Mid-Atlantic Research Reflections 2022 - Multifamily

Multifamily fundamentals across the Mid-Atlantic region have moderated from the exceptional levels recorded in 2021. The first half of 2022 continued at a heightened pace, closing $5.2 billion of sales. However, the market currently sits at an inflection point as uncertainty has created a mismatch between buyer and seller expectations.

Recent Federal Reserve rate hikes accompanied by general economic uncertainty and geo-political turmoil, have led to significant volatility across the investment sales market.  Subsequently, many investors have put their proverbial pencils down, pausing momentarily in wait for greater certainty and stability in the capital markets. Despite the present investor pause, Mid-Atlantic multifamily remains an attractive asset sector with more than $9.5 billion of assets trading so far in 2022 and another $3 billion currently under contract. While 2022 is on pace to exceed the long-term average, $5.5 billion have gone to market and will not trade, with another $1 billion expected to change hands with pricing reductions between 5% and 20%.