The increasing cost of capital is squeezing multifamily cap rates, which have been on a steady decline throughout the course of the pandemic.

According to a new analysis from Moody’s Analytics, that will ultimately pressure property values in the sector — and “without continued unprecedented rent growth, the darling multifamily asset class likely carries the most risk of value decline while the benchmark US Treasury rate is on the rise,” analysts say.

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Lynn Pollack

GlobeSt

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