Bid-Ask Gap Grows in the Apartment Sector via National Real Estate Investor

The new year has brought some surprises for the apartment business. Investors are buying and selling far fewer apartment buildings.

“You are going to be shocked at the year-over-year declines in apartment deal volume into January,” says Jim Costello, senior vice president of New York City-based research firm Real Capital Analytics (RCA).

Far fewer deals closed in the apartment sector in both January and February compared to the year before. Buyers increasingly want higher yields on their investments. Sellers still insist on the high prices they believe their properties are worth and many are willing to refuse to sell rather than accept a lower bid.

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