- Apartment sales reached $10.6B in July, a 1% increase year over year, as portfolio deals helped offset softer individual transactions.
- Multifamily property values rose 0.4%, reversing last year’s 6.6% annual price decline, while cap rates remained steady at 5.7%.
- Major portfolio sales by Elme Communities, Aimco, and Morgan Properties signal growing acceptance of higher-for-longer interest rates.
A Closer Look
Apartment deal activity in July reflected a modest rebound in investor sentiment. MSCI Real Assets reported to Multifamily Dive that sales volume hit $10.6B, inching up 1% from the prior year. Prices also showed signs of stabilization, climbing 0.4% year over year after a steep decline in 2023.
Cap rates held flat at 5.7%, underscoring a market still adjusting to higher borrowing costs.
Segment Breakdown
- Garden Properties: Sales rose 6% to $6B.
- Mid- and High-Rise Properties: Sales slipped 5% to $4.5B.
Individual transactions dipped 1% to $9B, but portfolio and entity-level deals rose 11% to $1.6B, reflecting renewed appetite for larger trades.
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Big Deals Making Headlines
- Elme Communities sold a 19-property portfolio to Cortland Partners for $1.6B.
- Aimco unloaded 2,719 units across Massachusetts, New Hampshire, and Rhode Island to Harbor Group International for $740M.
- Morgan Properties agreed to acquire Dream Residential REIT in a $354M all-cash deal.
Why It Matters
Transaction activity has been constrained for more than a year as buyers and sellers waited for interest rates to decline. But with the 10-year Treasury settling in the 4%–4.5% range, industry players are adjusting expectations.
“Everyone has been waiting for rates to go down,” said Jeffrey Dunne, vice chairman at CBRE. “I think the market has concluded that’s not happening. So there’s more selling because there’s more acceptance of that.”
What’s Next
If portfolio activity remains steady and more owners embrace today’s interest rate environment, apartment sales volume could see further momentum in the second half of 2025.
