Apartment ownership is enjoying a decent demand, in part fueled by ex-home owners downscaling to apartment rental. However, vacancies are on the increase, while the rate of rent increases has slowed down.
In his article ‘Multifamily Deals Multiply’ for WJS.com April 9, Johanthan Karp, reports:
“As the pace of commercial real-estate sales grinds almost to a halt amid financial-market instability and concerns about property values, deal activity is still brisk in one corner of the industry: multifamily housing.
The multi-family housing real estate corner enjoys “the rare availability of financing, thanks to government-sponsored Fannie Mae and Freddie Mac. Prompted by their mandate to provide market liquidity and funding for affordable housing, but also driven by a fresh opportunity for profit, both firms are expanding in the multifamily market to fill a vacuum left by private lenders.”
“Fannie’s and Freddie’s purchases of multifamily mortgages and mortgage-backed securities set historic highs last year”, the article concludes.