Comments this week from Federal Reserve Chair Jerome Powell are among the most forceful indications yet that interest rate cuts may be delayed past initial expectations. While some extreme predictions push the rate cuts all the way out to March 2025, futures data is pointing closer to September (at the moment). These shifting interest rate… The post Breaking: Fed delays rate cuts? All in on multifamily? appeared first on Gray Capital - Multifamily Real Estate Investing ..read more

A 3.5% annual jump in CPI inflation numbers has led investors and experts to rethink their expectations of an interest rate cut in mid-year 2024, but Blackstone’s recent agreement to acquire Apartment Income REIT Corp. for $10 billion could spark greater investment activity in spite of elevated interest rates, especially given the improving fundamentals in… The post CPI, Interest Rates, and Blackstone appeared first on Gray Capital - Multifamily Real Estate Investing ..read more

Source – Moody’s Analytics: “Q1 2024 Preliminary Trend Announcement”Source – The Conference Board: “U.S. Leading Economic Indicators”Source – The Wall Street Journal: “What’s Wrong with the Economy? It’s You, Not the Data” Summary Economy: This isn’t explicitly stated in the Moody’s report, but alongside the GDP revised upward is recent data from the Conference Board… The post CRE Overview: Stable Multifamily, Improving Economy appeared first on Gray Capital - Multifamily Real Estate Investing ..read more

The post Getting Excited about a “Normal” Market appeared first on Gray Capital - Multifamily Real Estate Investing ..read more

Costs for homebuyers have been growing at more than twice the rate as rentals, making renting a more affordable option. Buoyed by recent data on apartment fundamentals multifamily investors are re-entering the market, undaunted by persistent high interest rates, last year’s sluggish rent growth, and projections of elevated supply through the end of 2024. The post Renting vs. Buying – Suburbs vs. Downtown appeared first on Gray Capital LLC ..read more

Source – Realtor.com: “February 2024 Rental Report: Renting a starter home is more affordable than buying one in all 50 metros” In every single one of the metros that Realtor.com tracks—every single one—the cost of home ownership is higher than renting. There’s a little bit of strangeness in the title here… “Renting a starter home”?… The post February 2024 Rental Report: Renting a starter home is more affordable than buying one in all 50 metros appeared first on Gray Capital LLC ..read more

Window of Opportunity for Multifamily Investors? Undaunted by persistent high interest rates, last year’s sluggish rent growth, and projections of elevated supply through the end of 2024, multifamily investors are re-entering the market, buoyed by recent data on apartment fundamentals. Multifamily, the Nation, and the Economy Multifamily, the Nation, and the Economy Owning a Starter… The post Gray Report Newsletter: March 28, 2024 appeared first on Gray Capital LLC ..read more

The Federal Reserve has thus far not deviated from its projections of 3 federal funds rate reductions in 2024, but it is in no hurry to start. While current elevated rates are not ideal for multifamily borrowers, multifamily investors with a longer-term view of the apartment market and housing demand have markedly increased their intentions… The post Fed Keeps Rates Steady (and High)—Multifamily Impacts appeared first on Gray Capital LLC ..read more

Fed Doesn’t Blink on Interest Rates While the Federal Reserve has thus far not deviated from its projections of 3 federal funds rate reductions in 2024, it is in no hurry to begin these cuts this month. While current elevated rates are not ideal for multifamily borrowers, multifamily investors with a longer-term view of lower… The post Gray Report Newsletter: March 21, 2024 appeared first on Gray Capital LLC ..read more

Multifamily Market Warms Up Positive rent growth is taking hold in 2024, with multiple sources reporting increased rent growth after a lengthy cooldown period. Elevated apartment supply is expected to put a limit on rent growth, but these early signs of strength in the multifamily market could bring apartment fundamentals much closer to pre-pandemic averages… The post Gray Report Newsletter: March 14, 2024 appeared first on Gray Capital LLC ..read more