You know that investing in private real estate can help insulate your portfolio from market volatility. You know that America’s worsening affordable housing crisis is driving unprecedented demand for multifamily. You’re ready to start evaluating private real estate funds to find the right fit for your financial goals—but are you asking the right questions?
Location matters. Purchase price matters. Debt structure matters. But in today’s evolving multifamily market, the operator behind the property may be the single most important driver of long-term performance. And the data increasingly shows why.
The Renter of Today Looks Nothing Like the Renter of a Decade Ago
Renting is no longer a temporary stop on the path to homeownership. According to a Zillow analysis of U.S. Census Bureau data, the median age for renters hit 42 years old in 2024, while between 2013 and 2023, the number of renters aged 65 and over jumped by nearly 30%, the largest increase among any age cohort.
What’s driving the change? For one, housing affordability continues to plague the nation. As of early 2026, there is a 105% monthly premium to buy vs rent. This severe cost differential is driving record rental household growth, with nearly 1 million added in 2024, accounting for more than half of all U.S. household growth that year.
Affordability aside, renting is becoming a deliberate, long-term lifestyle choice for many. Baby Boomers, for example, are increasingly trading homeownership headaches for the low-maintenance lifestyle afforded by renting, especially in build-to-rent communities that offer the space of a single-family home with the managed maintenance and lifestyle amenities of a traditional multifamily property.
With renting no longer seen as just a period of transition, what residents want in a rental community has evolved.
What Renters Want Has Changed—But Not All Operators Are Keeping Up
For years, multifamily operators have competed on the basics: location, unit finishes, square footage and coveted amenities. It’s no longer enough, especially in competitive, oversupplied markets. Today’s renters don’t just care about the physical property, they care about the experience of living there.
The 2024 NMHC and Grace Hill Renter Preferences Survey found that residents want more than affordability—they want to feel a sense of connection to their community: a sense of belonging as residents; to feel seen and known, to have relationships with their neighbors, regardless of how long they stay.
Building a real estate property is one thing—building a community is another. Private real estate fund managers evaluating multifamily deals in today’s market need to pay attention to the sponsor’s experience and track record of successfully building both. Multifamily properties that boast a strong community, meeting the demand of today’s renter, are more likely to stand out in competitive markets, driving faster lease-up periods and retaining residents longer.
How Operations Can Drive Returns
The link between positive resident experience and financial performance is direct: people who are happy and connected to a community that fits their budget aren’t chasing rent concessions at other properties when their lease is up—or looking to leave over modest rent increases.
Engaged, thriving residents can help stabilize occupancy, driving consistent revenue while reducing costs associated with turning over units and marketing to new renters.
Simply put: an engaged, thriving resident base can stabilize NOI; a disengaged one can erode it—no matter how good the amenities are.
While national multifamily demand remains robust, CBRE notes that it’s not enough to fully offset the current supply pipeline, resulting in a vacancy rate that is expected to rise.3 In this competitive market, operators who can attract and retain residents will have a decisive edge—the ones that can do so without eroding NOI (net operating income) will be well-positioned to drive performance for investors.
This is why the operator’s philosophy matters as much as the asset itself. An operator who views residents as transaction partners will run a fundamentally different—and likely less profitable—property than one who views them as members of a community worth investing in.
DLP Capital’s Thriving Communities Model: A Different Operating Philosophy
At DLP Capital, operations are the core of our investment thesis. As a vertically-integrated private real estate investment firm, we approach every investment decision through the lens of our own experience as a multifamily operator. We know how to deliver for residents and we do it by creating and investing in Thriving Communities through DLP Capital’s sponsored private real estate funds.
These communities boast programming, services, and physical environments specifically designed to foster belonging—the very thing the data shows today's renters are actively seeking. The result is communities where residents don't just live, they build a life.
10 Elements of a Thriving Community
- Attainable Housing: By ensuring rents remain below 30% of the Area Median Income (AMI), residents are freed from the constant burden of living in “survival mode.” This margin allows families to invest in health, education, and personal growth.
- Banking, Lending & Investments: Access to financial literacy, community-focused banking, lending, and investment opportunities helps residents build wealth, stability, and a more secure future.
- Companies That Create Jobs: Championing the creation of jobs, particularly through businesses embedded in and reflective of the community itself, supports both economic growth and local pride.
- Deep Connection: Everyone needs a sense of belonging. Through neighborhood events, personal connection, and spiritual support, space is created for residents to find joy in community and meaning in relationships.
- Education: Literacy is the gateway to opportunity. A focus on early education and vocational training ensures every child and adult can take confident steps toward a better future.
- Family: Strong families form the bedrock of Thriving Communities. Programs that support engaged parenting, marriage, and generational legacies of faith and love are actively prioritized.
- Government: Systemic impact takes partnership. Civic leaders and agencies collaborate to support and enhance local community programming.
- Healthcare & Nutrition: Physical and mental wellness matter. Access to wellness programs, healthy food options, and educational resources supports healthier lifestyles.
- Impact: Residents are encouraged and empowered to make a difference. By serving others and living with purpose, they create a ripple effect of positive change.
- Faith: Voluntary opportunities for spiritual growth and connection, offered by the DLP Positive Returns Foundation. Everyone needs grace, and communities are strongest when love leads the way.
The results of this model speak for themselves. Since the inception of each evergreen DLP Capital-sponsored fund, these Funds have:
- Not missed annual return targets or periods of preferred return
- Not had principal losses in any period
- Achieved double-digit equity returns for investors
Read more about the most recent performance of these private credit and equity real estate investment funds in our latest Impact Report.
The Takeaway for Investors
As more capital has flowed into multifamily over the past decade, the gap between operators has widened. In a higher-supply, more competitive leasing environment, average operations often produce average—or worse—results.
The assets that can outperform are those where the operator has built a system: a culture of accountability, a genuine commitment to the resident experience, and programming that turns a collection of units into a community.