Posts by Matt Bastnagel

Across a range of different measurements, apartment fundamentals are remarkably strong: Rental housing continues its extreme affordability compared to homebuying costs; apartment absorption has skyrocketed to levels close to the heady, white-hot apartment market of 2021; and multifamily construction activity is lower, coming into balance with demand. Despite the positive implications of these trends for multifamily…

Inflation came in lower than expected in the Consumer Price Index, and at 2.3%, the annual inflation rate has dropped for the third month in a row. The recent pullback of most of the Trump administration’s tariffs on China was also received very well in the stock market, but uncertainty may not be dispelled so…

Are CRE and multifamily investors prepared for higher-for-even-longer rates? The Fed’s decision to maintain the current level of the federal funds rate is no surprise, but this does not eliminate the challenges that persistently high interest rates have brought. That being said, the multifamily market may be the best-positioned CRE sector in the current economic…

With GDP going negative and job growth “well below expectations,” the US economy is facing a sharp increase in uncertainty and volatility. Amid the prospect of a declining economy, investors have not withdrawn their interest in the multifamily market. The substantial momentum of apartment demand is promising news for a more balanced market, but multifamily performance…

Economic uncertainty continues, but the fundamentals of the multifamily market have been steadily improving. With this in mind, recent data on investor sentiment shows a mix between long-term confidence and short-term worries. The longer-term investment period of CRE investments favors an extended outlook, but pressure has not abated owners of struggling properties. “Survive through ’25”…

The dramatic swings of the stock market have subsided, but in this still-volatile environment, the stability and positive momentum in the multifamily market stands out. As the historic wave of new apartment supply slowly subsides, midwestern markets with steady, growing economies have emerged as rent growth leaders, and this strong performance is likely to continue…

In the space of a week, the Trump administration’s tariff policies set off a stock market downturn and spurred expectations of a recession before the President Trump announced a 90-day pause on most tariffs, sending markets soaring upwards again. With recent reports on the apartment market showing record levels of demand in Q1 of 2025…

Wide-ranging tariffs have just been enacted by the Trump administration, but commercial real estate—multifamily included—remains remarkably steady. This steady performance, however, could mean that 2025 rent growth continues the lower-than-average trends from 2024, but given the slowdown in apartment construction and the anticipated drop in new multifamily supply in 2026, owners and investors with a…

Data on multifamily loan delinquencies and special servicing shows a slow buildup throughout 2024 that could lead to greater distress in 2025, which is particularly relevant given the challenges expected for multifamily operations with apartment supply still elevated and economic uncertainty putting downward pressure on rent growth. better prospects moving forward which could create investment…

New data on investor sentiment shows optimism in the multifamily market, but given the lag between fast-moving economic developments and the Jan.-Feb. time period when the data was gathered, some of this investor enthusiasm may be blunted in light of the recent volatility. That being said, strong fundamentals and improving long-term rent growth trends have…