One would expect that multifamily owners and developers are taking the preferences of the nation’s largest renter cohort into consideration. However, recent residential development patterns demonstrate that this is not the case.
Gross domestic product increased 0.6 percent after two quarters of decline, but key components continue to show an economic slowdown.
Climate change, shifting criteria, and growing complexity in assets are facilitating an evolution in commercial real estate valuation.
The increasing cost of capital and mounting concerns about ex-ante exit cap rates will ultimately drive buyers’ bids lower and property yields higher for the multifamily sector. So, multifamily property values will face pressure from both the Fed pushing rates and banks following suit with loan interest rates.
While many are trying to figure out if we are in a recession yet or not, fundamentals in multifamily are “still fairly strong
Year-over-year rent increases slowed but are still up 8.8 percent last month. September apartment rents are down month-over-month, in what experts from Rent.com call “a hopeful sign” the market is stabilizing.