How AI is Poised to Benefit Multifamily

Key Points

• AI adoption among surveyed commercial real estate management companies rose from 20% to 58%, as operators use the technology to streamline workflows and contain costs.
• Among service firms using AI, 34% reported retraining workers, while just 4% reported AI-related layoffs, according to the Federal Reserve Bank of New York.
• Technology investment is supporting rental demand by creating clusters of economic activity in markets that attract high-growth industries, Arbor Realty Trust’s Special Report Fall 2026 shows.

Artificial intelligence is transforming the nature of work, but new data from Arbor Realty Trust's Fall 2026 Special Report shows the labor market is adapting effectively, with workforce evolution outpacing workforce displacement. At the same time, growing technology investment is helping multifamily operators improve efficiency and manage costs as sector fundamentals continue to improve.

AI Helps Multifamily Operators Protect Margins

AI is increasingly helping commercial real estate management teams preserve profitability amid elevated financing costs, Arbor found in its latest research report. Operating expense growth has moderated, but costs are still limiting how quickly rising rents and tightening occupancy translate into stronger net operating income (NOI).

Industry research from NAA, NMHC, and RETTC cited in the report shows operators are increasingly using AI across customer service, maintenance management, document processing, forecasting, and other property management functions. Adoption is accelerating quickly, with Buildium's 2026 research finding that AI use among surveyed property management companies rose from 20% to 58%.

These tools won't eliminate broader expense pressures, but they can help operators streamline workflows, contain costs, and support margins over time.

How Technology Investment Strengthens Apartment Demand

Technology investment is creating clusters of economic activity that help support renters, particularly in markets attracting high-growth industries and innovation. AI-related investment is driving demand for talent across software, data infrastructure, cloud computing, and related service industries.

Although hiring has moderated and wage gains have cooled, technology-driven productivity advancement is helping businesses maintain growth, while consumer spending continues to support economic resilience.

Arbor’s management has found that the rental housing sector has historically benefited from employment growth even when the broader economy is weakening.

AI Is Bridging Employment Gaps

AI's primary labor market impact today appears to be worker retraining and productivity enhancement rather than large-scale job displacement. In the Federal Reserve Bank of New York's latest Regional Business Surveys, 34% of service firms using AI reported retraining workers. By comparison, only 15% reported hiring fewer workers and just 4% reported AI-related layoffs.

This productivity boost comes as aging demographics and slower immigration increasingly constrain labor force growth. As a result, AI may help, in fact, sustain economic activity by improving productivity at a time when labor supply growth is more limited.

The Takeaway

While AI is changing the American workplace, Arbor’s latest Special Report shows that it is acting as a growth engine for the broader economy and commercial real estate demand. In a market where valuations remain sensitive to interest rates, Arbor management is tracking how these operational and economic tailwinds may become increasingly important for investors seeking opportunities in the next phase of the multifamily recovery.

For more multifamily insights and research, visit Arbor.com and Traded.co.