Bank Risks and Multifamily Stability

The collapse of Silicon Valley Bank is linked to the same assumptions of persistent low interest rates that have contributed to the higher potential for distress in the multifamily market. Recent reports, however, show positive momentum for apartment demand, especially in Midwestern markets with less growth in apartment supply. Sources discussed in this episode: CNN: “The Latest on the Silicon Valley Bank Collapse” - https://www.cnn.com/business/live-news/silicon-valley-bank-collapse-updates-03-14-23/index.html Bureau of Labor Statistics: “Consumer Price Index, February 2023” - https://www.bls.gov/news.release/cpi.nr0.htm BLS - PPI - The Producer Price Index for Final Demand decreased 0.1 percent in February, https://www.bls.gov/news.release/pdf/ppi.pdf CoStar: “Apartments.com’s February reports reveals positive monthly rent growth for second month in” a row - https://www.costargroup.com/costar-news/details/apartments.com-publishes-february-2023-rent-growth-report Globe St. “Midwest Apartment Rent Growth Outpaces Other Regions” https://www.globest.com/2023/03/16/midwest-apartment-rent-growth-outpaces-other-regions/ Yardi Matrix: “National Multifamily Report, February 2023” - https://www.yardimatrix.com/publications/download/file/3507-MatrixMultifamilyNationalReport-February2023 Apartment List: “Sun Belt metros lead apartment construction boom in 2023” - https://www.apartmentlist.com/research/sun-belt-metros-lead-apartment-construction-boom-2023 RealPage: “Class A Apartments Commanding 28% Premium Over Class B Prices” - https://www.realpage.com/analytics/class-a-rents-commanding-28-percent-premium-over-class-b-prices/ For the latest multifamily news from across the internet, visit the Gray Report website: https://www.grayreport.com/ Sign up for our free multifamily newsletter here: https://www.graycapitalllc.com/newsletter/ DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest.