Last month, readers were asked about their biggest business challenges going into the second half of the year, and how they may have changed from those identified in December. Challenges ranged from latent hurdles such as interest rates and capital availability to supply chain issues and rent growth.
Strikingly similar to the responses measured at the start of the year, roughly three quarters of respondents stated that interest rates and the availability of capital will be their biggest hurdle in the second half – 77 percent compared to December’s 73. The scope of these challenges are attributable to elevated interest rates, with the federal funds target range sitting at 5 to 5.25 percent, as well as latent recession concerns and banking instability. Despite the Federal Reserve pausing its rate hikes last month, stagnation in deal making, a lack of available capital and unideal lending terms remain.
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Consequently, 15 percent of respondents identified inflationary pressures as their top challenge, a 6 percent increase from December. The remaining 8 percent was evenly split between slowing rent growth and supply chain issues, sharp changes from December’s respective 14 percent and 2 percent for the same issues. The discrepancies suggest that average asking rents have held stable, as they have increased by $18, – roughly 100 basis points – between January and May of this year, according to Yardi Matrix data.
Click here to see MHN’s latest poll, and the results of previous surveys.
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