Webinar: Market Clarity 2026: Insights from Michael Becker
In a recent Momentum webinar, Michael Becker, a Dallas-based multifamily investor and operator, shared a candid assessment of today’s market and where opportunity is likely to emerge as we head into 2026. Drawing on decades of experience—and lessons from multiple market cycles—Michael offered practical guidance for navigating today’s slower, more selective investment environment.
From Banker to Multifamily Operator
Michael opened by tracing his path from commercial real estate lending into multifamily ownership. His career spans the 2008–09 financial crisis, a period that shaped how he thinks about risk, leverage, and long-term strategy. That banking background, he explained, provided a strong foundation for underwriting, capital structure decisions, and disciplined growth as his firm scaled across Texas.
Comparing Market Cycles: 2008 vs. Today
While today’s market is often compared to the Great Recession, Michael emphasized key differences. In 2008, liquidity disappeared almost entirely. Today, capital is still available—but it’s more expensive and more selective. The result is a slower-moving market with longer hold times and fewer forced sellers, but also a stronger underlying foundation than in past downturns.
Where Buying Opportunities Are Emerging
Michael discussed recent acquisitions ranging from new construction to 1980s-vintage properties, noting that flexibility has become essential. As pricing resets, his firm has selectively re-entered older asset classes where basis and downside protection now make sense. The focus, he stressed, is less about vintage and more about buying well in the right submarkets.
Capital Raising in a More Disciplined Market
Raising equity looks very different than it did in 2021. Michael shared that successful capital raises today rely heavily on trust, track record, and clear storytelling around each deal. Repeat investors remain critical, while consistent marketing—newsletters, podcasts, events, and direct outreach—helps maintain visibility and credibility. Incentives like bonus depreciation also continue to play an important role.
Texas Market Breakdown
Michael offered a market-by-market view of Texas:
Dallas–Fort Worth: Signs of recovery are emerging, particularly in Class A properties, though underwriting remains conservative.
Austin: Transaction activity remains limited, with few forced sellers. However, Michael expects momentum to return as values reset and volume picks up.
San Antonio: With limited new supply coming online, fundamentals are improving, especially in Class A assets as rents and occupancy stabilize.
Managing Taxes and Insurance
Property taxes and insurance continue to impact operations, but Michael noted some moderation in insurance increases. He outlined his team’s proactive approach to tax protests, using both market value and equal-and-uniform arguments to manage assessments and protect NOI.
Advice for New and Growing Investors
For newer investors, Michael emphasized the importance of building strong teams and establishing credibility with brokers and sellers. Today’s market, he noted, is more balanced and rewards preparation. Consistent presence—through content, relationships, and follow-through—creates long-term opportunity in both deal flow and capital raising.
Rethinking Value-Add Strategies
With rent growth no longer doing the heavy lifting, Michael explained how his firm has shifted away from aggressive value-add plays. Instead, success now comes from disciplined underwriting, thoughtful asset selection, and patience. Buying high-quality, well-located properties at a favorable basis creates resilience today and upside as markets recover.
Operational Discipline Wins
Operational excellence was a recurring theme. From expense control and revenue optimization to marketing execution and lead tracking, Michael described success as “blocking and tackling.” Small improvements, consistently applied, compound over time and position assets to perform when market conditions improve.
The Role of Consistency and Trust
Throughout the conversation, Michael returned to the importance of consistency—communicating regularly with investors, operating with transparency, and playing the long game. Trust, he emphasized, is built over years, not cycles, and remains one of the most valuable assets an operator can have.
Final Takeaway
This webinar served as a grounded, experience-driven look at multifamily investing in a transitional market. Michael Becker’s perspective reinforced a clear message: while the environment is more challenging, opportunity still exists for disciplined operators who stay patient, focused, and committed to long-term value creation.
