New York Is NOT Most Expensive City for Apartment Sales Transactions

Latest data from real estate investment firm Marcus & Millichap shows San Francisco (#1), San Jose (#2), and Orange County, Calif. (#4) in the Top 5 of U.S. multifamily markets for average price/unit in mulfamily transactions. Avg price/unit in San Francisco: $451,060; San Jose: $403,370; Orange County: $301,740.

Rounding out the Top 5: Boston (#3, $308,310) and New York City (#5, $289,000).

Avg price/unit for the U.S.: $151,480.

Looking for a bargain (maybe): Go Midwest, young dealmaker.

Avg price/unit in Cincinnati: $52,780. Cleveland: $54,880. Indianapolis: $64,950.

Note: Apartment data forecasts for 2019 are based on the most up-to-date information available as of December 2018 and are subject to change. Average prices are a function of the age, class and geographic area of the properties trading and therefore may not be representative of the market as a whole. No representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. This is not intended to be a forecast of future events and this is not a guaranty regarding a future event. This is not intended to provide specific investment advice and should not be considered as investment advice.

Source: 2019 MULTIFAMILY North American Investment Forecast © Marcus & Millichap 2019

Across the country, multifamily rents have skyrocketed. Year-over-year rents are up by double digits in nine of the top 30 markets, while national YoY rent growth is up 6.3%. Emerging from the pandemic, a perfect storm of migration, enhanced government stimulus and a hot housing market, among other factors, has enabled this extremely strong growth.