Replacement Cost: The New Focus for Multifamily CRE Investors

May 28, 2025

Replacement Cost: The New Focus for Multifamily CRE Investors

In this episode, we delve into the shifting landscape of multifamily CRE investment, spotlighting the rising emphasis on replacement cost as a pivotal metric. As the U.S. housing market grapples with persistent supply-demand imbalances and escalating homeownership costs, investors are increasingly turning to multifamily assets. This trend is further influenced by a slowdown in new developments due to tightened capital availability, prompting a strategic focus on acquiring properties below replacement cost to capitalize on anticipated rent growth.

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