Have Multifamily Cap Rates Peaked?
By
Xander Snyder on August 23, 2024
The last three and a half years have been a whipsaw of a ride for the multifamily market. Following the surge in leasing demand during the pandemic, demand to own apartment buildings boomed, which drove transaction volume to record highs. Shortly thereafter, the Federal Reserve began raising interest rates to combat inflation that turned out not ...
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Commercial Real Estate multifamily market Potential Cap Rate Model Multifamily
The Geometry of Apartment Prices: When Down Is Still Up
By
Xander Snyder on June 17, 2024
There weren’t many apartment units purchased in the first quarter of this year. In fact, purchases of multifamily properties dropped to the lowest levels observed since the early days of the pandemic four years ago. One clear contributor to this decline is the increased cost of capital – interest rates are considerably higher than they were ...
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What’s that Apartment Building Worth? Fewer Multifamily Transactions Drive Market Uncertainty
By
Xander Snyder on May 15, 2024
It’s hard to know what apartment buildings are worth nowadays. With multifamily transaction volume at its lowest point in four years, comparable transactions, or “comps”, which are often used as a reference point to estimate value, are few and far between. The limited availability of comps increases the uncertainty of property valuation estimates. ...
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Commercial Real Estate multifamily market Potential Cap Rate Model Multifamily
Why the Dip in Multifamily Transactions may be Short-Lived
By
Xander Snyder on February 13, 2023
The rapid change in the macro-economic environment has resulted in some dire forecasts for multifamily. Higher interest rates, a slowdown in household formation rates from the heady pandemic-era pace, decelerating rent growth,and increasing vacancy rates have already sapped trading activity. In terms of multifamily transaction volume, the fourth ...
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