This in-depth analysis includes all 2023 multifamily sales in our makets.

House Bill 1628 would impose a new 4 percent tax rate for the portion of the sale price on real property above $5,000,000. If approved, the new rate would go into effect on January 1, 2025.

This in-depth analysis includes all 2022 multifamily sales under $30M and an impressive rent analysis overview for 38 markets in the region.

The recent trend of persistently low unemployment in the United States is bringing new challenges for the Federal Reserve and the commercial real estate market. On one hand, the low unemployment rate is a positive indicator of a strong economy, but it also puts upward pressure on wages and inflation. This can make it more difficult for the Fed to keep interest rates low, negatively impacting commercial real estate markets. Read more below.

Put together by the research team here at Marcus & Millichap, this report outlines the effects from the federal reserve tightening the past six months. The expectation is that capital markets are likely to maintain their constraints for the coming months and more capital will start to be released as inflation comes down toward the end of the year. Read more below.

While inflation data has shown a downturn over the past couple months, the fed has been stood firm on their 2% target inflation rate, which is still a ways out. They are expected to make a 50-basis point hike again in early December. This will hopefully be the end of the fastest year of rate increases since the 1980’s. The effects of the rate increases are vast creating a significant disconnect between buyers and sellers. Sellers are still desiring an early 2022 price tag, but buyers are only able to pencil numbers at higher cap rates, accounting for the increase in lending costs. This disconnection has limited the desire to trade real estate for sellers and until they come to terms with lower costs, this standstill will continue.

The data shows rental growth is decelerating from that of 2021, with the National Association of Realtors calling it “…the household income squeeze…” with inflation going through the roof. However, this also affects the single-family housing market, bringing it to a quick halt. These two factors combined have pinched market rents into a position where the growth potential is almost exhausted.

On October 13th, Marcus & Millichap hosted the 2022 Multifamily Forum for local and regional investors. This event is the only one of its kind and included a list of high-level investors and players in the field of Commercial Real Estate. As the market continues to twist and turn, attendees were able to ask questions to multiple panels from all aspects of Multifamily. We also heard from John Sebree, National Director of Marcus & Millichap’s Multi-Housing Division, who presented in-depth slides that shed light on the current market condition of The United States.