Forum Real Estate says multifamily value drop tracks rate shock, not weakening fundamentals - XLRE News | RalliesForum Real Estate says multifamily value drop tracks rate shock, not weakening fundamentals
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XLRE• Multifamily valuation correction tied to rates, not fundamentals
- Forum Real Estate Group flagged a multifamily valuation correction driven by higher interest rates, not weakening property-level fundamentals.
- NOI rose 12% during the period when capital values fell 18%, pointing to cap-rate pressure as the main driver.
- New supply is contracting, but the recovery is expected to diverge by market as deliveries taper unevenly.
- Strategy focus on markets where new competition is fading, with assets available below replacement cost.
- Affordability was cited as the most durable demand driver, supporting rental demand despite slower migration or population growth.
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