The pandemic has caused an unexpected, long disruption in how developers and property managers plan and operate rental housing communities, both in terms of individual apartments and shared spaces.
Apartment owners attempt to accommodate the WFH lifestyle. More outside space and on-site co-working amenities are now being incorporated into multifamily properties.
Commercial real estate has long been a tool to hedge inflation by storing value. But after 15 years of dovish Federal Reserve monetary policy, massive stimulus from tax cuts and then pandemic aid, and disrupted supply chains, the usual may not be the new normal.
President Biden’s proposal to sharply raise taxes on capital gains and eliminate the 1031 exchange has created anxiety and frustration across the $1 trillion multifamily real estate Industry.
As the country has waged war against the pandemic, there’s been another fight raging within the apartment industry—the one to defend net operating income (NOI) from being further ravaged by COVID-19.
Not only is the moratorium unconstitutional, but it is also another example of the government putting a Band-aid on a bullet hole, and not planning for any of the consequences. Whenever the moratorium is ultimately lifted, what happens to the reported $1 billion in unpaid rent in New York City alone?