The CRE Resurgence Has Already Started

With CPI showing continued declines in inflation this week and lower ten-year treasury yields foreshadowing an expected interest rate reduction from the Federal Reserve, investors continue to show more activity and interest in the CRE investment market, with multifamily properties specifically showing noticeable positive growth in property prices since the beginning of the year. Rents in the apartment sector will likely follow a similar trajectory as 2023, with seasonal trends pointing to slower rent growth through the end of the year, but investors are not blind to the prospects of the multifamily market and are acting on expectations of stronger performance as the surge in newly-built apartments wanes through the end of 2024 and into 2025.