by David Nelson

At initial glance, it makes sense that multifamily investors are largely sitting on the sidelines as 2023 draws to a close. High interest rates are making investment sales difficult, as buyers struggle to get deals to pencil out. 

But as investors take a wait-it-out approach, one premise is often ignored—multifamily remains an attractive investment, even in the current market.

There is little debate that investors have approached 2023 with extreme caution. The high-interest-rate environment—coupled with general market uncertainty—has caused transaction volume to decline dramatically. As many investors opt to place their capital in CDs, Treasury bills, or entirely halt their investing, real estate deal volume has dropped by 74% in 2023.

Read David Nelson’s article in the Multifamily Executive.