0.75% Rate Hike and Falling Home Prices—What Happens to Apartments?

23/09/2022 51 min

Listen "0.75% Rate Hike and Falling Home Prices—What Happens to Apartments?"

Episode Synopsis

The Federal Reserve's 0.75% increase in the federal funds rate places even more pressure on the economy, and as home prices show consistent signs of a cooldown, multifamily investors are watching the market closely. While single-family home prices are correlated with multifamily rents, apartment rent growth has not seen the same declines, partly because average monthly payments for single-family homes have been consistently above the price of rentals, providing some cushion against the interest-rate-related volatility we are currently facing.
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