Homeownership Out of Reach? Rental Market Booms

High mortgage rates continue to sideline potential homebuyers, with rates hovering around 6.33% for a 30-year fixed mortgage. Reports suggest that even a substantial drop in interest rates wouldn't make typical homes affordable in expensive coastal cities. Many homeowners are reluctant to sell and give up their existing low mortgage rates, further constricting the market.

Conversely, the multifamily rental market is experiencing a significant rebound. After a period of price declines, rising occupancy, slower new construction, and beneficial federal incentives are creating a favorable investment climate. This renewed energy is drawing attention from investors looking to capitalize on the sector's growth.

This shift presents a prime opportunity for investors. With federal legislation like bonus depreciation restoration and expanded housing tax credits, the multifamily sector is becoming increasingly appealing. Platforms are emerging to offer direct access to institutional-quality multifamily deals, potentially reducing fees and increasing transparency for accredited investors.