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Cracks Showing Up in Multifamily Sector
Top real estate, legal and finance industry leaders examined the state of finance and commercial real estate industries as well as overall economic trends at the recent 19th Annual Trigild Lender Conference at the Hotel del Coronado in San Diego. Hot topics included the cannabis industry, climate change, technology and artificial intelligence, the sharing economy, affordable housing, President Trump’s tax overhaul – and the perennial question: when will the next recession hit?
While there’s no crystal ball to predict when the next downturn will hit, most speakers agreed its best to get ready for a few bumps in the road.
On a positive note, 20 million jobs have been created since the Great Recession ended in 2009. And while the economy is in a favorable place, three areas of major concern are raising red flags including slowing global growth, trade policy uncertainty and inflation.
Panelists were especially wary of the multifamily market. The lack of affordable housing in the United States presents significant challenges notes BlackEagle Real Estate Partner’s Debra Morgan. “We are not doing enough for affordable housing as a whole in this country,” she said.
“Multifamily has been the golden child, but we are seeing cracks,” noted Ballard Spahr’s Kelly Wrenn.
While no one is certain when the next cycle shift will arrive, one thing is clear, said Thompson & Knight’s Mark Weibel. “It will be complex.”
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Economy
- ◦Financing
- ◦Sale/Acquisition
