Chicago’s once-red-hot multifamily investment market has chilled a few degrees amid higher interest rates, rising inflation and more big investors sitting on the sidelines to see how it all plays out. But there are still deals to be had, money at the ready, and fundamentals like a gaping housing shortage that had panelists at Bisnow Multifamily Annual Conference in Chicago confident any lull in the action will be temporary.
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Data is backing up what many multifamily buyers and sellers already know —cap rates are rising in apartments around the country.
The Fed will be forced to slow its pace of rate hikes as volatility ramps up, Charles Schwab said. Analysts pointed to strains in bond and currency markets, which stem from the Fed’s aggressive hikes this year. That means risks are not only rising for a recession, but for a financial accident as well, Schwab warned.
In late May of this year, the signs were already rising with the dry hot sun of interest rate increases. With them went the costs of interest rate caps
Coming off a year in which the apartment industry arguably turned in its best performance on record, owners and operators are facing more challenges in 2022.