Demand Drives Multifamily to
Record-Breaking Heights
Multifamily | U.S. Capital Markets
Interactive Map
January 2022
Seattle, WA
Cap Rate Range
3.5 - 3.9%
Units Under Construction*
22,000
% Inventory Underway*
6.1%
Capital chasing tech presence.
San Francisco, CA
Cap Rate Range
3.0 - 3.5%
Units Under Construction*
18,000
% Inventory Underway*
3.5%
Return of tech, even temporarily, caused cap rates to compress rapidly.
Southern California
Cap Rate Range
3.5 - 4.0%
Units Under Construction*
42,000
% Inventory Underway*
2.8%
Rent moratorium has been in place, offering rent upside in 2022 / 2023.
Phoenix, AZ
Cap Rate Range
2.8 - 3.25%
Units Under Construction*
27,000
% Inventory Underway*
7.3%
Lifestyle rents have topped $2,000 / unit. Investors banking on strong rent growth.
Denver, CO
Cap Rate Range
3.25 - 3.75%
Units Under Construction*
18,000
% Inventory Underway*
6.6%
Luxury market set new price record of more than $1 million/unit.
Dallas - Fort Worth, TX
Cap Rate Range
3.5 - 4.0%
Units Under Construction*
30,000
% Inventory Underway*
3.8%
New construction highly sought after. Stabilization not necessary.
Austin, TX
Cap Rate Range
3.25 - 3.75%
Units Under Construction*
24,000
% Inventory Underway*
9.7%
Lease trade-outs of 20 - 25%.
Houston, TX
Cap Rate Range
3.75 - 4.25%
Units Under Construction*
23,000
% Inventory Underway*
3.6%
Recovery in energy markets driving market demand.
Midwest Markets
Cap Rate Range
4.25 - 5.0%
Units Under Construction*
2,600 - 12,000
% Inventory Underway*
1.6 - 5.0%
Suburban markets generally outperforming their urban counterparts.
Chicago, IL
Cap Rate Range
4.0 - 5.0%
Units Under Construction*
10,000
% Inventory Underway*
1.9%
Ongoing tax, pension and crime concerns kept cap rates from compressing.
Nashville, TN
Cap Rate Range
3.5 - 4.0%
Units Under Construction*
19,000
% Inventory Underway*
13.50%
Tech growth has soared, new construction highly sought after.
Atlanta, GA
Cap Rate Range
3.25 - 3.75%
Units Under Construction*
19,000
% Inventory Underway*
4.0%
Investors targeting previously underappreciated locations.
Orlando/Tampa/Jacksonville, FL
Cap Rate Range
3.75 - 4.25%
Units Under Construction*
30,000
% Inventory Underway*
6.2%
Buyers agnostic to vintage.
South Florida
Cap Rate Range
3.75 - 4.25%
Units Under Construction*
28,000
% Inventory Underway*
7.4%
Rapid population growth attracting buyers.
Raleigh/Charlotte, NC
Cap Rate Range
3.25 - 3.75%
Units Under Construction*
19,000
% Inventory Underway*
6.2%
Buyers paying a premium for fast-growing neighborhoods.
Washington, D.C.
Cap Rate Range
3.5 - 4.0%
Units Under Construction*
30,000
% Inventory Underway*
5.6%
Amazon HQ2 and Virgina Tech's Innovation Campus drawing in tech demand and jobs.
New York, NY
Cap Rate Range
4.0 - 4.5%
Units Under Construction*
64,000
% Inventory Underway*
4.50%
Demand rebounding with return to office.
Boston, MA
Cap Rate Range
3.75 - 4.25%
Units Under Construction*
14,000
% Inventory Underway*
5.9%
Lease-up, particularly in urban Class A properties is fierce.
Atlanta, GA
Austin, TX
Boston, MA
Chicago, IL
Dallas-Fort
Worth, TX
Denver, CO
Houston, TX
Midwest Markets
Nashville, TN
New York, NY
Orlando, Tampa, Jacksonville, FL
Phoenix, AZ
Raleigh/Charlotte, NC
San Francisco Bay Area
Seattle, WA
South Florida
Southern California
Washington, D.C.
Colliers' Multifamily Report | Interactive Map
Source: Colliers | *Source: CoStar