FREE WHITEPAPER
Underwriting Multifamily with Inflation and Rising Interest Rates

The 2021 Multifamily Market experienced record transaction volume, high loan origination, low interest rates, high rent growth, and sustained CAP Rate compression. By April 2022, inflation was at 40-year highs and interest rates were 150 basis points higher than Dec 2021 lows with expectations of multiple Fed Rate hikes over the following 9 months. This introduced high uncertainty into the three determinants of value: Revenue, Expenses, and CAP Rates. The following research explores relationships amongst these variables with an emphasis on understanding how Revenue and Expense Growth vary across property attributes, location, demographics, and affordability.

In this whitepaper, you'll learn:
 

✓   The differences in revenue and growth across markets

✓   Operating Statement Line-Items that contributed to Expense Growth in the US

✓   How to apply multifamily underwriting lessons

"The overall impact of rising expense loads have narrowed NOI margins, something that owners and investors will need to monitor carefully, especially if the broader inflationary pressures on costs remain elevated. "