Multi-Housing News interviewed industry executives and market experts about how the highest interest rate increase in decades will impact multifamily.
Their predictions include:
- Cash-flowing multifamily and industrial assets won’t be as severely impacted.
- Demand for multifamily and single-family rentals is expected to strengthen along with rents.
- Lenders have tightened their underwriting standards resulting in lower loan-to-values, and lenders and borrowers are going to continue to be more cautious going forward.
- Investors are going to be seeking higher returns on debt and equity and the cost of capital will go up.
- Cap rates will likely widen over the next 12 to 18 months to reflect what’s happening in the capital markets.
Read more at MultiHousingNews.com.
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