The Federal Reserve is expected to maintain interest rates despite sustained inflation pressure, with markets anticipating potential cuts in 2025.

Apartment construction is increasingly moving to rural areas, with growth noted in small cities and exurban regions, while multifamily development remains slow in major metros and suburbs. According to a Multifamily Dive analysis of the National Association of Home Builders’ Home Building Geography Index, the percentage of apartments in urban cores has dropped from 45.1% to 35.5%, the lowest level on record. Although the total number of new units in rural areas is still low, recent updates to the opportunity zones program may further bolster this trend.

In general, the multifamily sector remains stable as supply meets demand, with optimism about new rent growth following a peak in new supply.

The sale-leaseback model is becoming prominent, particularly among regional banks looking to free up capital by selling off owned properties. In Q1, banks closed $540 million in sale-leaseback deals, significantly exceeding totals from previous years.

U.S. manufacturing showed signs of growth in June, but rising input costs raise concerns about future inflation.

Source: Bisnow.com.

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