Cap rates across major US markets are becoming increasingly similar, even in cities like San Francisco and New York where they’ve typically hovered much lower than in other major cities.

According to a new analysis from Moody’s Analytics CRE, the average underwritten multifamily cap rates for cities like Dallas, Atlanta, Houston, Austin, Nashville, and Miami have been trending closer to New York’s over the past decade. But while the average cap rate spread for those markets was between 100 and 200 basis points higher for the first part of the past decade, it has narrowed to less than 100 basis points for all markets except Houston.

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