Multifamily Impacts Of Economic Volatility

As the macro economy shifts rapidly from growth to a recession, what are the main factors that will impact the multifamily market? Blerim Zeqiri, CEO and Founder of Radix, joins us to share his thoughts on the current economic situation, the impact of rising interest rates, and how owners and operators can weather the economic downturn. 

Despite two straight quarters of negative GDP in the first half of 2022, many economic factors especially the employment market point toward continued growth. With strong employment but rapidly rising prices we expect the recession will be mild.

Another “buzzword” has been inflation. A confluence of factors including above average savings and consumer liquidity, significant supply constraints and the Fed waiting too long to tighten monetary policy, inflation has spiraled out of control. The Fed will probably have to keep hiking rates through the end of the year, which may considerably hamper economic growth.  

Cryptocurrency and other volatile investment sectors has also been in the spotlight with an easy money policy being put in place. 

The current economic situation will most likely bring multifamily back to real estate basics. Rents will continue to grow, although at a significantly slower rate than last year and fundamentals will likely return closer to historic averages.

Join us to take a deeper dive into the multifamily industry and what we expect through the economic slowdown!