May – 2024 Market Data
There was a total of 3 properties that traded in May ’24 for a total of $8.19M. Total market volume through May ’24 is $28.35M as compared to $85.46M through May of ’23 a decrease of 66.83% year-over year. The average days on market for the deals that closed was 178 days, with the quickest sale being on market for 59 days before it went into escrow. The median price per unit is $335,714 and the average CAP rate of deals that closed in May was 4.07%.
Download Sales Comp Below
Current Inventory Snapshot
35 properties are listed on the market for a total consideration of $159.56M, these properties on average have been sitting for 180 days. Only 6 of the opportunities are currently in escrow accounting for 17.14% of the supply. The average CAP rate of deals listed sits at 3.90%, a narrower gap between where deals are listed and where they’ve been trading (4.07%). If you're interested in being added to our weekly deal sheet, where we share the active inventory as well as off-market opportunities, simply reply to this email.
The Rising Costs of the Deal
Inflation declined 0.1% from May, placing the 12-month CPI at 3%, closer to Fed targets of 2%, but multifamily owners and Investors, are still feeling the agony of higher interest rates and higher operating costs. The higher cost of capital is affecting investors bottom line and debt service coverage ratios, reducing levered returns across the board. Increases to other expense line items are impacting the bottom line as well. Costs such as utilities, property taxes, insurance, construction costs (both labor & materials) have been trending higher. If owners are not increasing rents on a periodic basis to keep up with these rising costs, they are most definitely losing income on a monthly and annual basis.
If you’re interested in discussing your investment strategy and your goals for the remainder of 2024, let’s schedule a time to meet!
Multifamily In the News
Pandemic-Era Rent Relief Winds Down
Hawaii Receives $6.6M in Federal Funds for Affordable Housing
Lam Capital LLC Unveils New Affordable Project
Former Tokai University Building to Shelter Oahu Homeless Families
Networking Events
CCIM Hawaii Lunch & Learn – Navigating the Permitting Process
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Wishing you all a safe and fun rest of the summer! 😎 | 
