The Federal Reserve increased the Federal Funds rate by 25 BPS, breaking the 5% barrier in a rate hike that was largely anticipated by the markets, but with comments by Fed Chair Powell indicating a pause in interest rate increases, the next meeting of the Federal Reserve could be a significant indicator of the Fed's path going forward. As the FOMC anticipates economic decline, the multifamily market continues to see positive rent growth in the Northeast and Midwest, but growth has been slower in many previously-strong markets in the Sunbelt and West.

Sources discussed in this episode:

Yahoo Finance: “Federal Reserve pushes interest rates above 5% for first time since 2007” - https://finance.yahoo.com/news/federal-reserve-interest-rate-decision-may-3-155524134.html

RealPage: “Reframing 1st Quarter’s Performance Into Historical Perspective” - https://www.realpage.com/analytics/1st-quarter-demand-comparison/

Apartment List: “National Rent Report, April 2023” - https://www.apartmentlist.com/research/national-rent-data

IU Center for Real Estate Studies: Prepare for a Generational Housing Bubble” - https://www.ibrc.indiana.edu/realestateoutlook/index.html

RealPage: “Apartment Operational Expenses Soar” - https://www.realpage.com/analytics/apartment-operational-expenses-soar/

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 video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest.