Top Markets for Multifamily Transactions in 2022
Multidisciplinary investment through growing economic challenges, national sales volume to slightly exceed $200 billion in 2022, down 14.4 percent from 2021 total, according to yardy matrix Figures. The average US price per unit continued to rise (up 11.2 percent year-over-year to $212,181) and the sales composition—heavily on the renter-by-need side, with 57 percent of all units sold in the segment—a keener Shows interest in value added opportunities.
Their combined totals remain unchanged, accounting for 40 percent of national sales in both 2021 ($96 billion) and 2022 ($80 billion), despite a slight drop in national sales volume.
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Multifamily sales volume declined in seven of the top 10 markets, with only Los Angeles, Orlando and New York – the latter posting a stronger rebound of more than 200 percent compared to 2021 levels, and it’s also the only metro where There has been an increase in the number of units sold as compared to the previous year. Furthermore, these three markets are the only ones with an increase in the volume of upscale lifestyle assets being traded in 2022. Meanwhile, the sales volume registered in the RBN segment was up in all except two metros-Charlotte and Los Angeles. Here are the Top 10 US Multifamily Markets in 2022 by Investment Volume.
|Metro||Sales Volume $2022||Price Per Unit 2022||Assets sold 2022||Units sold in 2022|
Atlanta topped the rankings with nearly $12 billion in multifamily sales, down from $16.3 billion in 2021. The working-class, RBN Quality segment clocked a sales volume of over $4.4 billion last year. Although trending down, the metro’s investment market was still highly active, surpassing its pre-pandemic peak ($7.9 billion) registered in 2019.
The decline in transactions was led by a sharp decline in sales of upscale properties, which were down 35 percent from a 2021 total of $11.8 billion. Meanwhile, RBN’s sales volume registered a slight increase last year, to $4.3 billion in 2021. By number of properties and units sold, Atlanta ranked third among these 10 markets, with 62,167 units in 372 properties, behind the other two stable metros—Dallas and Houston.
For now, the average price per unit has maintained steady growth, up 8.6 percent year-on-year to $205,788, narrowing the gap with the US average. For lifestyle properties, the price per unit increased by 13.6 percent to $259,582, while that for RBN units increased by 18.9 percent to $154,310.
Phoenix maintained a strong presence in the investment market, although its sales volume is expected to drop 25 percent year over year to $11.3 billion in 2021. Mirroring Atlanta’s trend, the decline in metro volume occurred only in the lifestyle segment, from $8.3 billion in 2021 to $6.2 billion in 2022. Furthermore, RBN volume not only increased from $5.1 billion to $6.7 billion, but also surpassed Lifestyle’s sales. By the number of properties and units sold, Phoenix was right behind Atlanta, with 39,691 units in 276 properties.
Increased competition among investors drove the price per unit to a substantial 25 percent increase to $322,583, behind only Miami (35 percent), and well ahead of the US national average. Investor preference for value-added plays drove RBN per-unit price up nearly 28 percent to $260,773, and for lifestyle assets up 23 percent to $406,862.
With investment volume on a declining trend for several years, Dallas’ total fell another 33 percent, losing its top position, but still posting a strong sales total with $10.3 billion. It was the third and last market to have double-digit annual multiyear investment values.
It was also the third market in this ranking, with a decline in lifestyle sales and an increase in RBN trades. Specifically, sales of lifestyle properties fall from $10 billion to $5.4 billion in 2022, and sales of working-class properties increase from $4.9 billion to $5.3 billion. Compared to 2021, more properties (577) and fewer units (107,430) changed ownership in Dallas—497 properties traded in 2021 (148,004 units).
Property values were fueled by an 18.6 per cent increase in the median price for lifestyle units, to $222,804, more than double the 9.4 per cent RBN rate, which stood at $143,710. Overall, the average price per unit in the metro rose 7.2 percent to $174,148, which is well behind the national average.
Houston’s annual multifamily sales volume also declined in 2022, but only by 12 percent, down from $10 billion to $9.9 billion (from $11.2 billion in 2021). The metro ranked fourth in 2021, behind the same three metros — Atlanta, Phoenix and Dallas.
In contrast to higher-ranking metros, the sales volume decreased to $6.6 billion (from $7.7 billion in 2021) in lifestyle trades and $3.3 billion (from $3.5 billion) in RBN transactions. By the number of properties and units sold, Houston ranked second only to Dallas with 96,354 units in 443 properties.
The overall median price per unit in Houston is set to rise 6.2 percent to $152,436 in 2022, but remains in the relatively affordable pool, well below the $212,181 US median.
Florida Metro has jumped one spot since the 2021 ranking. The amount of multifamily investment in Miami is set to drop from $9.3 billion in 2021 to approximately $6.7 billion.
Similar to the top three ranking markets in this ranking, sales volume in Miami Lifestyle declined from $7.2 billion to $5.4 billion in 2021, while pressing demand for value-added opportunities drove RBN volumes to increase from $1.2 billion to $2.7 billion in 2021. billion dollars. The number of units sold in 2022 (22,599 units) is down to less than half of the volume registered in the previous year (46,442 units), and the number of properties is down from 200 to 114 in 2021.
Notably, the average price per unit increased by 47 percent to $213,592, marking the highest increase in property value among metros in this ranking. In addition, the median per unit price for a lifestyle property in Miami increased by 17.2 percent to $385,456. Overall, the average price per unit in Miami increased by a substantial 35.1 percent to $325,576, well ahead of the national rate.
Orlando gained two spots in the 2021 rankings, with multifamily investment volume increasing nearly 10 percent to $6.5 billion (up from $6 billion in 2021). The metro is one of the three markets in this ranking with an increase in sales volume.
Sales across asset classes drove volumes across all property segments, with lifestyle volumes growing to nearly $5.2 billion ($4.6 billion in 2021) and RBN growing to $1.4 billion ($1.3 billion in 2021). Besides this, the number of properties traded last year dropped to 112, totaling 28,590 units.
Both property segments registered an increase in per-unit prices, with a high – 19.7 per cent for RBNs to $161,291 and 13 per cent for lifestyle properties – to $283,595. Overall, the average price per unit in Orlando rose 16.8 percent to $242,914, which is higher than the national average.
7. Los Angeles
The second market in this ranking with higher sales volume than in 2021, Los Angeles multifamily investment last year hit $6.4 billion in 2022, its highest mark in 10 years.
Lifestyle recorded sales of $3.7 billion in 2022, up from $3 billion in 2021, and RBN sales of $2.6 billion, up from the $2.4 billion registered in 2021. , 16,150 units.
The average price per unit passed the $400,000 mark for the first time, rising 16 percent year-over-year to $437,497, more than double the US average. Growth was strong in the lifestyle segment, rising 25.3 percent to $590,903, the largest increase in the segment among markets in this ranking. Meanwhile, the average per unit price in the RBN component rose 10.6 percent to $339,168.
8. Washington, DC
With nearly $6.3 billion in multifamily sales, Washington, D.C. dropped one spot from the 2021 ranking, when transaction volume stood at $9.4 billion. However, this amount is still higher than the 2020 volume ($6.1 billion) and not much less than the $6.6 billion recorded in 2019.
Sales declined in both asset segments, with lifestyle transactions totaling $4.2 billion, and RBN trades generating $2.1 billion. Lifestyle sales total $5.1 billion and RBN transactions reach $4.2 billion in 2021. In 2022, 103 properties with 25,223 units changed ownership, down from 2021—126 properties, 37,406 units.
The average price per unit is projected to increase by only 2.5 percent to $276,765 in 2022, outpacing the national figure. Behind this small increase is a 12.2 percent drop in RBN’s average price per unit to $212,416, while the average lifestyle unit rose 9.9 percent to $300,089.
9. New York
New York’s performance on the multifamily investment front was notable in 2022, at $6 billion, triple the amount recorded in 2021. It is one of three markets in this ranking that posted growth in multifamily sales.
Lifestyle Assets sales grew more than five-fold to nearly $5 billion, while RBN transactions generated nearly $1.1 billion, roughly equal to 2021 volume. New York was the only market where the deal volume increased, accounting for 51 commercial properties totaling 7,657 units.
New York is the only market in this ranking where the average price per unit in 2022 will decrease by 2.1 percent to $626,999. This depreciation led to a massive 44.6 percent reduction in the per-unit price of the RBN to $334,056, while lifestyle units increased by an average of 12.1 percent to $850,479.
Charlotte rounded out the top 10 with $5.3 billion in multifamily sales, equal to the amount registered in 2021. Overall, investment activity was intense, with 2022 being the second best year for transaction volume in the past decade.
Investor interest was heavily skewed toward lifestyle properties, which accounted for $4.3 billion of the year’s total; RBN sales reached $944 million. In addition, 106 properties traded in Charlotte in 2022 with 21,088 units, which was slightly less than the volume in 2021, when 121 properties totaling 22,890 units changed hands.
The average price per unit in the metro rose 12.2 percent to $248,778, better than the national figure of $212,181. The RBN segment saw a 30.1 percent increase in value to $167,819, the second largest gain after Miami. The median per unit price for lifestyle apartments rose 10.1 percent to $281,627.