Yesterday, the Fed raised interest rates as expected by 25 basis points, further noting that more hikes may be on the horizon. Many MMM clients in the build-to-rent market see this as an opportunity to expand development goals in 2023 to deliver more product to the market since higher mortgage costs drive demand for rental properties. Combine that with a strong desire for families, particularly in markets like Atlanta, to live in new, single family homes, and there is a solid base for success in a rising interest rate climate.
There are concerns, however, that the rising interest rates will lead to many homeownership dreams deferred, Justin Barry, partner at law firm Morris, Manning & Martin, noted. “Rising interest rates and elevated mortgage rates present another homeownership hurdle for the current renter pool,” Barry said.
