Bendix Anderson

Some sources of financing are drying up, but overall multifamily fundamentals are strong enough to keep funds flowing to borrowers.

Office-to-multifamily conversions have ticked up lately. But such redevelopments remain difficult to pull off and represent a small percentage of the apartment pipeline.

Despite record-high rents and strong demand for self-storage units, higher interest rates and debt costs have contributed to a slowdown in investment sales activity in the sector.

Whopping rental rate spikes caught the eyes of many apartment investors and even with the pace of growth likely to slow, overall fundamentals remain attractive.

Rising labor and materials costs coupled with more expensive debt due to rising interest rates are combining to cut into yields on multifamily development projects.

There was no wave of COVID-induced distressed buying in the hospitality sector, but there may be some strategic opportunities to buy now.

Despite the hefty increases, some apartment owners say rents for many tenants remain below accepted affordability ceilings.

Cap rates on suburban garden apartments fell below rates for mid-rise and high-rise multifamily properties during the second quarter, according to recent data from MSCI-Real Assets.