Q4 - 2024 Market Data
The market closed out the year on a high note as there were 12 transactions (5+ units sales), which accounted for a total volume of $44.81M to round out the 4th Quarter of 2024. The most volume of any quarter throughout the year, up 16.58% from Q3 – 2024. The median price per unit increased by 6.90% from Q3 to $308K / unit. The median CAP rate of the sales in Q4 saw a decrease of 62 basis points from Q3 to 3.94%, indicating the improvement to property values.
Download Q4 - 2024 Sales Comps Below
2024 in Review
The total transaction volume in 2024 was $113M consisting of 35 transactions, a 26.5% drop off from 2023’s volume. The median price per unit was $293K up 14.5% from 2023 and the median cap rate was up 46 basis points year over year to 4.33% signaling what we feel will be the bottom of the valuation curve looking ahead into 2025.
What got us here coming out of 2024?
Stubborn Inflation:
- We saw stubborn inflation supported by high consumer demand and increased labor & material costs.
2024 Interest Rate Environment:
- Rates ranged from 6.0% - 6.5%
Increase in Cost of Capital:
- Negative impact to levered returns.
Fed Rate Cuts:
- Sep. 0.50% > Nov. 0.25% > Dec. 0.25%
Insurance Premiums:
- Increases 300% - 500%
Inventory Snapshot
The inventory across the market has been healthy, as there are 48 properties listed on market for a total consideration of $175M. The average days on market is just over 6 months at 186 days. There were a total of 13 properties that hit the market between October – December as owners made their moves prior to year’s end. The median cap rate of deals on the market is 3.85% as the spread between where deals are trading and where they listed narrows.
To receive our Hawaii Multifamily Inventory Sheet, which compiles all active listings as well as off-market opportunities into one convenient document, reach out to us directly to be added to the distribution list.
Key Trends Shaping the 2025 Market
Interest Rates:
- 5.5% - 6.0% range
2025 Fed rate Cuts
- 0.50% anticipated
Insurance Markets:
- Continued increases to premiums and deductibles
Renting Vs. Homeownership:
- The gap will continue to widen
- Placing upward pressure on rent growth
Alternative Investments:
- Keep an eye on the 10-Year Yield vs. Multifamily Cap Rates
- 10-Yr - 4.6% vs. 4.33% Cap Rate
Aging Demographic of Owners:
- Faced with succession and exit planning
Multifamily in the News
Honolulu Mayor Says City "Ready to Execute" On Affordable Housing
Hawaii Housing Crisis Was Decades In the Making
City Announces Redevelopment of 1615 Ala Wai Blvd.
View Our Active Listings
1125 Hassinger Street
708F Olokele Ave.
Networking Events
CCIM UH Baseball Networking
CCIM March General Membership Meeting - TOD Development Update
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We hope your 2025 is off to an excellent start! If you're interested in discussing your goals for the year, and how we can help you achieve them, let's find a time to connect! | 
