually (with new streaming, gaming, and IoT devices continually coming to market), scalable fiber infrastructure avoids obsolescence. It will continue to offer value—and improve valuations—through upcoming technology cycles in 2030 and beyond.

Forward-thinking residents and multifamily owners are increasingly focused on sustainability. The passive nature of a fiber-optic network requires no electricity, leading to lower costs, energy consumption, and maintenance compared to active networks. Fiber-connected buildings are well equipped to enable smart technologies and energy-efficient solutions. Entryways and doors that can be monitored remotely, and installation of smart-home devices. When paired with smart-building systems such as leak sensors, smart locks, and EV-charging stations, fiber can deliver even more operational savings. Building with fiber is thus a strategic decision that is both financially prudent, and beneficial ecologically.

A recent survey by Rently found that smart thermostats and smart lighting cut annual utility costs by an average of 30 percent, and that multifamily properties with smart access control and smart security features can also pay less in insurance, which subsequently increases both net operating income (NOI) and valuation.

Integrating a fiber infrastructure for new and existing builds

For developers planning new communities in 2026, fiber infrastructure belongs at the very top of their blueprints. Designing for “smart-ready” connectivity from Day 1 means embedding fiber directly into the construction phase, even before the drywall goes up, and certainly before the first residents move in. This eliminates costly retrofits and provides a foundation for everything from connected thermostats to EV charging stations.

In markets where the multifamily housing supply is expanding, a fiber overbuild can make the difference between leading or lagging in demand among the local population. A “fiber overbuild” simply means bringing a new fiber network into an older property. Today’s overbuild services, like those offered by Quantum Fiber, are specifically designed for that purpose. They are experts in leveraging existing conduits or infrastructure to maintain the property’s aesthetics, while minimizing both cost and disruption to residents.

From an investment standpoint, upgrading to fiber makes financial sense. The cost of an overbuild is rational when compared to the value that can be realized. The community can be instantly more attractive to renters, who can live the digital lifestyles they increasingly want.

In summary: Keep your eye on future earnings

Economic indicators are important, even more critical is what investors can do to unlock financial growth. Multifamily properties need to be digitally advanced to evolve with future technologies. A property with a fiber network installed indicates operational efficiency, stable occupancy rates, and a certain competitive differentiation. All of these advantages result in higher NOI and better multiples upon exiting.

Whether via a new building design that includes fiber infrastructure, or an overbuild that replaces older technology, investors and owners who embrace the latest connectivity technology position themselves for long-term strength. In 2026, a Quantum Fiber Connected Community can gain speed, reliability and internet security, which can lead to satisfaction, stability, and sustained value.

Return to Part 1, where we assessed how the “amenity race” of the past isn’t as important as connectivity and associated digital capabilities for modern living. The goals: to reduce vacancy times, retain more renters or homebuyers, and boost asset value. All good things in 2026 and beyond.

Multifamily market: The intersection of renter lifestyles and broadband solutions in 2026