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Expect condo development starts to remain strong in 2019 but slow down overall. There are many developers still bullish on condos and trying to get new projects off the ground. However, lenders will be a little more hesitant. Banks will shy away from condos almost completely, leaving private money lenders and debt funds to pick More

Smaller players fleeing from the stock market will keep demand high for smaller multifamily properties. Returns for assets under 50 units will be relatively conservative around 6% to 9.5% cap rates or IRRs ranging from 8% to 20%. Pricing is expected to remain fierce due to less institutional money dominating the space and lower asking More

Expect more developers to turn toward stretch senior loans, mezz debt and pref equity in 2019 as ground-up returns tighten further, and institutional equity providers sit on the sidelines. The debt markets are saturated, so developers can creatively finance projects with stretch senior construction loans and minimize the amount of sponsor equity required. Multifamily fundamentals More