SVN® International Corp. presents the 2024 State of the Market Report, giving insight into the multifamily sector.
In 2023, the apartment sector faced a tough market as the Federal Reserve’s tightening monetary policy led to a significant drop in deal activity, with transaction volumes hitting their lowest point since 2011. Despite this, long-term demand for rental housing remained strong due to shifting household preferences and limited access to homeownership.
However, rising capital costs pushed cap rates to their highest levels since 2013, resulting in a decline in asset values. As the market eyes recovery in 2024, hopes rest on narrowing bid-ask spreads between buyers and sellers amid challenging conditions characterized by declining transaction volumes and increasing capital costs.
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