Multi-Housing News: How the Latest Interest Rate Hike Impacts Multifamily

Multi-Housing News interviewed industry executives and market experts about how the highest interest rate increase in decades will impact multifamily. 

Their predictions include: 

• Cash-flowing multifamily and industrial assets won’t be as severely impacted.
• Demand for multifamily and single-family rentals is expected to strengthen along with rents.
• Lenders have tightened their underwriting standards resulting in lower loan-to-values, and lenders and borrowers are going to continue to be more cautious going forward. 
• Investors are going to be seeking higher returns on debt and equity and the cost of capital will go up.
• Cap rates will likely widen over the next 12 to 18 months to reflect what’s happening in the capital markets.