CNBC Television Sep 25, 2026
With Tom Shapiro, President and Founder of Brightshore Capital
Brightshore Capital has bought a dozen buildings in San Francisco in the last six months, Tom Shapiro said, while apartment markets in the Sunbelt are still working through a glut of new supply.
Three years ago, he said, the expectation in Phoenix was that new supply would clear in 18 months to two years. It has not, and his firm is buying on the coasts instead.
"Two thirds of the people who currently have mortgages are locked in below 5%, and 40% of people don't have mortgages."
Tom Shapiro, President and Founder of Brightshore Capital, on CNBC's Closing Bell Overtime, has run the New York real estate investor, formerly GTIS Partners, since he founded it in 2005. CNBC said the firm manages $5.6 billion globally. It owns single-family homes and apartments and develops industrial property.
The full segment is covered here so you can skip it.
Here are the 4 insights that matter.
Key Takeaways
Two thirds of US mortgage holders are locked in below 5%
Shapiro said people are "starting to capitulate a little bit" and accept rates will stay higher for longer
Brightshore bought a dozen San Francisco buildings in six months, and is buying in New York too
Sunbelt apartment supply has not cleared three years on
Nashville and Charlotte landlords are offering a couple of months of free rent
Negative leverage calls for caution: financing costs more than a property earns
Data center suppliers are filling his industrial buildings, even though Brightshore does not build near data centers
1. Mortgage Holders Locked In
The segment opened with CNBC noting that the 10-year Treasury yield had touched 5.2%, which the anchor called a 19-year high, and that the 30-year fixed mortgage rate had hit a two-year high. The anchor called 7% "super high" and asked whether buyers would return with rates in the 6% range or only at 5%.
Shapiro did not name a rate. He said mortgage rates were at two and three quarters percent in 2021, and that the question has two parts: what it takes for people who do not own homes to buy one, and when owners who need more space give up their low-rate mortgage.
Most owners are holding low-rate loans
"Two thirds of the people who currently have mortgages are locked in below 5%, and 40% of people don't have mortgages." — Tom Shapiro
Some owners are starting to accept higher rates
"I think people are starting to capitulate a little bit and saying, gee, we're here for longer." — Tom Shapiro
He pointed to Americans in their 30s.
"We have a huge cohort, largest cohort of people in their 30s now. And at some point they're going to have to do something." — Tom Shapiro
Mortgage rates follow the 10-year Treasury, he said, and the current level is not helping.
"Affordability is a very big issue right now." — Tom Shapiro
