National Multifamily Cap Rate Report

The U.S. multifamily average capitalization rate decreased 23 basis points (bps) in Q4 2021 compared to the previous quarter. During 2021, the average national cap rate has decreased 68 bps. Cap rates declined quarter-over-quarter across the six U.S. regions tracked in Q4 2021 (Midwest, Mountain, Pacific West, South Central, Southeast, Northeast), with the Southwest falling the most at 54 bps. Decreases by region ranged from 14 to 54 bps as strong multifamily investment activity was continued in the fourth quarter.

The multifamily sector set an annual absorption record in 2021 of 617,500 units. The overall vacancy rate fell by 2.2% year-over-year and net effective rents increased by 13.4%, with average rents exceeding pre-pandemic levels in all but three markets tracked by CBRE: Oakland, San Francisco and San Jose.  

New construction deliveries were 81,000 in Q4 2021 and totaled 274,500 units for the year. With a pipeline of more than 400,000 units currently under construction, 2022 deliveries are expected to exceed 2021. 

Multifamily investment volume increased by 73% quarter-over-quarter in Q4 to $148.9 billion. Record annual investment volume of $335.3 billion in 2021 was nearly double 2019’s previous record of $193.1 billion.


Source: Valuation VIEW
Data points are confirmed closed transactions adjusted for assumed financing and reflect overall market trends.

U.S. Multifamily Cap Rate Trends

Multifamily Cap Rate Report Table Q4 2021

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Multifamily Valuation Practice

NCBRE is the largest national provider of real estate appraisal services in the country with more than 800 licensed appraisers in the United States. CBRE's multifamily valuation practice has drawn from this large talent pool with more than 150 licensed appraisers who specialize in apartment valuations. These appraisers form the core of our team and ensure an experienced professional is responsible for each assignment.


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