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Ep. 7: Building Affordable Housing that Supports the Real Needs of its Residents - Antonio Marquez - Principal and Managing Partner of Comunidad Partners

The Distribution by Juniper Square

NOTE

Market Insights Amidst Housing Affordability Crisis

The multifamily industry has experienced a significant dip in rents after a long period of consecutive growth due to capital markets disruption and falling transaction velocity caused by interest rates and eroding fundamentals. Concerns arise in the workforce and affordable housing space as owners may not continue to invest in assets leading to potential degradation of properties and affordability risks. New transactions with higher interest rates and costs are expected to create upward pressure on rents, possibly causing attrition in a softening market. There is a market disconnect with increased cap rates, potentially settling in the mid to high fives. Strategies focusing on asset and location fundamentals, operating advantages, and avoiding over-leveraging are crucial in the current uncertain and rising market environment.

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