A recent Marcus and Millichap brief highlighted the impact that rising interest rates are having on affordability of housing in general. The reality is, both renters and home owners have seen massive increases to their cost of living over the past 2 years. You can read more details here:
We share this data as it supports an underlying hypothesis – when the economy gets ‘tougher’ and the average citizen feels the financial squeeze, B-class and well maintained workforce housing see both continued demand (lack of vacancy) and solid collections (lack of delinquency) as other classes of commercial real estate feel the negative impact of economic contractions.
