Multifamily Sector Shows Resilience Amidst Moderating Supply

During the second quarter of 2023, multifamily real estate investment trusts (REITs) reported resilient demand despite a backdrop of moderating supply. According to Multifamily Dive, leaders in the multifamily sector highlighted this trend during their earnings calls, particularly noting robust demand in the Sun Belt region, which suggests a stable market environment for multifamily investments overall ⁴.

In New York, JLL Capital Markets has recently listed the Lighthouse Point development in Staten Island for $45 million. This newly completed Class A multifamily waterfront project emphasizes the ongoing investment in urban waterfront areas, which are becoming increasingly attractive for multifamily developments ¹.

Meanwhile, in Atlanta, PXV Multifamily has made its first acquisition with the purchase of the 216-unit Village on the Green property for $29.5 million. This acquisition underscores the competitive nature of the multifamily market in Atlanta, where demand continues to outpace supply ².

In Arizona, Garrett Cos. has completed the Emblem Mesa project, adding 248 units of multifamily housing to the market. This garden-style development spans 14.3 acres and contributes to the growing inventory of multifamily housing in the region, further demonstrating the ongoing expansion within this sector ³.

Overall, the multifamily sector is navigating a complex landscape characterized by strong demand and strategic investments, particularly in urban and suburban markets that are seeing significant growth. As developers continue to respond to market needs, the outlook for multifamily housing remains positive, particularly in regions like the Sun Belt where demand is robust and supply is carefully managed.

Sources

1. ConnectCRE — JLL Lists Staten Island Waterfront Development for $45M
2. Multifamily Dive — Matt Ferrari’s PXV Multifamily makes first acquisition for $29.5M
3. REBusinessOnline — Garrett Cos. Completes 248-Unit Multifamily Project in Mesa, Arizona
4. Multifamily Dive — Apartment REITs see Sun Belt momentum in latest earnings