During a recent Walker Webcast, Madera Residential’s Jay Parsons discussed the current state of the multifamily sales market with Walker & Dunlop CEO Willy Walker. According to Parsons, there have been fewer transactions this year than expected due to an imbalance between buyers and sellers.
Parsons noted that distressed sales have not been as prevalent as anticipated, which has led to downward pressure on cap rates. However, he believes that volume will eventually pick up due to strong demand for both multifamily and single-family rental properties.
Additionally, Parsons mentioned that value-add buyers have been largely absent from the market in 2024. This has resulted in a lack of deals in the Class C space but is expected to change next year.
Parsons also discussed his previous prediction about tenant retention strategies being successful during 2023. He stated that while there is currently a high level of apartment supply due to post-pandemic construction booms, retention rates continue to increase because people are choosing convenience over financial benefits when it comes time for renewal or relocation.
The conversation also touched on topics such as development costs and potential changes regarding GSEs under a second Trump administration. The discussion concluded with thoughts on long-term investment opportunities and affordability within the rental housing market.
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