Beyond Population Shifts: Why Multifamily’s Outlook is Good
Multifamily saw record performance during the pandemic as people packed up and relocated, and they continue to decamp to warm Sunbelt destinations. But beyond that, the outlook is rosy for multifamily due to housing prices and high mortgage rates, keeping millions of would-be homeowners out of the market. Sure, an onslaught of inventory has increased vacancies and dampened rent growth, pushing Phoenix out of the top 10 performers. However, stubbornly high inflation, worries about layoffs and the potential of a recession are keeping many consumers from jumping into a mortgage.