Multifamily Market Overview
Looking back at the current cycle, it appears that the Twin Cities multifamily market has reached a new norm on both the transactional and development fronts. Historically driven by private capital buyers with long ownership periods, trade frequency has greatly increased for existing properties and new development.
Some of this is driven by price appreciation and heavy buyer demand, and some of it by the very nature of private equity and institutional ownership, which typically favors a three to 10 year hold period rather than legacy ownership. The pattern of greater sales velocity appears to be the baseline for our market going forward.