Economic prosperity in the Sunshine State, Arizona, and North Carolina is raising expectations about the future of the multifamily market despite a consensus among experts that a contraction will plague the sector at the national level in the short term.
According to a recent study from Altus Group, the economic conditions in South and West Florida, the Durham-Chapel Hill area, and the Phoenix metro area translate into a comparatively bullish multifamily market along the Sun Belt, while the sector is expected to languish in Gateway cities.
The study used the Capital Asset Pricing Model, rather than more traditional income-based valuation techniques, to model the expected return of multifamily investments above the NCREIF's NPI.
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