Other things equal, higher Treasury yields means investors will require a higher return from property. Some investors may therefore start easing back on acquisitions, putting downward pressure on prices in the multifamily sector. But with a large part of the adjustment likely to come from a drop in the risk premium, we don’t think the rise in yields will trigger a fall in house prices.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services