Multifamily transaction volume topped $138 billion last year and hit $32 billion in the first quarter of 2021, making the asset class the most liquid among all commercial real estate property types.

A new report from JLL shows that closed-end fund closings targeting multi-housing assets have totaled $68.4 billion since 2016 and "will provide an ongoing source of liquidity," especially as pricing discovery in the midst of COVID-19 resulted in more opportunities for private capital to invest in the space. That's particularly true for high net worth individuals and institutional investors.  

"Amid record levels of dry powder targeting the sector and increased clarity as to rent collections and the stability of the sector, institutional investors have been becoming increasingly competitive in securing transactions so far in 2021," the report notes. "Investors continue to target secondary markets, primarily located in the Sun Belt, as these markets are home to business-friendly regulatory and tax advantages."