2019 Real Estate Report: How Does the Multifamily Market Look?

Multifamily real estate posted another exceptional year in 2018. Whether judged by gains in property appreciation or income growth, multifamily fundamentals delivered. Mapping the year ahead, investors are positioning themselves now as the market signals that dynamic changes are underway.

Three primary impacts will move the multifamily market in 2019, including pressure from volatile financial markets, a growing housing supply and emerging development risks.

Rising Interest Rates (The 800-Pound Gorilla)

Debt pricing looms as the largest multifamily market mover in the coming year. In the first half of October alone, an equities sell-off dropped the Dow Jones almost 7% and pushed the 10-year Treasury yield to a high-water mark of +75 basis points for the year. That rate, if left