A Chill Wind Blows through Multifamily

Multifamily investment optimism persists, but expectations have cooled somewhat since late 2024. Persistently-high ten-year treasury yields have changed the prevailing assumptions about interest rates and the multifamily lending market, with higher-for-longer expectations taking hold, moderating the previous optimism about the multifamily investment market, but even if the lending environment remains the same, the near-unanimous consensus of improved rent growth and apartment fundamentals continues to support the strong investment prospects for multifamily, no matter how cold the wind may blow. Sources discussed in this episode: The Wall Street Journal: “U.S. Homes Sales in 2024 Fell to Lowest Level in Nearly 30 Years” - https://www.wsj.com/economy/housing/u-s-homes-sales-in-2024-fell-to-lowest-level-in-nearly-30-years-3ce94fd9. RealPage: “Apartment Rent Growth Expectations at the Market Level for 2025” - https://www.realpage.com/analytics/forecast-takeaways-market-level-2025/ Freddie Mac: “Positive Outlook for Housing and the Economy in 2025” - https://www.freddiemac.com/research/forecast/20250124-us-economy-grew-stronger-pace The Conference Board: "Consumers’ optimism about both present and future conditions pulled back" - https://www.conference-board.org/topics/consumer-confidence University of Michigan: "Surveys of Consumers" - https://data.sca.isr.umich.edu/ Fannie Mae: “2025 Multifamily Market Outlook: Clearer Skies Ahead” - https://www.fanniemae.com/media/54646/display Marcus & Millichap: “2025 U.S. Multifamily Investment Forecast” - https://www.marcusmillichap.com/research/market-report/multiple-markets/2025/2025-us-multifamily-investment-forecast Learn about Gray Capital's latest multifamily deal for accredited investors: https://www.graycapitalllc.com/walcott/ Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/report/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.