Apartment Transaction Volume Falls 17% in Q3 as Cap Rates Decline YOY

November 4, 2022

Article by:  Leslie Shaver

  • Apartment deal volume fell 17% year over year to $74.1 billion in the third quarter, according to the most recent Capital Trends report from MSCI Real Assets, a firm that provides tools and services for the global investment community.
  • Without Blackstone’s $13 billion deal to take Austin-based student housing provider American Campus Communities private, sales volume would have slumped even more. The third quarter posted the second-highest volume for entity-level transactions, trailing only the $20.1 billion tallied in the fourth quarter of 2007.
  • Although transactions fell, pricing still held up. The Real Capital Analytics (RCA) Commercial Property Price Indices (CPPI) for apartments rose 15.9% year over year in the third quarter. However, values have only risen at a 4.9% annualized pace from the second quarter of 2022. Cap rates sat at 4.4% after coming in at 4.6% in 2021’s third quarter, according to The RCA Hedonic Series.

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