Cap Rates

In the past three months, Mid- and High-rise Apartment cap rates increased by 3 basis points and Garden Apartment rates increased by 11.5 basis points.

National property performance, based on properties and portfolios of $2.5 million and greater

Source: Real Capital Analytics Inc.
Source: Real Capital Analytics Inc.

In the second quarter of 2017, cap rates for residential properties had an average value of 5.4 percent, with Mid- and High-rise Apartment properties trading at 5.1 percent and Garden Apartment properties trading at 5.8 percent. In the past three months, Mid- and High-rise Apartment cap rates increased by 3 basis points and Garden Apartment rates increased by 11.5 basis points. Year-over-year, the biggest cap-rate growth for residential properties was 4.9 basis points for Mid- and High-rise Apartment properties. Cap rates decreased by 14.6 basis points for Garden Apartment properties.