The performance of $5.4 billion of single-family rental (SFR) investments is now detailed in the Expanded NCREIF Property Index (Expanded NPI). This is an exciting evolution for the sector, adding transparency and an all-important benchmark. While U.S. Census Bureau data show twice as many households rent single-family homes than they do apartments in communities with 50 or more units, we are still in the early innings of the sector’s inclusion in institutional private equity real estate portfolios. NCREIF return data should encourage additional SFR investment as the sector has demonstrated stability and relatively better performance than the apartment sector and overall Expanded NPI. In the article linked below, we leverage NCREIF data to provide a deeper look at the types of SFR investments institutions are making and the returns those investments have generated. Read more here: https://lnkd.in/dCSZjrbW Sign-up for more research and insights from Roofstock here: https://lnkd.in/e4YArAz3
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I help everyday investors build sustainable wealth by serving basic everyday human needs: food & shelter. Own income-producing Farmland + Multifamily for consistent, above-average returns.
Great data insights from Jay Parsons re: Multifamily supply/demand’s coming shift by 2025-26 & what it will mean for those of us LPs & GPs in projects we’ll be hopefully looking to exit from around that time.
Rental Housing Economist (Apartments, SFR), Speaker and Author
This continues to be one of the most important charts you'll see on the direction of the U.S. apartment market, now updated with September data released today. Multifamily starts trail completions by the widest gap in recorded history through the first nine months of 2024. We completed 193,900 units more than we started so far in 2024, according to U.S. Census data released today. It doesn't take an economist to figure out what that means. Right now in 2024, renters are experiencing the benefits of peak supply. Apartment rents are flat or falling across most of the country. Some are even moving to newer, nicer apartments at lower or comparable rents compared to what they paid previously. But the completions > starts trends continue to point to significantly reduced supply in late 2025 and into 2026 (and likely further). That would likely put upward pressure on rents again. Obviously, this is no secret these days. Every GP and developer in trying to raise capital using data like this, but execution is much harder than strategy. Particularly on the development side (a topic for another day), it's very difficult to see a scenario -- barring some type of unprecedented epic shift -- where supply returns to these levels. #housing #multifamily #apartments
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Rental Housing Economist (Apartments, SFR), Speaker and Author
This continues to be one of the most important charts you'll see on the direction of the U.S. apartment market, now updated with September data released today. Multifamily starts trail completions by the widest gap in recorded history through the first nine months of 2024. We completed 193,900 units more than we started so far in 2024, according to U.S. Census data released today. It doesn't take an economist to figure out what that means. Right now in 2024, renters are experiencing the benefits of peak supply. Apartment rents are flat or falling across most of the country. Some are even moving to newer, nicer apartments at lower or comparable rents compared to what they paid previously. But the completions > starts trends continue to point to significantly reduced supply in late 2025 and into 2026 (and likely further). That would likely put upward pressure on rents again. Obviously, this is no secret these days. Every GP and developer in trying to raise capital using data like this, but execution is much harder than strategy. Particularly on the development side (a topic for another day), it's very difficult to see a scenario -- barring some type of unprecedented epic shift -- where supply returns to these levels. #housing #multifamily #apartments
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Widest gap in Histroy between MF Completions and New Starts.
Rental Housing Economist (Apartments, SFR), Speaker and Author
This continues to be one of the most important charts you'll see on the direction of the U.S. apartment market, now updated with September data released today. Multifamily starts trail completions by the widest gap in recorded history through the first nine months of 2024. We completed 193,900 units more than we started so far in 2024, according to U.S. Census data released today. It doesn't take an economist to figure out what that means. Right now in 2024, renters are experiencing the benefits of peak supply. Apartment rents are flat or falling across most of the country. Some are even moving to newer, nicer apartments at lower or comparable rents compared to what they paid previously. But the completions > starts trends continue to point to significantly reduced supply in late 2025 and into 2026 (and likely further). That would likely put upward pressure on rents again. Obviously, this is no secret these days. Every GP and developer in trying to raise capital using data like this, but execution is much harder than strategy. Particularly on the development side (a topic for another day), it's very difficult to see a scenario -- barring some type of unprecedented epic shift -- where supply returns to these levels. #housing #multifamily #apartments
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Housing development project starts have dropped to alarming historic lows, meaning our national housing affordability problem is likely to worsten for the next 3-5 years. We need drastic measures to increase the pipeline of housing. Our best paths forward are regulatory changes, new funding structures and innovations in planning, design and technology.
Rental Housing Economist (Apartments, SFR), Speaker and Author
This continues to be one of the most important charts you'll see on the direction of the U.S. apartment market, now updated with September data released today. Multifamily starts trail completions by the widest gap in recorded history through the first nine months of 2024. We completed 193,900 units more than we started so far in 2024, according to U.S. Census data released today. It doesn't take an economist to figure out what that means. Right now in 2024, renters are experiencing the benefits of peak supply. Apartment rents are flat or falling across most of the country. Some are even moving to newer, nicer apartments at lower or comparable rents compared to what they paid previously. But the completions > starts trends continue to point to significantly reduced supply in late 2025 and into 2026 (and likely further). That would likely put upward pressure on rents again. Obviously, this is no secret these days. Every GP and developer in trying to raise capital using data like this, but execution is much harder than strategy. Particularly on the development side (a topic for another day), it's very difficult to see a scenario -- barring some type of unprecedented epic shift -- where supply returns to these levels. #housing #multifamily #apartments
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Why we at BridgeInvest continue to focus on financing multifamily development deals, in one simple chart: Starts trail completions by the widest gap in recorded history! This may signal a coming supply shortage and put upward pressure on rents in the next 2-3 years, at a time when capital markets remain liquidity constrained with the coming wall of maturities.
Rental Housing Economist (Apartments, SFR), Speaker and Author
This continues to be one of the most important charts you'll see on the direction of the U.S. apartment market, now updated with September data released today. Multifamily starts trail completions by the widest gap in recorded history through the first nine months of 2024. We completed 193,900 units more than we started so far in 2024, according to U.S. Census data released today. It doesn't take an economist to figure out what that means. Right now in 2024, renters are experiencing the benefits of peak supply. Apartment rents are flat or falling across most of the country. Some are even moving to newer, nicer apartments at lower or comparable rents compared to what they paid previously. But the completions > starts trends continue to point to significantly reduced supply in late 2025 and into 2026 (and likely further). That would likely put upward pressure on rents again. Obviously, this is no secret these days. Every GP and developer in trying to raise capital using data like this, but execution is much harder than strategy. Particularly on the development side (a topic for another day), it's very difficult to see a scenario -- barring some type of unprecedented epic shift -- where supply returns to these levels. #housing #multifamily #apartments
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USA #Apartment Completions ~ this chart shows renters taking advantage of peak supply. How is this impacting your rents into 2025? #MultiFamily #housing #SupplyDemand #PropertyManagementData #PropertyVista #AIWithPersonality
Rental Housing Economist (Apartments, SFR), Speaker and Author
This continues to be one of the most important charts you'll see on the direction of the U.S. apartment market, now updated with September data released today. Multifamily starts trail completions by the widest gap in recorded history through the first nine months of 2024. We completed 193,900 units more than we started so far in 2024, according to U.S. Census data released today. It doesn't take an economist to figure out what that means. Right now in 2024, renters are experiencing the benefits of peak supply. Apartment rents are flat or falling across most of the country. Some are even moving to newer, nicer apartments at lower or comparable rents compared to what they paid previously. But the completions > starts trends continue to point to significantly reduced supply in late 2025 and into 2026 (and likely further). That would likely put upward pressure on rents again. Obviously, this is no secret these days. Every GP and developer in trying to raise capital using data like this, but execution is much harder than strategy. Particularly on the development side (a topic for another day), it's very difficult to see a scenario -- barring some type of unprecedented epic shift -- where supply returns to these levels. #housing #multifamily #apartments
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The Apartment List's latest national rent report said that median rent has plunged by 0.7% year-over-year, or about $10 for October, hitting $1,394. Year-over-year rental comparisons have been negative for almost 18 months. However, it is still $200 more than it was a few years ago before the revving up of what happened during the pandemic when an influx of capital radically pushed up the price of multifamily properties and the rents needed to sustain business plans. The rent estimates start with the Census Bureau's American Community Survey. The firm takes statistics from recent movers, taking them as a proxy for market prices, and then uses a growth rate constructed from real-time transactions that take place on its own platform. They also do a "same-unit, repeat transaction analysis" for what they say is an accurate view of rent growth. To read more about the continuing rental price decline, click here: https://buff.ly/4fr5IoB. #themcdanielteam #marcusmillichap #northcarolina #charleston #southcarolina #raleigh #charlotte #thecarolinas #triadarea #commercialrealestate #economy #investors #rentalpricedecline #forrent #nationalaveragerent #multifamily #apartments
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Housing policy consultant/PHA Commissioner/Board member. Engaging communities and organizations in redesigning systems for a more equitable region
"But the portion of apartments for lower-income households has been shrinking, with 1-, 2-, and 3-star units collectively falling from 39.0% of all apartments in the first quarter of 2014 to 30.3% in the third quarter of 2024. Now 4- and 5-star units are the “vast majority” of units, according to NMHC. There isn’t enough supply for lower-end demand, so rents rise faster." #housingsupply #affordableunits
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Founder of Spark Investment Group| Experienced Real Estate Investor | Helping Busy Professionals Create Passive Income Using Recession-Resistant Real Estate Investing
When you have been in the real estate business for a few years… Oops…..I meant decades…..😀 The ebb and flow of markets is natural and logical - and in fact, necessary. Development especially tends to have high volatility through the cycles. In the free market, supply and demand control. It’s self regulating… I can say in Spark Multifamily Investment Group ‘s primary market, Greenville SC: There is a current oversupply of new luxury Class A properties but still a huge lack of “affordable” properties. We don’t invest in the luxury space. We invest in what used to be called: “Bread and Butter” or “Steak and Potatoes” properties… Nothing fancy, nothing exotic….. Perhaps now described as Class B properties. Steady boring performers that provide nice safe housing for hard working middle income folks. And while investors need to be careful investing in markets with current oversupply…..the oversupply is only temporary as developers logically and naturally adjust to market conditions. I leave with one final question: Long term, would you rather invest in an area where massive amounts of capital are being poured into over an area where there is little investment? Arguments can be made either way, I lean towards “follow the capital”.
Founder @ The Monomoit Companies | Special Situations & Lower Middle Market Commercial Real Estate
“In July, the annual pace of multifamily-building starts was down 22% from the same month a year earlier, according to the U.S. Census Bureau, and down 41% from an April 2022 peak. Property-data company CoStar, which uses a different method to count starts, said they fell to less than 61,000 units in the second quarter, the lowest level in the past decade.” #multifamily #housing #rent #realestate #CRE
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Many factors can influence the cost of building a new home — location, square footage, materials, and the time it takes to build, to name a few. In 2023, the cost of building a home averaged $313,000 (not including the cost of the land.) This is $200,000 lower than the average sales price of new construction homes in the first quarter of 2024. Costs per square foot average around $150. So far in 2024, home sales prices average $427,700 in the Midwest, $448,600 in the South, $608,100 in the West, and $945,700 in the Northeast, according to the @U.S. Census Bureau. Learn more here: https://lnkd.in/g6agXZbH
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Senior Financial Analyst @ NexMetro Communities | Financial Modeling, Excel Proficiency
6moThanks for sharing! Institutions will likely increasingly gain exposure to the SFR market through BTR investments.