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Multifamily Growth Strategies Adjust To Economic Uncertainties

Conversions become a major growth sector as buying below replacement cost and renovating lowers risk. .

By Jack Rogers | October 28, 2022 at 08:18 AM

As the storm clouds of an economic downturn created gusting headwinds challenging all asset classes this year, CRE players expressed confidence that the high-flying multifamily sector—which has seen unprecedented rent growth during the past two years—is prepared to weather the storm.

“A pullback in the market will likely impact all property types as interest rates increase rapidly,” says Mike Wolfson, director of Capital Markets Research at Newmark.

“However, multifamily should remain a preferred investment destination in the near-term given its strong defensive characteristics, liquidity provided by government-sponsored enterprises and continued disruptions in other property types,” he said, a sentiment shared by many market analysts.

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