Between young adults who are moving out of their parents’ houses and the parents themselves, now facing empty-nest syndrome, “demand is coming from all directions” for multifamily, Marcus & Millichap’s Hessam Nadji said on BloombergTV last week. The GlobeSt.com Thought Leader enumerated the ways in which this demand is becoming evident, including what he termed a long-term “structural change” toward renting versus owning as well as investment sales pricing that’s now about 33% above the 2007 peak.
“The apartment investment market has been white hot; what’s really important is that the fundamentals have also followed the pricing,” said Nadji, senior EVP at MMI. “If you look at the effective rents that apartments are generating, they’re up about 25% above the prior peak as well. Prices didn’t just go up without the accompanying rent growth.”
Read more...Nadji: MF Demand ‘From All Directions’ - Daily News Article - GlobeSt.com
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