Gray Report Newsletter: March 28, 2024

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…

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Gray Report Newsletter: March 21, 2024

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…

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Gray Report Newsletter: March 14, 2024

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…

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Gray Report Newsletter: March 7, 2024

A Long Road for Rent Growth After an extended slowdown that lasted nearly 6 months, rent growth has begun to turn around. After record-breaking rent growth of 2021 and early 2022, a correction that began in late 2022 and continued through 2023 kept rent growth well below historical averages, but recent reports have shown some…

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Gray Report Newsletter: February 29, 2024

Multifamily Forecasts Converge toward Optimism As we move further from the uncertainty and rent growth stagnation of 2023, an increasing number of sources are finding room for optimism in the multifamily investment market. A looming drop-off in multifamily supply, the consequence of a interest-rate-driven decline in new construction projects, has become a central part of…

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Gray Report Newsletter: February 22, 2024

Apartment Fundamentals Are Improving The apartment market is improving markedly from a renter’s perspective, and there are promising signs of long-term apartment market strength from an investor’s perspective as well. For renters, lower rent-to-income levels indicate that apartments are becoming increasingly affordable as wages outpace rents, and the increased apartment supply should continue this trend.…

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Fed Keeps Rates Steady (and High)—Multifamily Impacts

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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…

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