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Monthly Statistics | Multi-family , October 2023


THE VELOCITY OF THE MARKET

MULTI-FAMILY

Between September 2022 and September 2023, the multi-family market experienced a 32 % decrease in  transaction volume, totalling 1,847 cumulative transactions for September 2023. This downward trend was also reflected in the cumulative investment volume. We observed a 35 % decrease from $5.2 billion to $3.4 billion,  for the same period. Since May 2023, the market has shown resilience in terms of transaction volume, suggesting that multi-family housing remains a safe bet  for investors despite turbulence in financial markets and economic conditions.

MARKET APPRECIATION

MULTI-FAMILY

For the period from September 2022 to September 2023, statistics reveal a relatively stable cost per unit (CPU) ranging from $139,000 to $137,000 for the 5 to 11-unit category, and between $132,000 and $139,000 for the 12 to 24-unit category. The most recent quarter, Q3-2023, shows a slight decrease in CPU for both categories. The 12 to 24-unit category was impacted by the rise in interest rates, but buyers who completed transactions found solutions to proceed with their acquisitions. On the other hand, the appreciation of 5 to 11-unit buildings demonstrated notable resilience within the multi-residential real estate market.

MARKET APPRECIATION

MULTI-FAMILY

During the period from September 2022 to September 2023, the CPL for multi-unit buildings with 24 to 49 units showed a slight downward trend, dropping from $152,000 to $138,000. It is important to mention that the low number of transactions has a significant impact on the average. On the other hand ,buildings with 50 units or more showed more pronounced fluctuations, with a CPL ranging from $191,000 to $174,000 during the same period.

Buyers have shown more patience, as evidenced by the number of transactions for larger buildings, highlighting that the value of properties has a direct impact on the negotiated price.