This year could be one of the best buying opportunities in the multifamily sector in years, as elevated demand in a limited supply environment drives higher rent growth, according to a Gray Capital LLC analysis. Absorption in the sector topped 546,000 last year, the second-highest rate in more than four decades.
The sector continues to face financing challenges due to elevated interest rates, but sales volume has increased dramatically, Gray Capital said. Strengthening fundamentals in the apartment market and pent-up demand from investors have driven sales volume higher for four consecutive quarters. Retail investors have been the slowest to return to the multifamily market, where institutional investors have already begun to make deals.
Investment momentum in the multifamily market is expected to continue throughout the year ahead, said the analysis.
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