My family is looking to diversify our investment portfolio with multi-family properties outside California. I have been researching different states in an attempt to narrow my focus on one market secondary to where I live. I am searching for resources/publications that would tell me recent cap rates and vacancy rates on a city or state level. I am also curious to know how investors make an assessment of whether a region is over-flooded with capital. In your opinion, would this simply be reflected in a lower cap rate?
CBRE publishes a cap rate survey report. Cant remember if it is annual, or quarterly. It should come right up in a google search. Remember though, that while the report will show you the average for that city or metro area in the asset class.....cap rates will still fluctuate in that market with higher risk parts of the market having a higher than the average cap rate, and the lower risk parts of the market with a lower than average cap rate.
@Korey Nelson My personal opinion is that cap-rate is a good proxy for some mix of desirability and risk. It's why the term "deal" is relative. And it's not just relative to the city but down at the neighborhood level. I'd imagine that you'll find different cap-rates if you're looking at Santa Ana and comparing it to Newport Coast even though they are part of the same metro area. It's pretty much a similar situation in any market that you take a look at. When you're not living there it all seems like one metro "glob" but La Jolla isn't La Mesa and Santa Ana isn't Newport Coast.
Hi @Korey Nelson -- I came across this and thought it might be helpful for you. It's a report on 2018 forecast for multifamily and covers lots of important metrics and information for key markets in US and Canada.
As Russel mentioned, lots of the large commercial brokers produce similar reports on quarterly and annual basis, so it's worth having a looking around at their sites as well.
Thanks @James McCloskey !