Coming off what he said was arguably the most impressive performance year in the multifamily housing industry, Richard Barkham, Global Chief Economist and Global Head of Research, CBRE, wove a tale of caution for attendees at yesterday's 2022 NMHC Apartment Strategies Conference in Orlando.
Barkham outlined five headwinds entering 2022 related to the apartment industry in comparison to a year ago.
Inflation and Interest Rates. Inflation is surging with the latest YoY read at 7 percent "and the Fed looks a bit panicked. At the moment, we're at peak inflation and I suspect it will stay there for the first half of the year and then begin to ease. It should settle back in the 2 to 3 percent range by year's end, which is still higher than the pre-pandemic norm of about 1 to 2 percent.
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