1) The availability of attractive financing. Plus, the spread between fixed-rate financing and actual year one cap rates is certainly the widest that it’s been in recent history, perhaps ever. (There’s rumor that there was a bigger spread during the Roman Empire, but that may just be an old wives’ tale.)
From a macro perspective, the spreads between the treasury indexes and the premium on multifamily interest rates will almost certainly widen in the near term, but cap rates should remain stable in Class-C properties. They will probably continue to compress to a certain degree for Class-B assets.
2) Job growth For more specifics including an inside look at the Dallas apartment building investment market see: Bisnow’s Multifamily Monday
4 thoughts on “Two Key Factors for Apartment Building Investment Growth.”
Well, I got your website from this post “Top 35 Real Estate Blogs” And this one is in first place. Nice, Isn’t it?
Thanks for the blog love CityDwellers!
I just stumbled across your blog today and found it to be very well written and informative ! I have bookmarked it and will come back soon to see what you have to say next time
Thanks Chris for your support-