Since 1990, the total value of the multifamily housing stock has grown more than tenfold, from less than $600 billion to more than $6 trillion today, as both the number and value of multifamily housing units have steadily increased. Although a broad range of macroeconomic and demographic factors have contributed to this growth, the primary catalyst has been the establishment of well-functioning multifamily capital markets, defined by large liquid debt and equity markets and a largely unconstrained private rental market.

Today, at this moment of intense housing shortages and affordability challenges, multifamily housing stands out among commercial real estate in terms of capital flows and performance while disproportionately contributing to the nation’s supply of newly constructed housing. This brief identifies and examines key moments in the evolution of multifamily debt and equity flows from the late 1980s through today and their impact on capitalization rates, property values, housing supply, rental rates, and rent growth. The brief concludes with a discussion of policy implications to identify market areas in need of additional investment and to inform regional and global markets elsewhere.