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BREAKING: US multifamily housing unit completions hit 647,000 at an annual rate in Q3 2024, the fastest pace in 3 decades. Since 2022, additions of housing units in buildings with 5+ units have more than DOUBLED. By comparison, in 2010 after the Financial Crisis, this number was 6 TIMES lower. Such a rapid surge in multifamily construction will likely begin cooling rent prices. Renting may soon become more affordable. https://lnkd.in/ddyPXD6P

BREAKING: US multifamily housing unit completions hit 647,000 at an annual rate in Q3 2024, the fastest pace in 3 decades. Since 2022, additions of housing units in buildings with 5+ units have more than DOUBLED. By comparison, in 2010 after the Financial Crisis, this number was 6 TIMES lower. Such a rapid surge in multifamily construction will likely begin cooling rent prices. Renting may soon become more affordable. https://lnkd.in/dkwZSYFP

BREAKING: The number of US multifamily housing units under construction fell by 19% to 804,000 in October, the lowest since February 2022. This marked the steepest year-over-year decline in 13 YEARS. Multifamily housing units under construction have now declined for 8 consecutive months, the longest streak since 2008. Over the last 50 years, such a sharp drop has only occurred during recessions except for in 1987. Meanwhile, permits to build multifamily housing units were down 21% in October signaling more pain ahead. The housing market is freezing.

Imbalanced supply and demand, volatility in the multifamily market, and pulling back of commercial real estate lending are just a few reasons for the 20% decrease in the multifamily construction pipeline. A dramatic but sharp decline in new multifamily construction starts is seen two years after the record-high completions of 2023 and 2024. This year's multifamily vacancy and rent growth is a far cry from the pre-pandemic era where an average vacancy rate of 6.4% compared to this year's 7.9% as of the 2nd quarter. It is predicted that the effect of the said decline in multifamily construction starts will be felt in 2025 and 2026 as completions will also decline successively in those two years. But there is still light in this dark tunnel for the multifamily industry. The pre-pandemic vacancy and rent growth can still be attained if the multifamily demand can be maintained in the next two years in order for the market to be able to take in the excess units.

The multifamily market is showing signs of stabilization despite an oversupply, with forecasted completions for 2024 at 533,000 units, a 10% decrease from 2023. However, markets like Austin, Tampa, and San Antonio will see increased completions this year, which will pressure vacancy rates and keep rent growth negative. The number of multifamily units under construction fell sharply from 1.2 million in early 2023 to 860,000 by May 2024, with construction starts dropping significantly due to higher costs, interest rates, and limited equity. If current demand levels persist, the market could shift from oversupplied to undersupplied by 2026, leading to lower vacancy rates and accelerated rent growth.

Unexpected Twist in 2024: Multifamily Booms! June saw a 3% rise in housing starts, hitting 1.35M units annually. Multifamily construction surged by 19.6%, reaching the fastest pace since 1986! Permits rose 3.4%, driven by a 15.6% rise in multifamily permits. The Off Market Buying window is closing! Stay Tuned at; https://lnkd.in/gSFpezNf #multifamily #multifamilyinvesting

The multifamily housing market is set for significant growth in 2025, driven by strong demand and limited supply. Key trends discussed include increased absorption rates, rental demand and more. https://ow.ly/BaE850Uu9VT

More housing supply is the key to housing affordability, but with lower construction activity in the multifamily market, the recent apartment supply wave that has kept rents down may shift into a shortage in the next few years. Watch our 2025 Multifamily Forecast for the full conversation: https://bit.ly/3W2KIxt

As reported by Real Page, Q2 2024 multifamily construction starts haven’t been this low since Q1 2011. Why is that important? Lower construction starts can help stabilize or even increase rental rates and property values, making current investments more profitable and attractive to potential investors. Additionally, the reduced supply growth may also signal a stronger demand for existing multifamily properties, further enhancing the sector’s appeal. https://hubs.li/Q02Plqy00 At Forum, we have been focused on multifamily real estate since 2007. Reports like these only bolster our belief that now is a great time for investors to add multifamily to their investment strategies. Disclosure: https://hubs.li/Q02Plmy00 Learn more: https://hubs.li/Q02PlGMl0 #multifamily #investing #realpage #carlwhitiker

Nationally, the multifamily market remains in a state of oversupply, but conditions appear to have turned the corner. Forecast multifamily property completions for 2024 total 533,000 units, a 10% decrease from the 40-year high of 588,000 units in 2023. However, some markets will continue to see elevated supply additions this year. Notably, Austin, Texas; Tampa, Florida; and San Antonio, Texas; will experience increased completions in 2024. In Austin, apartment completions are projected to increase from 21,000 units added in 2023 to 23,600 units in 2024. At the same time, Tampa’s forecast shows an increase in projected completions from 7,200 units in 2023 to 10,100 units this year, and San Antonio’s additional supply will increase from 7,900 units in 2023 to 10,600 units in 2024. These increases will maintain upward pressure on vacancy rates in these markets, with rent growth forecast to remain negative throughout 2024. https://lnkd.in/g_uRqWvd