Rising interest rates and evolving macroeconomic conditions are altering the landscape of real estate investments. Recent analysis explores how these factors have impacted valuations in the multifamily sector, underscoring a historical correlation between cap rates and U.S. Treasury yields. While current cap rates have only partially adjusted to recent rate hikes, potential opportunities may arise as market conditions stabilize and fundamentals normalize.

Investors seeking resilience in today’s dynamic market environment can gain insights from our latest white paper, Investing at Inflections, which examines the factors that have allowed real estate to withstand economic shifts and what this means for the future. 

Download the white paper to explore our findings.

 

Authors:

Ohm Devani, Director of Analytics at Humphreys Capital
James Williams, Senior Analyst at Humphreys Capital