Multi-Housing News: A Great Time to be in Apartments
According to Multi-Housing News: Panelists at NMHC's annual Apartment Strategies conference discussed the outlook for the sector in 2016.
Overdevelopment? Affordability? Rising capitalization rates? An economic downturn? Falling stock market prices? Bring it on, the multifamily market can handle it this year. At least that seemed to be the consensus at the National Multifamily Housing Council’s annual meeting, held this week in Orlando. Panelists at the conference’s Apartment Strategies Outlook event were generally bullish on the outlook for the sector in 2016.
Panelists were relatively sanguine about many of the potential roadblocks in 2016. Chances of a recession were deemed unlikely. Even Craig Leupold, president of Green Street Advisors, who warned that multifamily values may be at peak levels, said he was “bullish” about fundamentals over the next couple of years. Green Street’s concern about values stems from the malaise in the REIT market, where values have dropped about 5 percent as investors are concerned with rising interest rates and a slowing global economy. Leupold said REIT values are usually a leading indicator of private real estate values.
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