February 27, 2019
Multifamily professionals expect the political climate in Washington, D.C. will have a negative impact on the industry in 2019, according to a Capital One survey conducted at the National Multifamily Housing Council’s annual meeting. The survey also found that while 70% of respondents believe the economy is approaching the end of its current cycle, professionals remain optimistic about industry fundamentals.
Forty-three percent of survey respondents view the current political climate as a detriment to activity in the multifamily industry, with just 28% foreseeing a positive impact. This is a sharp change from professionals’ thoughts in late January 2017, the last time the survey was conducted, when 73% of respondents saw D.C.’s political climate as a benefit to the industry.
Thirty-seven percent of respondents cited strong fundamentals as the biggest positive factor for the sector in the year ahead. Multifamily professionals also named availability of capital and job growth as positives for 2019.
Capital One Multifamily Finance’s Jeff Lee says, “Despite the impact of some external pressures and uncertainties, we’re looking at a multifamily industry that is confident in its core fundamentals. Supply is tracking well with demand, and both buyers and sellers remain optimistic about economic conditions.”
Respondents said the biggest challenge facing the multifamily industry in 2019 will be rising costs in their markets (48%). Rising interest rates were seen by less than a quarter (22%) of respondents as the biggest hurdle for the industry, down significantly from 52% of respondents who said so in 2017. Pointing back to the industry’s strong fundamentals, just 16% cited supply/demand imbalances as their top concern.
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