The slight increase in CPI-measured inflation (from 2.7% to 2.9%) may have been lower than expectations, but the persistence of price growth, along with recent jobs numbers showing a stronger-than-expected labor market, may lead to continued high interest rates. Amid this heating economy, apartment demand has been steadily growing throughout the past year and is…

Amid news of a powerful upswing in apartment demand, rising investor interest, and increasing consumer confidence, the rising yields for 10-year treasuries are a dark cloud that promises to make CRE investment interesting, if not straightforwardly difficult for investors looking for a larger spread between cap rates and debt costs. Likewise, CRE borrowers with loan…

Normalizing supply trends should follow the lower construction activity in the apartment market, and while regional differences could exacerbate and interest rate trajectories have been persistently uncertain, high housing demand will continue to drive multifamily performance in 2025. Multifamily, the Nation, and the Economy A Sharp Pullback in U.S. Apartment Deliveries Is on the Way…

After two years of low apartment sales activity, stagnant rent growth, and persistent expense growth pressures for multifamily operators, it is difficult to imagine a sharp turnaround in 2025. That being said, some of the trends that hampered the multifamily market in 2023-2024 are expected to weaken, but perhaps not at the rate that some…

More than the 25 BPS decrease of the federal funds rate, the updated projections from the Federal Reserve Open Market Committee signal a (slightly) higher-for-longer interest rate scenario that could make impending loan maturities a larger factor in the CRE investment market, but multifamily investment prospects are buoyed by consistent housing demand and a receding…

The timeline of construction activity, which has dominated the face of the multifamily market for the past 2 years, has varied substantially among different regions and specific markets. Many of the markets that have seen the most amount of new apartment supply in the past 2 years are expected to continue to be apartment supply…

The wave of apartment construction and newly-delivered apartments is at or near its peak, and rent growth has continued to be as sluggish in 2024 as it was in 2023. That being said, the weakening apartment supply trends in 2025 suggest a stronger market in the coming year, and the stellar apartment absorption numbers are…