In the face of mounting anxieties about the broader economy, several reports were published this week that analyze the long-term and short-term risks for the multifamily market, from consumer sentiment, to apartment performance during a recession, to the prospect of lower population growth. In this episode we discuss the likelihood of these risks, how the multifamily market might perform if these risks were realized, and what investors should do to account for these possibilities.

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DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. The opportunities referenced in this podcast do not represent an offer to invest.

Along with negative GDP numbers for Q2, the second consecutive 0.75% rate increase from the Federal Reserve comes as reports on decreased home sales show the impact of previous rate hikes. In the multifamily market, higher cost of leverage is expected to continue to further impact cap rates and asset prices as more apartment buyers are unable to make their investment plans work in a higher interest rate environment.

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DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. The opportunities referenced in this podcast do not represent an offer to invest.

As rising interest rates and inflation do little to resolve the housing affordability crisis, anxious stories about excessively high rents are not difficult to find. Recent reporting on renter income trends and household formation, however, suggests that there is room for apartment rents to grow, especially among lifestyle and middle-income renters at class A and B properties.

For the latest multifamily news from across the internet, check out 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. The opportunities referenced in this podcast do not represent an offer to invest.

A certain strain of anxiety has carried forward from the bigger-than-expected employment numbers in last week’s jobs report to the inflation numbers in this week’s consumer price index. This heated economy is expected to bring an additional 75+ basis-point interest rate increase from the Federal Reserve, and within this heightened economic atmosphere, apartment assets have taken an increasingly influential role as rent growth impacts inflation.

For the latest multifamily news from across the internet, check out 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. The opportunities referenced in this podcast do not represent an offer to invest.

Rate hikes from the Federal Reserve and greater economic uncertainty have had a clear affect on investor demand, with fewer investors and purchasers able to make multifamily projects work in an elevated interest rate environment, which could lead to higher cap rates. At the same time, the fundamentals of apartment assets are as strong as ever, to the point where rising apartment rents are expected to play an increasingly substantial inflationary role as the year progresses.

For the latest multifamily news from across the internet, check out 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. The opportunities referenced in this podcast do not represent an offer to invest.

The multifamily market continues its stable performance and elevated rent growth, but there are signs of changes in housing demand in the coming months, with the Case Shiller Home Price Index showing a slight decrease in single family home price growth. Apartment demand, however, should remain high, with multiple reports published this week supporting the resilience of the multifamily market.

For the latest multifamily news from across the internet, check out 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. The opportunities referenced in this podcast do not represent an offer to invest.

It has only been one week after the Federal Reserve's recent interest rate increase, but the effects of the Fed's earlier interest rate movement are clear in the reduced sales volumes for single family homes and lower housing sentiment in general. While the Federal Reserve's actions have had a noticeable effect on home buyer demand, overall housing demand has changed very little, and rising apartment rents have become an even more prominent topic of discussion.

For the latest multifamily news from across the internet, check out 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. The opportunities referenced in this podcast do not represent an offer to invest.

The Federal Reserve's 0.75% increase in the Federal Funds rate is the largest since 1994, causing some volatility in the stock market this week and leading to some anticipation of higher cap rates for CRE markets in the near term. Multifamily assets, however, have continued to perform very well, with several reports published this week noting how rising single-family mortgage rates have driven more people into the apartment market.

For the latest multifamily news from across the internet, check out 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. The opportunities referenced in this podcast do not represent an offer to invest.

Steady apartment rent growth and continued investor interest in multifamily properties have led to optimistic assessments of the market, even though this year's rent growth is not expected to return to 2021 levels. Discussions of the housing market as a whole are, even in this reduced-sales-volume, higher-interest-rate environment, consistently marked by the mention of our low housing supply. Lumber prices may be down quite a bit from their peak, but the high prices of other materials, in addition to labor shortages and logistical delays, remain a significant barrier to bringing new housing supply online quickly.

For the latest multifamily news from across the internet, check out 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.

As the Federal Reserve moves forward with Quantitative Tightening along with its recent interest rate increases, home sales have gone down slightly, but still-elevated home prices and persistent difficulties with housing construction continue to keep housing demand high. While homebuyers are balking at elevated mortgage payments, multifamily rent growth is expected to remain strong and stable as peak leasing season continues.

For the latest multifamily news from across the internet, check out 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. The opportunities referenced in this podcast do not represent an offer to invest.