News & Events

January 2018 – Newsletter – CRG’s Take on NMHC

This year’s conference was held in Orlando, FL and featured two days’ worth of micro meetings, panel discussions and guest speakers on the outlook for multifamily in 2018.

 

Takeaways:
-Keep Calm and Carry On: Outside of a few super-heated markets, especially on the West coast, fundamentals are still very strong across the country. Developers are expected to deliver more than 100,000 new units per quarter leading up to mid-2018, with the strongest growth being in the higher end of the market.
         -Interest Rates will Rise: The Federal Reserve has indicated there will be 3 more rate hikes in 2018 due to the strength of our economy. Some industry leaders at NMHC even project a 4th possible hike.
         -Money, Money, Money – Capital is plentiful and investors are hungry for more deals. Foreign and domestic sources of capital are clamoring for apartment deals, ultimately driving down CAP rates. The convergence of rising interest rates and abundant capital will be interesting to watch play out in 2018.
         -We are a Renter Nation: Across various generations and the different demographics, one thing remains consistent – more people are choosing to rent than buy. Blue collar areas and workforce housing are one of the more under-served sectors, meaning the most potential for growth in today’s current market.
         -Multifamily is the Smart Investment – Even if and when the economic climate takes a downturn, Multifamily should be able to ride it out safely.