With all apartment sales through the first half of 2018 now accounted for, how is the year shaping up? In short, the mixed signals continue. Rents are up, per unit and per Sq. Ft. values are down, cap rates are down, and vacancies are up. None of this has slowed sales, as we are on pace to reach 190 transactions, or close to 2017. Lastly, YTD 2018 annualized construction permits are down 25% from 2017, which means apartment completions will likely accelerate for the balance of 2018 and in to 2019.
It's also become increasingly difficult to enter the market for less than $100,000 per unit, no matter where you are in the four county metro area. In 2015, there were 124 sales for less than $100,000 per unit. This dropped to 84 in 2016, 33 in 2017, and only 11 for YTD 2018.