Investors that swooped in on South Florida’s multifamily boom now face elevated interest rates, high insurance costs and plateauing rents. Compounding the problems are inflation, which has prompted rent delinquencies, and a hefty development pipeline that’s slightly tempered demand, prompted concessions and led rents to plateau or slightly decline in some submarkets.
The recently released 2024 U.S. Investor Intentions Survey by CBRE Group Inc. found more than 60% of respondents expect to purchase more real estate in 2024 than they did last year. But most are waiting to see what the Federal Reserve decides to do with interest rates at its meetings later this year.
The downturn will be the key determinant of how long and in what ways the real estate markets suffer. So is there a silver lining for real estate companies? As with the bottom of the housing crash, investors with a long view will find opportunities to pick up assets at distressed prices with low financing rates. CLICK ON THE HEADLINE FOR MORE
Coronavirus’ Impacts On Real Estate: Why You Need To Think Short-Term And Longer-Term Read More »
