From Yahoo Finance: 2025-05-04 13:15:00

Real estate mogul Grant Cardone warns of a correction in multifamily properties due to oversupply and rising interest rates. Cardone predicts landlords will face pressure to maintain profit margins, leading to lower demand for rental units. Additionally, $3 trillion in debt set to mature in 36 months could force property owners to refinance at higher rates.

The oversupply of multifamily units has led to increased vacancy rates, prompting landlords to lower prices to attract tenants. Higher interest rates make it more expensive for landlords to maintain properties, potentially impacting property valuations. Construction of multifamily units has slowed down in response to oversupply, especially in the Sun Belt region.

Cardone emphasizes three key reasons for the correction in multifamily properties: oversupply, rising interest rates, and impending debt maturity. Landlords may struggle to refinance loans at higher rates, leading to potential price increases and lower property valuations. The oversupply of multifamily units could result in slower rent growth rates and a sluggish recovery for investors.



Read more at Yahoo Finance: Grant Cardone Reveals The 3 Reasons Why Multifamily Properties Are In A Correction: ‘Oversupply Creates Increased Vacancy’