The Edge Magazine Vol. 6

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42% CRE TRANSITION ACTIVITY IN THE INVESTMENT SALES MARKET. Since the start of the pandemic in early 2020, multifamily sales have comprised

MULTIFAMILY BOOM UNDERWAY Multifamily has recently been dubbed “the darling” of real estate investors. Take one look at the investment sales data in the U.S. and it’s no wonder this asset class has received this moniker. Since the start of the pandemic in early 2020, multifamily sales have comprised 42% of all CRE transition activity in the investment sales market—up from 35% in 2019. And the dollar increase has been even more impressive with multifamily sales up 75% from 2019, totaling $320 billion. As a result, these investors have been rewarded with strong returns, second only to the industrial sector. investment. U.S. household formation rebounded strongly in 2021 to 1.3 million and is projected to increase further to a peak level of 1.5 million in 2023. The rental sector could absorb a higher than usual share of this new demand because of home affordability challenges and low for-sale housing inventory. Accordingly, multifamily market forecasts point to continued low vacancies and solid rent growth in the coming years, especially in fast- growing Sunbelt markets. Having a strong foundation in supply-demand fundamentals has been key to multifamily

U.S. MULTIFAMILY VACANCY

7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0%

2011

2021

2017

2012

2015

2013

2018

2016

2019

2014

2010

2022

2025

2023

2024

2020

EFFECTIVE U.S. MULTIFAMILY RENT GROWTH, YOY%

10.0%

8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0%