Multifamily Sector Strategizes for Growth Amid Rate Changes

Rising oil prices and persistent inflation have shifted expectations toward a likely Federal Reserve rate hike, possibly 25 basis points, marking the first increase since July 2023. Higher rates may slow multifamily transaction volume and increase refinancing pressure on loans from 2021-2022. Investors are recalibrating, focusing more on property fundamentals and incorporating interest-rate buffers in underwriting. Variable-rate loans and direct equity risk face greater challenges amid uncertainty.