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Market Insights

April 24, 2023

6 min read

In the Wake of Delays: Multifamily Development Landscape

On March 27, the National Multifamily Housing Council (NMHC) unveiled its Qua...

The survey data mirrors an evident repercussion of the Federal Reserve's policy on interest rates - unfavorable conditions in the debt capital markets. According to the Federal Reserve Economic Data (FRED), new private housing unit starts in early 2023 decreased by 19.5% year-over-year. However, this might not entirely spell doom, given the pronounced dip in construction costs since the latter half of 2022.

In the recent three months, 47% of developers reported upward deal repricing, down from 92% in March 2022. Meanwhile, 21% saw a downward repricing (a substantial increase from 0% last year), and 14% didn't observe any repricing, compared to 5% the previous year. Considering the tightening credit climate and a gloomy short-term rent outlook, developers have started to question the profitability of their investments.

The most common reason for construction delays, as the survey indicates, is the current non-feasibility of projects, hinting that developers are awaiting a turn in the tide. So, what needs to shift for projects to regain viability?

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February 6, 2024

7 min read

Financial Analysis in Multifamily Syndication

In multifamily syndication, where investors pool their resources to invest in...

In multifamily syndication, where investors pool their resources to invest in apartment complexes or similar properties, mastering financial analysis is not just a skill but a necessity. This analysis forms the backbone of informed decision-making, guiding investors through the complexities of profitability, stability, and investment viability. Let's delve into the intricacies of financial analysis in real estate, exploring its purpose, key components, and crucial role in strategic decision-making.

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