Multifamily deal volume fell this after record-breakingtransaction activity in 2015 and 2016. Institutional playersspecifically sat on the sidelines, while private investors remainedactive—at least for the limited deals available. There were severalfactors that contributed to the slowdown, including the growinglength of the cycle.

“For the most part, the private capital owns the market. Thepension fund advisors and the REITs are sitting on the sidelines,”Gary Goodman, SVP of acquisitions atPassco, tells GlobeSt.com. That is because thoseinvestors used consultants, and the consultants are concerned aboutwhere we are in terms of the cycle and cycles don't last more thanseven to nine years. There is this consensus that people shouldwait for the next buying opportunity. I think it is a false view ofthings because cycles don't die on their own. Usually, there is ablack swan event that occurs.”