Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
INTERVIEW US multifamily homes promising for Korean investors despite market uncertainty: Eldridge Acre Partners
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By Lee Yeon-woo
CEO of Eldridge Acre Partners Warren Wachsberger / Courtesy of Eldridge Acre Partners
Market uncertainty driven by the Donald Trump administration's tariff policies has stalled many investment markets. Yet, Warren Wachsberger, CEO of Eldridge Acre Partners, sees strong opportunities in the U.S. housing market, particularly in multifamily housing.
"It's very much haves and have-nots. We've got a lot of short term cyclical issues in the U.S. — high interest rates, inflation, tariffs. That's causing problems, especially for developers," Wachsberger said. "But we'd like to capitalize on those problems. We see very good long-term structural trends."
Wachsberger shared his insights in an exclusive interview with The Korea Times during a business trip to Korea, where he met with local partners. He represents Eldridge Acre Partners, a privately held real estate investment firm in U.S. with global investors.
According to Wachsberger, the U.S. housing market is at a turning point due to a severe supply-demand imbalance. The housing shortage is estimated at nearly 2.5 million homes or more. Rising construction costs, combined with tighter financing, make it even more difficult to bridge the gap.
At the same time, demand is growing. Younger generations — who previously delayed moving out — are now entering the market, driving increased need for housing. Affordability remains a major hurdle, pushing many toward rentals instead of homeownership. Data from Eldridge Acre Partners shows that buying a home is currently 2.7 times more expensive than renting, reinforcing the appeal of the rental market.
For Wachsberger, this trend signals a strong investment opportunity in the multifamily housing sector — residential properties operated as rentals. "In the fourth quarter of 2024, demand reached one of the highest levels in 25 years, with over 230,000 units absorbed. Vacancy rates continue to improve," he said.
Another factor making the market more attractive is the pullback of traditional lenders. Residential investment as a share of GDP is near historic lows, while delinquencies are rising as many borrowers struggle with loans secured in a low-interest-rate environment. As a result, lending standards are expected to tighten further, creating new opportunities for structured capital solutions and alternative financing.
"Investors should watch asset types and investments that were highly dependent on cheap debt to make the returns work. We're moving away from an environment where financial engineering can drive returns," Wachsberger said.
"If you can enter projects at the right basis, and position them for upcycle when nobody else is delivering, there's significant potential," he said. "Uncertainty makes people be scared in investment. But those who bring both expertise and capital can create real value and earn higher returns."
Wachsberger remains optimistic about the long-term economic outlook. "In the long run, the U.S. economy is well-positioned for growth, with new household formations, increased investment in semiconductor manufacturing and expanding data centers."
For this reason, Eldridge Acre Partners is also focusing on the logistics sector. The CHIPS and Science Act is expected to boost U.S. semiconductor manufacturing, increasing demand for logistics space. Similarly, the continued growth of e-commerce will drive further demand for distribution facilities.
For Korean institutional investors increasingly turning to the U.S. real estate market, Wachsberger advises focusing on long-term trends, and coming in at a basis that makes sense for the short-term volatility.
"I'm always very impressed with how global the Korean investors are and how much they understand what is going on," he said. "So I think the Korean investors are very well-poised to benefit from these short-term uncertainties and the long-term positive trends."