CoreLogic’s chief economist Dr. Frank Nothaft reported that multi-family property sales totaled some $100B in 2018. This $100B represents the largest annual sales volume recorded for this market sector. Additionally, Nothaft reported that apartment prices surpassed existing highs during last year.
The national median sales price for multi-family properties exceeded $100/square foot in 2018, a +5% increase from 2017 and a more than +50% increase from the 2010 Great Recession trough.
As with everything real estate, prices for multi-family properties varied by location, land values and rent. Take a look and you’ll see that the highest prices for multi-family properties were found along the Pacific Coast and the environs of New York City.
Price/square foot in Top Metros
San Francisco $479/square foot – 4X national average
Anaheim $339/square foot
San Diego $303/square foot
Los Angeles $296/square foot
Oakland $291/square foot
Seattle $271/square foot
Denver $201/square foot
Portland $163/square foot
Sacramento $159/square foot
Washington DC $141/square foot
Dallas $140/square foot
Austin $136/square foot
Phoenix $133/square foot
Minneapolis $117/square foot
Charlotte $102/square foot
Tampa $99/square foot
Chicago $92/square foot
Orlando $90/square foot
Atlanta $74/square foot
Multi-family properties, after nose-diving during the Recession, recovered sooner and faster than the single-family sector of the market. CoreLogic anticipates that rent is expected to rise +3% in 2019 with cap rates close to last year’s levels. Such forecasting supports further gains in multi-family property values.
