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A recent CoStar report showed a significant 61% decline in multifamily property sales year-over-year across approximately 400 markets, with an even steeper 63% drop in the top 50 markets. Despite this downturn, certain markets have shown resilience. The top 10 performing markets share several characteristics that allowed them to weather the storm much better than other major metros. Investors are driven by these characteristics! This is being represented in Denver by the high number of out-of-state buyers having already entered or are looking to enter into the market! Investment focus has shifted toward markets with robust rent growth and stabilized occupancy rates. Additionally, markets with higher median incomes, like those depicted on the graph, offer landlords greater security amidst rent increases. Denver stands out due to its appeal to out-of-state investors, drawn by its growth prospects, stable demographics, and promising long-term rental potential. Now, a common objection will be the supply coming to the area will increase vacancy and cause some instability within the multifamily market, however, when looking at the number of projects currently under construction and set to be delivered vs. the number of construction starts set to take place in the coming years, there will be a MAJOR drop off. This will allow Denver to absorb the high number of units hitting the market and get back to a rent-growth market.

The U.S. multifamily market continued a strong rebound in demand during the third quarter of 2024, with 176,000 units absorbed, the highest number since the third quarter of 2021. This demand was just short of the 178,000 new units delivered in the last quarter, resulting in the smallest supply-demand gap in three years. Given the more balanced market, the vacancy rate fell 10 basis points to 7.8%, the first quarterly drop in vacancy since the end of 2021.

Today’s US Multifamily Market We are excited to share our insights in the current state of the US multifamily market, highlighting key trends: - Multifamily sales have slowed significantly, with 2023 seeing only $85.4 billion in sales compared to $263 billion in 2021. - National rent growth has decreased, with Class A properties experiencing minimal to negative growth, while Class B/C properties show steady increases. - Despite market challenges, renter demand remains strong, with significant absorption rates and low delinquency. - An influx of new supply is impacting vacancies and rent growth, particularly in high-growth Sunbelt markets. Staying informed about these trends helps us better anticipate shifts in rental demand and vacancy rates. For more in-depth insights and our strategic outlook, check out our full article here: https://lnkd.in/g9U3YcuH #RealEstate #Multifamily 

US Multifamily Update: Rent Declines but Also Signs of Resilience Analytics group CoStar provided further context for rent growth woes, noting that despite a “strong rebound” in multifamily demand in Q1 2024, there was still the issue of an oversupply of new units at a national level. CoStar states: “While the increase in demand was impressive, it was still overwhelmed by the 140,000 new units delivered in the last quarter. This supply-demand imbalance increased the vacancy rate from an upwardly revised 7.7% at the end of December 2023 to 7.8% in March 2024, marking the tenth consecutive quarter in which supply outpaced demand.” CoStar’s data also provides additional context for performance across several multifamily unit types. Luxury units (defined as “4&5-Star” properties) showed negative rent growth (-0.3%) due to high supply, while mid-priced (“3-Star”) assets experienced growth of 1.3%. Meanwhile “1&2-Star” properties remain weaker than other market segments. Read the entire article - https://ow.ly/evZV50SeEK4

Are you wondering what trends will continue to shape the multifamily real estate market in 2024? An expected oversupply of apartments may suppress rents and increase vacancy rates, while softer fundamentals and higher borrowing costs may negatively affect property values. However, amidst these challenges lie opportunities for savvy investors who stay informed and agile in their approach. https://lnkd.in/e4iHAXki

The average multifamily rent rose 0.7% year-over-year through April, or $6 to $1,725, just $2 short of the all-time high set last summer. https://ow.ly/TZY450RMO3N At the start of the second quarter, the U.S. multifamily market showed good progress, with the average asking rent trending up for the second consecutive month, according to the latest Yardi Matrix survey of 140 markets. Read more above 👆 Join our growing family of investors as we secure 14 units with an impressive 11% cap rate. Our next opportunity awaits at 829 W Linden in Center City Allentown, boasting 7 renovated units with a 9.5% cap rate. Explore more at https://ow.ly/KkRZ50RMO3M. Call or text me for details and the offering memorandum. Let me know! Cheers! #RealestateMarket #RealestateInvestment #CommercialRealestate #MultiFamilyRealEstate #AccredictedInvestors

Here is a look at the rent growth for Q1 of 2024

What will 2024 bring for the multifamily real estate market? We really enjoyed Jay Lybik and CoStar Group’s insightful report on the latest data and trends on 2024 market conditions and what this means for the multifamily market. You can read the full report via the link below, but a few of our key takeaways from the report include: 🤯 Over half a million rental units were delivered in 2023, contributing to the 7.5% vacancy rate across the country 🏡 Despite the challenging conditions, some still came out on top, like mid-priced properties and units in the Midwest, Northeast, and surprisingly, Orange County, California. 🚀 While 2023 had its challenges, all major markets are expected to return to positive rent growth, although we may not see this until the end of 2024 What are some of your key takeaways about the multifamily market and how do you see this impacting Norfolk? Let us know in the comments below. https://lnkd.in/gGXHpQUu #commercialtitle #commercialtitleinsurance #realestate #2024realestate #multifamilyrealestate #multifamilyinvestor #cre #titleinsurance #norfolkva #norfolkbusiness #realestateexpert

The article by Costar points to the Portland multifamily market being poised for a comeback as leasing activity shows signs of strength heading into the busy summer months. Suburban demand has driven a significant rebound, with over 65% of the net change in occupied units in the first quarter of 2024 coming from suburban areas. Urban and central business district locations also saw increased occupancy. Tenants absorbed more than 3,100 units in 2024, surpassing previous years' totals and projecting to exceed the 10-year average. Urban leasing is expected to gain momentum, supported by new supply in Northwest and Southwest Portland areas. High single-family home prices and declining multifamily construction will contribute to a tightening market. The vacancy rate has dropped to 6.8%, and rent growth is forecasted to return to 4% by the end of 2024, signaling a positive outlook for Portland's multifamily market.

The average multifamily rent rose 0.7% year-over-year through April, or $6 to $1,725, just $2 short of the all-time high set last summer. https://ow.ly/TZY450RMO3N At the start of the second quarter, the U.S. multifamily market showed good progress, with the average asking rent trending up for the second consecutive month, according to the latest Yardi Matrix survey of 140 markets. Read more above 👆 Join our growing family of investors as we secure 14 units with an impressive 11% cap rate. Our next opportunity awaits at 829 W Linden in Center City Allentown, boasting 7 renovated units with a 9.5% cap rate. Explore more at https://ow.ly/KkRZ50RMO3M. Call or text me for details and the offering memorandum. Let me know! Cheers! #RealestateMarket #RealestateInvestment #CommercialRealestate #MultiFamilyRealEstate #AccredictedInvestors