Apartment Price Growth Eclipses Industrial Increases
Multifamily increases are coming in at 10.1% year-over-year.
June 25, 2021 | Lynn Pollack | GlobeSt.com
Apartment prices have overtaken industrial as the fastest-growing in May, with increases coming in at 10.1% year-over-year.
Industrial price growth, conversely, grew by 9.5%, according to the most recent data from Real Capital Analytics. The US National All-Property Price Index increased 0.8% over April numbers and 8.9% from a year ago, while office and retail price growth clocked in at 2.9% and 2.3%, respectively. Office growth was driven primarily by suburban properties, which showed a 4.5% year-over-year uptick compared to CBD prices, which declined 5.5% over the same period.
Multifamily deal activity so far this year has eclipsed both Q1 2020 numbers and volume from the years leading up to the pandemic, according to RCA’s Shane Omundsen. Data from Crexi shows that multifamily properties posted the sharpest decline in days-on-market in May, with average close times declining by 16.75% from Q4 2020 to Q1 2021,and a recent analysis by the Urban Land Institute predicts that apartment rent growth will tick up 1.7% this year.
