The Bull & The Bear Case for Multifamily

All real estate sectors are currently navigating through challenging waters as the debt market exerts downward pressure on property values. Interest rates, once comfortably around the 3% range, have now increased upwards of 7+%.

For multifamily assets with long-term debt, operating fundamentals remain strong. In most markets, rent growth remains strong and expense growth has stayed manageable.

The question is, how will the next 2 years play out if rates remain high? Let’s analyze both the bull (optimistic) and bear (pessimistic) cases.