The Rent Roll with Jay Parsons EP#2 Dan Oberste | Debunking A Few Multifamily Myths
Sep 25, 2024
Dan Oberste, CEO of BSR REIT, shares insights from his extensive experience in the multifamily real estate sector. He debunks myths surrounding publicly traded REITs, explaining their unique challenges and benefits. The conversation dives into misconceptions about rental markets, especially in the Sun Belt, and offers a refreshing perspective on the evolving affordability landscape. Oberste also discusses the implications of interest rates on real estate investments and the contrasting experiences of renters across different regions.
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Wage Growth Eases Rent Pressure
- Wage growth has exceeded rent growth for 20 straight months, improving affordability for renters.
- This trend widens the pool of renters who can afford market-rate apartments.
Low CMBS Share in Multifamily Debt
- Only 3% of U.S. multifamily debt comes from CMBS and non-agency securitized debt.
- Apartments rely more on federal agencies and banks, making their debt market less risky.
Dan Oberste on Public REIT Challenges
- Dan Oberste shares that public REITs represent about 15% of real estate sectors and need to be massive.
- BSR REIT found success IPO'ing in Canada to build their business with less U.S. market pressure.