Homeownership Has Become More Expensive than Renting. Find Out Why.
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In many areas of the U.S., the cost of purchasing a home has surged well beyond the cost of renting.
Higher home prices, combined with rising interest rates, have made the average mortgage payment $839 higher than the average apartment rent. This difference represents the greatest disparity between the average mortgage payment and the average rent payment in more than twenty years.
Home buyers are hitting the brakes.
Potential home buyers are balking at higher mortgage payments and many are pulling back, further driving demand for apartments. At the same time, interest rates are leveling out, as markets have priced in anticipated rate hikes by the Federal Reserve. Lenders, too, are pointing to rising rates to retrade loan commitments. Many deals for land and existing apartments are falling through. All the while, lumber prices – thought to be a leading indicator for material costs more generally – are falling.
The landscape is right for multifamily developers.
Now is the time to seek out opportunities to build new apartments. While the cost of commodities and labor can be expected to moderate, housing production remains well below the levels necessary to meet the country’s needs. With long cycle times, developers who wait for economic conditions to improve before optioning land and starting development will miss the opportunity.
Reduce risk even as you forge ahead.
The current economic landscape is in flux and commercial real estate lending is too. While banks pull back and tighten underwriting, FHA underwriting is constant: it’s the same in every market, for every apartment project, and over time. FHA underwriting means you won’t have to worry about unpleasant surprises or last-minute retrades. Instead, you’ll enjoy predictable, straightforward financing that you can rely on every single time.
Count on the steadfastness of AGM.
As a family-owned FHA lender and GNMA seller/servicer with over 30 years of experience, we know the process inside and out. From new construction and substantial rehab to acquisition or refinance — for both market-rate and affordable projects — AGM gets the deal done. We've closed more than $9 billion in FHA-insured multifamily loans nationwide. And we’re proud to say that more than 60% of our borrowers are repeat clients. Count on our experienced team to guide you through the FHA process and help you get the deal done.
Are you interested in seizing the moment? AGM will partner with you to get an attractive, worry-free multifamily loan that you can count on. Please contact our helpful team today.
About AGM Financial
Founded in 1990, AGM is a leading FHA lender and GNMA seller/servicer. From new construction and substantial rehab to acquisition or refinance — for both market-rate and affordable projects — AGM gets the deal done. Family-owned with over 30 years of experience, the firm has closed over $9 billion in FHA-insured multifamily project loans nationwide. We underwrite, fund, and service all of our loans. Developers and owners can count on AGM to be accessible, transparent, consistent, and ready to lend. From new construction to substantial rehabilitation to acquisition and refinance — for both market-rate and affordable projects — we can get the deal done. To learn more about AGM, call 800.729.4266 or visit agmfinancial.com.
