The multifamily sector has captured the attention of a "global wall of capital" as fundamentals continue to shatter records, a pair of experts told CBRE's Spencer Levy this week.
"The flame is white hot. Every metric you look at in multifamily seems to be breaking a new record," Matt Vance, CBRE's Americas Head of Multifamily Research and Senior Economist, told Levy on his podcast this week. CBRE data shows that the sector posted 14% rent growth nationally last year and had sub-3% vacancy last year.
Cap rates have also compressed faster than they ever have, according to Vance. CBRE's quarterly underwriting survey for prime multifamily assets notes that Texas has the lowest going-in underwritten cap rates, while most markets are squarely within the 3% range. He says that's sustainable – with a few caveats.
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