San Diego’s downtown skyline endlessly evolves as multifamily developers remain full speed ahead despite a changing economic landscape. Even with this growth, COO Julie Blank told Western Real Estate Business optimism from multifamily developers is fine, but caution should be exercised as well.
“Operators must take a strategic look at the demographics they are targeting and set their business plans to real-life scenarios,” Blank said. “What can residents actually afford? Business owners can’t be swayed into thinking that everybody can afford something a little bit better.”
In the current economic climate, New Standard Equities is looking even closer at expense reductions, centralized business functions, increasing in-place technology automation and cutting dividend payments, among other strategies, as it combats rising interest rates and property management costs.
However, Blank acknowledged that demand for multifamily is still there, particularly in expensive markets like San Diego.
“With the increase in interest rates and the price of homes, multifamily is projected to continue to see high occupancy and rent growth,” Blank commented. “As rents continue to rise, so do home prices.”
Read the full Western Real Estate Business article here.