The demand for multifamily has exploded since 2020, and today we are joined by the imperial Peter Linneman to discuss what this means for 2023 and beyond. Boasting an impressive resume, Peter is the Founding Principal of Linneman Associates, a former Wharton professor, and a distinguished author, among many other traits. He gives us his take on the current multifamily conditions and how he sees these playing out in 2023, touching on the lenders’ strike, interest rates, construction costs, and the capital market. We discuss how nimbyism affects housing, why The Federal Reserve (Fed) and consumers are at war, how labor impacts construction costs, and what the housing shortfall could look like in 2023. Finally, Peter explains why COVID could be the reason for the surge in multifamily demand, what the ‘I care’ market is looking for, his most and least favored market picks for the year, and when he believes the Fed will lower interest rates.
Key Points From This Episode:
- Introducing the Founding Principal of Linneman Associates, Peter Linneman.
- Who Peter is, and what he does.
- The current multifamily market conditions and how Peter sees it playing out in 2023.
- Exploring the lenders’ strike, interest rates, construction costs, and the capital market.
- How nimbyism contributes to the shortfall in housing, and a look at housing demand.
- The war between The Federal Reserve (Fed) and consumers.
- Why construction is still projected to be higher even with the current flat interest rates.
- Peter’s forecast for the housing shortfall in the US.
- What he thinks drove the recent surge in multifamily demand.
- Why he would pull out of a build-to-rent situation, and what the ‘I care’ market demands.
- Peter’s top and bottom market picks for 2023 and beyond.
- His prediction for when the Fed will lower interest rates.
Links Mentioned in Today’s Episode:
Peter Linneman on LinkedIn
Peter Linneman on Twitter
Linneman Associates
Rockefeller Group
Real Estate Finance and Investments
The Linneman Letter
Real Estate Finance Textbook
The Great Age Reboot
Wharton
A. Alfred Taubman
SAM Elimu Charity
Asset Management Mastery Facebook Group
Break of Day Capital
Break of Day Capital Instagram
Break of Day Capital Youtube
Gary Lipsky on LinkedIn
