- Global capital to the U.S. multifamily sector in H1 2020 decreased by 49.2% year-over-year to $3.1 billion, as the COVID-19 crisis weighed on investment activity.
- Q2 volume, which fell nearly 80% year-over-year, accounted for most of the H1 decline.
- Canada, the perennial leader in U.S. inbound capital, accounted for more than half of inbound multifamily investment volume in H1. Denmark, Israel, Switzerland and the U.K. rounded out the top five.
- Investment managers were the largest buyers, accounting for 35% of global investment in U.S. multifamily assets in H1. Institutional buyers took a 26% share, while property companies accounted for 19%.
- New York City was the only market with year-over-year growth in global capital (+641%); however, this was largely the result of two megadeals totaling $827 million.
- Global investors have a distinct preference for large assets. Nearly half of cross-border capital to the U.S. multifamily sector in H1 was for assets priced at more than $200 million. Global investors also overwhelmingly preferred mid/high-rise assets over garden properties (79% vs. 21% share).
- Despite less demand from foreign investors due to the current downturn, low hedging costs in the U.S. should help accelerate multifamily sales as deal activity increases.
Note: All data presented is based on real estate transactions valued at $2.5 million and above. Volume includes direct multifamily property acquisitions only (as opposed to other types of investment such as land acquisitions and new development, REIT stock purchases, capital partnerships, etc.). Portfolios include assets acquired through entity-level deals. All figures in U.S. dollars.
Source: CBRE Research, Real Capital Analytics, Q2 2020.
U.S. Multifamily Inbound Investment Trends H1 2020
U.S. Multifamily Investment Volume by Global Region
Note: % refers to each region's share of total cross-border multifamily investment volume for year indicated.
Source: CBRE Research, Real Capital Analytics, Q2 2020.
Top Sources of Global Capital to U.S. Multifamily, H1 2020
Note: Sum may not total due to rounding.
Source: CBRE Research, Real Capital Analytics, Q2 2020.
Capital Flows by Buyer Type, H1 2020
Note: Property company includes public and private developer, owner, operator and asset manager. Institutional includes pension funds, insurance companies and sovereign wealth funds. Other includes banks, high net worth individuals and corporate users. Real estate operating companies (REOCs) not included in analysis.
Source: CBRE Research, Real Capital Analytics, Q2 2020.
Global Capital into U.S. Multifamily
Source: CBRE Research, Real Capital Analytics, Q2 2020.
Highest Growth Markets for Multifamily Global Capital, H1 2020
Source: CBRE Research, Real Capital Analytics, Q2 2020.
Note: New York City had two megadeals in February and March. Markets with less than $100 million in investment in H1 2020 are excluded from the analysis.
U.S. Investment Characteristics by Capital Source
Source: CBRE Research, Real Capital Analytics, Q2 2020.
Annual Global Investment Volume by Multifamily Subtypes
Source: CBRE Research, Real Capital Analytics, Q2 2020.
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U.S. Inbound & Outbound Investment Trends H1 2020
U.S. Multifamily Inbound Investment Trends H2 2019
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