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- 🗽 Foreign Buyers Remain Drawn to U.S. Multifamily Investments
🗽 Foreign Buyers Remain Drawn to U.S. Multifamily Investments
📈 Data Point
Foreign Buyers Remain Drawn to U.S. Multifamily Investments
Despite economic uncertainty and global market shifts, international investors continue to show strong interest in U.S. multifamily properties. In 2023, foreign capital accounted for more than $7 billion in multifamily transactions, with buyers primarily coming from Canada, Europe, and Asia. This demand is driven by the sector's relative stability and steady returns compared to other asset classes. Sun Belt states and key metros like New York and Los Angeles remain preferred targets. Experts suggest that the U.S. market will continue to attract foreign capital due to long-term rental demand and strong fundamentals.
🧭 Market Watch
New York City: Multifamily vs. the Stock Market
Over the past 25 years, NYC multifamily real estate has outperformed the S&P 500 with a 12% average annual return. The comparison highlights how owning rent-regulated assets in prime locations has consistently delivered better long-term value. Investors often favor these properties for their cash flow potential and relative insulation from market volatility. NYC’s housing shortage continues to support demand, even in slower economic cycles. This makes multifamily assets in the city appealing for both institutional and individual investors.
🧾 Rule of the Day
Debt Service Coverage Ratio (DSCR)
DSCR is used to measure a property's ability to cover its debt obligations. It’s calculated by dividing the Net Operating Income (NOI) by total debt service (principal and interest). A DSCR of 1 means the property earns just enough to pay its debts, while a ratio above 1.25 is generally preferred by lenders. It’s a key metric to assess investment risk and loan eligibility. Investors use DSCR to ensure stable cash flow before taking on financing. Know more.
🌱 Green Build
Energy-Saving Upgrades That Make a Difference
Multifamily operators are focusing on practical energy-saving techniques to cut costs and attract eco-conscious renters. Common upgrades include smart thermostats, LED lighting, and efficient HVAC systems. Water-saving fixtures and solar panels are also being used to reduce utility expenses and improve sustainability scores. These investments often lead to long-term savings and can qualify for green financing or tax incentives. Operators are also integrating real-time energy monitoring to better manage usage. Know more.
🏘 Deal Radar
Charleston, SC Located in the historic Harleston Village, this four-unit multifamily building offers classic charm and modern upgrades. The property features high ceilings, hardwood floors, and private outdoor spaces. With its proximity to shops, restaurants, and the College of Charleston, it has strong tenant appeal. The units are fully leased, offering immediate income. | San Bernardino, CA This garden-style apartment complex consists of 120 units and is located near Cal State San Bernardino. The community features on-site laundry, gated access, and spacious floor plans. The area is well-connected by major highways and transit, supporting tenant retention. Positioned in a strong rental market, this is a value-add opportunity. | Washington, DC This 8-unit multifamily building is located in the heart of DC’s Trinidad neighborhood. Each unit has been recently renovated, with upgraded kitchens, new appliances, and modern finishes. The property is near H Street’s restaurants and retail, offering tenants easy access to transit and local amenities. Fully leased, it generates steady cash flow for investors seeking urban rental assets. |
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