NMHC: Multifamily Well-Positioned Amid Rising Interest Rates

The National Multifamily Housing Council (NMHC) reports that apartment cap rates decreased to a record low of 4.7% in the first quarter of 2022 as rent growth reaches historic levels. 

NMHC notes cap rates are likely to rise if the Fed triggers a recession by aggressively increasing rates in an attempt to control inflation.

"Investors should look to whether apartment rent growth continues to outpace inflation. Apartments’ typically shorter lease terms are uniquely positioned to re-price rents during inflationary periods to offset rising costs (including the rising cost of capital due to higher rates)."

Read more at NMHC.org