In the second full year of the global pandemic, the multifamily sector remains one of the most resilient asset classes in commercial real estate. Strong market fundamentals paired with a low cost of borrowing have accelerated investments trends as valuation benchmarks have surpassed pre-pandemic levels.
- Transaction volume rebounded to pre-pandemic levels, increasing 59% YoY to $3.3Bn in 2021
- Average price per suite increased 12.1% YoY to $321,049
- Average cap rate compressed 16 bps to 3.16%
- The spread between cap rates and cost of capital continued to tighten through 2021, returning to historic lows