The multifamily real estate sector is currently at a crossroads, confronted by a series of market forces that are admittedly a challenge. With the Federal Reserve’s series of rate hikes starting in March 2022, the industry is poised for a period of adjustment. Amidst this uncertainty, one thing is certain: It’s a time for creativity and innovation among multifamily owners and operators. Understanding The Challenge The core of the issue is this: Numerous multifamily sponsors

Multifamily has some challenging times in 2024 — depending on where you are and how you approach it. Apartment List has a list of predictions for the 2024 rental market. But they’re easier to understand in a bigger context, that of the mix of challenges and benefits facing multifamily professionals. The big questions for 2024 are what property valuations might be, the future for rent growth, and strong price discovery. The basic dynamics are demand

Apartment investment should strengthen across the United States by the second half of 2024 as more stable interest rates give buyers and sellers the confidence to narrow the gap in prices, multifamily executives said during Marcus & Millichap’s annual discussion about prospects for the new year. Executives representing companies across the U.S. sounded a positive note during an online broadcast hosted by the Calabasas, California-based brokerage firm. They reasoned the market had nowhere to go

It is no secret that many aspects of 2023 have been challenging for the rental housing industry. Amid ongoing economic uncertainty – triggered by lingering inflation – the affordability crisis persists, operational costs have skyrocketed, and growing regulations continue to add an extra layer of strain for housing providers. As the industry heads into 2024, there are a myriad of factors for owners and operators to consider. Let’s take a deeper look at the key

Calling 2023 a “year of stabilization for the construction industry,” JLL’s 2024 forecast states a strong project pipeline will keep the industry busy in the U.S. during the coming year, despite higher interest rates and slower private starts. JLL’s forecast for U.S and Canada construction trends notes costs, supply chains and sector-specific needs in the built environment became easier to deal with in 2023, compared to post-pandemic supply chain issues and shortages the previous year.

Economic growth remains likely to decelerate and ultimately result in a mild recession in 2024, followed by a return to growth in 2025, the Fannie Mae Economic and Strategic Research (ESR) Group said in its November commentary. Although the combination of ongoing employment gains and decelerating inflation has increased the likelihood of a soft landing, the ESR group contends that a downturn remains the most likely outcome. “The economy is now slowing from the otherwise

One Valley city is the nation’s top destination for Generation X movers, and another Arizona municipality is among the top five, according to a new analysis of U.S. Census numbers from SmartAsset. The Gen X report found Surprise had the highest percentage of Gen Xers among new residents who relocated in 2022. The city gained 4,414 new residents from that group, and Gen X now makes up nearly 12% of the city’s 152,910 residents. Surprise and a

Renting was significantly more affordable in the third quarter than owning, according to a new report from Newmark. Due to high home prices and interest rates, the spread between homeownership and rental costs grew $994, increasing by 15.4% from the second quarter. The third quarter also saw demand increase to 91,000 units, rising 12.7% from the second quarter. The second and third quarters, which tend to be the strongest leasing periods of the year, had

Metro Phoenix is expected to be one of the hottest U.S. real estate markets in 2024, according to a national survey. The Phoenix area ranked No. 2 on a list of the top U.S. areas to watch for growth, commercial real estate development and investment next year, according to Urban Land Institute’s Emerging Trends report. The Valley ranked behind Nashville, but ahead of Dallas, Atlanta and Austin for the top five markets to watch based

Almost all financing requests in the current cycle involve a sobering moment of transparency with borrowers as to where the lending world is today. If you are an apartment investor or developer delivering a new build or value-add project, or an investor who purchased into high leverage tied to non-materializing future performance expectations, you’re probably already feeling or at least preparing for the sting from the higher price of capital, volatile rates, decreased leasing velocity,