Multifamily Properties Are Doing Just Fine

Multifamily is one of the eleven stories

Multifamily was another sector that outperformed expectations in 2021. There have been some dark spots because of the slow disbursement of rental aid to struggling tenants in the first half of the year. But with U.S. for-sale housing prices rising so much Fannie Mae and Freddie Mac were forced to raise their mortgage limits to $1 million, demand for for-rent apartment units abounded, pushing rents in some markets to double-digit growth.

Demand for multifamily plays from equity investors has been plentiful, with multiple new funds focusing on the sector. In fact, sourcing new multifamily acquisitions has become so challenging in recent months, investors have been branching out into smaller markets, hiring out-of-house acquisition help, using technology to find off-the market deals and increasing their hold times to make up for the shortage of new assets available to trade.

As with industrial properties, investors’ outlook for the multifamily sector in the months ahead remains bright, with surveyed WMRE readers expecting further rent growth, expanded access to financing and steady returns.

The Commercial Real Estate Alpha Site