Kim Lisa TaylorSecurities Attorney, Founder, Syndication Attorneys, PLLC · Corporate Securities Attorney, 2x Best-Selling Author, Nationwide Speaker | Private Placement

Multifamily Real Estate: Trends, Rates, and the Road to 2025 🏘️📉

22 Dec 2024 · 1 min

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In this segment, the speaker explains that the long‑term outlook for multifamily real estate is positive because interest rates are expected to decline as a wave of debt refinancing approaches. Lenders will need to lower rates to enable borrowers to refinance, likely dropping rates by a quarter to a half point at each Federal Reserve meeting. Lower rates will broaden the pool of investors who can acquire properties, leading to a surge of listings from motivated sellers who are trying to survive through 2025. The speaker suggests that owners who hold through this cycle can not only recoup their investments but also capture significant upside as the market rebounds.

Chapters

The long-term trend of multifamily real estate looks good because— and that's because interest rates are starting to come down. And the reason that interest rates are coming down is because debt is due. They need to start refinancing their debt. And in order to, you know, they got to get the rates down in order to refinance the debt. Otherwise, it's going to cost them a lot more. So we're going to see those rates come down, you know, certainly a quarter of a point every Fed funds meeting, but maybe even a half as well. You know, what the rates going down is going to do is it's going to allow more investors to actually get their properties on the market and sell them either to be made whole because, you know, people have been trying to survive. Survive to '25 has been the motto, you know. And so you'll see a lot more properties coming on the market, which is good. You'll have motivated sellers. They don't even see the fact that if they can just hold on and then ride this next wave, not only will they be made whole, but they'll, they'll be actually making a bunch of money as well.