The Multi-Family Muse: vol. 004

INVESTORS STAY STRONG ON MULTI-FAMILY

Allocation To Alternative Investments

Hello fellow investors, friends and real estate enthusiasts!

Here we are in August already!??Where does the time go right?

It has been a very interesting year so far in the world of real estate investing.

Multi-Family has remained strong and one of the top asset classes for investors. Investors remain cautious about retail and office space nationally due to rising vacancy rates, online shopping and the remote-work culture.??Despite worry over inflation, insurance and state of the economy concerns, investors will play a more significant role in private markets as limited partners and direct co-investors in commercial real estate-especially multi-family residential in the U.S.

Real estate valuations are driven by supply and demand dynamics. Currently, there is an oversupply of office and retail space, but a shortage of industrial and multifamily.

Multi-Family is a bright spot due to suppressed demand and a housing shortage totaling several million units. Job growth and migration from high-tax to low-tax states also offer opportunities in this sector.??Being known for its risk-averse nature, tax advantages and steady cash flow, makes apartments a particularly attractive asset class.

ANOTHER FED HIKE...REALLY!!??

Highest Level In More Than 22 Years

The Federal Reserve approved a much-anticipated interest rate hike that takes benchmark borrowing costs to their highest level in more than 22 years.

The rate was raised by a quarter percentage point to a target range of 5.25%-5.5%. The midpoint of that target range would be the highest level for the benchmark rate since early 2001.

The increase is the 11th time the FOMC has raised rates in a tightening process that began in March 2022.

Economic growth has been surprisingly resilient despite the rate hikes.??In these volatile markets active real estate investors need to be creative to thrive.

• Find alternative cash-flow strategies

-If you think outside of the box, this puts you at a distinct advantage in this type of market.

• Think Long-term

-If the asset is a high cash-flowing property, you should consider a longer term hold.

EYE ON THE PRIZE-MARKET WATCH

Midwest...It's All About Supply Baby!

At i65Capital Investments we are constantly evaluating new emerging markets to investing in.??Most recently the Midwest has peaked our attention.

-Occupancy rates?this summer have remained well above long-term seasonal norms.

-There's comparatively?less new supply?across most of the Midwest.

-Less supply creates?more scarcity, which keeps occupancy rates higher, which in turn keeps rent growth above the U.S. averages.

We will keep our eyes on these market trends and update you as investment opportunities arise.

Until next time...Have a rockin' day!