Multifamily Investor Sentiment Report – August 2018
In July 2018, Real Capital Markets surveyed and interviewed a wide range of multifamily sector professionals. Participants weighed in on the multifamily industry and provided their sentiment on various investment related topics.
- Most industry experts, and 69.7 percent of survey participants, ranked interest rates as a looming concern, as the market has already absorbed 12 to 18 months of increases and spreads are very thin.
- The multifamily market is thriving with much of $250 billion in capital that is dedicated to the sector.
- Gateway and core coastal markets are back as the preferred place to be for many investors.
- Fierce competition and an upward tick in pricing remains for value-add properties.
- Steady employment, specifically from the tech industry in many core and secondary markets, is fueling growth in the multifamily sector.
Generally speaking, multifamily investors and advisors have a positive outlook for the balance of 2018 and into 2019. Market fundamentals are strong, and while there is some talk about the industry reaching a plateau, the amount of capital chasing deals and the variety of buyers in the market will continue to drive healthy levels of activity.