In a testament to how brutal the year has been, only two multifamily markets have produced positive total returns in the last 12 months, according to a new report by Newmark: Fort Lauderdale and Miami at 0.7% and 0.3% respectively, helped by 4.0% income growth. Appreciation declined but West Coast markets like Los Angeles, San Jose and San Francisco all showed double-digit total return losses.
At the same time, the multifamily market is experiencing a pricing reset, just like the rest of the CRE family of assets.
Cap rates have gone up 90 bps Y-o-Y. The two cities that experienced the least expansion were Columbus at 82 bps and Louisville at 83 bps. In contrast, Baltimore has experienced the greatest expansion with 114 bps.
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