High mortgage rates and the affordability crisis are leaving buyers with no choice but to turn to rental properties.
In a statement on Globe St, Jay Lybik, National Director of Multifamily Analytics at CoStar Group, says “the single-family housing market in 2022 has seen rising mortgage rates that have significantly increased the monthly mortgage payments for newly purchased homes and the possibility of home prices peaking has created high housing uncertainty thus placing some potential home buyers on the sidelines.
“Multifamily demand has benefited from this uncertainty, as households that would have made the transition from renting to owning have been unable to find a home to purchase and now may not qualify. Additionally, some other renter households are afraid to commit to buying for fear of buying at the top of the market. Overall, housing uncertainty creates a positive for multifamily demand in the short run.”