State Of The US Multi-Family Housing Market In 2020

We'd love to meet you and find you the perfect investment

State Of Multi-Family Housing After COVID19

The past couple of months have been a very difficult period for the multi-family household sector. In April and May of 2020, investments into multi-family properties have fallen off dramatically. In fact, the deal volume for multi-family homes in the last two months is lower than any two month period in the past decade providing an excellent investment opportunity to increase your passive income.

While the average deal volume in the months of April and May have sat around $19 million in the past 5 years, the deal volume in April and May 2020 was just $9 billion, less than half of the five-year average. While the period has been extremely slow in terms of real estate investment, there have still been a few large deals that have closed.

Recent Multi-Family Housing Investments

Oakmost is investing in multifamily real estate by acquiring  a 453-unit complex in Salt Lake City, Utah for $178 million. They reportedly invested in Salt Lake City due to its growth potential and overall atmosphere.

In another large deal, Strategic Properties and Korean Sovereign Wealth partnered to buy 1991 Vintage, which is a 480-unit highrise on the Chicago lakefront. Other large deals that have recently closed are a 449-unit complex in Los Angeles’ Koreatown, a 138-unit building in Burlingame, and a 496-unit complex in suburban Orlando.

While these deals are all impressive, it is odd that none of them were in the Northeast, which is usually a more popular housing sector for real estate investors.

Unfortunately, while there were a few high-ticket deals in 2020, the average deal volume was just $114 million, which is far short of the $235 million average volume in 2019. What is even stranger is that the most expensive deal of 2020 would rank as the 12th most expensive deal in 2019.

Clearly, 2020 has been an off-year in deal volume in the wake of the novel coronavirus. In looking at buyer volume trends, we see big drop-offs. Regional developers’ volume dropped by 25%, national developers’ by 30%, individual investors’ by 40%, and equity funds’ and REITs’ by a whopping 80%.

Share This

Share on facebook
Facebook
Share on linkedin
LinkedIn
Share on weixin
WeChat
Share on email
Email
Share on print
Print

Read More

High Cap Rates, Low Cap Rates, and Successful Real Estate Investing

Learn about a simple calculation that can reveal a trove of insight on potential real estate acquisitions. Some have even argued that this number is...

Read More

Joe Rogan Moves to Texas — and the Greater Real Estate Implications

Joe Rogan Moves to Texas And the Greater Real Estate Implications We are looking forward to meeting you to set up your 1031 Exchange portfolio...

Read More

Comprehensive 1031 Exchange Guide for 2020

We are looking forward to meeting you to set up your 1031 Exchange portfolio Contact Us Table of Contents Complete 1031 Exchange Guide for 2020...

Read More

Get Access To Events & Quarterly Market Updates

SUBSCRIBE TO THE TFS INVESTOR NETWORK

We have exclusive properties just for you, Leave your details and we'll talk soon.

Our #1 priority is to preserve investor capital. Sit down with us today to discuss how we can help you build a strong investment portfolio.