707: Multifamily Has Been Severely Challenged

The past few years have been brutal for multifamily. Higher interest rates, dramatically higher insurance costs, taxes, materials and labor, coupled with declining rents, have plagued the industry. Many properties are underwater, causing losses for investors. As a result, it’s become very difficult to raise money for new deals. Over a longer-term horizon, the forecast for multifamily remains strong as new supply gets absorbed and more people rent, but the past few years have been tough. Jordan Fisher, Principal of Next Wave Investors, is a strong multifamily operator who owns 2500 multifamily units in the western U.S. Jordan discusses the challenges of multifamily and the state of the current market.