Here are the key points from the 2013 Multifamily Midyear Outlook:

  • Total employment rose by more than 2 million jobs during the past twelve months; the unemployment rate is 7.4%.
  • Rents are growing and vacancies are near historical lows for much of the country. In time, delivery of new supply will slow these trends.
  • Cap rates are also near historical lows, but the spread to the 10-year Treasury is wide. Expectations are that cap rates will increase with Treasury rates, but at a slower pace.
  • In multifamily debt markets, new purchase and guarantee volume has been up the past 3 years, with $143 billion done in 2012, just shy of 2007’s peak. Our K-Deal® execution loans continue to be conservatively underwritten.
  • We introduce the Freddie Mac Multifamily Investment Index to capture the relative attractiveness of commercial apartment buildings to investors.

Read the report.