Multi Family values in a rising rate environment
My question is concerning multifamily properties. They are valued using cap rates, cap rates are driven to some degree by interest rates. Given that the Fed has been raising rates and we are in a rising rate environment wouldn't that mathematically devalue multifamily properties as cap rates rise? I understand rents should increase as well which would increase BOI. Do these offset and retain value? I understand we will see 2 or 3 rate increases thus year. Any insight would be helpful.