Yardi® Matrix analyzed multifamily transaction activity for its final special report of 2020, and found that property sales are down sharply – though impact varies regionally - as a result of the pandemic.
Through three quarters in 2020, $50.6 billion of multifamily property sales were completed in the U.S., down 41.7% from $86.5 billion through the same period a year ago, according to the report. There’s little hope full-year volume will get close to 2019’s record high of $127.8 billion. Gateway and coastal metros have generally seen a larger decline in deal flow than secondary and tertiary markets in the Sun Belt and Southwest.
“Much of the change could be described as a ‘filtering’ effect: investors moving from urban cores to inner-ring suburbs, from primary to secondary metros and from secondary to tertiary metros. This phenomenon results from several factors, including owners putting fewer properties on the market, disagreement between buyers and sellers about prices, the composition of buyers, and the competition for assets,” states the report.
Like many industries, multifamily sales saw a stronger performance in Q3 than during earlier in the year. Capital availability is relatively strong due to lack of better alternatives, optimism about future demand for housing, and the stability afforded by the government-sponsored enterprises Fannie Mae and Freddie Mac.
Gain all the insight in this special multifamily transaction report from industry data leader Yardi Matrix.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, industrial, office and self storage property types. Email matrix@yardi.com, call 480-663-1149 or visit yardimatrix.com to learn more.
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