According to recent news from National Real Estate Investor Online, 2019 could be a record-breaking year for sales volume in multifamily real estate.
Here are key reasons why:
- The volume of multifamily acquisitions in the U.S. was higher in the first nine months of 2019 than in any other comparable period in the last decade.
- Investors spent $130.6 billion on multifamily acquisitions in the first three quarters of 2019, according to Real Capital Analytics (RCA).
- Strong demand has continued to stimulate rent growth, keeping occupancy levels well above 90% and attracting more and more investors.
- Developers have not been able to bring enough new units online to keep up with the continually growing number of new households. This has attracted not only experienced multifamily players, but also investors who are new to the sector, according to Brian McAuliffe, president of CBRE Capital Markets.
- Multifamily cap rates averaged 5.1% nationally as of November 2019, according to data from Marcus & Millichap, which is typically higher than the yield on other relatively safe investments.
You can read the entire article here https://www.nreionline.com/multifamily/year-could-break-record-multifamily-sales-volume
If you would like to receive future articles and updates via email, please [ninja-popup ID=9820]CLICK HERE[/ninja-popup].