It was just a few months ago when treasuries were at 3.25% and it appeared that 6% interest rates were a year away...5 caps in major markets appeared to be upon us. Then it didn't happen. Since I got in the business in 1995 one thing has remained true, we never raise rates to previous high's and we lower them beyond the previous low. So, if we are in fact due for a recession in the next 18mo, is it fair to say negative interest rates are coming our way? We all saw what fixed rates in the low 3's did to caps. Imagine fixed rates of 2.5%. Throw in the lack of new home construction and for rent product, it seems that for MF is due for another run up.
Rents just keep going up in SoCal too. It appears that 400k a door is the new norm for B locations.
Short of some crazy trade deal being struck with China, it appears markets are steady and rates aren't going to make a big leap. We just might be at the beginning of something wild happening again in MF.