While the nation still faces a housing shortage not set to alleviate in the near term, a thinning construction pipeline could help stabilize the multifamily sector.
The battle between renting and owning is intuitive. If renting is significantly cheaper than owning a home, more of the population will gravitate towards renting. If homeownership is only moderately more costly than renting, people will be more inclined to pursue ownership.
Half of the debt outstanding in the commercial real estate world, $2.0 trillion, is to multifamily properties. There’s no crisis in multifamily whatsoever today. Period. So, when headlines say there’s a crisis in commercial real estate debt, half of that debt is in multifamily.
The price gap between average apartment rents and the cost of owning a home in the Chicago metro area is widening, providing landlords with leverage to push rents even higher.
Average of the top competitive rates from eXp Commercial’s National Capital Markets Partner CommLoan from a database of 700+ commercial lenders as of 731/23
Average of the top competitive rates from eXp Commercial’s National Capital Markets Partner CommLoan from a database of 700+ commercial lenders as of 7/24/23