- April 1, 2023: Vol. 35, Number 4

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Apartment sector fundamentals well positioned, despite moderation

by Loretta Clodfelter

The multifamily sector has been one of the strongest property types in the post-pandemic era, though it showed some signs of moderating in 2022 compared with 2021. Apartment sales transactions fell 16.1 percent in the past year, according to Yardi Matrix, from $222.9 billion in 2021 to $187.0 billion in 2022.

Apartment rents also are moderating, according to Yardi Matrix, which saw rents flat in January from the previous month. Although the pace of apartment rental growth is slowing, the multifamily market is likely to remain strong.

“We expect the apartment sector to remain strong, especially within the coastal markets,” says Jeff Turkanis, CIO of Veris Residential. He adds that the pace of rental growth should slow and normalize over the coming years.

Kristi Nootens, co-head of CP Capital, agrees: “While we are currently seeing a pullback from multifamily’s historical outperformance in 2021, CP Capital remains confident in the sector’s enduring appea

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