Across the residential real estate market, demand patterns have demonstrated a notable divergence that highlights the stark difference between tailwinds driven by secular factors and those ruled by cyclical factors. This is especially evident in the examination of Traditional Multifamily demand, which is significantly impacted by factors such as the state of the labor market, and thus tends to ebb and flow as the macroeconomic environment shifts, compared to Senior Housing demand, which is largely driven by demographics and less sensitive to macroeconomic changes. Cap rates have reflected this bifurcation, with significant expansion in the traditional multifamily sector and significant compression in senior housing.
