The multifamily fall from grace over the last couple of years was unexpected by most at the market's pandemic highs. The increase in interest rates have hit hard, as have some other factors.

But according to Ralph Rosenberg, partner and global head of real estate at global investment firm KKR, problematic conditions should start tapering off after 2025, leaving strong possibilities for rent growth and opportunities to "buy high-quality properties below replacement cost while achieving attractive long-term yields."

The factors confounding multifamily certainly start with interest rates. "Debt levels relative to equity are higher in multifamily than in some other segments, a loan maturity wall looms, and interest rate caps are expiring, putting many owners in the position of refinancing at a time when their properties are worth less than their acquisition basis and interest rates are much higher," Rosenberg wrote.

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