Multifamily Housing: A Review of Theory and Evidence

Abstract

The growing importance of multifamily housing as a viable choice of residence is evidenced by the number of empirical and theoretical studies in real estate literature. Researchers have investigated the role of this sector of the real estate market for decades. This survey article examines more than one hundred studies and categorizes them into five groups: economic and market efficiency issues; property valuation and appraisal issues; regulatory, zoning, and clustering of multifamily complexes; costs, returns, and rental income issues; and demand, vacancy, and occupancy issues. This study seeks to provide a concise, categorical presentation of findings on issues related to the environment and performance of multifamily housing.