Downturn in the CRE Market Trickles into Apartment Building Sector

Apartment buildings, though typically viewed as a lower-risk commercial real-estate (CRE) investment, have not been immune to the recent downturn within the sector. The issue doesn’t wholly lie in lack of demand, but rather in rising debt costs associated with higher interest rates. With $980.7 billion in multifamily loans due between 2023-2027, the risk of default remains a looming issue.

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