Odd Lots Get Ready For Another Shock to Housing Affordability
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Jan 30, 2025 
Lee Everett, Head of Research and Strategy at Cortland, sheds light on the troubling future of housing affordability. He discusses how rising interest rates have dramatically reduced new apartment development, leading to an impending supply crisis. Everett highlights the combined impact of labor shortages due to deportations and escalating insurance costs, all while rent prices have just begun to stabilize. With economic tensions mounting, a new shock to housing affordability could be on the horizon, affecting renters and buyers alike.
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TikTok Landlord Bust
- Some newer multifamily syndicators, particularly those who overextended during the low-rate environment, are facing significant financial distress, including lawsuits and investigations.
- Banks and debt funds are seeking to offload these troubled assets and return to more reliable sponsors.
Multifamily Market Health Indicators
- Rent growth and cap rates are key indicators of multifamily market health.
- Rising cap rates signal higher yields relative to prices, often due to increased risk or falling valuations.
Shifting Market Dynamics
- The current renter-friendly market is expected to shift to a landlord-friendly market in the next 2-3 years.
- This is due to decreasing supply coupled with continued strong demand.