Multifamily Misery

While the single-family housing market is enjoying solid price appreciation, strong construction activity and suffers from a severe lack of existing inventory, the multifamily market struggles mightily. Financing is increasingly difficult as vacancy rates and insurance premiums rise, rents decline, mortgage rates increase. The market struggles to absorb substantial recent overbuilding and prices are falling due to rising cap rates. As a result, starts have declined a sharp 41% Y-o-Y.