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3Q16 ARA Newmark United States Multihousing Market Overview

October 2016

ARA Newmark presents the Third Quarter 2016 National Multihousing Market Overview. The statistics and outlook contained in the report illustrate current trends in the Multihousing sector.

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Executive Overview
Sales Volume After a slow start to the year, quarterly sales volume improved 7.1% year-over-year to $36.8 billion and reached an all-time high of $164.4 billion during the past 12 months.
Cap Rates Cap rates of institutional-grade multihousing product remained steady, as yields ticked down 10 basis points quarter-over-quarter to 5.4%.
Rent Growth Effective rent growth moderated to 3.0% year-over-year, signaling a possible reversion to the mean after outsized rent growth over the past few years.
Supply and Demand Demand remains strong with metros such as Austin, Charlotte and Nashville offering robust inventory increases to keep up with job growth.
International Capital  Yields remain an attractive option for international capital, which has invested $45 billion into United States commercial real estate year-to-date.
Debt Markets Regional and local banks have increasingly become a key source of financing for multihousing, as they look to fill the void left by the CMBS market.