- Apartment sales increased 1% year over year in Q1 2026, hitting $32B.
- Prices remained flat, the first stable quarter since late 2022.
- Cap rates rose 10 basis points over the past year, now averaging 5.8%.
- Major metros saw a 29% sales jump, while non-majors declined 9%.
Modest Growth in Apartment Sales
According to MultifamilyDive, apartment sales ticked up slightly in Q1 2026, rising 1% compared to a year prior, according to MSCI Real Assets. The total volume reached $32B, maintaining multifamily’s lead as the most traded commercial real estate segment.
While individual asset transactions grew 3% to $27.6B, portfolio sales fell 13% to $4.4B, highlighting variability within apartment sales activity. Price levels held steady, ending a streak of quarterly declines dating back to late 2022.
Cap Rates and Regional Trends
Multifamily cap rates increased by 10 basis points over the past year to reach 5.8% in Q1 2026. By segment, mid- and high-rise properties held a cap rate of 5.6%, while garden assets hit 5.9%. That movement aligns with broader market signals, where cap rates have remained relatively stable even as investor sentiment improves across multiple sectors.
Geographically, the six major metros—New York, Washington, D.C., Boston, Los Angeles, San Francisco, and Chicago—saw apartment sales surge 29% to $10.1B. In contrast, non-major metros posted a 9% drop to $21.9B, with mid- and high-rise trades in those markets falling 26%.
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Outlook for Apartments
Recent moves in the 10-year Treasury yield—up 30 to 40 basis points—are raising questions about future apartment sales, according to analysts. Higher borrowing costs could pressure underwriting and returns, although sponsors may opt for shorter-term financing as a countermeasure.
Major metros are expected to continue leading activity, while sustained borrowing costs and external uncertainty may limit further gains in the apartment sector in the coming quarters.
