The Kobeissi Letter’s Post

🏘️ Only 52% of newly constructed apartments in Q2 2024 were rented within 3 months of completion, the 2nd lowest reading since 2020. 📉 This is down from the 74% record posted in Q3 2021, according to Redfin. 🔻 1-bedroom and 2-bedroom apartments saw the biggest declines driven by the spike in new apartment construction. 📈 Apartment completions jumped 22.6% year-over-year to 117,500 in Q2, the highest in at least 12 years. 🚀 Completions are up by a whopping 56.6% over the last 2 years. 👉 Does the the US housing market seem to be slowing??? What do you think? Leave us a comment below!

As builders adapt to the challenges of affordability and lot shortages, the real estate landscape is witnessing a notable shift with the rise of townhome construction. 🏘️ Single-family attached homes soared 27% in Q4 2023, marking a 17-year high. 📈 Will you be adding any townhomes to your portfolio? #RealEstateInvesting #RealEstateAccounting #RealEstate #Townhomes

Many may find this shocking, but I don't. When fewer apartments are built, rents go up. Supply and demand is a simple concept that applies to housing production just like everything else in the marketplace. Do you believe if we build more housing, rents will decrease? Apartment Construction Is Slowing, and Investors Are Betting on Higher Rents - WSJ https://buff.ly/3B69YLq #housing #apartments #development

As apartment construction slows across the U.S., big investors are betting on higher rents as a result. With fewer new buildings coming to market, the supply of apartments is shrinking, leading experts to anticipate a boost in rent growth and property values. Developers are halting projects due to rising interest rates and tighter financing, leaving investment firms to seize opportunities in existing properties. Will the slowdown continue, and how will it affect rental markets nationwide? Continue reading The Wall Street Journal article to find out more about the changing landscape in multifamily real estate.

The most recent data indicates a mixed trend in housing starts and apartment construction. Although there was a year-over-year drop in starts for buildings with five or more units, there was a considerable increase from the previous month. Despite the challenges, some apartment developers are finding opportunities by adapting to market dynamics. Click the link below to learn more. #Multifamily #PropertyOwner  https://lnkd.in/gTXDiRVi

Recently apartment tenants have seen rent relief across the country in some of the biggest cities due to “the enormous amount of new supply being delivered by developers.” Despite this period of relief, we shouldn’t expect it to last too long. Apartment construction is beginning to slow due to a rise in interest rates and inflation, pushing construction costs up. That means supply will start to decline while demand is expected to slowly increase (exacerbated by higher home prices). Economic theory teaches us to expect a rise in rent again. #Apartments #PropertyManagers

Apartment Construction to Break Record in 2024: Which US Cities Will See the Most? A report from RentCafe shows new apartment construction in the United States is expected to reach a record high of 518,108 in 2024, reports Mary Salmonsen in an article for Multifamily Dive. That sounds like good news for renters feeling the housing affordability crunch. However, according to the same report, the majority of those units are high-end projects that cater to middle- and higher-income renters. It also predicts says new apartment construction will likely fall year over year between 2025...Read More>>> https://buff.ly/4g48aTd #Insulation #ConstructionNews #MultiFamily #CommercialInsulation #MultiFamilyConstruction #Construction

New construction is becoming even more important in today's housing market. Since the supply of homes available for sale is still lower than normal, newly built homes can be a game changer because they give you more options for your search. DM me so you have a local expert to help you explore all the options in our area. #inventory #newconstructionhomes #supplyanddemand #newhomes #localexpert #opportunity #housinginventory #homesearch #realestategoals #realestatetipsoftheday #realestatetipsandadvice #justsold https://lnkd.in/g3esiXSE

New construction is becoming even more important in today's housing market. Since the supply of homes available for sale is still lower than normal, newly built homes can be a game changer because they give you more options for your search. DM me so you have a local expert to help you explore all the options in our area. #inventory #newconstructionhomes #supplyanddemand #newhomes #localexpert #opportunity #housinginventory #homesearch #realestategoals #realestatetipsoftheday #realestatetipsandadvice #justsold https://lnkd.in/g3esiXSE

The sizzling hot apartment construction market is starting to cool off. With rising interest rates and a shift in the rental market, many developers are hitting the brakes on new projects. Key takeaways: Post-Boom Pause: Apartment developers are facing a new reality after a period of rapid construction. Economic Factors at Play: Rising interest rates and a slowdown in rent growth are impacting profitability. Market Reassessment: Developers are waiting to see how the market adjusts before moving forward. Learn more: https://lnkd.in/gt-FxPJY #CRE #CRENews #MultiFamily #Brokers