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Let's take a comparative look at the Midwest's current standing against the rest of the country: - Apartment occupancy: 50 basis points ABOVE the U.S. average. - Year-over-year rent growth: 280 basis points ABOVE the U.S. average. - Resident retention: 240 basis points ABOVE the U.S. average. - Apartment construction: 220 basis points BELOW the U.S. average. In 2023, total apartment construction in the Midwest only saw a 2.8 percent inventory expansion, the lowest among all regions, compared to the national average of five percent, the highest since the 1980s. These figures highlight the Midwest's resilience and stability in the face of evolving market dynamics.

The multifamily market has experienced unconventional trends for the third consecutive year. However, in the third quarter of 2023, the market displayed signs of moving towards a more stable and "normal" trend. Notably, apartment absorption has remained positive throughout all three quarters of 2023. Data from RealPage Market Analytics supports these findings. https://hubs.ly/Q02fBx-M0

🚨 Multifamily Market Update for Q3 2024 🚨 Demand for apartments is surging once again! With a record-breaking absorption of 138,000 units in Q3, we're seeing one of the best multifamily demand periods on record. 💼🏘️ Key Highlights: - Rent growth up to 2% YOY, signaling a reacceleration 📈 - Construction pulling back—down 36% since early 2023 🚧 - Vacancy steady at 8.7% despite high supply 💪 As construction slows and demand stays strong, the market is set for a tight vacancy landscape and rising rents. For full insights and data, download the Cushman & Wakefield Q3 2024 U.S. Multifamily MarketBeat report. 📊 #CRE #Multifamily #RealEstate #MarketTrends #PropertyInvestment

The U.S. apartment market is heading into a significant shift, and this chart, updated with September 2024 data, clearly shows it. Multifamily completions are outpacing starts by the widest margin in recorded history— a staggering 193,900 more units completed than started through the first nine months of 2024. For anyone developing or investing, this signals a real challenge on the horizon. 𝐊𝐞𝐲 𝐭𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬: 𝑭𝒍𝒂𝒕 𝒐𝒓 𝒇𝒂𝒍𝒍𝒊𝒏𝒈 𝒓𝒆𝒏𝒕𝒔: Renters are benefiting from peak supply, with rent growth stalling in most markets. 𝑼𝒑𝒈𝒓𝒂𝒅𝒊𝒏𝒈 𝒐𝒑𝒑𝒐𝒓𝒕𝒖𝒏𝒊𝒕𝒊𝒆𝒔: Tenants are moving into newer, higher-quality apartments at equal or lower rents. 𝑹𝒆𝒅𝒖𝒄𝒆𝒅 𝒔𝒖𝒑𝒑𝒍𝒚 𝒊𝒏 𝒍𝒂𝒕𝒆 𝟐𝟎𝟐𝟓: A significant drop in new units starting in late 2025 and into 2026 will likely push rents back up. 𝑫𝒆𝒗𝒆𝒍𝒐𝒑𝒎𝒆𝒏𝒕 𝒉𝒖𝒓𝒅𝒍𝒆𝒔: Executing new projects is becoming increasingly difficult, even though everyone is chasing this data. While the market is enjoying a temporary supply boom, the current imbalance will create upward rent pressure in the near future, making strategic decisions today crucial. #realestate #multifamilyhousing #rentalmarket #propertymanagement #developmenttrends #realestateinvesting #housingcrisis #apartmentliving #rentalproperty #realestateinsights

🏡📈 Insights from MAA CEO, Eric Bolton: "Stable employment conditions, positive migration trends, and historically low resident move-outs continue to drive solid demand. New apartment supply is impacting rent growth, expected to persist through the summer leasing season. Anticipating a decline in new deliveries late in 2024, setting the stage for improved rent growth. With greater clarity on interest rates and a healthy demand, we're well-positioned to navigate the current supply landscape and explore emerging growth opportunities." #HousingOutlook #MultifamilyDemand

Most and Least. #WednesdayCRE #CommercialRealEstate #CommercialDebt #CommercialInsurance As deal activity remains limited nationwide, we’re taking a look which multifamily markets can be considered the most affordable for investment when analyzed by per-unit prices in institutional transactions. To that end, we’ve ranked the top rental markets in the nation by the lowest asset prices in the working-class Renter-by-Necessity (RBN) segment, as defined by data provider Yardi Matrix. Using Yardi Matrix data, we listed the top 50 largest metros in the U.S. by order of most affordable RBN per-unit average prices. #SourcingAndSelling #SellingAndSourcing #Retwit #2024 ~ If you have real estate, and you are willing to entertain offers, have debt to refinance, or in need of insurance for your properties, reach out to me with the details: Lance@RealtyByLance.Com 305.203.2070 ~ Contact Us for Commercial Investments, Financing and Insurance. ~ Multifamily, Industrial, Hotels, Office, Retail, Development Sites, Plus. #ListWithLance #LanceLoans #LetLanceInsureYou #CRE #Owners #InvestmentProperties #Multifamily #Industrial #Hospitality #Retail #Development #Construction #Commercial #CommercialTransactions #CommercialFinance #CommercialInsurances #CommercialTitleAndClosing #CommercialProp ~ https://lnkd.in/gq8B3cy4

“During first quarter earnings calls, public real estate investment trusts (REITs) highlighted the same trends that benefited the multifamily sector over the past year: limited competition and relative affordability.” - https://lnkd.in/eg7hCuQB In a world with a lot of bad news in the commercial real estate sector, this is a bright point. REITs with large investment in multifamily are doing very well. By contrast, Starwood, which has massive investments in office buildings, is struggling and has had to take extreme measures to stay afloat. Rent per unit increases Low competition Low turnover Strong employment numbers Dropping inflation The multifamily market is doing very well nationally. How is your region doing? #RealEstate #RentalMarket #HousingTrends #multifamily

If there's a bright spot in the challenging multifamily landscape, it's that demand for apartments has pushed absorption to one of its highest points in 24 years, with the most recent six months a striking example. "The impressive demand reading in year-ending 2nd quarter 2024 may be difficult to overstate," according to a new report from RealPage Market Analytics, citing the 390,000 units that were leased on net over the past 12 months. Indeed, that was the eighth-highest annual number since the year 2000. In the first and second quarters of 2024 alone, 257,000 units were absorbed – "essentially in line with the all-time high set in the pandemic-era demand swell which saw about 270,000 units absorbed in the first half of 2021," the report noted. However, instead of the spike in demand, the supply side has grabbed much of the media attention, the report observed. And it noted that rampant oversupply that exceeds demand has kept rent growth down. "A four-decade peak in new deliveries is keeping rent expansion modest." More than 500,000 new market-rate apartments were delivered in the past year – 45% more than the previous year and the largest number since 1986. It is expected that 629,000 more will be supplied in the next year. However, signs that the gap between demand and supply is narrowing are that national occupancy and rent growth rates have stabilized. Occupancy held steady at 94.2% in June as it had for the previous three months, though down 0.4% year-over-year. Rent grew 0.2% in the year ending June and the report said it is unlikely to rise much in calendar year 2024.

In Q3 2024, U.S. apartment demand absorbed more than 192,000 units, while nearly 163,000 new apartments were delivered, narrowing the gap between supply and demand. As the construction pipeline starts to thin, multifamily investors have a window of opportunity to benefit from rent stabilization and occupancy rates holding steady at 94.4%. The future looks promising, especially in Midwest markets where growth remains strong. #MultifamilyOpportunities #ApartmentInvesting #MarketTrends

📈 Exciting news in the real estate market! According to the latest Yardi Matrix National Multifamily Report, national asking rents experienced their most significant surge in 20 months, reaching $1,721 in March with a year-over-year growth rate of 0.9%. 🏙️ Among the top 30 metros, 13 previously saw negative rent growth, but the tide is turning, with only two metros experiencing negative growth in March. This positive trend is particularly evident in the Northeast and Midwest, where markets like New York City and Columbus, Ohio, are leading with impressive year-over-year growth rates. 💼 While economic concerns and a robust supply pipeline have fueled speculation about the sector’s performance this year, March’s data provides a reassuring outlook. Though rent growth may remain tempered due to affordability and new supply, the overall tone early in 2024 is encouraging.