Multifamily Investment Returns Over The Last 40 Years

Data from NCREIF shows that total, unlevered returns for apartment investors averaged 8.2% annually over the past 40 years. However, returns have been lower in recent years, averaging 6.0% annually over the last decade and 4.2% over the past five years.

The graph below shows that volatility in apartment returns is driven primarily by changes in the price of apartment properties as opposed to the income that they produce, which has remained relatively constant over time.

Source: NMHC