Delinquencies among multifamily loans in CMBS have recently increased and are expected to grow further. A Morningstar report adds that the increase to 0.40%, from a post-crisis low of 0.30% in June last year, is likely to continue, tempered by a lack of affordable options.
Furthermore, Morningstar suggests that multifamily demand is slowing, with a major reason being a shrinking working-age population in the US leading to slowing rent growth, which is already lagging 2014-2017 growth rates.
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