David Scherer, co-CEO of Origin Investments, says investors willing to take risks will be rewarded.
How is the multifamily market positioned for the year ahead?
I believe the multifamily real estate market is entering a year of rebalancing, but the next 12 months won’t be a straight-line recovery. It’s more about the market regaining conviction as fundamentals improve and pricing adjusts. We are still working through the supply created by 2021-2022 apartment deliveries, but the pressure is easing. As that supply is absorbed, concessions should decline and rent growth should improve.
I expect the affordability gap between renting and homeownership to remain wide but finally stop expanding. That gap, along with wage increases over the past few years, are tailwinds for multifamily. However, capital markets remain cautious, and new construction is constrained — so disciplined risk management still matters. While the recovery is emerging more s
