Elevated Interest Rates Pose Long-Term Risk to Apartments
Landlords are facing many challenges that include variable rates, financing and maturing debt.

Latest Inflation Numbers Suggest No May Rate Cut
Some in the Federal Reserve are arguing for an extended wait on reducing interest rates.

US Banks Face Loss Risk From Multi-Family Property Loan Exposure
U.S. banks with significant lending exposure to some multi-family properties and particularly rent-controlled housing are vulnerable to posting losses this year on rising costs facing landlords.

Plunge In U.S. Office Values Could Match Or Exceed 2008 Real Estate Fallout
The slide in office values will “lead to permanent property valuation impairments and higher CMBS loan losses relative to expectations at issuance.

Fed Must Get ‘More Aggressive’ With Rate Cuts Due To Weakening Jobs Market
The Federal Reserve may have new incentives in the second quarter to cut rates deeper this year.

California Has the Highest Unemployment Rate in the Continental US
A big slowdown in job growth raises the question of what might start happening in other states.

Loan Modifications More Than Doubled Last Year
That leaves of question of whether the approach can be ultimately successful.

GSEs Regain Their Dominance In Apartment Lending
Fannie Mae and Freddie Mac claimed 58% market share in 2023 after their share fell 39% in 2022.

CRE Story Line Moves Beyond Inflation, Rate Hikes, Imminent Recession
Macroeconomic indicators bring optimism to multifamily, industrial, retail.

Just How Big is the Wall of Maturities?
But trying to tease out exactly what is due when, and to whom, is confusing.

US Residents Now Need to Make Six Figures to Buy a Home
Home prices outpacing wage growth, rising interest rates, and a supply shortage create challenges.

Debt Markets Get Some Much-Needed Momentum
Marginally better debt conditions and has helped grease-the-wheels for activity.

Office Availability In Greater LA Market Hits Record 28% 
Savills predicts rents to drop this year in “long-awaited reset in office building valuations”

Investors Watch, Wait For Signs Of Distress
As lenders work with borrowers and bring back “extend-and-pretend” strategies, apartment properties with problem loans aren’t hitting the market.

L.A. Apartment Rents Hit Record Highs in Q1, But Sales Have Stalled
The number of units sold in investment sales in the first quarter dropped by 59% compared to 2023.

Full Employment, Low Inflation And A Virtuous Cycle In The American Economy
Something has changed. It now seems possible to have full employment between 3.5% and 4% and inflation around 2.5% to 3%.

Markets Back to Seeing Fewer Rate Cuts Than the Federal Reserve
After spending much of this year making bets that were much more dovish than those of Fed officials, investors have now flipped in the opposite direction.

Interest Rate Drops Will Not Solve CRE Problems
Slight rate drops are coming. But that may not necessarily lower mortgage rates.

CMBS Delinquencies Post Slight Improvement, Led by Retail
The Trepp CMBS Delinquency rate dropped slightly in March 2024 for an overall delinquency rate of 4.67%, a decline of four basis points from February. 

Apartment Expenses Grow as Insurance Premiums Spike
YoY profitability for January 2024 shows gross income rose more than expenses – but that could be short lived.

Powell Still Expects Fed To Lower Rates This Year As Inflation Follows A 'Bumpy' Path Down To 2%
Given the strength of the economy and progress on inflation so far, we have time to let the incoming data guide our decisions on policy.

Home Property Taxes Post Alarming Rise
A double whammy of declining home values and rising taxes propelled the increase in effective tax rates.

Markets Wonder If There Will Be Only Two Rate Cuts This Year
Ultimately, the numbers will have the last say. Right now, it’s looking dubious for three cuts.

High Apartment Supply Still Muting Performance Fundamentals
Despite apartment demand recovering to stand above normal levels in 1st quarter 2024, even heavier supply continued to weigh down rent and occupancy figures.

California’s Housing Slump Spells Trouble As The State Is Set To Get Even More Pricey
With fewer homes being built, experts warn that the already sky-high housing prices could skyrocket further due to limited supply, exacerbating the state’s affordability crisis.

Multifamily Becoming Trouble Spot For Banks
The number of apartment loans at least 30 days past due or in non-accrual has jumped 81%.