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2018 should be a strong year for apartment investment sales in California. Investor sentiment is positive with significant capital chasing opportunities throughout California, according to Real Capital Markets’ 2018 Multifamily Investor Sentiment Report. Through the first half of the year, the optimistic investor sentiment has resulted in strong sales activity, exceeding sales volumes in the first half of 2017. “Based on the number of multifamily properties being brought to market, 2018 is a very solid year in California,” Steve Shanahan, executive managing director at Real Capital Markets, tells GlobeSt.com. “So far, the number of multifamily investment assets brought to market is up year over year, and we believe the activity will continue through the second half of 2018.”

Investors are responding the healthy market dynamics, and more specifically, zealous renter demand. The average home cost in California is rising to record heights, fueling the rental market, and there continues to be millennials who choose to rent rather than own. “Various factors and market dynamics continue to create strong investor sentiment for multifamily investments, most notably the demand for apartments by renters,” says Shanahan. For many, the cost of buying a home is cost prohibitive. As a result, people who might typically be homebuyers instead are forced to rent.”

Kelsi Maree Borland

Kelsi Borland is a freelance writer and editor living whose work has appeared in such publications as Travel + Leisure, Angeleno and Riviera Orange County.

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