home initiatives. The result has been the rise of both the rental and the ownership markets to record highs in 2021. Why is multifamily in a good spot? Even as the demand for homeownership has grown, there will be continued growing demand for apartments because of a lingering supply shortage—especially in the lower and middle tiers. This has been the case since the financial crisis. Now, with construction delays and a lack of new supply, rental demand isn’t expected to wane anytime soon. On the homebuying front, affordability is creating grow- ing challenges for many households and is likely to slow home price appreciation. Home price growth may mod- erate in 2022, but houses and townhouses still are not affordable for most Americans. Should mortgage rates rise further, we could see even slower home growth. Although home prices are expected to taper, multi- family rents, on the other hand, are not expected to slow. This is due to the sector’s resilience and the gap between supply and demand. The multifamily segment was relatively resilient during the 2020 recession, with low vacancy rates and high rental collection rates, despite the negative impact of lockdown measures and remote working arrangements. Global investment firm CBRE expects declining vacan - cy rates over the next 12 months, which will lead to solid rent growth. Continued labor and materials shortages and the expiration of eviction moratoriums only strength- en the prediction for rising rent prices. Multifamily has demonstrated its resilience through two recent and significant crises: the global financial crisis and the pandemic. Now, with inflation fears mount - ing, multifamily investments seem to be ideal for tackling this next crisis. With ongoing supply shortages, vacancies are of little concern, especially in the affordable and mid-level hous- ing sectors. As we saw in 2021, as prices rise and rents along with them, demand remains stable, making mul- tifamily the ideal asset for a recession-proof and infla - tion-insulated portfolio. •
Kyle Jones is the founder and Key Principal of TruePoint Capital LLC, a private equity firm focused on owning and operating value-add multifamily assets and ground-up construction. Jones is responsible for overseeing all aspects of the company’s financial activities,
operations, and investor relations. Jones is also a co-founder of American Grid, a residential appraisal management company. Prior to being a full-time investor and entrepreneur, Jones worked in the corporate world in the high-tech sales industry for 13 years and worked for multiple Fortune 100 companies throughout his career.
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