By: Matt Vance, Economist, Econometric Advisors and Serguei Chervachidze, Ph.D., Head of Forecasting, Americas Research and Senior Economist, Econometric Advisors

As the Fed proceeds with interest rate hikes, how much can we expect apartment cap rates to increase—and in which markets? Current levels of cap rate compression will be the primary factor in how cap rate movements influence apartment asset values over the next five years.