Cracks Forming in Apartment Prices

Declining asset prices for commercial real estate, noted in several new reports as well as the recently-published minutes from last month’s meeting of the Federal Reserve Open Market Committee, have been a long-expected eventuality ever since interest rates began rising last year. While apartment asset prices are beginning to soften, strong fundamentals and positive rent growth trends could lead buyers and investors to see the light of opportunity shining through the cracks forming in multifamily property values.