Multifamily Outlook
Lender Freddie Mac Mid Year 2023: Some rebound in multifamily commercial real estate market demand.
"MCLEAN, Va., Aug. 03, 2023 (GLOBE NEWSWIRE) -- As multifamily rental demand slowly returned in the first half of 2023, Freddie Mac (OTCQB: FMCC) projects the market will continue to stabilize but see below-average growth throughout the rest of the year. Macroeconomic headwinds, including the elevated 10-Year Treasury rate, will lead to a contraction in multifamily origination volume to $370 billion. However, the economy is maintaining positive momentum, propelled by a strong labor market helping to maintain multifamily fundamentals.
“Midway through the year, we are starting to see a return to more normal patterns although performance is a bit weaker,” said Sara Hoffmann, director of Multifamily Research at Freddie Mac. “We expect multifamily fundamentals to perform slightly below long-term averages this year, which will feel particularly slow compared with the pandemic boom years, and even the years leading up to it. But positive demand and modest rent growth indicate the multifamily market is stabilizing.”
The Multifamily 2023 Midyear Outlook from Freddie Mac’s Multifamily Research Center is available online here. "
The Economy Remains Uncertain
Growth Expectations are Slower
Buyers and Sellers are having a harder time agreeing on asset value.
Freddie Mac expects originations in 2023 to experience a contraction to $370 billion, down 17% from 2022.
Multifamily Market Stabilizes
Through the first half of 2023, the multifamily market appears to be returning to a more normal seasonal pattern.
Apartment Complex ownership demand rebounds.
Comentários