Cap Rate Predictions and Trump vs. Harris on Housing

The multifamily market continues to work through historic amounts of new apartment supply as the end of peak leasing season approaches, and rent growth could remain below average through the end of this year. At the same time, cap rate estimates suggest higher investor demand moving forward, particularly when factoring in a more favorable debt environment, and persistent housing demand is expected to support a more active and competitive apartment market as the amount of newly-built apartments diminishes through the end of 2024 and into 2025.