Offerd’s Post

Points to stabilization, when? If you do not have time to read the entire article, please allow me to extract and apply the relevant. "The multifamily housing market is showing promising signs of recovery...revealing a significant increase in demand and stabilization of vacancy rates." Show me the numbers! "Absorption rates have notably risen from 118,000 units in the first quarter to 166,000 in the second. The spread between supply and demand has been the lowest we've seen in the last 11 quarters." Are we out of the woods yet? "While the market absorbed 166,000 units in the second quarter, 189,000 new units were delivered, leading to a slight increase in the vacancy rate to 7.9% by the end of the second quarter, up from a low of 4.8% in the third quarter of 2021." Which markets are performing better than others? "The Sun Belt region has been struggling, with the ten worst-performing markets in terms of rent growth. In contrast, the Midwest and Northeast are performing better, with projected rent growth rates of 4.7% and 3.9%." What can we expect moving forward? "The vacancy rate is anticipated to peak at 8.1% in early 2025 before declining... setting the stage for renewed investment and expansion in the multifamily sector." Up or down, cycles create opportunities. #cre #multifamily #commcap #crelending

The U.S. multifamily market is nearing a critical juncture, driven by significant economic improvements and shifting market dynamics. Year-to-date multifamily absorption has surged by 75% compared to the first half of 2023, a clear indicator of growing demand. This increase is underpinned by the creation of 500,000 new jobs in Q2 and a rise in real wages, reflecting broader economic health. According to Cushman & Wakefield's Q2 2024 report, multifamily vacancies have decreased by 10 basis points, with a notable 138,000 units absorbed. Despite the current national vacancy rate standing at 8.6%, it is projected to decline over the next year, suggesting a tightening market. The report highlights a substantial rise in net absorption, totaling 138,111 units, which underscores the robust demand for multifamily housing. Market rent has also seen an uptick, reaching $1,849, though future rent growth is expected to moderate. This trend suggests that while the market remains strong, it may be approaching a stabilization phase. The increase in absorption and decrease in vacancies signal a positive outlook for investors and stakeholders in the multifamily sector. https://hubs.li/Q02JFp6g0 #Multifamily #NavigatingMarkets #Apartments #Investment

The U.S. multifamily market is nearing a critical juncture, driven by significant economic improvements and shifting market dynamics. Year-to-date multifamily absorption has surged by 75% compared to the first half of 2023, a clear indicator of growing demand. This increase is underpinned by the creation of 500,000 new jobs in Q2 and a rise in real wages, reflecting broader economic health. According to Cushman & Wakefield's Q2 2024 report, multifamily vacancies have decreased by 10 basis points, with a notable 138,000 units absorbed. Despite the current national vacancy rate standing at 8.6%, it is projected to decline over the next year, suggesting a tightening market. The report highlights a substantial rise in net absorption, totaling 138,111 units, which underscores the robust demand for multifamily housing. Market rent has also seen an uptick, reaching $1,849, though future rent growth is expected to moderate. This trend suggests that while the market remains strong, it may be approaching a stabilization phase. The increase in absorption and decrease in vacancies signal a positive outlook for investors and stakeholders in the multifamily sector. https://hubs.li/Q02JFg4Q0 #Multifamily #NavigatingMarkets #Apartments #Investment

The U.S. multifamily market is nearing a critical juncture, driven by significant economic improvements and shifting market dynamics. Year-to-date multifamily absorption has surged by 75% compared to the first half of 2023, a clear indicator of growing demand. This increase is underpinned by the creation of 500,000 new jobs in Q2 and a rise in real wages, reflecting broader economic health. According to Cushman & Wakefield's Q2 2024 report, multifamily vacancies have decreased by 10 basis points, with a notable 138,000 units absorbed. Despite the current national vacancy rate standing at 8.6%, it is projected to decline over the next year, suggesting a tightening market. The report highlights a substantial rise in net absorption, totaling 138,111 units, which underscores the robust demand for multifamily housing. Market rent has also seen an uptick, reaching $1,849, though future rent growth is expected to moderate. This trend suggests that while the market remains strong, it may be approaching a stabilization phase. The increase in absorption and decrease in vacancies signal a positive outlook for investors and stakeholders in the multifamily sector. https://hubs.li/Q02JFpPm0 #Multifamily #NavigatingMarkets #Apartments #Investment

🏢 Q2 2024 U.S. Multifamily Market Insights 📊 Cushman & Wakefield's latest report reveals some promising trends in the U.S. multifamily sector: 🔹 Vacancy Rates: For the first time since mid-2021, vacancies have declined by 10 basis points, thanks to a robust absorption of over 138,000 units this quarter. With the labor market adding more than 500,000 jobs, household formation remains strong. 🔹 Rent Growth: While we saw a 1.7% increase in multifamily rents over the past year, this is still below historical averages. The competition for leases is intensifying with nearly 265,000 units delivered in H1 2024. 🔹 Construction Trends: A challenging capital markets environment has led to a significant drop in construction starts—down nearly 60% compared to the same period last year. Only 103,000 units have broken ground so far this year. As we move forward, staying informed on these shifts will be crucial for adapting strategies and capitalizing on opportunities in the multifamily market. 📥 For a deeper dive into the data, download the full Q2 2024 U.S. Multifamily Report at the link below. #RealEstate #Multifamily #MarketInsights #CushmanWakefield #CommercialRealEstate #ChadwellSupply

With a steady rise in demand and vacancy rates stabilizing, multifamily housing is showing encouraging signs of recovery. Though challenges remain, particularly in the Sun Belt, a gradual decline in vacancies is expected in 2025, setting the stage for renewed investor confidence and expansion. #MultifamilyMarket #VacancyTrends

🏢 Midwest & Northeast Lead Multifamily Market Improvement The U.S. multifamily market saw a stable vacancy rate of 7.8% in Q2, absorbing 170,000 units. Annual rent growth remains around 1%, with the Midwest and Northeast showing strong 2.4% growth due to balanced supply-demand. Western markets grew 0.5%, while the South saw zero growth due to oversupply. https://lnkd.in/gF6uCg53 #RealEstate #MultifamilyMarket #RentGrowth #MarketTrends

The U.S. multifamily market is showing signs of stabilization after two years of rising vacancy rates, with CBRE reporting that the overall vacancy rate held steady at 5.5% in Q2. As vacancy rates are expected to trend downward, rent growth is also anticipated to accelerate by Q4, signaling a positive outlook for the market. However, challenges persist in the Sun Belt due to oversupply. Despite this, multifamily investment volume surged by 82% QoQ, reflecting growing investor confidence in the sector. https://lnkd.in/g-8cW_Ya

CBRE: Multifamily Market Shows Resilience in Q2 Rent growth is expected to accelerate in Q4. "The nation’s multifamily vacancy rate has stabilized after two years of quarterly increases, showing the market’s resilience, according to the latest research from CBRE. In the second quarter, the vacancy rate held steady with the prior quarter at 5.5%. CBRE anticipates the rate to start declining in the second half of the year as the supply pipeline continues to decrease and renter demand remains strong. That robust renter demand led to positive net absorption, which measures the change in the number of occupied units, of 126,600 units, making it the sixth-strongest second quarter in over two decades." https://lnkd.in/gF6v3gVi #nettax #nettaxusa #multifamily #realestate #texasrealestate #texasmultifamily #propertytax #realestateinvestor #commercialrealestate