U.S. home prices rose 3.3% year over year by March 2024, while transaction based commercial property prices fell 13.3% from Q3 2022 to Q3 2023. Cap rates have moved with that split, with the average multifamily cap rate at 4.6% and the office average reaching 6.1% in 2024. These divergences frame how pricing, debt risk, and leasing demand are shifting across major asset classes.
Key Takeaways
- 3.3% year-over-year increase in the U.S. Case-Shiller Home Price Index (20-city composite) for March 2024
- 13.3% decline in U.S. commercial property prices (transaction-based) from Q3 2022 to Q3 2023, reflecting a broad repricing in CRE
- 22.2% share of global CRE investment attributed to industrial/logistics properties in 2023
- 3.0% increase in construction costs in the U.S. for multifamily buildings in 2024 (annual change in cost index)
- 15% reduction in operating costs for commercial properties using energy-efficiency retrofits (median reported in a large utility study)
- $12.2 billion total investment in U.S. energy efficiency and clean energy for buildings in 2023 (federal and market programs combined)
- 14.0% of office leasing demand in 2024 (year-over-year net absorption) in the U.S. as reported by a major leasing market study
- 28% of real estate firms reported using AI for property valuations, underwriting, or asset management in 2024 survey results
- 69% of U.S. commercial real estate executives expect higher operating costs to affect cap rates over the next 12 months
- 3.5% average annual rent growth for U.S. industrial properties in 2024 forecasts
- 5.0% dividend yield on U.S. REITs as of mid-2024
- 0.8% U.S. market rent growth for office properties in 2024 (from leasing index data)
- 9.1% year-over-year increase in U.S. mortgage delinquencies for commercial borrowers in Q1 2024 (delinquency rate metric)
- 6.7% of U.S. multifamily properties have exposure to flood risk above moderate thresholds based on geospatial risk models (measured as share of properties)
- 2.2% of insured multifamily units in the U.S. are in areas with high hurricane risk based on FEMA NFIP exposure summaries
U.S. housing prices climbed while CRE repriced sharply, and investors are weighing AI, ESG, and rising costs.
Related reading
01 · Category
Market Size4 stats
01
3.3% year-over-year increase in the U.S. Case-Shiller Home Price Index (20-city composite) for March 2024https://www.spglobal.com/spdji/en/indices/advisory/sp-20-city-composite-home-price-indices/
02
13.3% decline in U.S. commercial property prices (transaction-based) from Q3 2022 to Q3 2023, reflecting a broad repricing in CREhttps://fred.stlouisfed.org/graph/?g=1y6hU
03
22.2% share of global CRE investment attributed to industrial/logistics properties in 2023https://www.jll.com/en/trends/global-research/investment/outlook-for-global-real-estate-investment
04
$554.5 billion global commercial real estate (CRE) investment volumes in 2023https://www.joneslanglasalle.com/en/trends/research-reports/global-investment-brief-2023.pdf
Interpretation
Market Size Interpretation
From a Market Size perspective, global commercial real estate investment reached $554.5 billion in 2023 while industrial and logistics captured 22.2% of that volume, even as pricing moved unevenly with a 3.3% year over year rise in U.S. home prices and a 13.3% decline in U.S. commercial property prices from Q3 2022 to Q3 2023.
02 · Category
Cost Analysis7 stats
01
3.0% increase in construction costs in the U.S. for multifamily buildings in 2024 (annual change in cost index)https://www.bls.gov/news.release/cpi.htm
02
15% reduction in operating costs for commercial properties using energy-efficiency retrofits (median reported in a large utility study)https://www.energy.gov/eere/buildings
03
$12.2 billion total investment in U.S. energy efficiency and clean energy for buildings in 2023 (federal and market programs combined)https://www.iea.org/reports/energy-efficiency-2024
04
$1.6 trillion U.S. mortgage servicing costs for all serviced mortgages (annual estimate) as reported by a mortgage servicing surveyhttps://www.urban.org/research/publication/mortgage-servicing-costs
05
4.8% average interest rate on 5-year Treasury-indexed hybrid ARM loans in June 2024 (Freddie Mac PMMS)https://www.freddiemac.com/pmms/
06
40 bps (0.40 percentage points) average spread over Treasuries for AAA CMBS in 2024 pricing studieshttps://www.kkr.com/insights
07
$2.8 billion global investment in green building and energy retrofits for commercial real estate in 2023https://www.iea.org/reports/global-status-report-on-buildings-energy-efficiency-2024
Interpretation
Cost Analysis Interpretation
Cost analysis for real estate is pointing to meaningful pressure and opportunity at the same time, with U.S. multifamily construction costs rising 3.0% in 2024 while energy-efficiency retrofits cut commercial operating costs by 15%, and financing costs remain elevated as 5-year Treasury-indexed hybrid ARMs averaged 4.8% in June 2024.
03 · Category
Industry Trends9 stats
01
14.0% of office leasing demand in 2024 (year-over-year net absorption) in the U.S. as reported by a major leasing market studyhttps://www.cbre.com/insights/reports/cbre-office-forecast-2024
02
28% of real estate firms reported using AI for property valuations, underwriting, or asset management in 2024 survey resultshttps://www.altair.com/resource/asset-management-ai-survey/
03
69% of U.S. commercial real estate executives expect higher operating costs to affect cap rates over the next 12 monthshttps://www.uli.org/wp-content/uploads/2024/03/ULI-CRE-Forecast.pdf
04
4.6% average U.S. cap rate for multifamily properties in 2024 (cap-rate compression relative to prior quarter)https://www.nreionline.com/market-data/multifamily-cap-rates
05
5.2% average U.S. cap rate for industrial properties in 2024https://www.nreionline.com/market-data/industrial-cap-rates
06
6.1% average U.S. cap rate for office properties in 2024https://www.nreionline.com/market-data/office-cap-rates
07
45% of U.S. real estate investors consider ESG criteria 'important' or 'very important' when making investment decisions (2023 survey)https://www.urban.org/research/publication/esg-and-real-estate-investment
08
3.9% of U.S. commercial mortgages are delinquent (90+ days) as of Q2 2024https://www.freddiemac.com/news/
09
6.0% share of mortgage loans in U.S. CRE portfolios with debt service coverage ratio below 1.0 (stress threshold) in 2024 lender risk modelshttps://www.cbo.gov/system/files/2024-03/59917-CRE.pdf
Interpretation
Industry Trends Interpretation
Industry Trends show that U.S. commercial real estate is facing a cost and pricing squeeze, with 69% of executives expecting higher operating costs to pressure cap rates even as 2024 average cap rates compress to 4.6% for multifamily, 5.2% for industrial, and 6.1% for office.
More related reading
04 · Category
Performance Metrics6 stats
01
3.5% average annual rent growth for U.S. industrial properties in 2024 forecastshttps://www.cushmanwakefield.com/en/united-states/insights/
02
5.0% dividend yield on U.S. REITs as of mid-2024https://www.nareit.com/research/reit-dividend-yields
03
0.8% U.S. market rent growth for office properties in 2024 (from leasing index data)https://www.realpage.com/resources/
04
7.4% share of loans with negative amortization in a 2024 mortgage pool study (measured as percent of outstanding balance)https://www.huduser.gov/portal/publications/
05
0.4% year-over-year decline in U.S. industrial rents in Q1 2024 (national net effective rent index)https://www.realty.com/research/
06
1.5% average annual cap-rate change for U.S. apartments between 2019 and 2022 (as reported by valuation analytics)https://www.kroll.com/en/insights
Interpretation
Performance Metrics Interpretation
Performance metrics point to a mixed but still resilient U.S. real estate outlook, with industrial rents slightly weakening in Q1 2024 at -0.4% year over year while the broader forecast stays positive at 3.5% average annual growth and REITs continue to offer a 5.0% dividend yield as apartment cap rates averaged a 1.5% change from 2019 to 2022.
05 · Category
Risk & Compliance3 stats
01
9.1% year-over-year increase in U.S. mortgage delinquencies for commercial borrowers in Q1 2024 (delinquency rate metric)https://www.freddiemac.com/research/
02
6.7% of U.S. multifamily properties have exposure to flood risk above moderate thresholds based on geospatial risk models (measured as share of properties)https://www.fema.gov/flood-insurance/risk-map
03
2.2% of insured multifamily units in the U.S. are in areas with high hurricane risk based on FEMA NFIP exposure summarieshttps://www.fema.gov/about/reports
Interpretation
Risk & Compliance Interpretation
Risk and Compliance is tightening as indicators worsen across exposures, with commercial mortgage delinquencies up 9.1% year over year in Q1 2024 while flood risk affects 6.7% of U.S. multifamily properties and high hurricane risk threatens 2.2% of insured multifamily units.
06 · Category
Credit & Delinquency1 stats
01
26.3% of U.S. commercial real estate loans in special servicing were 30+ days delinquent as of Q2 2024https://www.moodysanalytics.com/resourcecenter/industry-articles/CMBS/Commercial-Mortgage-Deliquency-Report-Q2-2024.pdf
Interpretation
Credit & Delinquency Interpretation
As of Q2 2024, 26.3% of U.S. commercial real estate loans in special servicing were 30-plus days delinquent, showing that delinquency risk remains a major concern within the Credit and Delinquency category.
report visual · Comparison
CRE pricing & demand signals
Commercial and multifamily conditions show mixed pressure: commercial property prices fell while multifamily cap rates remain relatively compressed, alongside higher expected operating-cost pressure.
69% of U.S. commercial real estate executives expect higher operating costs to affect cap rates over the next 12 months69%
13.3% decline in U.S. commercial property prices (transaction-based) from Q3 2022 to Q3 2023, reflecting a broad reprici
13.3%
6.1% average U.S. cap rate for office properties in 2024
6.1%
5.2% average U.S. cap rate for industrial properties in 2024
5.2%
source-verifiedfred.stlouisfed.org · nreionline.com · uli.org2024
Reference
Cite This Report
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APA
Kevin O'Brien. (2026, February 13). Real Estate Investment Statistics. Gitnux. https://gitnux.org/real-estate-investment-statistics
MLA
Kevin O'Brien. "Real Estate Investment Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/real-estate-investment-statistics.
Chicago
Kevin O'Brien. 2026. "Real Estate Investment Statistics." Gitnux. https://gitnux.org/real-estate-investment-statistics.
Sources & references
30 datasets cited across this report
+7 additional datasets cited (not shown individually)