While the 2008 financial crisis prompted a cyclical shift in U.S. housing — impacting everything from home prices to who can qualify for a mortgage — an equally impactful demographic change was just taking shape. The unprecedented wave of Baby Boomers that began retiring would disrupt the balance of the housing market.
Small Balance Market Resiliency Comes into Focus to Start 2019
Ever since the Federal Reserve increased short-term interest rates in the waning days of 2018, the conversation has shifted from when will rates rise again to will the Fed have to lower rates?
Markets currently peg the probability of at least one rate cut in 2019 at about even odds. However, this does not mean a downturn is imminent. By several measures, the economy is performing at its highest capacity of any point since before the financial crisis.
Whether a period of economic weakness is years away or just around the corner, the small balance multifamily sector is projected to remain healthy.
For more on the small balance multifamily sector, read Arbor Chatter’s “Q1 2019 Small Balance Multifamily Investment Trends Report.”
Explore charts and insights, including:
- Lending Volume
- Cap Rates & Spreads
- Interest Rates
- Leverage & Debt Yields