Q4 2023 Multifamily Cap Rates Do Not Make Sense for Most Buyers

While recent comments and reports depict our current moment as a substantial opportunity for multifamily investors, there has been little disagreement about the headwinds for apartment performance in 2024, with continued rent growth stagnation and elevated interest rates as prominent challengers for investors. A more favorable environment for multifamily asset performance is expected to develop moving into 2025, but for many apartment investors, the math simply does not work right now.