The multifamily market is facing a significant challenge as $1.99 trillion of mortgage debt will mature by 2028. According to Gray Capital, this will lead to a wave of distressed properties and price discovery in the market. As interest rates rise and property income growth declines, investors are already anticipating cap rate expansion and looking for opportunities to purchase at lower prices.
In addition, longer-term projections for interest rates have increased since Gray Capital’s previous report on multifamily loan maturities. This is expected to further drive down prices due to upcoming loan maturities in late 2023.
Despite recent reports suggesting that multifamily price declines may soon end, low transaction volumes make it difficult to accurately measure confidence in the market using cap rates. However, long-term prospects for the sector remain positive with high demand for housing still present.
To gain valuable insights into the current state of the market and what lies ahead during this cycle, join us at Connect Investment & Finance 2023 where industry leaders will discuss distressed assets on October 24th at Hyatt Regency O’Hare in Rosemont IL . Don’t miss out – register now!
