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Loan distress clouds apartment market rebound

Higher delinquencies contrast with stronger overall occupancy, steady investment
A $60 million loan on the 552-unit Waterford Grove in Houston transferred to special servicing in February before it was resolved this summer. (CoStar)
A $60 million loan on the 552-unit Waterford Grove in Houston transferred to special servicing in February before it was resolved this summer. (CoStar)
CoStar News
August 17, 2026 | 8:08 P.M.

Delinquencies on newer apartment loans have climbed above pandemic-era levels, complicating a rebound marked by stronger overall occupancy and renewed investor interest in the sector.

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