U.S. Apartment Market Heads for Record Deal Volume in 2021

U.S. multifamily investment sales volume roared back to its usual self in the second quarter, Newmark reported. The 238.1% year-over-year surge to $52.7 billion represented the largest sequential increase on record.

With year-to-date deal activity of $92.1 billion, volume is 7.2% ahead of 2019’s pace, a year in which apartment investment sales achieved record annual volume of $192.5 billion, Newmark says. Also representing a new high is capital allocation to non-major markets: 81.1%, a new record.

Dry powder rose to an all-time high of $234 billion earmarked for investment into commercial real estate. Year-to-date, $74.3 billion has been set aside for investment into residential properties, with 71.1% of that tally directed toward value-add and opportunistic strategies.

On a quarter-over-quarter basis, multifamily effective rent rose by 3.8% in Q2, the highest single-quarter growth rate on record, says Newmark. Demand, meanwhile, has significantly outpaced new supply.

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