This quarter, Matthews™ measured investor insight in the post-pandemic market. Despite the Delta variant making strides in the United States, the widespread distribution of the vaccine has helped the economy recover. The two most significant challenges investors believe the CRE industry faces today are the federal administration and changes in workforce demand.
Over the next 12 months, 66.67% of investors indicated that they are/will be more selective in their investment choices compared to Q1 2021. Further, 93.18% of investors believe it is currently a seller’s market, with the top regions being the Southeast, West, and Southwest.
Multifamily seems to be the favored asset class which investors predict will continue to increase in demand. 46.67% of investors see a continued increase in demand for multifamily properties throughout 2021, and 34.09% of investors ranked multifamily the #1 best opportunity in the market. With this, investors see an increase in private equity cash in the market today.
Matthews™ also asked investors to rank concerns regarding market shifts. On a scale of 1 to 5, 1 being no concern and 5 being very concerned, investors ranked the effect of building material price increases as a 4 and effect of rising inflation at a 3. 48.89% of investors also ranked modification/elimination of 1031 Exchanges as a top concern regarding potential tax law changes.
For more information on the trends occurring in your market, please reach out to a Matthews™ specialized agent.