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Multifamily Recovers as Apartment Sales Surge 18% Nationwide

October apartment sales reached $11B nationwide, an 18% YoY increase, as investor confidence grows in the multifamily sector.
Multifamily Recovers as Apartment Sales Surge 18% Nationwide
  • Nationwide apartment sales rose 18% annually to $11B, driven by portfolio transactions and demand for urban multifamily assets.
  • Apartment prices fell 6.1% over the past year but showed stability recently, dipping just 0.3% from September. Cap rates have risen 20–30 bps since the start of the year.
  • Boston and Washington, DC, led sales growth, fueled by out-of-state investor interest and strong regional fundamentals.
Key Takeaways

As reported by Bisnow, October apartment sales climbed to $11B nationwide, up 18% YoY, as investor confidence continues to grow in the US multifamily sector.

Despite asset price declines and higher cap rates, demand remains strong for urban properties, with portfolio sales driving much of the month’s growth.

By The Numbers

Of the $11B in apartment sales in October, multifamily ‘towers’ and mid-rise buildings jumped 38% YoY to $4.7B, making up a big piece of the pie.

Garden-style apartment sales also rose 7% annually to $6.4B. While asset prices remain 35% below pre-pandemic averages, the slight dip in monthly values signals investor confidence in current valuations.

Portfolio sales stood out, surging 159% YoY to $2.1B. Individual property sales also rose 5%, totaling $9B for the month.

Regional Strength

Boston saw its strongest sales volume since mid-2022, adding up to $1.4B in Q3, as out-of-state investors flocked to Beantown for its cycle-resistant demand and limited development pipeline. 

Washington, DC, saw a similar boost, with $5.6B in transactions through Q3 and an additional $4.5B in deals under negotiation.

These markets exemplify a broader trend—investors are gravitating to cities with stable fundamentals and limited risk of oversupply.

Despite a wave of pandemic-era construction deliveries, apartment vacancy rates fell to 5.3% in Q3, the first decline in two years. 

Construction starts for multifamily projects also dropped 9.4% in October, hitting a 4-month low, which investors believe will limit future supply and support rent growth in the long term.

As the Federal Reserve eases monetary policy and new development remains constrained, multifamily properties continue to attract interest, signaling a sustained recovery for the sector.

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