Cap Rate Predictions for 2022

Despite continued turbulence in the economy, persistent trends in the multifamily market and commercial real estate are sharpening many projections for 2022 and 2023. A recently-published cap rate survey further highlights the effect that the Federal Reserve's interest rate regime has had on CRE markets, and several recent multifamily reports show how the higher-performing apartment markets of 2021 have softened in 2022, with renter and investor demand increasing in smaller secondary/tertiary markets.

Sources discussed in this video:

CNBC: “Home Prices Weakened in June but Are Still Up 18% from 1 Year Ago” - https://www.cnbc.com/2022/08/30/home-prices-weaken-but-are-still-much-higher-than-a-year-ago-sp-case-shiller-.html

Institutional Property Advisors: “6 Key Takeaways from Today’s U.S. Apartment Market Performance” - https://www.institutionalpropertyadvisors.com/research/special-report/2022/08/special-report-august-apartment-market

Apartment List: “August 2022 National Rent Report” - https://www.apartmentlist.com/research/national-rent-data

Apartment Guide: “Quarterly Average Rent Price Report” - https://www.apartmentguide.com/blog/quarterly-average-rent-price-trends-report/

CBRE: “U.S. Cap Rate Survey H1 2022” - https://www.cbre.com/insights/reports/us-cap-rate-survey-h1-2022

For the latest multifamily news from across the internet, check out the Gray Report website: https://www.grayreport.com/

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DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest.


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