In 2023, a Turbulent Market Creates Challenges & Opportunities for Multifamily Investors

Prepare for more interest rate hikes as the Fed continues trying to reduce inflation, warns Multi-Housing News in a recent article quoting numerous industry sources. The Fed funds target rate may reach up to 5.25% over the next 12 to 18 months before they reduce rates, and economists say a brief recession is likely in early 2023.

More bad news for the nation's housing crisis — "Higher interest rates and volatile capital markets are creating increasing challenges for affordable housing developers and will result in fewer units breaking ground in 2023."

But one person's loss is another's gain, as some multifamily investors are prepared to take advantage of opportunities as loans come due and property owners face other economic issues. The number of discounted (or distressed) properties on the market is expected to increase throughout 2023 and into 2024 as loans mature and interest rate caps expire.

Read more at MultiHousingNews.com.