Bidding wars were the norm in March as the supply of new and existing homes remained at historic lows and prices soared, according to a recent analysis from Marcus & Millichap.
The median cost of an existing home increased 3% in March alone to $342,400, a price that shatters previous records. Prices have gone up 18.4% over the last year, the fastest pace of growth since the 1960s, causing the average monthly payment for a 30-year loan to tick up to $1,926.
Contrast that figure with the average effective rent for a Class A apartment: $1,787 per month. This basic math underscores the ongoing value of the multifamily asset class, according to Marcus & Millichap, particularly in suburban areas where millennials are heading as they look to settle down and start families.
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