Investors who have historically made multifamily sales a consistent, reliable real estate choice are pulling back. In the first quarter of 2023, they purchased $14 billion of apartment buildings, according to a preliminary report by CoStar Group that was reported in the Wall Street Journal.

But that huge investment represented a 74% drop from the same quarter in the prior year, according to the WSJ. Equally significant is that this is the largest annual sales decline since early 2009 when there was a 77% pullback due to the Great Recession.

Moreover, the fall represents a significant industry departure since multifamily sales have proved safe overall compared to other real estate assets. The reason is that investors and developers have focused on this category because they know that apartment residents need housing even when the economy falters. And many now who have wanted to buy homes haven't been able to because of high interest rates and low inventory.