Apartments Remain the Favorite Asset Class Among Real Estate Investors

Apartments remain an attractive real estate investment compared to other asset types, accounting for 37% of all commercial real estate sales in 2024’s 3rd quarter. While apartment sales volumes are below the pandemic-era peak, 3rd quarter 2024 results were in line with pre-pandemic standards. Apartment sales during the quarter totaled $35.8 billion, a 9% year-over-year increase, according to data from MSCI Real Assets. That marked the second consecutive quarter of year-over-year growth following seven quarters of declines. Sales over the past two quarters averaged $38.3 billion, aligning with the pre-pandemic norm from 2015 through 2019. Sales volumes increased for both portfolios and single assets in 3rd quarter 2024. Transactions for individual apartment properties totaled $29.2 billion, up 5% year-over-year. Portfolio deals increased 33% to $6.6 billion in 3rd quarter. Mid- and high-rise apartment transactions increased 26% year-over-year to $15.9 billion in 3rd quarter. Sales of garden properties fell 1% year-over-year to $19.9 billion.