The Gray Report Podcast

The broader commercial real estate landscape could see further pricing volatility, especially as distress levels tick upward and financing challenges persist. Multifamily, however, remains more stable, but current, more modest rent growth trends could be a challenge for markets/regions still working through the historic wave of apartment development. Many investors are looking past the current environment into a potential under-supply of apartments in 2026, and the continued divergence among different regions and markets will reward investors who can find opportunity in this current uncertainty.Sources discussed in this episode:MSCI: “Early Warnings of CRE Price Problems” - https://www.msci.com/research-and-insights/blog-post/early-warnings-of-cre-price-problems Trepp: “Investment Yield Spreads: Commercial Real Estate as an Investment Class” - https://www.trepp.com/trepptalk/investment-yield-spreads-commercial-real-estate-as-an-investment-class Marcus & Millichap: “Emerging Cap Rate Spreads and Trends” - https://www.marcusmillichap.com/research/videos/emerging-cap-rate-spreads-and-trends CRED iQ: “CMBS Distress Rate Reaches 11% –Breaking a Streak of 3 Consecutive Reductions” - https://cred-iq.com/blog/2025/06/05/cmbs-distress-rate-reaches-11-breaking-a-streak-of-3-consecutive-reductions/ Yardi Matrix: “Another Month of Steady Rent Gains for Multifamily” - https://www.yardimatrix.com/publications/download/file/7359-MatrixMultifamilyNationalReport-May2025 Learn more about Gray Capital's Midwest Multifamily Fund: https://www.graycapitalllc.com/midwestDownload Gray Capital's latest report: ⁠https://www.graycapitalllc.com/midwest-report/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Gray Report host Spencer Gray speaks with guest Paul Fiorilla, Director of Research at RealPage, about the big picture trends in housing and the economy, with insightful conversation about housing affordability, single-family rentals, macro-economic developments, and the multifamily market. Yardi Matrix: https://www.yardimatrix.com/ Yardi Matrix Research: https://www.yardimatrix.com/Publications Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/midwest-report/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Signs of a softening for-sale home market are making some worry about a larger economic downturn, and apartment rent growth has faltered, growing less this year than in the past. That being said, apartment market performance varies considerably from region to region. Midwest and Northeast markets have rent growth close to 3-3.5%, while the South and West are less than 1% (and sometimes negative). Apartment construction trends point to a more balanced market as 2025 moves into 2026, but higher supply markets may take longer to get to this equilibrium.Sources discussed in this episode:GlobeSt: “Experts Warn Housing Could Be the Tipping Point for the Next Recession” - https://www.globest.com/2025/05/28/experts-warn-housing-could-be-the-tipping-point-for-the-next-recession/Cotality: "US home price insights — June 2025” - https://www.cotality.com/insights/articles/us-home-price-insights-june-2025Apartment List: “May 2025 National Rent Report” - https://www.apartmentlist.com/research/national-rent-dataColliers: “Path to Performance: Fundamentals Strengthen in 2025 - Multifamily Capital Markets Report” - https://www.colliers.com/en/research/nrep-uscm-usmf-colliers-capital-markets-multifamily-report-2025Learn more about Gray Capital's Midwest Multifamily Fund: https://www.graycapitalllc.com/midwestDownload Gray Capital's latest report: ⁠https://www.graycapitalllc.com/midwest-report/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

With earnings reports from major apartment REITs sharing a similar theme of higher-than-expected performance, the multifamily investment market could heat up in the second half of the year. Expectations for interest rates, however, are less-than-optimistic, with the Federal Reserve "grappling with uncertainty" as multifamily buyers and borrowers—some of whom are approaching distress—are challenged with higher financing costs.Sources discussed in this episode:Fortune: “There's a ‘buyer's strike' on U.S. assets as foreign investors can't stomach huge deficits anymore, analyst warn” - https://fortune.com/2025/05/24/debt-crisis-foreign-buyers-strike-us-assets-deficits-treasury-bonds-dollar-selloff/Colliers: “Value Growth Signals the Start of a New Investment Cycle” - https://knowledge-leader.colliers.com/aaron-jodka/quick-hits-value-growth-signals-the-start-of-a-new-investment-cycle/RealPage: “Strong Operational Performance in 1st Quarter REITs Earnings Calls” - https://www.realpage.com/analytics/reits-update-1st-quarter-2025/Apartment List: “2025 Millennial Homeownership Report” - https://www.apartmentlist.com/research/millennial-homeownership-2025NAHB: “Income Growth Helps Mute Existing Affordability Constraints” - https://eyeonhousing.org/2025/05/income-growth-helps-mute-existing-affordability-constraints/?_ga=2.182103335.1603973780.1748313471-811333322.1727831579RealPage: “Job Losses Persist in Bay Area and Midwest Markets” - https://www.realpage.com/analytics/april-2025-metro-employment-update/NAHB: “State-Level Employment Situation: April 2025” - https://eyeonhousing.org/2025/05/state-level-employment-situation-april-2025/?_ga=2.91309727.4229Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/midwest-report/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Rental housing continues its extreme affordability compared to homebuying costs; apartment absorption has skyrocketed to levels close to the heady, white-hot apartment market of 2021; and multifamily construction activity is lower, coming into balance with demand. Despite the positive implications of these trends for multifamily investors, apartment sales activity remains relatively low, and rent growth is also below historical averages.Sources discussed in this episode:NAR: “Housing Affordability and Supply: Supply Went Up. Affordability Didn't.” - https://www.nar.realtor/research-and-statistics/research-reports/housing-affordability-and-supply RealPage: “Apartment Transactions Ease in 2025's 1st Quarter” - https://www.realpage.com/analytics/apartment-transactions-1q-2025/ Newmark: “United States Multifamily Capital Markets Report” - https://www.nmrk.com/insights/market-report/united-states-multifamily-capital-markets-report RealPage: “Rent Growth Evident in Markets Past Peak Supply Volumes” - https://www.realpage.com/analytics/rents-supply-peak-apartment-markets/ Marcus & Millichap: “Understanding Today's CRE Distress Landscape” - https://www.marcusmillichap.com/research/videos/understanding-todays-cre-distress-landscape CRED iQ: “CRED iQ's Special Servicing Rate Reaches 9.9%” - https://cred-iq.com/blog/2025/05/09/cred-iqs-special-servicing-rate-reaches-9-9/ Trepp: “Special Servicing Rate Inches Upward in April 2025, Mainly Driven by Lodging” - https://www.trepp.com/trepptalk/special-servicing-rate-inches-upward-in-april-2025 Bisnow: “'Big, Beautiful Bill' Could Preempt State, Local Bans On Rent-Setting Algorithms” - https://www.bisnow.com/national/news/multifamily/federal-wolf-in-sheeps-clothing-bill-could-preempt-state-local-bans-on-rent-setting-algorithms-129400 Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/midwest-report/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Gray Report host Spencer Gray speaks with guest Carl Whitaker, Chief Economist at RealPage, about the latest housing market data and information and how the RealPage research team processes this information to generate their analysis and insights on the future of the apartment market. RealPage link: https://www.realpage.com/. RealPage Analytics Blog: https://www.realpage.com/analytics/ Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/midwest-report/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

The hesitancy and uncertainty of the current moment have contributed to slightly lower rent growth in the apartment market and an increase in renewals as operators prioritize resident retention, but in many midwestern markets, rent growth has been robust as apartment supply trends normalize.Sources discussed in this episode:The Wall Street Journal: “Trump's China Deal Makes Sense. How He Got Here Doesn't.” - https://archive.is/uul8n Bureau of Labor Statistics: CPI lower than expected inflation, with food prices (and egg prices down), shelter inflation still going strong - https://www.bls.gov/news.release/cpi.nr0.htm Yardi Matrix: “Multifamily Rents Rise Despite Growing Uncertainty” - https://www.yardimatrix.com/publications/download/file/7225-MatrixMultifamilyNationalReport-April2025 RealPage: “Rent Growth Evident in Markets Past Peak Supply Volumes” - https://www.realpage.com/analytics/rents-supply-peak-apartment-markets/ Gray Capital: “Midwest Multifamily Resilience” - https://graycapitalllc.com/midwest-report Marcus & Millichap: “Improving Fundamentals Position Multifamily Sector to Overcome Potential Volatility” - https://www.marcusmillichap.com/research/special-report/2025/2q25-multifamily-national-report Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/midwest-report/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Gray Report host Spencer Gray speaks with guest Chris Nebenzahl, VP of Rental Research at John Burns Research and Consulting, about the macro forces driving the rental housing market in the United States.John Burns Research and Consulting Link: https://jbrec.com/Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/midwest-report/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Are CRE and multifamily investors prepared for higher-for-even-longer interest rates? The Fed's decision to maintain the current level of the federal funds rate is no surprise, but this does not eliminate the challenges that persistently high interest rates have brought. The multifamily market may be the best-positioned CRE sector in the current economic environment, but many apartment operators are taking a cautious "heads in beds" strategy.Sources discussed in this episode:The New York Times: “As Fed Holds Rates Steady, Powell Says Next Step Is ‘Not at All Clear'” - https://www.nytimes.com/2025/05/07/business/federal-reserve-may-meeting.html FOMC May 7 Statement: https://www.federalreserve.gov/newsevents/pressreleases/monetary20250507a.htmNewmark: “Q1 2025 Capital Markets Report” - https://www.nmrk.com/storage-nmrk/uploads/documents/hotel-nsights/1Q25-Newmark-State-of-the-U.S.-Capital-Markets_External.pdf CREDiQ: “The Extend-and-Pretend Surge: $40 Billion in CRE Loan Modifications Signals a Shifting Market” - https://cred-iq.com/blog/2025/04/17/the-extend-pretend-surge-40-billion-in-cre-loan-modifications-signals-a-shifting-market/ Cushman & Wakefield: “Multifamily's ‘firm foundation . . . through this next period of volatility'” - https://assets.cushmanwakefield.com/-/media/cw/americas/united-states/insights/research-report-pdfs/2025/multifamily-digest-may-2025.pdf?rev=e6619f079c7444b9b645574c1400f30e RealPage: “Operators Appear to Buy Occupancy as Rent Growth Slows in April” - https://www.realpage.com/analytics/april-2025-data-update/ Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/window/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Amid the prospect of a declining economy, investors have not withdrawn their interest in the multifamily market. The substantial momentum of apartment demand is promising news for a more balanced market, but multifamily performance will continue to vary among different markets.Sources discussed in this episode:The Conference Board: “US Consumer Confidence Plunged Again in April” https://www.conference-board.org/topics/consumer-confidence The New York Times: “Washington State Lawmakers Vote to Limit Rent Increases” - https://www.nytimes.com/2025/04/27/us/rent-increase-washington-state.html Apartment List: April 2025 National Rent Report, “the first indication of demand slowing due to declining consumer confidence amid a more uncertain macroeconomic outlook” - https://www.apartmentlist.com/research/national-rent-dataAssociation of Foreign Investors in Real Estate: “AFIRE International Investor Survey: Q1 2025 Pulse Report” - https://www.afire.org/survey/pulse14425/Colliers: “Q1 2025 Market Snapshot, Transitory Uncertainty Weighs on Investment Activity” - https://www.colliers.com/download-article?itemId=f5148b52-3204-4966-ad41-3c5b31b245f6 CRE Finance Council: “1Q 2025 Sentiment Index Shows Steep Decline Amid Rising Tariff and Market Uncertainty” - https://cmbs.informz.net/cmbs/data/images/CREFC%201Q25%20BOG%20Survey%20Results.pdf Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/window/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Sources discussed in this episode:CBRE: “Multifamily Buyer & Seller Sentiment Improves in Q1” - https://www.cbre.com/insights/briefs/multifamily-buyer-and-seller-sentiment-improves-in-q1RealPage: “Have Multifamily Permits and Starts Hit a Turning Point in the Cycle?” - https://www.realpage.com/analytics/march-2025-multifamily-permit-update/MSCI: “An Inconvenient Call: Capital Calls During a Crisis” - https://www.msci.com/www/quick-take/an-inconvenient-call-capital/05612543174John Burns Research and Consulting: “Consumer confidence wavers amid economic uncertainty” - https://jbrec.com/insights/economic-fears-change-homebuying-plans/Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/window/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

The dramatic swings of the stock market have subsided, but in this still-volatile environment, the stability and positive momentum in the multifamily market stands out. As the historic wave of new apartment supply slowly subsides, midwestern markets with steady, growing economies have emerged as rent growth leaders, and this strong performance is likely to continue given current apartment supply trends. A broader economic downturn may not spare the multifamily market, but apartment assets in stable markets will be well-positioned to weather the storm.Sources discussed in this episode:The Wall Street Journal: “Apartment Developers Who Overbuilt Luck Out With Tariffs” - https://archive.is/ketmD#selection-2475.0-2478.0 John Burns Research and Consulting: “Where will new home construction grow beyond the usual hotspots?” - https://jbrec.com/insights/fast-growing-us-housing-markets/ CBRE: “Low-Correlation Markets Can Help Optimize Portfolio Returns” - https://www.cbre.com/insights/briefs/cotw-low-correlation-markets-can-help-optimize-portfolio-returns MarketWatch: "It's rare for stocks and the dollar to fall together. History says tread carefully." - https://www.marketwatch.com/story/its-rare-for-stocks-and-the-dollar-to-fall-together-history-says-tread-carefully-f5f12e4aDownload Gray Capital's latest report: ⁠https://www.graycapitalllc.com/window/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

In the space of a week, the Trump administration's tariff policies set off a stock market downturn and spurred expectations of a recession before the President Trump announced a 90-day pause on most tariffs, sending markets soaring upwards again. With recent reports on the apartment market showing record levels of demand in Q1 of 2025 along with a reduction in apartment supply, there's some reason to expect stronger performance in 2025 should the economy maintain its footing.Sources discussed in this episode:Berkadia: “Liberation Day Volatility” - https://berkadia.com/blog/liberation-day-volatility/Bisnow: “Trump's Tariffs Unleash Market Turmoil, Fresh Pricing Fears And Worry About Frozen Deals” - https://www.bisnow.com/national/news/commercial-real-estate/trump-tariffs-unleash-market-chaos-price-spike-fears-128794GlobeSt: “This Expert Thinks CRE Will Be a Safe Harbor Amid Tariff Turmoil” - https://www.globest.com/2025/04/08/this-expert-thinks-cre-will-be-a-safe-harbor-amid-tariff-turmoil/ RealPage: “Healthy 1st Quarter Demand Boosts Rent Growth as Supply Ebbs” - https://www.realpage.com/analytics/1q-2025-data-update/ Yardi Matrix: “National Multifamily Report, March 2025: Multifamily Shows Positive Signs Amidst Economic Uncertainty” - https://www.yardimatrix.com/publications/download/file/7082-MatrixMultifamilyNationalReport-March2025 HousingWire: “How quickly does financial turmoil impact the housing market?” - https://www.housingwire.com/articles/how-quickly-does-financial-turmoil-impact-the-housing-market/ Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/window/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Recent apartment performance suggests that 2025 rent growth is continuing the lower-than-average trends from 2024, but given the slowdown in apartment construction and the anticipated drop in new multifamily supply in 2026, owners and investors with a long-term strategy could see some significant opportunities emerge in this transitionary period.Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/window/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Data on multifamily loan delinquencies and special servicing shows a slow buildup throughout 2024 that could lead to greater distress in 2025, which is particularly relevant given the challenges expected for multifamily operations with apartment supply still elevated and economic uncertainty putting downward pressure on rent growth. better prospects moving forward which could create investment opportunities as the year progresses.Sources discussed in this episode:Fannie Mae: “What's Driving the Increasing Importance Consumers Place on Their Homes” - https://www.fanniemae.com/research-and-insights/publications/housing-insights/increasing-importance-consumers-place-homesMarcus & Millichap: “The Forces Driving Long-Term Rental Housing Demand” - https://www.marcusmillichap.com/research/videos/the-forces-driving-long-term-rental-housing-demandYardi Matrix: “National Affordable Housing Report, March 2025” - https://www.yardimatrix.com/publications/download/File/6939-MatrixResearchBulletin-AffordableHousingReport-March2025Moody's Analytics: “Q4 2024 Housing Affordability Update” - https://www.moodyscre.com/insights/cre-trends/q4-2024-housing-affordability-update/CRED iQ: “Multifamily Distress Volumes Hits 12-Year High” - https://cred-iq.com/blog/2025/02/27/multifamily-distress-volumes-hits-12-year-high/CRED iQ: “Top 50 Markets by CRED iQ Distress Metrics” - https://cred-iq.com/blog/2025/03/20/top-50-markets-by-cred-iq-distress-metrics-3/Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/window/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

New data on investor sentiment shows optimism in the multifamily market, but given the lag between fast-moving economic developments and the Jan.-Feb. time period when the data was gathered, some of this investor enthusiasm may be blunted in light of the recent volatility. That being said, strong fundamentals and improving long-term rent growth trends have been consistent in the multifamily market, and as short-term revenue difficulties intersect with looming loan maturities, investors will be looking for opportunities to invest in distressed assets in 2025.Sources discussed in this episode:RealPage: “Modest Momentum Builds in February Rent Growth, Occupancy Readings” - https://www.realpage.com/analytics/february-2025-data-update/Yardi Matrix: Feb. 2025 National Multifamily Report: “Multifamily Market Set to be Tested” - https://www.yardimatrix.com/publications/download/file/6945-MatrixMultifamilyNationalReport-February2025 Redfin: “U.S. Asking Rents Rose 0.4% in February—A Small Increase, But the First in 6 Months” - https://www.redfin.com/news/rental-tracker-february-2025/ Bisnow: “'Pure Chaos': Inside The CRE Fallout From DOGE's Slash And Burn Campaign” - https://www.bisnow.com/national/news/office/doge-gsa-lease-termination-cancellation-impact-brokers-owners-128504 Urban Institute: "The Implications of Shrinking the Federal Workforce by DOGE's Recommended 75 Percent" - https://www.urban.org/urban-wire/implications-shrinking-federal-workforce-doges-recommended-75-percentMarcus & Millichap: “High-Speed Cycles Require Long-Term Thinking” - https://www.marcusmillichap.com/research/videos/high-speed-cycles-require-long-term-thinking CRE Daily, John Burns Research and Consulting: “Fear and Greed Survey, Q1 2025, ” - https://cdn.credaily.com/uploads/2025/03/Burns-CRE-Daily_Fear-and-Greed-Index-Chartbook_2025-03-with-ad.pdf Berkadia: “Investor Confidence in Multifamily Sector Remains Strong for 2025, Despite Economic Challenges” - https://berkadia.com/wp-content/uploads/2025/03/2025-Multifamily-Investor-Sentiment-Survey.pdf Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/window/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

In this webinar replay, Spencer Gray and Matt Bastnagel of Gray Capital discuss key trends for housing demand and construction activity, growing apartment investment activity, and the increasing multifamily investment opportunities in 2025.Download the full report at graycapitalllc.com/windowDISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

The multifamily market looks forward to strengthening fundamentals in 2025 as the apartment supply wave recedes while housing demand remains consistently high. Recent tariffs may not change these dynamics in the near-term, but higher materials and construction costs could move the market from a supply wave into a supply shortage, bringing rent growth much closer to historical averages after ~18 months of below-average rent growth. Sources discussed in this episode: New York Times: “Tariffs in Trumps second term in office” Updates: https://www.nytimes.com/live/2025/03/04/us/tariffs-us-canada-mexico-china Bisnow: "25% Tariffs On Mexico, Canada Begin, Complicating CRE Outlook”: https://www.bisnow.com/national/news/commercial-real-estate/trump-to-implement-25-tariffs-on-mexico-canada-128313 US News and World Reports: “How Will Trump's Tariffs Affect Homebuyers?” - https://realestate.usnews.com/real-estate/articles/how-will-trumps-tariffs-affect-homebuyers Apartment List: National Apartment Report, Feb. 2025 (1st monthly apartment market report that we've covered in a while): https://www.apartmentlist.com/research/national-rent-data Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/window/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

As multifamily starts continue to decline (far more than single family home starts) and both housing demand in general and apartment demand specifically show consistent strength, the case for multifamily asset strength continues to improve. Despite a recent decrease in 10-year treasury yields, elevated interest rates continue to inject a level of uncertainty into the market, but this same uncertainty will lead to some significant investment opportunities, with institutional investors like Apollo showing clear confidence in the multifamily market in their recent $1.5 billion acquisition of Bridge Investment. Sources discussed in this episode: John Burns Research and Consulting: “Multifamily market outlook: 10 insights from the NMHC Annual Meeting” - https://jbrec.com/insights/future-of-real-estate-multifamily-trends-from-annual-national-multifamily-housing-council-nh The Wall Street Journal: “We're Headed Toward a Landlord-Friendly Era. Expect Higher Rent Prices.” - https://www.wsj.com/real-estate/rent-price-increase-landlord-friendly-market-8ec25de5 Bisnow: “REPORT: HUD To Ax Half Of Its Workers, Launch Task Force To Study More Cuts” - https://www.bisnow.com/national/news/top-talent/report-hud-to-axe-half-of-its-workers-128053 Learn about Gray Capital's latest multifamily deal for accredited investors: https://www.graycapitalllc.com/walcott/ Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/window/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Apartment fundamentals continue to improve, with multiple data sources sharing a broad consensus of improving demand. Additionally, recent reports project a considerable drop-off in newly-delivered apartments in 2025 and continuing into 2026. As this steady, elevated apartment demand meets a shrinking amount of new supply, we could see noticeably higher rent growth in 2025 and 2026.Sources discussed in this episode:Bisnow: “REPORT: HUD To Ax Half Of Its Workers, Launch Task Force To Study More Cuts” - https://www.bisnow.com/national/news/top-talent/report-hud-to-axe-half-of-its-workers-128053The Wall Street Journal: “We're Headed Toward a Landlord-Friendly Era. Expect Higher Rent Prices.” - https://www.wsj.com/real-estate/rent-price-increase-landlord-friendly-market-8ec25de5Newmark: “United States Multifamily Capital Markets Report” - https://www.nmrk.com/insights/market-report/united-states-multifamily-capital-markets-reportLearn about Gray Capital's latest multifamily deal for accredited investors: https://www.graycapitalllc.com/walcott/Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/report/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Learn about Gray Capital's latest multifamily deal for accredited investors: https://www.graycapitalllc.com/walcott/Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/report/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Investor sentiment in the multifamily market has settled into much the same place that it was at the start of 2024, but crucial improvements in multifamily fundamentals have driven more interest in multifamily investment in 2025, despite the added weight of higher-for-longer interest rates.Sources discussed in this episode:NMHC: “Survey of Quarterly Apartment Conditions” -https://www.nmhc.org/research-insight/quarterly-survey/2025/nmhc-quarterly-survey-of-apartment-conditions-january-2025/Trepp: “Office & Multifamily Loans Drove CMBS Delinquencies Higher in 2024” -https://www.trepp.com/trepptalk/office-multifamily-loans-drive-cmbs-delinquencies-higher-in-2024& page 14 ofhttps://www.trepp.com/hubfs/The%20Year%20End%202024.pdf?hsCtaTracking=857fcec0-e018-4417-8a99-ddd9ab61552a%7C717682e1-077f-47bf-9226-e6c614ac4465Freddie Mac: “Positive Outlook for Housing and the Economy in 2025” -https://www.freddiemac.com/research/forecast/20250124-us-economy-grew-stronger-paceMarcus & Millichap: “Will CRE Investors Adapt to Higher Rates?” -https://www.marcusmillichap.com/research/videos/will-cre-investors-adapt-to-higher-rates & “Is Multifamily Poised for a Market Rebound in 2025?” -https://www.marcusmillichap.com/research/videos/is-multifamily-poised-for-a-market-rebound-in-2025GlobeSt: “CRE Deal Volume Rebounds as Price Declines Stabilize” -https://www.globest.com/2025/02/03/cre-deal-volume-rises-and-price-declines-slow/Learn about Gray Capital's latest multifamily deal for accredited investors:https://www.graycapitalllc.com/walcott/Download Gray Capital's latest report:⁠https://www.graycapitalllc.com/report/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Multifamily investment optimism persists, but expectations have cooled somewhat since late 2024. Persistently-high ten-year treasury yields have changed the prevailing assumptions about interest rates and the multifamily lending market, with higher-for-longer expectations taking hold, moderating the previous optimism about the multifamily investment market, but even if the lending environment remains the same, the near-unanimous consensus of improved rent growth and apartment fundamentals continues to support the strong investment prospects for multifamily, no matter how cold the wind may blow. Sources discussed in this episode: The Wall Street Journal: “U.S. Homes Sales in 2024 Fell to Lowest Level in Nearly 30 Years” - https://www.wsj.com/economy/housing/u-s-homes-sales-in-2024-fell-to-lowest-level-in-nearly-30-years-3ce94fd9. RealPage: “Apartment Rent Growth Expectations at the Market Level for 2025” - https://www.realpage.com/analytics/forecast-takeaways-market-level-2025/ Freddie Mac: “Positive Outlook for Housing and the Economy in 2025” - https://www.freddiemac.com/research/forecast/20250124-us-economy-grew-stronger-pace The Conference Board: "Consumers' optimism about both present and future conditions pulled back" - https://www.conference-board.org/topics/consumer-confidence University of Michigan: "Surveys of Consumers" - https://data.sca.isr.umich.edu/ Fannie Mae: “2025 Multifamily Market Outlook: Clearer Skies Ahead” - https://www.fanniemae.com/media/54646/display Marcus & Millichap: “2025 U.S. Multifamily Investment Forecast” - https://www.marcusmillichap.com/research/market-report/multiple-markets/2025/2025-us-multifamily-investment-forecast Learn about Gray Capital's latest multifamily deal for accredited investors: https://www.graycapitalllc.com/walcott/ Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/report/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Amid the steady flow of executive orders from the new Trump administration, there remains some lingering uncertainty about the direction of the economy, but nothing that has overcome the prevailing economic optimism presently. The apartment market, while still working through a massive wave of new supply, has a clear positive trajectory for 2025, backed by high housing demand and an interest rate environment that continues to favor renters over homebuyers. Sources discussed in this episode: NAR: “Residential Real Estate Snapshot, November 2025” - https://www.nar.realtor/sites/default/files/2025-01/2024-12-residential-real-estate-market-snapshot-report-01-17-2025.pdf RealPage: “Apartment Rent Growth Expectations at the Market Level for 2025” - https://www.realpage.com/analytics/forecast-takeaways-market-level-2025/ Bisnow: “Here's What Trump's Inauguration Could Mean For Commercial Real Estate” - https://www.bisnow.com/national/news/commercial-real-estate/9-things-for-commercial-real-estate-to-watch-in-trumps-first-100-days-127606 CNBC: “Trump says he's thinking of imposing 25% tariffs on Canada and Mexico in February” - https://www.cnbc.com/2025/01/20/trump-says-hes-thinking-of-imposing-25percent-tariffs-on-canada-and-mexico-in-february.html The Wall Street Journal: “Who Pays to Rebuild California When Insurance Falls Short? Everyone Else” - https://www.wsj.com/finance/california-fires-costs-rebuilding-money-fa201dc4 The Wall Street Journal: “FTC Prepares to Sue Largest U.S. Apartment Landlord Over Hidden Fees” - https://www.wsj.com/real-estate/ftc-prepares-to-sue-largest-u-s-apartment-landlord-over-hidden-fees-528c776e NBC News: “A long road to rebuilding and fights over government funding await L.A. fire victims” - https://www.nbcnews.com/politics/politics-news/long-road-rebuilding-fights-government-funding-await-l-fire-victims-rcna187478 For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/report/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Population growth, inflation, and increasing demand for apartments point to continued economic heat at the start of 2025, but the pressures of debt costs have also risen as the CRE market comes to terms with the prospect of continued high interest rates. Sources discussed in this episode: Bureau of Labor Statistics: “Consumer Price Index, Dec. 2024 (up 2.9% YoY)” - https://www.bls.gov/news.release/cpi.nr0.htm J.P. Morgan: “December 2024 jobs report: 256,000 jobs added, a strong finish to the year” - https://www.jpmorgan.com/insights/outlook/economic-outlook/jobs-report-december-2024 NAHB: “U.S. Population Grows at Highest Rate Since 2001” - https://eyeonhousing.org/2025/01/u-s-population-grows-at-highest-rate-since-2001/ MSCI: “Real Estate in Focus: 2025 Trends to Watch” - https://www.msci.com/www/blog-posts/real-estate-in-focus-2025/05250339676 Florida Atlantic University: “Data Analysis: Banks at Risk Despite Declining Interest Rates” - https://www.fau.edu/newsdesk/articles/banks-commercial-real-estate-risks-losses.phpThe Wall Street Journal: “FTC Prepares to Sue Largest U.S. Apartment Landlord Over Hidden Fees” - https://www.wsj.com/real-estate/ftc-prepares-to-sue-largest-u-s-apartment-landlord-over-hidden-fees-528c776e For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/report/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Amid news of a powerful upswing in apartment demand, rising investor interest, and increasing consumer confidence, the rising yields for 10-year treasuries are a dark cloud that promises to make CRE investment interesting, if not straightforwardly difficult for investors looking for a larger spread between cap rates and debt costs. Likewise, CRE borrowers with loan maturities in 2025—perhaps even some who faced loan maturities in 2023 and were already granted extensions from their lenders—could face an even tougher path. There is optimism among multifamily investors, but 2025 will have its share of challenges alongside opportunities. Sources discussed in this episode: RealPage: “Resounding Appetite for Apartments Overtakes Oversupply Fears in 4th Quarter 2024” - https://www.realpage.com/analytics/4q-2024-data-update/ Harvard Joint Center for Housing Studies: New Projections Anticipate a Slowdown in Household Growth and Housing Demand” - https://www.jchs.harvard.edu/blog/new-projections-anticipate-slowdown-household-growth-and-housing-demand Cushman & Wakefield: “​​10 Critical Questions for 2025” - https://www.cushmanwakefield.com/en/united-states/insights/10-critical-questions MSCI: “Investment Trends in Focus: Key Themes for 2025” - https://www.msci.com/www/research-report/investment-trends-in-focus-key/05245039511 Moody's Analytics: “Q4 2024 Preliminary Trend Announcement” - https://www.moodyscre.com/insights/cre-trends/q4-2024-preliminary-trend-announcement/ For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/report/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

The Gray Capital team discusses investor and consumer sentiment at the start of 2025, explaining the different trends and expectations for the multifamily market and the economy. Sources discussed in this episode: John Burns Research and Consulting: “Commercial real estate optimism is rising, namely apartments” - https://jbrec.com/insights/investors-optimistic-about-commercial-real-estate-aparments-for-2025/ The Conference Board: “US Consumer Confidence Pulled Back in December” - https://www.conference-board.org/topics/consumer-confidence University of Michigan: “Index of Consumer Sentiment” - http://www.sca.isr.umich.edu/ RealPage: “2025 Apartment Industry Predictions” - https://www.realpage.com/analytics/apartment-market-predictions-2025/ CoreLogic: “Unpacking 2024 Housing Market Trends” - https://www.corelogic.com/intelligence/2024-housing-market-reviewed/ For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/report/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

The Gray Capital team reviews the shifts in housing and multifamily at the transition from 2024 to 2025. Sources discussed in this episode: Cushman & Wakefield: “The Tide Is Turning For CRE” - https://cw-gbl-gws-prod.azureedge.net/-/media/cw/americas/united-states/insights/research-report-pdfs/2024/122024chiefeconomistsperspectivev2.pdf?rev=14b033774366436f9b2b3e49f45c1beb&hash=4A92E1939002FB3489EB5122D66A2000 Freddie Mac: “Homeowner vs. Renter Spending” - https://www.freddiemac.com/research/forecast/20241220-us-economy-remains-robust-with-strong-q3-growth RealPage: “Class A Price Premium Smallest in High Supply Submarkets” - https://www.realpage.com/analytics/rent-premiums-high-supply-submarkets/ For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Download Gray Capital's latest report: ⁠https://www.graycapitalllc.com/report/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Spencer Gray and Matt Bastnagel of Gray Capital discuss their expectations for the multifamily market in 2025, with comments on existing and future trends in the multifamily investment market, housing, and the economy. Download the full 2025 forecast report at graycapitalllc.com/report Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

We comb through the multitude of predictions for the multifamily market in 2025, with comments on apartment supply timelines, interest rates, housing demand, and other important factors. Sources discussed in this episode: Marcus & Millichap: Marcus and Millichap 2025 Multifamily Outlook - https://www.marcusmillichap.com/news-events/events/marcus-millichap-events/2025-multifamily-investment-outlook NAA: 2025 Apartment Housing Outlook - https://www.naahq.org/2025-apartment-housing-outlook NAHB: “A New Status Quo for the Geography of Residential Construction?” - https://eyeonhousing.org/2024/12/hbgi-q3-2024-a-new-status-quo-for-the-geography-of-residential-construction/ For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Download Gray Capital's latest report on multifamily loan maturities: ⁠https://www.graycapitalllc.com/report/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Gray Capital President and CEO Spencer Gray speaks with Chief Investment Officer Jay Reeder about the current state of the multifamily market, prospects for the future, and the impacts of supply trends, affordability and interest rates on the apartment market and housing as a whole. Sources discussed in this episode: RealPage: “Scheduled Apartment Supply Peaks by Market” - https://www.realpage.com/analytics/expected-supply-peak-by-market/ Apartment List: “National Rent Report, November 2024” - https://www.apartmentlist.com/research/national-rent-data Moody's Analytics: “Housing Affordability and Emerging Affordability Concerns in Student Housing” - https://www.moodyscre.com/insights/cre-trends/q3-2024-housing-affordability-update/ Harvard Joint Center for Housing Studies: “Housing Cost Burdens Climb to Record Levels (Again) in 2023” - https://www.jchs.harvard.edu/blog/housing-cost-burdens-climb-record-levels-again-2023 For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Download Gray Capital's latest report on multifamily loan maturities: ⁠https://www.graycapitalllc.com/report/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

As the wave of apartment supply slows, there may not be much building activity to follow, based on current permits and starts data. Low interest rates and other incentives could induce builders to begin more apartment projects, but the lengthy timeframe till completion could mean that, even though we're still well within a historic wave of apartment supply, there could be an apartment shortage in the making. For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Download Gray Capital's latest report on multifamily loan maturities: ⁠https://www.graycapitalllc.com/report/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.v

Lower (slightly) interest rates, improving fundamentals, positive investor sentiment, and a pending wave of loan maturities are among the factors contributing to a projected recovery in investment sales activity in 2025. For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Download Gray Capital's latest report on multifamily loan maturities: https://www.graycapitalllc.com/report/ Sources discussed in this episode: Gray Capital: "Extend and Pretend Creates New Wave of Loan Maturities" - https://www.graycapitalllc.com/report/ Capital Spectator: “Is Fed Policy Still Too Tight?” - https://www.capitalspectator.com/is-fed-policy-still-too-tight/ Colliers: “Q3 2024 Capital Markets Report: Rate Cuts Shift Investor Sentiment” - https://www.colliers.com/en/research/nrep-uscm-capital-markets-us-snapshot-q3-2024 KKR: “Investing in the Real Estate Recovery” - https://www.kkr.com/insights/real-estate-recovery John Burns Research and Consulting: “2024 election implications: Here's what we are watching for housing” - https://jbrec.com/insights/2024-election-results-effect-on-housing-inflation-economy-immigration/ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

After 2+ years of apartment supply dominating the multifamily market, surging demand and the receding wave of newly-built apartments will bring greater balance to the market in 2025. With fundamentals so strong, multifamily investment interest should also increase in the coming year, but recent reporting has found that investment activity remains below historical averages. Stubbornly-high ten-year treasury yields represent a persistent financing challenge, but the lending environment could improve as the Federal Reserve continues along its path of lower interest rates. For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sources discussed in this episode: Bureau of Labor Statistics: “Consumer Price Index, October 2024” - https://www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category-line-chart.htm Newmark: “Q3 2024 Multifamily Capital Markets: [Investors Subdued, Fundamentals Improve]” - https://www.nmrk.com/insights/market-report/united-states-multifamily-capital-markets-report Cushman & Wakefield: ​​Top Trends Across Cushman & Wakefield's Multifamily Portfolio: Seasonal Cooldowns and “a very healthy renter pool”​ - https://www.cushmanwakefield.com/en/united-states/insights/top-trends-across-cw-multifamily-portfolio Cushman & Wakefield: ​​Top Trends Across Cushman & Wakefield's Multifamily Portfolio: Seasonal Cooldowns and “a very healthy renter pool”​ - https://www.cushmanwakefield.com/en/united-states/insights/top-trends-across-cw-multifamily-portfolio Fannie Mae: “Fed Cuts Rates in Second Consecutive Meeting as Manufacturing and Services Surveys Diverge” - https://www.fanniemae.com/research-and-insights/forecast/fed-cuts-rates-second-consecutive-meeting-manufacturing-and-services-surveys-diverge NAHB: “A Rate Cut from the Fed: What Will the Terminal Rate Be?” - https://eyeonhousing.org/2024/11/a-rate-cut-from-the-fed-what-will-the-terminal-rate-be/ RealPage: “Some Perspective on the 50-Year Peak in Apartment Supply Volumes” - https://www.realpage.com/analytics/apartment-supply-peak-2024/ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

For lenders that are taking the "extend-and-pretend" approach, placing less emphasis on valuation declines, and waiting for lower rates, the risks have not abated, and the New York Fed has taken notice in a new report. Sources discussed in this episode: Federal Reserve Bank of New York: “Extend and Pretend in the U.S. CRE Market” - https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr1130.pdf The Conference Board: “US Consumer Confidence” - https://www.conference-board.org/topics/consumer-confidence Harvard Joint Center for Housing Studies: “The Role of the Recent Immigrant Surge in Housing Costs” - https://www.jchs.harvard.edu/blog/role-recent-immigrant-surge-housing-costs John Burns Research and Consulting: “Slowing immigration set to give a smaller boost to housing” - https://jbrec.com/insights/immigration-slowdown-in-2025-expected-to-decrease-rental-demand/ Institutional Property Advisors: “Near-Record Product Absorption Maintained Through Third Quarter” - https://www.institutionalpropertyadvisors.com/research/special-report/2024/10/special-report-october-multifamily-market-intelligence CoreLogic: “National Rent Growth Remains Slow and Steady in August” - https://www.corelogic.com/press-releases/corelogic-national-rent-growth-remains-slow-and-steady-in-august/ Apartment List: “National Rent Report, October 2024” - https://www.apartmentlist.com/research/national-rent-data For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Some borrowers and lenders remain under pressure with property values still down from their peak and interest rates still elevated at this point in the rate cycle, with the Department of Housing and Urban Developing proposing more relaxed loan standards, and housing continues to play a sizable role in the political conversation at the height of election season. Sources discussed in this episode: Bisnow: “Both Presidential Candidates Want To Solve The Housing Crisis. Do They Have The Power?” - https://www.bisnow.com/national/news/multifamily/housing-policy-proposals-kamala-harris-donald-trump-126324 HUD - “New Guidelines for 223(f) and 221(d)4” - https://www.hud.gov/sites/dfiles/Housing/documents/Draft_ML_Governing_Rollback_of_TV_DSCR_Final_DraftingTable.pdf Fannie Mae: “Build-to-Rent Overview” - https://www.fanniemae.com/media/53426/display CBRE: “Build-to-Rent Residential Market Overview” - https://www.cbre.com/insights/reports/build-to-rent-overview-2024 John Burns Research and Consulting: “Slowing immigration set to give a smaller boost to housing” - https://jbrec.com/insights/immigration-slowdown-in-2025-expected-to-decrease-rental-demand/ CoreLogic: “National Rent Growth Remains Slow and Steady in August” - https://www.corelogic.com/press-releases/corelogic-national-rent-growth-remains-slow-and-steady-in-august/ Moody's Analytics: “New Residential Construction in 5 Graphs” - https://www.moodyscre.com/insights/cre-trends/new-residential-construction-in-5-graphs/ MSCI: “More to Revival of Listed US Real Estate Than Rate Cuts” - https://www.msci.com/www/quick-take/more-to-revival-of-listed-us/05046284915 For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Consumer sentiment is shifting as inflation expectations stabilize and more consumers expect lower interest rates in the next 12 months, but after such a long period of economic uncertainty, confidence in the economy is more difficult to find. In the multifamily market, regional differences in apartment supply continue to impact rent growth, but investment activity is poised to increase across all CRE sectors as the Fed continues the current rate cut trajectory. Sources discussed in this episode: CBRE: “Impact of Interest Rate Cuts on Real Estate Cap Rates” - https://www.cbre.com/insights/briefs/impact-of-interest-rate-cuts-on-real-estate-cap-rates Federal Reserve Bank of New York: “Survey of Consumer Expectations, September 2024” - https://www.newyorkfed.org/microeconomics/sce#/ CBRE: “Are big deals suffering more than smaller ones?” - https://www.cbre.com/insights/briefs/cotw-are-big-deals-suffering-more-than-smaller-ones Harvard Joint Center for Housing Studies: “10 Major Housing Stories from the Latest ACS Data” - https://www.jchs.harvard.edu/blog/10-major-housing-stories-latest-acs-data John Burns Research and Consulting: “Slowing immigration set to give a smaller boost to housing” - https://jbrec.com/insights/immigration-slowdown-in-2025-expected-to-decrease-rental-demand/ MSCI: “The What and the When Matter for the Losses of Real-Estate Lenders” - https://www.msci.com/www/blog-posts/the-what-and-the-when-matter/05025154480 For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Commercial real estate investment activity has not changed much since last month's interest rate reduction from the Federal Reserve (nor has it had much time to adjust), but sales volumes will almost certainly improve in 2025, given the strong investment prospects for CRE assets at the start of a rate cutting cycle. For multifamily apartments, unambiguous signs of strong demand point to improved performance in the medium-to-long-term, but in the shorter term, elevated levels of apartment supply and typical seasonal demand trends could mean that rent growth continues to trend lower until Spring of next year. Sources discussed in this episode: "As is often the case, we are navigating by the stars under cloudy skies," from "Inflation: Progress and the Path Ahead," Jerome Powell, Aug. 2023 Bureau of Labor Statistics: “Consumer Price Index, September 2024” - https://www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category.htm# CBRE: “What Could Be in Store for Commercial Real Estate” - https://www.cbre.com/insights/briefs/cotw-what-could-be-in-store-for-commercial-real-estate RealPage: “Strong Apartment Demand Persists in 3rd Quarter as Supply Hits 50-Year High” - https://www.realpage.com/analytics/3q-2024-data-update/ Apartment List: “National Rent Report, September 2024” - https://www.apartmentlist.com/research/national-rent-data Yardi Matrix: National Multifamily Report, September 2024 - https://www.yardimatrix.com/publications/download/file/6228-MatrixMultifamilyNationalReport-September2024 Fannie Mae: “September 2024 Home Purchase Sentiment Index” - https://www.fanniemae.com/media/53371/display For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Price growth for single family homes is weakening and could slow further through the end of the year, but underlying drivers of housing demand point to stronger growth in 2025. In the apartment market, rent growth in 2024 has followed a similar trajectory as 2023, but as new apartment supply is expected to decline through 2025 and into 2026, continued growth among the renter population will bring stronger performance for apartment assets at the same time as (expected) lower interest rates should fuel more sales activity for multifamily properties. The apartment market may be cooler in late 2024, but investors are ready for a much hotter market in 2025. Sources discussed in this episode: CoreLogic: “U.S. Home Price Growth Reaches Lowest Level in a Year in August” - https://www.corelogic.com/intelligence/us-home-price-insights-october-2024/ Marcus & Millichap: “Homebuying Out of Reach for Many Households Despite Lower Debt Costs” - https://www.marcusmillichap.com/research/research-brief/2024/09/research-brief-september-housing Goldman Sachs: “US house prices are forecast to rise more than 4% next year” - https://www.goldmansachs.com/insights/articles/us-house-prices-are-forecast-to-rise-more-than-4-percent-next-year Colliers: “National Migration Trends” - https://www.colliers.com/en/research/nrep-us-national-migration-trends-report Moody's Analytics: “Q3 2024 CRE Preliminary Trends: Positive macroeconomic developments [and] relative stability across most sectors” - https://cre.moodysanalytics.com/insights/cre-trends/q3-2024-preliminary-trend-announcement/ For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Conditions may not be perfect for multifamily investors right now, but the lending environment and supply/demand fundamentals are lining up for a significant improvements in 2025. With markets currently expecting two more rate cuts before the end of the year, cap rate-interest rate spreads may widen enough to bring more investment activity after a lengthy period in which sales volumes were half the pre-pandemic levels. Sources discussed in this episode: CBRE: “Fed Makes First of Several Expected Rate Cuts” - https://www.cbre.com/insights/briefs/economic-watch-fed-makes-first-of-several-expected-rate-cuts Fannie Mae: “Fed Cuts Interest Rates Amid Sluggish Existing Sales but a Rebound in Starts Activity” - https://www.fanniemae.com/research-and-insights/forecast/fed-cuts-interest-rates-amid-sluggish-existing-sales-rebound-starts-activity Cushman & Wakefield: “Fed Pivots: The Next Chapter for CRE” - https://www.cushmanwakefield.com/en/united-states/insights/fed-pivots-the-next-chapter-for-cre Cushman & Wakefield: “Unpacking Multifamily Supply Risks and Demand Booms” - https://www.cushmanwakefield.com/en/united-states/insights/unpacking-multifamily-supply-risks-and-demand-booms Harvard Joint Center for Housing Studies: “Affordability Challenges and the Composition of Middle-Income Renters” - https://www.jchs.harvard.edu/blog/affordability-challenges-and-composition-middle-income-renters Moody's Analytics: American Needs More Affordable Housing, Not Just Class A Inventory - https://cre.moodysanalytics.com/insights/market-insights/america-needs-more-affordable-housing-not-just-class-a-inventory/ For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

In this edited replay of our live Gray Report video on the recent interest rate decision from the Federal Reserve, Spencer Gray, Jay Reeder, and Matt Bastnagel of Gray Capital discuss the current multifamily market as well as remarks from Federal Reserve Chair Jerome Powell at the September 2024 FOMC meeting and press conference. Sources discussed in this episode: Apartment List: “Apartment List's 2024 Millennial Homeownership Report” - https://www.apartmentlist.com/research/millennial-homeownership-2024 For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

With CPI showing continued declines in inflation this week and lower ten-year treasury yields foreshadowing an expected interest rate reduction from the Federal Reserve, investors continue to show more activity and interest in the CRE investment market, with multifamily properties specifically showing noticeable positive growth in property prices since the beginning of the year. Rents in the apartment sector will likely follow a similar trajectory as 2023, with seasonal trends pointing to slower rent growth through the end of the year, but investors are not blind to the prospects of the multifamily market and are acting on expectations of stronger performance as the surge in newly-built apartments wanes through the end of 2024 and into 2025.Sources discussed in this episode:Associated Press: “Police deny Venezuela gang has taken over rundown apartment complex in Denver suburb” https://apnews.com/article/venezuela-immigrants-aurora-colorado-police-37acd4e064347d51808cb244117ac21eCBS News: “Colorado law firm report claims Venezuelan gang has "stranglehold" on apartments, takeover began in 2023” - https://www.cbsnews.com/colorado/news/colorado-law-firm-report-claims-venezuelan-gang-stranglehold-apartments-takeover-began-2023/Bureau of Labor Statistics: “Consumer Price Index, August 2024” - https://www.bls.gov/news.release/cpi.nr0.htmColliers: Capital Markets Snapshot: “Major Investors Return to the Market” - https://www.colliers.com/en/research/nrep-uscm-capital-markets-us-snapshot-q2-2024MarketWatch: “Commercial real-estate investors are ready to get back in the market, says PGIM” - https://www.marketwatch.com/story/commercial-real-estate-investors-are-ready-to-get-back-in-the-market-says-pgim-dbd4fc06Green Street: “Commercial Property Price Index” - https://www.greenstreet.com/insights/CPPIApartment List: National Rent Report, August 2024 - https://www.apartmentlist.com/research/national-rent-dataYardi Matrix: “National Multifamily Report: August 2024” - https://www.yardimatrix.com/publications/download/file/6087-MatrixMultifamilyNationalReport-August2024RealPage: “U.S. Apartment Market Sees Negligible Change in August” - https://www.realpage.com/analytics/august-2024-data-update/For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Recent years have seen housing costs rapidly climb, and high interest rates are only part of the problem. Housing policies attuned to the benefits of additional housing supply often meet opposition at the hyper-local level, but policymakers are becoming increasingly more attentive to the ways in which deregulation can help solve the housing affordability crisis and create more housing supply. Multifamily rent growth has been dampened by the record levels of new apartment supply, but apartment investors remain encouraged by the signs of sustained housing demand. Sources discussed in this episode: The Atlantic: “The Labyrinthine Rules That Created a Housing Crisis” - https://www.theatlantic.com/ideas/archive/2024/09/jerusalem-demsas-on-the-housing-crisis-book/679666/ CoreLogic: “10 Things to Know About the Mortgage and Housing Market Right Now” - https://www.corelogic.com/intelligence/10-things-to-know-august-2024/ Harvard Joint Center for Housing Studies: “Rental Markets Are Cooling, but Rents Still Far Exceed Pre-Pandemic Levels” - https://www.jchs.harvard.edu/blog/rental-markets-are-cooling-rents-still-far-exceed-pre-pandemic-levels For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

The multifamily market continues to work through historic amounts of new apartment supply as the end of peak leasing season approaches, and rent growth could remain below average through the end of this year. At the same time, cap rate estimates suggest higher investor demand moving forward, particularly when factoring in a more favorable debt environment, and persistent housing demand is expected to support a more active and competitive apartment market as the amount of newly-built apartments diminishes through the end of 2024 and into 2025. Sources discussed in this episode: CBRE: “U.S. Cap Rate Survey H1 2024” - https://www.cbre.com/insights/reports/us-cap-rate-survey-h1-2024 Fannie Mae: “2024 Mid-Year Multifamily Market Outlook – Skies Remain Cloudy” - https://www.fanniemae.com/media/53066/display Bisnow: “Harris and Trump Agree On Lowering Housing Costs — But Their Plans Take Radically Different Paths” - https://www.bisnow.com/national/news/multifamily/housing-has-emerged-as-a-top-election-issue-heres-where-harris-and-trump-stand-125615 For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

With the Democratic National Convention bringing increasing attention to the policy platform of presidential candidate Kamala Harris, the Gray Capital team breaks down her comments on the economy and housing made during a campaign stop several days before the convention. Sources discussed in this episode: The New York Times: “U.S. Added 818,000 Fewer Jobs Than Reported Earlier” - https://www.nytimes.com/2024/08/23/business/the-big-number-818000-jobs-revision.html The White House: “Remarks by Vice President Harris at a Campaign Event in Raleigh, NC” - https://www.whitehouse.gov/briefing-room/speeches-remarks/2024/08/16/remarks-by-vice-president-harris-at-a-campaign-event-in-raleigh-nc/ Peter Welch (US Senator from Vermont): “Welch and Wyden Introduce Legislation to Crack Down on Companies that Inflate Rents with Price-Fixing Algorithms” - https://www.welch.senate.gov/welch-and-wyden-introduce-legislation-to-crack-down-on-companies-that-inflate-rents-with-price-fixing-algorithms/ The Atlantic: “We're Entering an AI Price-Fixing Dystopia” - https://www.theatlantic.com/ideas/archive/2024/08/ai-price-algorithms-realpage/679405/ Marcus & Millichap: "The CRE Investment Climate Just Changed…" - https://www.marcusmillichap.com/research/videos/the-cre-investment-climate-just-changed For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

While recent stock market volatility brought about strident calls for relief from the Fed, longer-term trends like the steadily lower yields for Ten-Year Treasuries since May, consistently lower inflation numbers since March, and a slowing labor market are equally if not more persuasive indicators that an interest rate reduction would be appropriate. CRE sales remain subdued, but there are growing signs that investors are tracking similar trends and expect a more favorable environment for investment in the coming months. Sources discussed in this episode: Bureau of Labor Statistics: “Consumer Price Index, July 2024” - https://www.bls.gov/news.release/cpi.nr0.htm Institutional Property Advisors: “Interest Rates Trend Lower, Paving Way for Invigorated Commercial Property Investment” - https://www.institutionalpropertyadvisors.com/research/special-report/2024/08/research-brief-august-capital-markets NAR: “Commercial Real Estate Market Insights, July 2024: ‘While the market awaits the interest rate cuts from the Federal Reserve, commercial real estate is also on hold.'” - https://www.nar.realtor/commercial-real-estate-market-insights/july-2024-commercial-real-estate-market-insights Institutional Property Advisors: “Interest Rates Trend Lower, Paving Way for Invigorated Commercial Property Investment” - https://www.institutionalpropertyadvisors.com/research/special-report/2024/08/research-brief-august-capital-markets For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Weaker jobs numbers, rising Japanese interest rates, AI bubble fears, and election-year uncertainty are among the many factors posited as the cause of the stock market's steep declines this week, and the lengthy period of elevated interest rates in the United States has helped create this fragile economic environment more vulnerable to recession. A major economic downturn would be keenly felt for apartment operators facing continued challenges with lower rent growth and higher expenses, but given the magnitude of housing demand, the proven resilience of apartment assets, and the likelihood of lower interest rates, many investors are anticipating more activity and opportunity in the multifamily investment market. Sources discussed in this episode: Axios: “The Stock Market Slump Doesn't Mean We're in a Recession” - https://www.axios.com/2024/08/06/stock-market-recession Bloomberg: "My [The Sahm Rule] Recession Rule Was Meant to Be Broken" - CRE Analyst: "Sorry, low rates can be bad for real estate…" - https://www.linkedin.com/posts/cre-analyst_sorry-low-rates-can-be-bad-for-real-estate-activity-7226198761625018370-QE-4 The Wall Street Journal: “Fannie, Freddie Are Poised to Tighten Real-Estate Lending Rules” - https://www.wsj.com/real-estate/fannie-mae-freddie-mac-commercial-property-lenders-brokers-rules-116907c2 Yardi Matrix: “National Multifamily Report, July 2024” - https://www.yardimatrix.com/publications/download/file/5938-MatrixMultifamilyNationalReport-July2024 Apartment List: "National Rent Report" - https://www.apartmentlist.com/research/national-rent-data For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

In the multifamily market, rents growth continues to be sluggish, but growing signs of apartment demand support the long-term health of the sector. In the broader housing market, household growth and pent up demand are bracing against affordability barriers like high interest rates. Sources discussed in this episode: MSCI - "As Fed Rate Hopes Shift, So Too Does Real-Estate Sentiment" - https://www.msci.com/www/blog-posts/as-fed-rate-hopes-shift-so-too/04826872290 Cushman & Wakefield: “The much-anticipated lagged relationship for housing inflation still exists” amid a “Decidedly Dovish Shift from Powell” - https://www.cushmanwakefield.com/en/united-states/insights/market-matters-exploring-real-estate-investment-conditions-and-trends Marcus & Millichap: “Will Commercial Real Estate Distress Surge?” - https://www.marcusmillichap.com/research/videos/will-commercial-real-estate-distress-surge Apartment List: “More young adults now live with their parents than at any point since 1940” - https://www.apartmentlist.com/research/most-young-adults-live-with-parents-since-1940 Harvard Joint Center for Housing Studies: “What Effects Will the Recent Surge in Immigration Have on Household Growth?” - https://www.jchs.harvard.edu/blog/what-effects-will-recent-surge-immigration-have-household-growth Carl Whitaker (RealPage): “Average household size ticking down” - https://www.linkedin.com/posts/carlwhitaker15_for-the-first-time-in-many-years-the-country-activity-7223682871243194368-HPbd?utm_source=share&utm_medium=member_desktop For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Single family homes prices are as high as they've ever been, but home sales are low. High interest rates have suppressed both multifamily and single family building, and lack of housing supply has led to declining affordability and a sustained housing deficit. There is significant pent up demand in the housing market. In both single-family and multifamily markets, this extended period of unusually low sales activity has led to building pressure as this pressing need for homes contends with housing costs that are too high for demands to be met. Sources discussed in this episode: John Burns Research and Consulting: “Unlocking single-family rental (SFR) trends early and accurately” - https://jbrec.com/insights/unlocking-single-family-rental-sfr-trends-early-and-accurately/ NAR: “Residential Real Estate Market Snapshot” - https://www.nar.realtor/research-and-statistics/research-reports/residential-real-estate-market-snapshot Moody's Analytics: “Elevated Completions Continue to Weigh on Multifamily Rent Growth” - https://cre.moodysanalytics.com/insights/cre-news/elevated-completions-continue-to-weigh-on-multifamily-rent-growth/ For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

The Biden administration has announced a proposal for a 5% rent cap, despite the fact that rent growth has been markedly below average for the past year-and-a-half, with this rent growth correction finally showing up in the Consumer Price Index and contributing to the milestone monthly deflation recently recorded for June. With lower inflation numbers and some suggestions of impending rate cuts from the Federal Reserve, the multifamily lending market should become more favorable; however, despite optimistic projections for the future of the apartment market, initial rate cuts from the Fed may not alleviate some multifamily borrowers' current distress, which has grown significantly in recent months. Sources discussed in this episode: The White House: “President Biden Announces Major New Actions to Lower Housing Costs by Limiting Rent Increases and Building More Homes” - https://www.whitehouse.gov/briefing-room/statements-releases/2024/07/16/fact-sheet-president-biden-announces-major-new-actions-to-lower-housing-costs-by-limiting-rent-increases-and-building-more-homes/ Bisnow: “Multifamily Distress Leaps 185% As Delinquencies Pile Up” - https://www.bisnow.com/national/news/capital-markets/multifamily-distress-leaps-185-as-delinquencies-tick-up-125089 Moody's Analytics: “It Is Not All About Insurance: Navigating Through Major Expenses for Multifamily Properties” - https://cre.moodysanalytics.com/insights/cre-trends/major-expenses-for-multifamily-properties/ RealPage: “RealPage Forecast Points to Improved Rent Growth in 2025” - https://www.realpage.com/analytics/apartment-forecast-2nd-quarter-2024/ Marcus & Millichap: “Has the Fed Finally Reached a Tipping Point?” - https://www.marcusmillichap.com/research/videos/has-the-fed-finally-reached-a-tipping-point The Bureau of Labor Statistics: “Consumer Price Index - June 2024” - https://www.bls.gov/news.release/cpi.nr0.htm For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.