For same $$$$, I can easily get two townhomes, with HOA so don't have to think about anything exterior ever, making for very simple management, and in a compression market these outperform all other classes of housing assets.

Supply is compressed and will continue to be due to so many owners buying or refinancing over the last several years. 

So if you think the value of the property is $1.4m, you are correct, the cap rate would be 4.52%Because of high property valuations and a generally hot market, properties in the Boston area have what we call "compressed cap rates" -- meaning the cape rates are relatively low.The next thing you need to think about is financing payments.

Wiring was OK, but, per the inspector let it all dry out a few days and then blew out all the outlets (switches, receptacles) with compressed air before turning the power back on.

However, that growth rate is what determines future cash flows so a price compression is warranted if the market thinks the growth is slowing especially for such a huge company.To me, this would be even more true for real estate, which with transaction costs, taxes and long listing times real estate is definitely a long run investment for rent seeking investors.

., but are trending down w/ compressing cap rates.    

The cycle compresses and gets frothy you sell off and 1031 into other properties.I have clients calling me from California that just recently sold some apartments their for 3.5 caps.

When he went to renew his lease they tried to tell him he was getting a deal by only raising his rent by $20, while at the same time they are offering new leases for the exact same floorplan at $1250.So there is definitely some price compression at the high end of the market.

This identifies, and reclassifies, the asset allowing us to compress the depreciation time for more favorable taxation purposes.

Are cap rates compressing or getting more loose (going higher)?