Inside The Investment: Key Market Indicators

Forum tracks four primary indicators to assess where multifamily stands in the cycle: supply, occupancy, rents, and capital values. In this episode of Inside the Investment, Forum's Patxi Colbern sits down with Ryan Brome, COO - Investments, to discuss each indicator and what each means for investors evaluating the sector today.

Key Takeaways

• The multifamily correction was driven primarily by rising interest rates, not by deterioration in property-level fundamentals. NOI grew 12% during the same period that values declined 18%.
• Supply is contracting, but recovery will not be felt equally across markets. Investors should focus on markets where new competition is declining and existing assets can be acquired below replacement cost.
• The most durable demand driver is affordability - not migration or population growth. The financial realities facing American households continue to favor renting, and that dynamic is not easily or quickly reversed.

This podcast is for informational purposes only and should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation to buy, sell or hold any security, investment, investment strategy, or market sector. This material is intended only to provide a broad market overview for discussion purposes. An investor should not construe the contents of this material as legal, tax, investment, or other advice. Investing involves risk, including the possible loss of principal and fluctuation of value. In considering any performance data contained herein, each recipient should bear in mind that past performance is not indicative of future results, and there can be no assurance that an investment program will achieve comparable results or will achieve any projected, estimated, or targeted results. Any projections, market outlooks, or estimates in this podcast are forward-looking statements and are based upon assumptions that are subject to inherent limitations. This podcast reflects our views and opinions as of the date herein. which are subject to change at any time based on market and other conditions. We disclaim any responsibility to update these views. Any projections, outlooks, or assumptions should not be construed to be indicative of the actual events which will occur.