Prices for apartment buildings continue to rise relative to property incomes—months after the market seemed to have peaked.
“The thing that surprised me a bit about the last six months was the robustness of pricing in the apartment market,” says James Costello, senior vice president for New York City-based research firm Real Capital Analytics (RCA).
Investors continue to offer higher and higher prices for apartment properties relative to the income the properties produce. After a slow beginning to the year, cap rates in the apartment sector continued their relentless march downwards.
Read more...Apartment Building Prices Continue to Rise, Surprising the Market