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Saguenay Market Report | Multi-family

Between September 2022 and September 2023, the multi-residential market in Saguenay went through a transition period with minor fluctuations. This article provides a comprehensive market analysis, with a focus on multi-residential buildings ranging from 5 to 11 units and those with 12 to 24 units. The analysis will delve into crucial factors including transaction volume, cost per unit (CPU), gross income multiplier (GIM), net income multiplier (NIM), and the capitalization rate. The primary objective of this analysis is to provide a comprehensive evaluation of the market at a regional level. 

5 to 11 UNITS

The sale of buildings with 5 to 11 units experienced a 4% decrease compared to September 2022. In September 2023, a total of 43 properties changed hands in this category. Over the course of a year, from September 2022 to September 2023, the investment volume for these properties amounted to $22 million, indicating a 10% increase. Additionally, the cost per unit (CPU) rose by 16%, reaching $77,000 in September 2023. Meanwhile, the gross income multiplier (GIM) saw a 2% decrease, settling at 9.5, while the net income multiplier (NIM) exhibited a 13% increase, reaching 20.2. The cap rate also experienced a decline of 12%, resulting in a ratio of 4.95%. Despite these fluctuations, the market for 5- to 11-unit buildings has shown remarkable resilience, presenting a prime opportunity for investors. The statistical data associated with this category underscores the significant potential for optimizing our buildings, encompassing both income/expense management and physical condition.

12 to 24 UNITS

In the 12 to 24 unit category, the transaction volume amounted to $16 million, showing a 4% decrease from September 2022 to September 2023. During the same period, the cumulative number of transactions increased from 9 to 14. As these types of buildings are rare in the region’s existing inventory compared to smaller ones, the number of transactions remains limited. The cost per unit (CPU) decreased by 1.3% to $78,000. The gross income multiplier (GIM) saw an 18% increase, reaching 11.4%. Notably, the net income multiplier (NIM) experienced a significant surge of 76%, rising to 29.2 in September 2023 compared to 16.6 in September 2022. In contrast, the capitalization rate for September 2023 stands at 4.6%, a decrease from the 6.09% recorded in September 2022.

In conclusion, the multi-residential market in Saguenay has experienced fluctuations during the analyzed period. Buildings with 5 to 11 units remained appealing, with a slight decrease in transaction volume. Meanwhile, buildings with 12 to 24 units showed relative stability despite rising interest rates. This information highlights the significant potential of the Saguenay real estate market for regional and provincial investors. Our buildings offer accessibility, cost-effectiveness, and quick optimization opportunities. With a strong workforce and student population, the Saguenay region is an attractive choice for investors interested in real estate opportunities outside the region.

These statistics aim to provide essential insights for investors and stakeholders in Saguenay’s multi-residential market, enabling them to make well-informed decisions in the midst of a continually evolving landscape.