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Wealth

Apartment Landlords Bleeding Cash Imperil $47 Billion of Loans

The US multifamily buying boom threatens to go bust for owners getting squeezed by higher interest rates and other surging costs. 

Apartments for rent in Manhattan’s West Village neighborhood.

Apartments for rent in Manhattan’s West Village neighborhood.

Photographer: Alex Kent/Bloomberg

US apartment landlords who benefited from rapid rent growth during the pandemic are suddenly in the red.

Higher interest rates and surging expenses are erasing their profits, even as rents are still climbing in many places. Debt payments already exceed income from multifamily buildings financed with more than $47 billion of securitized loans, according to data from Trepp.