Multifamily Prices Falling

As I’ve said previously in these blogs, I love MSCI because of its incredibly thorough, objective, comprehensive and detailed approach in providing CRE data. The article from Yield Pro cites information coming from MSCI wherein MSCI has tracked changes in multifamily pricing through its Commercial Property Price Index (CPPI). The CPPI represents the relative change of a property’s price vs. the absolute price. The index is computed based on the resale of properties whose earlier sale prices and sales dates are known. As new properties are added to the index (properties that have recently traded with attributable knowledge of the prior transaction), the CPPI recalculates the dataset to the beginning of the data series. The chart shows property prices peaking in the 2nd and 3rd quarters of 2022 before beginning to retreat. The data shows that multifamily properties have declined 19.10% from their peak but remain 13.20% above their pre-pandemic level in January-2020.
Svikhart & Associates, a Salt Lake City-based real estate services company, focuses on asset management, brokerage listings and sales, and all aspects of a multifamily investment. Specific diligence regards property operations and strategies to maximize asset performance and value. Additionally, the firm assists owners regarding economic, financial and market factors that impact returns on investment. The firm targets ‘Mid-Tier’ assets which it defines generally as 10-to-60-unit properties.
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