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Buzzwords for MF: Income Growth, Affordability

SAN DIEGO—Multifamily lenders need to keep an eye on income growth and factor it into their underwriting standards, in addition to being aware of decreasing affordability in the market, speakers at MBA's CREF/Multifamily Housing Convention & Expo 2017 tell attendees.

By Carrie Rossenfeld | carrierossenfeld | Updated on February 22, 2017

CREF Emerging Trends panel The fact that there’s no class-B apartment space being built and that income growth is not keeping up with rental-rate growth only exacerbates the housing crisis, panelists said.

SAN DIEGO—Multifamily lenders need to keep an eye on income growth and factor it into their underwriting standards, in addition to being aware of decreasing affordability in the market, speakers at MBA’s CREF/Multifamily Housing Convention & Expo 2017 here told attendees at yesterday’s “Emerging Trends in Multifamily” panel. Despite these detractors, the sector is looking healthy and should continue on this path for quite some time, the speakers said.

David Brickman, EVP and head of multifamily for Freddie Mac, said he expects continued growth ahead for multifamily, even with oversupply reported in select markets at certain price points. Supply and absorption are issues in some areas, but rent is growing, and cap-rate spreads are healthy. “I don’t see the elevated concern being seen in certain corners.”

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