Tap to get financing
Multifamily Loans
Property Types
MultifamilyHealth Care & Senior LivingStudent HousingAffordable HousingMobile Home ParkOffice, Retail & More
Loan Options
Fannie MaeFreddie MacConstruction LoansLoans Under $1MFreddie Mac SBLFHA/HUD Multifamily LoansForeign National LoansCMBSBank LoansLife CompaniesBridge LoansHard MoneySoft MoneyMezzanine FinancingCrowdfundingSBA 504 LoansMezzanine Construction LoansUSDA 538 LoansFix and Flip LoansFractured Condo LoansDSCR Loans
Resources
BlogLoan DocsForms and TemplatesRatesLingoVideo LibraryMultifamily For SaleCommercial MortgagesFrequently Asked QuestionsBeginner's Guide
Calculators
Multifamily Mortgage CalculatorCap Rate CalculatorNOI CalculatorDSCR CalculatorLTV CalculatorDebt Yield CalculatorCash on Cash Return CalculatorYield Maintenance CalculatorIRR Calculator
About
About UsLeadershipTeamContactAffiliate Program (Coming Soon)We're Hiring
Get financing
Was This Article Helpful?
Newly Published
Jan 27 at Multifamily Loans
4 Steps to Increase Your Apartment Building's Occupancy
Jan 24 at Multifamily Loans
The 4 Best Multifamily Loans in 2023
Jan 24 at Multifamily Loans
Multifamily Minute Reader Reflections: The Best Approach for Investing in 2023
Explore the Janover Network
Jan 26 at Commercial Real Estate Loans
How Does ChatGPT Work With Commercial Real Estate?
Jan 25 at Commercial Real Estate Loans
Capital Gains Taxes in Commercial Real Estate
Jan 18 at Commercial Real Estate Loans
The Top 10 Markets to Buy Industrial Real Estate in 2023
Multifamily Minute
Last updated on Dec 19, 2022
2 min read
by Jeff Hamann

Multifamily Minute Reader Reflections: Where Are Cap Rates Headed?

Our survey of 40,000 multifamily investors asked how capitalization rates for apartment buildings are likely to change in 2023.

Apply for a loan in minutes and get multiple quotes today → Get Quotes

In last week’s Multifamily Minute, our weekly newsletter, we asked our readers an important question about cap rates. Where are they going in 2023?

There’s been a lot of talk that with interest rates rising so, too, will cap rates. Probably. Maybe.

Before we get into the results, throw your email into the subscription form below, and you can add your voice in our future surveys — not to mention get the latest in multifamily insights across the industry, every week on Tuesday.

Now that that’s done, let’s talk about the results. Of our respondents, 62% said that cap rates will likely increase next year — either significantly or by at least a little. Check out the table below for the full results.

Cap Rates Will …

Percent of Respondents

Increase significantly.

16%

Increase a little.

46%

Stay the same.

10%

Decrease a little.

20%

Decrease significantly.

2%

I don't know.

6%

I don’t think the majority’s voice is too surprising. If you look at how cap rates were reported in the first half of 2022 — as low as 3% in a select number of markets, according to CBRE’s cap rate survey — there isn’t an awful lot of room for further compression. I mean, compare that with the current yield on a 10-year Treasury (as of today, 3.44%).

Even so, not all of our readers feel that cap rates will jump up in tandem with interest rates. A surprising one-fifth said that cap rates may decrease a little bit. Another 2% said they could even decrease significantly.

Categories
  • Multifamily Minute Reader Reflections

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →
Janover logo

Multifamily Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Multifamily Today, Commercial Real Estate Loans, SBA7a Loans, CMBS Loans, Apartment Loans, HUD Loans, HUD 221d4 Loan, HUD 232 Loan, HUD 223f Loan, HUD 223a7 Loan, SBA Express Loans, SBA 504 Loans, and OpportunityZones Help.

Janover Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487

hello@multifamily.loans

Site Information

Privacy Policy
Terms of Use

This website is owned by a private company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

Copyright © 2022 Janover Inc. All rights reserved.