Creative Financing Becomes Essential to Moving Deals Forward - Read About It in MHN's February Issue

Why It Matters

The shift toward inventive financing and underwriting is enabling transactions to proceed despite weak rent fundamentals, which will shape who can build and who benefits from the next phase of multifamily growth. Slower new construction combined with continued capital flow could temper supply pressures but risks prolonging affordability shortfalls unless production ramps up.

Summary

Multi-Housing News reports the multifamily market may be exiting its Groundhog Day-like stagnation, with Lasalle research forecasting a slow, steady recovery rather than a sharp rebound. New construction remains constrained because current rent levels don’t justify widespread development, even as NMHC estimates a need for more than 4 million units by 2035. In the near term, a modest supply glut has softened rents and prompted developers to pause, while deals are increasingly being structured with creative underwriting and alternative capital. Major finance firms—Newmark, CBRE and Walker & Dunlop—showed sizable increases in multifamily lending, indicating capital is still available, albeit cautiously.

Original Description

Check out MHN's February digital issue here, for free:

https://www.mydigitalpublication.com/publication/?i=860191

#finance #multifamily #investment #realestate