Interest Rate Uncertainty Slows Apartment Sales to a Crawl

24/08/2023 1h 17min

Listen "Interest Rate Uncertainty Slows Apartment Sales to a Crawl"

Episode Synopsis

Multifamily capital markets have seen the greatest drop in transaction activity compared to other CRE sectors, but all CRE markets have seen lower sales numbers in the current interest rate environment. As members of the Fed meet in Jackson Hole, the potential for an extended high-interest-rate regime could have a significant impact on commercial real estate.

Sources discussed in this episode:

All In Podcast: E142, "Real Estate Capital Crunch" - https://youtu.be/dlzobkV_CgU?si=kLdb9kKeuYO-Ch__&t=3695

Financial Times: “‘Higher-for-longer’ rate debate to dominate Jackson Hole meeting” - https://www.ft.com/content/ead217db-a833-4837-b2d7-dcc563a54f90

Freddie Mac: “Economic, Housing, and Mortgage Market Outlook – August 2023” - https://www.freddiemac.com/research/forecast/20230817-economic-housing-and-mortgage-market-outlook-august-2023

Colliers: “Capital Markets U.S. Snapshot | Q2 2023” - https://www.colliers.com/en/research/capital-markets-us-snapshot-q2-2023

Apartment List: “Rents Are Falling, but They're Falling Slower In the Suburbs” - https://www.apartmentlist.com/research/rents-are-falling-slower-in-the-suburbs

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