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US apartments were supposed to be an ironclad investment, with potential for double-digit returns as the housing shortage propels rents ever higher. Instead, a blowout in multifamily building loan deals have left some retail investors in a world of trouble.
The unravelling echoes the subprime mortgage boom that led to the 2008 financial crisis: A lending model built on packaging seemingly safe loans collapses under the weight of spiking interest rates and tanking values. Some investors, having lost most of their money, face personal calamity. Yet their ill-timed bets also show how FOMO and easy money combined to burst an American real estate bubble, again.
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Violence is continuing to escalate on the ground in Gaza, raising questions about what it would take to end the Israel-Hamas conflict.
Today on the Big Take DC, host Saleha Mohsin speaks with Bloomberg White House correspondent Justin Sink and Israel bureau chief Ethan Bronner about the prospects for Joe Biden’s cease-fire proposal, and what he and Benjamin Netanyahu might do next
In case you missed it…
Sam Altman is one of the most prominent figures shepherding the development of AI. But some people have questioned whether he’s done enough to earn public trust. Listen to the recent Big Take episode featuring Ellen Huet — host of Bloomberg Technology’s podcast Foundering: The OpenAI Story — who spent months talking to people who know Altman, including investors, his mentors and even his sister.
Written by: Marc Daniel Davies @Bloomberg
The post “Apartment Investors Face Crisis as High Rates Hit Ill-Timed Bets” first appeared on Bloomberg
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