Strong GDP growth at 6.7% • Inflation rate at 5.4% • Tremendous global liquidity • Funds rate at 0.25% with $120Bn monthly bond-buying • Unemployment at 4.8% • Low participation rate with 5 million people missing from the labor force • Wage increases across all sectors • Supply Chain issues create pressure on prices
The Housing Market
Sound Household balance sheets with strong consumer spending • Dramatic price increases in real estate across all asset classes • Housing shortage intensified by limited inventory • Affordability issues in the entry single-family segment • Declining Consumer Confidence
The Multifamily Sector
Contained supply in new units with limited inventory •Improved vacancies and delinquency rates in post-covid •Slow construction due to permitting and shortages •Higher rents due to higher demand and wage growth •Post-pandemic improved vacancy and delinquency rates •Class B properties are the winners in this cycle as Class A properties experienced higher vacancy rates and offered more concessions • The millennial generation is a strong tail wind for the MF sector
