--- title: Why Multifamily Properties Are Popular in Delaware Statutory Trusts description: Learn more about why multifamily properties are popular in Delaware statutory trusts. image: https://www.realized1031.com/hubfs/iStock-1317473379-modified-0e24ae87-cc60-45b3-86dc-72c02580d023.jpg --- [![Realized 1031 Exchange Marketplace](https://www.realized1031.com/hs-fs/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black.png?width=240&height=80&name=Realized-Logo-Black.png "Realized 1031 Logo") ](https://www.realized1031.com/) - [Wealth Management Gap](https://www.realized1031.com/the-wealth-management-gap) - [Our Process](https://www.realized1031.com/how-realized-works) - [Financial Advisors](https://www.realized1031.com/advisor) - [Resources](https://www.realized1031.com/resources) - [The Company](https://www.realized1031.com/about-us) - [Articles](https://www.realized1031.com/blog) [Register](https://www.realized1031.com/marketplace) [Log In](https://www.realized1031.com/login) - Better Business Bureau Rating: **A+** - [FINRA BrokerCheck](https://brokercheck.finra.org/firm/summary/22333) - [Call](tel:1-877-797-1031) **(877) 797-1031** # Why Multifamily Properties Are Popular in Delaware Statutory Trusts Posted Sep 13, 2025 ![iS-1317473379](https://www.realized1031.com/hs-fs/hubfs/iStock-1317473379-modified-0e24ae87-cc60-45b3-86dc-72c02580d023.jpg?width=2121&height=1193&name=iStock-1317473379-modified-0e24ae87-cc60-45b3-86dc-72c02580d023.jpg) Entering a Delaware Statutory Trust (DST) is a strategic investment approach that allows you to enjoy benefits such as passive income and diversification. DSTs own underlying properties that generate income, and these assets may belong to various sectors. Today, DSTs that focus on multifamily homes have become sought-after investments thanks to a few key features. Below, Realized 1031 has shared reasons why multifamily properties are popular in Delaware Statutory Trusts. Let’s take a closer look. ### What Are DST Multifamily Properties? Multifamily properties are [residential structures that have several units](https://www.investopedia.com/articles/personal-finance/041216/3-reasons-invest-multifamily-real-estate.asp). This characteristic allows the building to house [several tenants at once](https://www.realized1031.com/blog/what-is-the-difference-between-single-family-multifamily-properties). Some popular examples are [apartment complexes](https://www.realized1031.com/blog/is-buying-an-apartment-complex-a-good-investment), townhouses, and mixed-use buildings. Multifamily DSTs focus on these structures, with the sponsor often acquiring multiple properties across various geographical locations using funds pooled by investors. As the properties earn income from rent, the sponsor distributes the earnings to the investors on a current basis. ### Tax Deferral Benefits One major appeal of DSTs is how they can be used to facilitate 1031 exchanges, with fractional interests being eligible thanks to [Revenue Ruling 2004-86](https://www.federalregister.gov/documents/2020/12/02/2020-26313/statutory-limitations-on-like-kind-exchanges). As such, you can exchange an income-generating property for DST fractional interests without having to pay capital gains taxes immediately. Being able to preserve more of your property sale proceeds allows you to enter a DST with higher capital, and by extension, higher income potential. ### Consistent and Predictable Income One of the primary draws of [multifamily properties](https://www.realized1031.com/blog/are-multifamily-properties-considered-commercial) in DST structures is their reliable cash flow. Most DSTs own multiple structures, which have several units each. This characteristic creates diversified income streams, allowing for consistent and predictable cash flow. Even if there are a few vacant units at a given time, the properties could still be able to generate sufficient revenue to meet operating expenses and provide consistent distributions to investors. ### Growing Demand Among Key Demographics There’s a growing demand for affordable housing, especially that are near or within urban locations. [Multifamily properties](https://www.realized1031.com/blog/what-is-multifamily-housing) address this need, offering accessible homes for demographics like Gen Z and millennials who prefer renting. The multifamily property market size is expected to grow by [$466 billion in 2030 as demand continues to grow](https://www.marketsandata.com/industry-reports/united-states-multifamily-market). This long-term trend increases the likelihood that DST properties will have continued income stability and even higher rental rates — attractive features that both DST sponsors and investors look for. ### Built-in Diversification Multifamily homes have built-in diversification at the property level. Having multiple tenants spreads the risks better compared to single-family homes or office buildings with one tenant. As such, multiple vacancies won’t be as concerning. This feature adds another level of protection and peace of mind for investors, especially when the market is volatile or experiencing a downturn. ### Professional Management Directly owning a multifamily property puts the burden of management on your shoulders. However, a DST only allows the sponsor to handle operations, capital decisions, and other aspects of management. Thanks to this practice, you enjoy hands-off involvement and truly passive income, waiting only for the distribution to come. Plus, the experience of established sponsors usually means they have strategies that could potentially increase income or shield the assets from economic volatility. ### Wrapping Up: The Appeal of Delaware Statutory Trust Multifamily Properties Multifamily properties remain a cornerstone of DST portfolios due to their consistent income, broad tenant base, and long-term demand fundamentals. A DST focusing on these properties offers not just tax-deferral or diversification but also peace of mind and lower risk, which can bring you closer to your investment goals. **Sources:** [https://www.marketsandata.com/industry-reports/united-states-multifamily-market](https://www.marketsandata.com/industry-reports/united-states-multifamily-market) [https://www.federalregister.gov/documents/2020/12/02/2020-26313/statutory-limitations-on-like-kind-exchanges](https://www.federalregister.gov/documents/2020/12/02/2020-26313/statutory-limitations-on-like-kind-exchanges) [https://www.investopedia.com/articles/personal-finance/041216/3-reasons-invest-multifamily-real-estate.asp](https://www.investopedia.com/articles/personal-finance/041216/3-reasons-invest-multifamily-real-estate.asp) Download The Guide To DSTs [![The Investor's Guidebook To DSTs](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/DST-eBook-250.png?width=250&height=250&name=DST-eBook-250.png "See if Delaware Statutory ...") ](https://www.realized1031.com/blog/why-multifamily-properties-are-popular-in-delaware-statutory-trusts#blogform) Download eBook ---   --- ### The Investor's Guidebook To DSTs ![Download The Guide To DSTs](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/DST-eBook-550.jpg?width=550&height=650&name=DST-eBook-550.jpg) See if Delaware Statutory Trusts are right for you. 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Today, DSTs that focus on multifamily homes have become sought-after investments thanks to a few key features. Below, Realized 1031 has shared reasons why multifamily properties are popular in Delaware Statutory Trusts. Let’s take a closer look. What Are DST Multifamily Properties? Multifamily properties are residential structures that have several units. This characteristic allows the building to house several tenants at once. Some popular examples are apartment complexes, townhouses, and mixed-use buildings. Multifamily DSTs focus on these structures, with the sponsor often acquiring multiple properties across various geographical locations using funds pooled by investors. As the properties earn income from rent, the sponsor distributes the earnings to the investors on a current basis. Tax Deferral Benefits One major appeal of DSTs is how they can be used to facilitate 1031 exchanges, with fractional interests being eligible thanks to Revenue Ruling 2004-86. As such, you can exchange an income-generating property for DST fractional interests without having to pay capital gains taxes immediately. Being able to preserve more of your property sale proceeds allows you to enter a DST with higher capital, and by extension, higher income potential. Consistent and Predictable Income One of the primary draws of multifamily properties in DST structures is their reliable cash flow. Most DSTs own multiple structures, which have several units each. This characteristic creates diversified income streams, allowing for consistent and predictable cash flow. Even if there are a few vacant units at a given time, the properties could still be able to generate sufficient revenue to meet operating expenses and provide consistent distributions to investors. Growing Demand Among Key Demographics There’s a growing demand for affordable housing, especially that are near or within urban locations. Multifamily properties address this need, offering accessible homes for demographics like Gen Z and millennials who prefer renting. The multifamily property market size is expected to grow by $466 billion in 2030 as demand continues to grow. This long-term trend increases the likelihood that DST properties will have continued income stability and even higher rental rates — attractive features that both DST sponsors and investors look for. Built-in Diversification Multifamily homes have built-in diversification at the property level. Having multiple tenants spreads the risks better compared to single-family homes or office buildings with one tenant. As such, multiple vacancies won’t be as concerning. This feature adds another level of protection and peace of mind for investors, especially when the market is volatile or experiencing a downturn. Professional Management Directly owning a multifamily property puts the burden of management on your shoulders. However, a DST only allows the sponsor to handle operations, capital decisions, and other aspects of management. Thanks to this practice, you enjoy hands-off involvement and truly passive income, waiting only for the distribution to come. Plus, the experience of established sponsors usually means they have strategies that could potentially increase income or shield the assets from economic volatility. Wrapping Up: The Appeal of Delaware Statutory Trust Multifamily Properties Multifamily properties remain a cornerstone of DST portfolios due to their consistent income, broad tenant base, and long-term demand fundamentals. A DST focusing on these properties offers not just tax-deferral or diversification but also peace of mind and lower risk, which can bring you closer to your investment goals. Sources: https://www.marketsandata.com/industry-reports/united-states-multifamily-market https://www.federalregister.gov/documents/2020/12/02/2020-26313/statutory-limitations-on-like-kind-exchanges https://www.investopedia.com/articles/personal-finance/041216/3-reasons-invest-multifamily-real-estate.asp", "articleSection" : [ "Delaware Statutory Trusts (DST)" ], "author" : { "@type" : "Person", "email" : "marketing@realized1031.com", "image" : "", "name" : "The Realized Team", "url" : "https://www.realized1031.com/blog/author/the-realized-team" }, "dateModified" : "2025-09-13T14:00:00+0000", "datePublished" : "2025-09-13T14:00:00+0000", "description" : "Learn more about why multifamily properties are popular in Delaware statutory trusts.", "headline" : "Why Multifamily Properties Are Popular in Delaware Statutory Trusts", "image" : { "@type" : "ImageObject", "height" : 1193, "url" : "https://733513.fs1.hubspotusercontent-na1.net/hubfs/733513/iStock-1317473379-modified-0e24ae87-cc60-45b3-86dc-72c02580d023.jpg", "width" : 2121 }, "mainEntityOfPage" : "https://www.realized1031.com/blog/why-multifamily-properties-are-popular-in-delaware-statutory-trusts", "name" : "Why Multifamily Properties Are Popular in Delaware Statutory Trusts", "publisher" : { "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "USA", "addressLocality" : "Austin", "addressRegion" : "TX", "postalCode" : "78701", "streetAddress" : "500 W 13th Street " }, "logo" : { "@type" : "ImageObject", "height" : 60, "url" : "http://www.realized1031.com/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black-No-Margin-296x60-AMP.png", "width" : 296 }, "name" : "Realized" }, "thumbnailUrl" : "https://733513.fs1.hubspotusercontent-na1.net/hubfs/733513/iStock-1317473379-modified-0e24ae87-cc60-45b3-86dc-72c02580d023.jpg" } ```