Investors of all types are buying newer and larger apartments
Average age of multi-residential assets acquired & Average unit count of multi-residential assets acquired
- Post-pandemic, multi-residential investors are adjusting their acquisition strategies, showing a clear preference for newer apartment buildings with higher unit counts. Compared to the 2019–2022 period, recent transactions show that private investors, institutions, and REITs are increasingly targeting newer and larger assets. This shift reflects a broader trend toward operational efficiency and long-term asset resilience.
- Rising capital expenditure (capex) and operating costs resulting from recent inflation spikes has increased the appeal of newer assets and their built-in cost efficiencies. Newer buildings typically require less maintenance and capex, and feature individually metered utilities - allowing landlords to pass on volatile energy costs to tenants. Larger buildings also offer economies of scale, a key advantage for institutional investors and REITs.
- There is strong momentum among investors to modernize their portfolios with newer, larger assets. Institutions and REITs, in particular, are leading this pivot as they seek to reduce exposure to aging properties and streamline operating costs. This transition has been made possible in part by a significant increase in new rental supply: purpose-built rental construction has grown by 23% over the past decade, and in both 2023 and 2024, annual completions exceeded the 10-year average by 14% and 27%, respectively
June 13, 2025