Why Multifamily Housing Values Will Continue to Defy Gravity

[Elizabeth M Williams]

Decent, short read in the link below. As someone who raises capital for a select few syndications, I often get questions around rising interest rates, inflation, will the market crash, etc?

In my humble opinion, multifamily & self storage remain stable investments, and don't tend to be correlated to the single family market, and its vulnerability to changes in interest rates, which is why investors flock to commercial real estate niches such as these. Our opportunities tend to be oversubscribed within in days. Why? It's a repeatable formula, throughout market cycles (can hold for longer time horizon, if need be) - buy assets that need moderate renovation, in growth markets. Improve management, improve the assets, increase rents inline with market rates, but with tenant retention in mind, as well. Increase vacancies, as tenants like improved units/surrounds. Stabilize cash flows, sell to institutional investors or larger family offices, who are happy to buy these in-built cash flows for their investors. 

Why Multifamily Values Will Continue to Defy Gravity (multihousingnews.com)