The US Housing Market is on the precipice of collapse. A unique combination of factors in 2020 led to surge in demand for homes along with a decline in supply. These factors will reverse by late 2021 and the Housing Market will crash.
Multifamily in most markets continues to remain resilient. In particular, affordable markets throughout the Southwest and Midwest are achieving accelerating rent growth even in the midst of a recession.
Luxury apartments are facing stiff headwinds from supply expansion, escalating rental rates, and a fickle tenant base. The current economic recession will exacerbate these issues and lead to valuation haircuts across the space over the next two years.