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Newer Multifamily Assets Expected to Boost Sales as Development Pipeline Thins

Class A property sales were up 20% from 2023.

By Kristen Smithberg | March 28, 2025 at 04:28 AM

Steadier conditions will prevail in this year’s shifting multifamily investment market as new inventory creates investment opportunities. The asset class’s transaction activity gained momentum last year, but buyers have been steering clear of Class B and Class C assets in recent years, according to Northmarq’s 2025 national outlook.

Multifamily transactions increased by 11% year-over-year across the country, but they remain about 50% below peak levels a few years ago. The increase was driven almost entirely by greater activity in the Class A space, many of which are being purchased in all-cash transactions, according to Northmarq. Class A property sales were up 20% from 2023 to 2024, with a median sales price of $227,000 per unit and average cap rates of 5.35%.

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