By Roland Murphy | AZBEX
A new report from Northmarq shows the current slate of difficulties in the U.S. economy and government’s blunt but aggressive responses to address them have the potential to continue fueling growth in the Build-to-Rent housing market.
The Federal Reserve’s continued rapid-fire interest rate hikes have had the intended effect of cooling demand in the overheated and under-supplied single-family owner-occupied market. Northmarq reports residential mortgage rates went from all-time lows to 20-year highs in less than a year, which has led to restrictions on potential buyers’ ability to purchase homes.
The report predicts high mortgage rates will continue to fuel renter demand as the pool of potential qualified buyers continues to shrink and that those already in the rental space will stay there. As such, both overall demand and appetites for diverse format options will likely continue.