Apartments
Gray Report Newsletter: August 31, 2023
“Secret” Distress, Quiet Capital Markets, and a Rent Growth Reality Check While low CRE sales activity has some looking for hidden distress, reports on the apartment market are showing decelerating rent growth in recent months that could erode the steady month-over-month gains in the first half of the year. Given the close correlation between the…
GO >Gray Report Newsletter: September 7, 2023
Near-Term Struggles and Long-Term Strength for Multifamily Year-over-year rent growth has been consistently decelerating for over 18 months since its peak in late-2021/early-2022, and recent reports on the apartment market show year-over-year rent growth heading into negative territory after 18+ months of deceleration from its peak in late 2021/early-2022. Alongside lower rent growth and higher…
GO >Gray Report Newsletter: September 14, 2023
CPI: Inflation Up 3.7% YoY, Multifamily Implications The Consumer Price Index’s recent numbers for August showed a substantial monthly increase of 0.6% that was driven largely by rising gas prices, but when excluding food and energy prices, price growth continued to decelerate as shelter costs and moderating rent growth brought core inflation to a mere…
GO >Gray Report Newsletter: September 21, 2023
Fed’s 2024 Projection: Funds Rate at 5.1% by End of Year The Federal Reserve decided this week to maintain the current Federal funds rate without an increase (or decrease), but their updated economic projections suggest that the Fed is more driven to sustain these elevated rates through 2024, increasing their end-of-year 2024 projection from 4.6%…
GO >Gray Report Newsletter: September 28, 2023
Loan Maturities Update: Is Distress Around the Corner? Reports of persistently-high expenses for commercial real estate operators, extended periods of higher interest rates, and lower rent growth have compounded the potential for distress linked to the wave of multifamily loan maturities due in Q4 of this year. Solid, long-term fundamentals and robust housing demand continue…
GO >Interest Rate Uncertainty Slows Apartment Sales to a Crawl
Multifamily capital markets have seen the greatest drop in transaction activity compared to other CRE sectors, but all CRE markets have seen lower sales numbers in the current interest rate environment. As members of the Fed meet in Jackson Hole, the potential for an extended high-interest-rate regime could have a significant impact on commercial real…
GO >Interest Rate Uncertainty Slows Apartment Sales to a Crawl
Listen to the latest episode of The Gray Report Podcast and stay up to date on the most important news and research in the multifamily industry, commercial real estate, and the economy. The Gray Report on Spotify The Gray Report on Google Podcasts The Gray Report on Apple Podcasts
GO >Looking Beyond the 2023 CRE Market Cooldown
Listen to the latest episode of The Gray Report Podcast and stay up to date on the most important news and research in the multifamily industry, commercial real estate, and the economy. The Gray Report on Spotify The Gray Report on Google Podcasts The Gray Report on Apple Podcasts
GO >Housing demand is building. So are homebuilders.
Berkshire Hathaway’s recent investment in homebuilding companies is a sound endorsement of the housing sector and continued strong demand for homes, and Warren Buffet’s new focus is supported by decreasing building material costs and increased permitting and starts for single family home projects, indicating continued interest in purchasing a home, even as mortgage rates make…
GO >Looking Beyond the 2023 CRE Market Cooldown
Mid-year updates and forecasts for the apartment and CRE markets uniformly note the improved economic conditions compared to the start of the year, but forecasts for rent growth and capital markets are diverging. Under one scenario, a recession in late 2023/early 2024 will prompt an interest rate reduction that could stimulate CRE capital markets, but…
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