Multifamily investment volume increased by 34% quarter-over-quarter in Q2 to reach $52.7 billion, according to CBRE.
This increase in apartment investment has dramatically exceeded expectations. If you subtract fourth-quarter volume—traditionally when most deals are down—second-quarter 2021 posted the highest transaction of any quarter in the last 15 years, CBRE explained.
As transactions have risen, strong investor demand has pushed cap rates lower. This is especially true in hot markets like Phoenix, Dallas/Ft. Worth and Austin. Dallas/Ft. Worth led the way in apartment investment in the first half with $7.7 billion changing hands. That represented 8.4% of total sales in the US. The metro posted a 74.8% increase over its first half 2020 volume and a 50.4% increase over its first half 2019 volume.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
