Savvy investors stockpiling their funds to buy multifamily housing at bargain prices  may find themselves stuck on their stockpiles and second-guessing their judgment.

"The much-anticipated deluge of properties driven to market by maturing debt, higher refinance rates and tighter debt service restrictions has not materialized," reported Marcus & Millichap in its 2024 Multifamily National Investment Forecast. "This has frustrated the wave of capital set aside to acquire distressed properties and weighed on trading activities."

Instead, after two years of record trading, multifamily investment appears to have reverted to historical norms. Transactions in 2023 were comparable to those of 2014, well below the levels of 2021 and 2022. Instead of selling, many owners have had a change of heart. "The current climate has convinced many to extend their hold period," the report commented.