HFO Partner Tyler Johnson authored an editorial published in the Portland Business Journal with an update on the multifamily investment market for the Portland metro as we head into Q2 2023:
The multifamily market in the western U.S. is facing several challenges, including the impact of rising interest rates and declining returns on cash investments.
These factors put pressure on pricing, as buyers look for healthy returns and sellers try to balance the demand for their properties with the need to achieve a reasonable return on investment.
In this environment, it is essential for buyers and sellers to have a clear understanding of current market conditions and to price properties appropriately. With a lack of available properties for sale and high demand from buyers, prices are unlikely to drop significantly unless the Federal Reserve Board raises interest rates even more seriously.
In the current market, private investors and institutions face lowering their return requirements until the Federal Reserve eases their rate increases, which we anticipate will result in increased transaction velocity and a return of investment activity to the market.
Read the full editorial at HFO's Tyler Johnson on Portland's multifamily outlook - Portland Business Journal (bizjournals.com)