Investors are predicting a solid 2022 for multifamily investment, but one that might include lower profit margins than 2021, according to Lightbox's Q1 2022 Investor Sentiment Report.
As higher interest rates put upward pressure on borrowing rates and cap rates, earnings will be impacted. But David Scherer, Co-CEO of Origin Investments, said this does not mark the end of what has been a very strong multifamily market.
"Appreciation and multiples have been so strong for so long that a modest reduction has been inevitable," Scherer said in prepared remarks.
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