Investors spent less money on apartments in 2017 than the previous year, according to CoStar research, but bought more multifamily properties.
The math may be a little counter-intuitive, but resulted from sales in the most expensive urban infill markets dropping off as owners of newer downtown properties decided to hang on to their assets or demanded rich pricing. Yield-hungry investors, in turn, looked to suburban and secondary markets – where multifamily properties are cheaper, and older assets and workforce housing are in vogue as well.
That combination resulted in a mixed outcome in 2017 – more property trades, but less total investment in the multifamily market.
“No doubt this is the case,” says Josh Goldfarb, co-head of Cushman & Wakefield’s multifamily sales platform. “We are seeing more interest in the suburbs and secondary markets caused by overheated costs and land pricing in large metropolitan areas, combined with minor oversupply.”
Article Aurthor: CoStar Group