Multifamily Minute Reader Reflections: How Will Bank Failures Impact Multifamily?
We reached out to our 40,000 subscribers, and few people seem too concerned following the failures of SVB and Signature Bank.
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Survey Results
Find the full results in the table below.
Impact on Multifamily | Percent of Respondents |
|---|---|
It shouldn't have any major effects. | 43% |
It'll get harder to get new financing. | 39% |
Lending costs will go up even more. | 12% |
I'll need to seek financing from larger banks. | 4% |
Other | 2% |
Many of our respondents — 43% — said they don't imagine there will be any major impacts on their properties or financing. The second-largest cohort pointed to loan underwriting standards and general availability of financing as a potential outcome.
One interesting dynamic came through in the comments under the "other" option: Could it be that these banking mishaps could lead to better outcomes for borrowers?
Maybe.
One respondent mentioned that high-profile regional bank failures could lead to the Fed hitting the brakes on future rate hikes. That's a real possibility — and one we won't need to wait long to find out about. The next Fed meeting is about to begin.
My guess is we'll see another quarter-point bump, but I'm definitely open to being wrong.
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Our Previous Survey
Curious what we discussed last week? Property size, and where our readers' appetites are for investment. Check out the analysis.