Some buyers are trying to renegotiate prices, but a net result of recent moves could be a tightening in the spread between multifamily cap rates and yields on 10-year Treasuries.
Rents are up more than 25 percent in one of the nation’s most scorching multifamily markets. That's fueling continued strong investor demand, in spite of rising interest rates.
The option to convert some affordable units to market rates makes housing advocates nervous, but many investors like the diversification that owning affordable apartments offers.