Analysis

Construction costs remain high.

Headwinds including financing costs and compressed margins continue to challenge the sector.

A focus on single-family housing has created a significant gap in the middle housing sector. 

Nationally only 1.8% of existing stock is under new construction, according to Yardi Matrix.

The fundamentals of the senior housing sector are improving, according to a CBRE survey.

Borrowers with loans approaching maturity in the short term should prepare to refinance in a high-rate environment.

Despite strong double-digit growth in office and multifamily sales, retail and industrial transactions slowed to their lowest pace this cycle.

Lawmakers in Hawaii, Washington, and Colorado are easing zoning rules to boost affordable housing, driving demand for denser multifamily investments.