Multifamily cap rates in so-called Tier 1 markets ran below the national average for many years, despite rent growth and liquidity both lagging faster-growing parts of the United States. Perceived risk in growth markets proved unfounded and, in many cases, the higher cap rates paired with higher rent growth. CoStar data suggests that relative market pricing has rationalized to a significant degree, against both past and forecasted rent growth. This presentation will explore the over and underpricing in major U.S. apartment markets.