U.S. apartment investments have decreased for the second straight quarter. According to RealPage, citing MSCI Real Capital Analytics data, total transaction volume and total sales are each down roughly 25% from the first quarter of 2023. The number of properties sold and dollar volume are at levels last seen in Q2 2020.
The pandemic peak saw about 5,400 properties sold for more than $166 billion. There were roughly 1,040 properties sold in Q1 2024 for a value of $20.6 billion.
While multifamily housing witnessed cap rates increase 50 basis points year-over-year in Q1 2024—the highest average rate in eight years at 5.7%—the sector was still the lowest among other property segments.