Achieving multifamily investment success in a changing market

Institutional investors have relied upon multifamily as a cornerstone of their real estate portfolios for decades. With soaring housing prices and prolonged elevated mortgage rates, premier apartment communities present, more than ever, an attractive alternative for a large swath of residents, providing the tasteful finishes and amenities they seek in a home. These dynamics have solidified the sector’s place among housing choices, creating a comparatively stable place to allocate capital.

While the outlook for the sector remains bright, it has faced recent challenges over weakened rent growth and oversupply in select markets. Many institutional investors have been waiting on the sidelines for new deliveries to be absorbed and prices and interest rates to decrease. Meanwhile, a significant amount of dry powder continues to remain available.

While a rising tide floats all boats, apartment communities tend to fare especially well in regions with increasing population an