1970s-vintage Class C is really hard to sell right now. For both Class B and Class C, my focus would be operations.
In high-supply markets, Class C effective asking rents were down about 7% as of July 2026, while Class A was up 1.2% and Class B was down 1.6%, according to RealPage data cited by rental housing economist Jay Parsons.
B/C is shorthand for vintage
When someone calls a property "B/C," I picture a deal built in the 1970s, 1980s or maybe the 1990s.
Parsons argues there is "no such thing" as a single B/C asset. Nationally, Class B rents run about 20% above Class C, roughly $321 a month, per RealPage. In Austin, CoStar data for the second quarter of 2026 put Class C stabilized vacancy 220 bps above Class B and 430 bps above Class A.
The renters differ too. Parsons cites Census data, compiled by Ryan Davis of Witten Advisors, showing Class C renters earning $50,000 to $70,000 spend 28% to 31% of income on rent. Class B renters earning $75,000 to $100,000 spend 21% to 25%.
How I tell B from C on a tour
When I compare older properties, I start with deferred maintenance and curb appeal. My deferred-maintenance check covers roofs, HVAC, plumbing and siding.
One example: I toured a property built around 1990 that had a lot of deferred maintenance. The roofs had issues, and the HVAC needed replacement.
I see heavy deferred maintenance on 1990s-era properties often in Louisville, Kentucky.
Parsons makes a related point about buyers: "well-capitalized buyers favor newer-vintage apartments with minimal deferred maintenance needs."
Why 1970s Class C is hard to sell
The reasons are all of the above: buyer demand, a gap between what sellers want and what buyers will pay, and difficult financing. Operations and occupancy are part of the pain as well.
Financing is really difficult with the state of the 10-year, which closed at 5.28% on October 2, 2026, according to Federal Reserve data. Insurance costs, on the other hand, are not as big of a deal right now.
Class C rents are more affected in oversupplied cities
The market is just now adjusting from a long period of oversupply. Class C rents are going to be more affected in oversupplied cities.
Parsons' class-level data points the same way. Of the 17 U.S. markets where Class C rents fell at least 6% in 2025, all but one had supply growth above the national average. In undersupplied markets where it's hard to build, such as the Midwest and Northeast, Class C has held up better, and Class C rents there have steadily increased. His overall read: "In most markets, B's are likely better positioned than C's through the next cycle."
On Mid-America Apartment Communities' (MAA) July 30, 2026 earnings call, management named Phoenix, Charlotte, Raleigh and Savannah as markets still under supply pressure. Nationally, multifamily starts and deliveries have dropped by one third from their 2023–24 highs, according to Yardi Matrix.
Sell or refinance
It comes down to what you could sell it for and what your investors want.
Some sellers are going to have to make decisions soon about selling versus refinancing, and I wouldn't necessarily propose one or the other. It depends on the situation, the investor base and what makes sense as that time approaches.
What would change my view
A demographic shift that increased demand for 1970s properties would change my view on 1970s Class C.
Operations for both
For both Class B and Class C, I would really focus on operations. Do the little things right. Fill up units. Hire good property management. Improve cash flow however you can.