Experts: It is a Different Age of Banking

[IMGCAP(1)]SAN DIEGO-If you look at the multifamily market and household growth in the US between 1995 and 2005, the increase in the homeownership rate meant phenomenal growth in ownership, but not in rent. So says Jamie Woodwell, VP of commercial real estate research at Mortgage Bankers Association. “Now, as we are going into a recessionary period, you are starting to see a contraction.”

Woodwell kicked off the Capital Markets for Multifamily panel at the MBA’s Commercial Real Estate Finance/Multifamily Housing Convention & Expo, held here at the Manchester Grand Hyatt, a conference that attracted more than 2,000 attendees. “With the singlefamily housing contraction, construction has dropped considerably,” he said. “We have seen a pull back in residential starts and completions.”

[IMGCAP(2)]In general terms, the multifamily sector is not seeing rent contraction as much as other sectors, said Woodwell. In terms of property performance, there are vacancy rates across every property type ticking up, with retail showing the most dramatic increase.