Multifamily was on a rough par with industrial during the pandemic. Both were preferred investment types, seeing strong growth in valuations and falling cap rates. But everything has taken a beating as huge capital flows stopped propping up unrealistic values, high interest rates made deals far more difficult to do, and cap rates climbed. And that includes multifamily, even though it has some strong characteristics, according to MSCI.

"The apartment sector remained as the largest, most liquid commercial real estate sector in November," the firm wrote. "Despite that positive attribute, deal volume fell from a year ago. Despite optimism around a reversal in the 10yr UST in recent weeks, the apartment sector is not on pace to close the fourth quarter of 2023 on an upbeat note."

There has been economic news that many see as optimistic. The yield on the 10-year Treasury seems to have settled in well below 4%. The Fed seems to have enabled a so-called soft landing. However, MSCI points out that "it may take months for such optimism to hit the apartment investment market." Deals closing in November started far earlier, creating a delay in attitudes.