| Sales Volume |
Investment sales for 1Q18 increased 25.1% year-over-year to $34.8 billion with suburban value-add product seeing the bulk of recent capital flow, especially in markets such as Atlanta and Dallas. Over the past 12 months, total volume also rose to $160.1 billion for an 8.8% annual growth.
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| Cap Rates |
Strong investor demand in both major and non-major markets for multihousing product continued to drive yields down in 1Q18, declining quarter-over-quarter and year-over-year.
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| Rent Growth |
Annual effective rent growth remained steady at 2.3% nationally. Several western markets, including Sacramento, Las Vegas, Phoenix and San Diego, as well as markets throughout Florida, such as Orlando and Tampa, are experiencing above-average rental growth on the heels of strong absorption.
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| Supply and Demand |
With nearly 92,000 units delivered, 1Q18 saw the strongest delivery quarter since 2Q17. 2018 is expected to be the peak year for new supply nationally, yet high-growth markets such as Austin, Dallas, Charlotte and Nashville continue to see strong inventory growth and absorption.
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| International Capital |
International capital sources acquired $12.9 billion in U.S. multihousing over the past 12 months, with several large-scale transactions in the student housing space. New entrants and emerging buyers throughout the globe are increasingly looking at opportunities in U.S. multihousing.
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| Debt Markets |
Multihousing debt outstanding increased 2.1% annually to $1.3 trillion, with GSE debt outstanding representing 48.1% of the total market. Over $110 billion of U.S. multihousing mortgages are set to mature in 2018.
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