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30: 4.3 Million Reasons Why Multifamily is a Buy in 2022

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Podcast by BiggerPockets
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Multifamily real estate has been on a tear for the past two years. This is not only thanks to 2020-induced rent growth and price appreciation but also due to simple supply and demand. As millennials, a rent-rather-than-own generation, enter into peak homebuying age, many still choose to rent—instead of buy. This presents a unique opportunity for real estate investors, as multifamily demand skyrockets while inventory can barely keep pace.

But rising interest rates are starting to make the housing market look shaky. Is there still a strong demand for multifamily, and if so, how will prices change if financing becomes more expensive while building faces a bottleneck? We’ve brought on Caitlin Sugrue Walter, Vice President of Research at the National Multifamily Housing Council, to give her take on the multifamily investing situation.

Caitlin knows the apartment investing numbers, arguably better than anyone else, and sees some movement on the horizon. She diagnoses exactly what has led to such high demand for apartment rentals, why builders got stuck in developing quicksand, and whether or not rent prices are still poised to increase as we close out 2022. She also hints at the best markets for multifamily investment in the nation and what investors can expect to happen to prices as cap rates begin rising and new interest rates take their toll.

In This Episode We Cover

The building bottleneck affecting multifamily housing and its opportunity for investors

Luxury apartment buildings and why A-class apartments have become the new norm

Rent control and why it often hurts the same people it’s trying to protect

States with the highest multifamily demand and how large industries affect it

Institutional investors, private equity, and other large buyers who are taking on multifamily

Work from home’s retracement and how it may shift occupancy in large cities

And So Much More!

Links from the Show

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How Work-From-Home “Hotspots” Drove the Housing Market Even Higher

Learn More About the National Multifamily Housing Council

NMHC’s Affordability Toolkit

We Are Apartments

Connect with Caitlin:

Caitlin’s Email

Caitlin’s LinkedIn

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-30

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