The Federal Reserve’s most recent interest rate increase has made the real estate landscape harder to navigate. The higher capital costs, rising rents and expensive cap rates are impacting both multifamily investment and development in multiple ways. However, rental housing fundamentals have remained strong due to demand still outstripping supply.
One of the effects of rising interest rates is that potential homebuyers get priced out of the housing market, which is supporting rentals demand and keeping investor appetite high.
“While there is a mismatch between seller expectations and buyer demands, there are still opportunities to be had. We are net buyers and have capital to deploy,” Gautam Goyal, CEO & President of Three Pillars Capital Group, told Multi-Housing News.
Suraj Shrestha is an associate at Harborside Partners. He has been taking the lead role on research projects; to develop and implement online marketing strategies for search engine optimization and social media marketing. He is one of the core parts for helping to grow business revenue and the company’s online presence.