Some of Linneman’s comments are reflective of similar observations he’s made in the past, namely that some of the metrics used by analysts at the Fed are somewhat magnified and may overstate reality.  Linneman theorized that the Fed focuses too much on the largest component of Consumer Price Index (CPI) wherein housing contributes to 36% their analyses/conclusions. And while multifamily rental expense increased by 5.7% and single family 5.9%, food and energy only increased by 0.2% and 0.1%, respectively. Linneman is predicting that the remainder of 2024 will be challenging for multifamily until supply normalizes and rents adjust. Going forward, Linneman believes the Fed will cut rates between 75 and 200 basis points in 2024. We’ll see.

 

 

Svikhart & Associates, a Salt Lake City-based real estate services company, focuses on asset management, brokerage listings and sales, and all aspects of a multifamily investment. Specific diligence regards property operations and strategies to maximize asset performance and value. Additionally, the firm assists owners regarding economic, financial and market factors that impact returns on investment. The firm targets ‘Mid-Tier’ assets which it defines generally as 10-to-60-unit properties.

 

Please find us at svikhart.com or contact us at 801-550-5684 to learn about the real estate services the firm provides. To subscribe to the firm’s newsletter addressing events of the day please follow this link Newsletters.