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.
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