Apartment investors apply more scrutiny to deals in wake of market slowdown
Demand for apartments turned negative in the third quarter of 2022, the first time in at
least 30 years it’s happened in the usually strong summer months. While investor
groups might reassess their views on the market, a short-term slowdown isn’t likely to
significantly spook investors in multifamily housing because the sector remains strong,
particularly in Sun Belt cities like Phoenix and Austin and smaller markets with robust
job growth. The exception: Pandemic “Boomtowns” like Boise, where remote workers
drove up prices that weren’t sustainable.