Top 10 Multifamily Markets by Sales Volume in 2022 H1

By Anca Gagiuc

The U.S. multifamily market had an exceptional performance from an investment standpoint during the first half of the year, according to Yardi Matrix data. Overall national multifamily sales volume surpassed $101 billion in the first six months of 2022, outperforming the $67 billion volume registered in 2021 during the same interval, while the average price per unit rose 28.4 percent year-over-year, to a new high of $218,377. The number of assets that traded also increased, from 2,362 properties during the first half of 2021 to 2,961 in 2022.

In the ranking below we’re looking at the top 10 markets by multifamily investment volume. Combined, their sales volume amounts to $48 billion, which accounts for nearly half of national sales activity. Notable highlights include a strong rebound of gateway markets New York and Los Angeles, not present in last year’s overall ranking, replacing Tampa and Raleigh.  

1. Phoenix

Phoenix was one of the first markets to recover all the jobs lost during the pandemic, entering the expansion phase late last year. Its multifamily investment volume rose to $7.4 billion during the first half of the year, a substantial increase from the $5.1 billion registered during the same time last year. However, last year, investor activity increased progressively from quarter to quarter, a dynamic that is more likely to be reversed in 2022 due to the current economic woes. Through June 2022, 127 properties (24,787 units) changed hands in the metro, slightly above last year’s correspondent period (124 properties, 24,115 units).

The average price per unit in Phoenix marked a 58.3 percent year-over-year increase, the largest of all metros in this ranking, to $339,622, well above the U.S. figure. By asset class, the per-unit price for upscale apartments stood at $472,452 in June (up 20.2 percent from the first quarter), while for the working-class units rose to $289,057 (up 15.1 percent from the first quarter). Considering the sales composition—which comprised 14,735 Renter-by-Necessity(RBN) units and just 10,052 Lifestyle units—investor competition was the main driver behind the price.

Last year, total multifamily sales volume in Phoenix amounted to $14 billion, which placed it third among major metros in the country…

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