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Wise Construction Lenders Do Their Own Homework

The continuing rosy outlook for multifamily assets is rooted in ongoing U.S. demographic and economic conditions. The U.S. population is growing, while consumers remain reluctant to purchase homes following the 2008 home ownership crisis and recession. The Millennial generation introduced lasting lifestyle changes that favor rentals, and, at the same time, increasing numbers of baby boomers are downsizing from single-family homes to smaller, more manageable rental units.

Meanwhile, after four rate hikes in 2018 and a promise of more, Federal Reserve Chairman Jerome Powell is leaving interest rates stable, with no increases predicted in the immediate future, thanks to a healthy Q1 2019. Today’s low interest rates favor new investment. Smart investors are choosing to borrow now, and not wait for a potential, even inevitable, future i