Jan 31, 2025
Did you go? If not…these were the themes, of the 3-day event,
between apartment operators, investors, investment sales brokers
and lenders. This nationwide conference had optimism in multifamily
for the long term…but continued challenges (higher interest rates,
higher cap rates, and the lack of distressed assets coming to the
market) for the shorter term.
1. NMHC Meeting Overview: The meeting was held at the Aria Hotel in
Las Vegas, attended by around 10-12,000 people from various sectors
of the multifamily industry.
2. Market Sentiment: Despite challenges, there is optimism about
the fundamentals of apartment ownership and investing improving.
The sentiment among brokers is more optimistic than among
operators.
3. Class A and C Properties: Class A properties are in high demand,
while Class C properties are currently out of favor. There is
limited availability of properties on the market, and the bid-ask
spread remains wide.
4. Interest Rates and Financing: Interest rates are expected to
stay higher, but there is some expectation of rate cuts in the
future. Banks are starting to open up to lending again after a
period of tightening.
5. Distressed Properties: There is some distress in the market,
particularly among properties financed with bridge loans. However,
the overall percentage of distressed properties is relatively
small.
6. Dallas-Fort Worth Market: The Dallas-Fort Worth market is highly
favored, with strong fundamentals and high demand.
7. Future Outlook: Michael & James believe that the market will
improve, with rent growth expected to return and supply issues
easing. They suggest that now might be a good time to consider
buying multifamily properties. New apartment supply is coming down
rapidly and rental growth is coming back after 138 consecutive
weeks of year-over-year decline.
8. Events and Networking: The Old Capital Bus Tour is on March 28th
and a virtual Old Capital speaker series on February 5th are
upcoming events for networking and learning more about the
multifamily market. RSVP to OldCapitalPodcast.com
Overall, the discussion highlights cautious optimism in the
multifamily housing market, with a focus on strategic buying and
navigating current challenges.
Are you interested in learning more about how Multifamily
Syndications work? Please visit SPIADVISORY.COM to understand
more about Michael Becker’s Real Estate Syndication business.