- Apartment sales volume rose 7% year-over-year to $30B in Q1 2025, marking four consecutive quarters of growth, according to MSCI Real Assets.
- Individual asset sales, considered a key gauge of market sentiment, grew 39% year-over-year to $25.7B , approaching pre-COVID averages.
- Despite a rise in deal activity, apartment prices slipped 0.9% year-over-year, while cap rates remained flat at 5.7% for the fifth consecutive quarter.
As reported by Multifamily Dive, multifamily investment momentum carried into early 2025, with apartment deal volume rising 7% year-over-year to $30B in Q1, according to MSCI Real Assets.
Single-asset sales led the market’s recovery even as volatility in public markets rattled broader investor confidence.
Investment Activity Holds Firm
Despite tariff-driven turbulence in bond and equity markets, apartment sales remained resilient. MSCI emphasized that multifamily performance typically doesn’t react sharply within a single quarter. Investors have adapted to swings in interest rates, underwriting deals with added caution.
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Single-Asset Deals Lead Growth
Individual property sales climbed 39% year-over-year to $25.7B, nearing pre-pandemic averages. While portfolio sales rose 18% to $4.4B, entity-level transactions remained limited, reflecting more selective investment activity.
Property Type Trends
Sales of mid- and high-rise properties increased 45% year-over-year to $12.3B, while garden property sales rose 29% to $17.7B. Portfolio sales of mid- and high-rise assets surged 141% due to a weak Q1 2024 base.
Prices and Cap Rates Stay Balanced
Apartment prices dipped 0.9% year-over-year, even as cap rates held steady at 5.7% across all property types. Mid- and high-rise cap rates averaged 5.6%, slightly lower than garden properties at 5.8%.
Looking Ahead
After four straight quarters of growth, multifamily recovery appears durable. Still, as Ashcroft Capital’s Scott Lebenhart notes, continued interest rate volatility requires investors to carefully structure new acquisitions.
