This month's inflation report came in slightly higher than expected, causing some worry that the much-anticipated interest rate cuts from the Fed may not arrive as quickly as previously thought. A "higher for longer" environment is one reason why some are pessimistic about multifamily in 2024, but there is little evidence for continued declines in multifamily valuations, which are already 20-30% below the peak. Consistent demand, a more balanced supply/demand environment after 2024, and, yes, lower interest rate expectations are a strong counter-balance to multifamily doomsayers and help explain why investors intend to be far more active this year compared to 2023.
Gray Capital's latest multifamily offering for accredited investors: https://www.graycapitalllc.com/new-offering/
Link to webinar on February 20 at 1PM Eastern: https://youtube.com/live/LCkECUK05BI?feature=share
Sources cited in this episode:
Bureau of Labor Statistics: “Consumer Price Index - January 2024” - https://www.bls.gov/news.release/cpi.nr0.htm
BiggerPockets: “Multifamily Is at High Risk of Continuing Its Historic Crash in 2024—Here’s Why” - https://www.biggerpockets.com/blog/multifamily-crash-to-continue-through-2024
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DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest. Offering limited to accredited investors.
