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Research - FEBRUARY 13, 2020

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Multifamily is a safer bet in event of a downturn

by Andrea Zander

The multifamily market has performed consistently well for several years, and little is expected to change in 2020, reported Yardi Matrix. The healthy job market and demographics have produced robust demand.

The economic growth is expected to remain moderate. And investor demand for multifamily is likely to remain insatiable. Transaction volume was just below record highs in 2019, and acquisition yields have stayed at record lows for several years. The sector will remain in demand among equity investors for its stable cash flows.

Multifamily is a safer bet than other property types in the event of a downturn. For example, office must deal with weakening demand from workplace trends, and retail is only beginning to work through the fallout from growth in online shopping. Many investors are counting on demand for apartments to remain relatively consistent due to demographic and social trends, even if the economy weakens.

 

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