Apartment prices topped the industry as the fastest growing in May, with increases reaching 10.1% year-on-year.
The growth of industrial prices, on the other hand, increased by 9.5%, according to the recent data from Real Capital Analytics. The national price index for all properties in the United States rose 0.8% from April figures and 8.9% from a year ago, as growth in office and retail prices reached 2.9% and 2.3%, respectively. Office growth was primarily driven by suburban properties, which posted a 4.5% year-over-year increase over CBD prices, which fell 5.5% over the past year. the same period.
Multi-family arrangement activity so far this year has eclipsed both the numbers and volume for the first quarter of 2020 in the years leading up to the pandemic, according to RCA’s Shane Omundsen. Crexi data shows that multi-family properties saw the biggest drop in days to market in May, with average closing times down 16.75% from Q4 2020 to Q1 2021, and a A recent analysis by the Urban Land Institute predicts that Apartment rental growth will rise 1.7% this year.
But in light of the federal and state moratoriums on evictions that persist, some experts warn investors against rent value more than usual in some acquisitions.
“For investors, it is just uncertain how you can bank on rent or consolidate the numbers until this is [eviction moratoriums] shake it up, ”Andrew Rosenberg, partner at Cassin & Cassin LLP, told GlobeSt.com in a previous interview. “Investors will proceed, but they will proceed with more caution, which means they have better reserves or they pay a higher rate.”
Globally CRE’s transaction volume should continue on a regular path until 2023, reaching $ 590 billion against $ 500 billion in 2021, according to ULI.