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Origin Investments’ David Scherer Remains Pro-Multifamily Amid Current Market Forces
The increasing interest rate patterns could have far-reaching implications on the multifamily sector, said David Scherer, co-CEO of Chicago-based Origin Investments. Scherer had previously identified inflation as the biggest economic risk for private real estate investing, and called the Federl Reserve’s 75-basis point rate hike this month “a mixed bag” of impacts.
“The rate increase was what we had been anticipating—and it could have been higher. Yet Chairman [Jerome] Powell also left the door open for an extended rate tightening cycle,” she said. “Chairman Powell’s message was decisive, reinforcing that no one wants or expects to live with 8% inflation as part of our economic landscape.”
That being said, Scherer doesn’t believe it will be easy to get to the Fed’s target inflationary rate of 2% to 2.5%. “It’s hard to put the genie back into the bottle,” he said.
Even amid current market forces, Scherer remains pro-multifamily—a sentiment that doesn’t extend to other real estate asset classes. For Scherer, it’s all about the fundamentals, including supply, demand and rent growth.
- ◦Financing
- ◦Economy
