As the multifamily real estate cycle moves into its late expansion phase, what can be expected of market performance and investment returns? The answer is by no means obvious. The current cycle has proven unique in several respects and participants should assume that it will continue to deviate from the historical playbook in its later innings.
Whether we stand in the “Late Expansion” or “Early Hyper-Supply” phase of the cycle is a matter of debate but it is clear that the classic characteristics of these stages are materializing. Supply is near record levels, occupancy is below cycle peak and rents are decelerating in nearly every market.
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