Multifamily investors are increasingly willing to pay more than ever before for the asset class, according to a new analysis from Yardi Matrix.
The firm logged record-high property sales and prices in 2021, when properties traded for an average of $192,105 per unit. Of the 83,000 properties reviewed by Yardi, 4,500—or about 5.3 percent—sold at least three times over the last decade. And the average compound annual growth rate for the repeat-sale properties averaged 17.7% nationally.
But while rents ticked up by 14% last year, rent growth increased even more. Multifamily rent growth has clocked in above the long-term average for the last half-decade, except for during COVID-19 lockdowns. Meanwhile, the average price per unit climbed 21.6 percent in 2021, the biggest one-year jump in recent memory.
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