Multifamily was a pandemic-era golden child.
Historically low interest rates and federal government stimulus, combined with people wanting new spaces better suited for new stay-at-home lifestyles, made the asset class a no-brainer during the early years of the pandemic.
But the apartment market has been slipping this year. Due to the Federal Reserve’s interest rate hikes, the rising cost of construction and labor, and softening rents, capital sources like banks, private equity and debt funds are holding tight to their wallets, bringing new multifamily construction to a virtual standstill.
The third quarter was the D.C. area’s slowest for new multifamily construction starts since 2010, with only 891 units across the region breaking ground.
Click here to read the rest of the article written by Emily Wishingrad over at Bisnow
