Institutional Property Advisors Releases Midyear 2023 Class A Multifamily Outlook Special Report
12 August 2023 - 1:56AM
Business Wire
Institutional Property Advisors (IPA), a division of Marcus
& Millichap (NYSE:MMI), has published its Class A Multifamily
Outlook Midyear 2023 special report.
“Today’s high barriers to homeownership are helping support
demand for high-end apartments, particularly among the millennial
demographic,” stated John Sebree, senior vice president and
national director of IPA’s multi housing division.
IPA’s Class A Multifamily Outlook provides investors with vital
insight and analysis on the current state of the Class A
multifamily market sector including:
- Demand for high-end apartment rentals is outperforming other
segments in recent quarters, despite the added competition
presented by historic amounts of new supply being delivered.
- Class A apartment rent growth has cooled down after historic
gains during 2021 and 2022, while home prices and mortgage rates
have continued to increase. These divergent trends have made
high-end apartments more affordable relative to homeownership.
- Millennial homeownership is trending well-below previous
generations, and surveys indicate that an increasing share of young
adult renters are giving up on the pursuit of homebuying
altogether. Saving for a down payment is a key challenge, one that
is set to become more difficult once student loan payments resume
in fall.
- High-density coastal markets have been among the strongest
performers for Class A apartments recently. Many of these locations
have an outsized population share of 25-to-44-year-olds and extreme
homeownership barriers, which is directing higher-income households
to luxury rentals.
- Investment activity for higher-end apartments has remained soft
in recent quarters as many institutional groups stayed on the
sidelines amid rapidly rising interest rates. Financial markets
stability should prompt greater trading velocity in the coming
quarters, however.
“These factors are supporting Class A apartment performance even
amid a sizable construction pipeline,” added Sebree.
IPA’s complete Class A Multifamily Outlook Midyear 2023 special
report is available here.
About Institutional Property Advisors (IPA)
Institutional Property Advisors (IPA) is a division of Marcus
& Millichap (NYSE: MMI), a leading commercial real estate
services firm in North America. IPA’s combination of real estate
investment and capital markets expertise, industry-leading
technology, and acclaimed research offer customized solutions for
the acquisition, disposition and financing of institutional
properties and portfolios. For more information, please visit
www.institutionalpropertyadvisors.com
About Marcus & Millichap, Inc. (NYSE: MMI)
Marcus & Millichap, Inc. is a leading brokerage firm
specializing in commercial real estate investment sales, financing,
research and advisory services with offices throughout the United
States and Canada. As of December 31, 2022, the company had 1,904
investment sales and financing professionals in 81 offices who
provide investment brokerage and financing services to sellers and
buyers of commercial real estate. The company also offers market
research, consulting and advisory services to clients. Marcus &
Millichap closed 12,272 transactions in 2022, with a sales volume
of approximately $86.3 billion. For additional information, please
visit www.MarcusMillichap.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20230811131516/en/
Gina Relva, VP of Public Relations
Gina.Relva@MarcusMillichap.com
Marcus and Millichap (NYSE:MMI)
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