The apartment building market is a catastrophe right now. This article describes the "systemic and ubiquitous" problem of negative leverage in this sector.

Despite higher rents, investment in new apartments is a losing proposition, thanks to the Federal Reserve.


As much as rents have risen, it doesn't make up for how much interest rates have risen. That's going to get much worse when the last year of deflation finally shows up in rental prices.

econ

The apartment building market is a catastrophe right now. This article describes the "systemic and ubiquitous" problem of negative leverage in this sector.

[Negative Leverage: The Fed’s Latest "Gift" to Apartment Investors](https://mises.org/wire/negative-leverage-feds-latest-gift-apartment-investors)
By [Artis Shepherd](https://mises.org/profile/artis-shepherd)
> Despite higher rents, investment in new apartments is a losing proposition, thanks to the Federal Reserve.



**Median US Rent**
![picture1_48.webp](https://m.stacker.news/11495)
As much as rents have risen, it doesn't make up for how much interest rates have risen. That's going to get much worse when the last year of deflation finally shows up in rental prices.