Multifamily Cap Rates 2025. What is Cap Rate Compression & How It Affects Multifamily Values Multifamily originations have been stalled for much of 2023 and into 2024 as high and volatile interest rates, rising cap rates, lower asset values, and moderating property performance all conspired to slow the transactions market. This trend is expected to continue at least through Q2 of 2025
Capitalization Rates in the Multifamily Sector A Deep Dive from swiftlane.com
HIGHLIGHTS OF 2023 MULTIFAMILY CAPS The 2023 volume caps applicable to the multifamily loan purchases of Fannie Mae and Freddie Mac (the Enterprises) will be $75 billion for each Enterprise, for. Industrial, retail, multifamily, and office cap rates are expected to slip slightly in 2025 but remain above pre-2020 levels
Capitalization Rates in the Multifamily Sector A Deep Dive
commercial real estate, comprising 34.7% of total trades Multifamily remains the top capital recipient in U.S By mid-2025, multifamily construction starts are expected to be 74% below their 2021 peak and 30% below their pre-pandemic average
Cap Rates for Prime Multifamily Assets in U.S. Stabilize in Q2 WORLD. The average multifamily vacancy rate is expected to end 2025 at 4.9% and average annual rent growth at 2.6%. From Q3 to Q4 of 2024 multifamily cap rates expanded an average of 15 bps on A and B Class properties, going from 4.90% to 5.05%.
Multifamily Cap Rates Explained A Comprehensive Breakdown for. According to CBRE, Multifamily Cap rates started out flat for 2025 due to low sales demand Persistent fiscal deficits, high interest rates, and potential tariffs may.