MARKET INTEL

Intel

Renting Will Be Cheaper Than Buying For a Long Time

For years, the costs of renting and owning were relatively in sync. That changed in 2021 when the cost of home buying started to skyrocket. And unlike many pandemic-era trends that have since reverted to the norm, this particular one is here to stay “for some time,” according to CBRE. “With average mortgage payments 38% higher than average apartment rents as of year-end 2023, many U.S. households are continuing to rent rather than buy a

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Intel

Making the Numbers Work for BTR

The build-to-rent (BTR) market is poised to reach new heights, as median single-family rents steadily rise and deliveries near pre-pandemic levels. The sector should continue to thrive due to ongoing demographic shifts, heightened barriers to homeownership, and greater numbers of people working remotely. For the growing number of renters by choice and would-be homebuyers deterred by elevated interest rates, BTR communities offer the same comfort and privacy as purchased homes but with fewer headaches. For

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Intel

Here’s Why Arizona’s Economy Is Poised for Growth in 2024

Arizona’s economy continues to churn out solid gains. Population growth slowed modestly in 2023, according to estimates from the Arizona Office of Economic Opportunity. U.S. Census Bureau estimates show a more significant slowdown. The state continued to add jobs in 2023, at about the same pace as the U.S. according to preliminary data. Income also continued to rise, outpacing decelerating inflation. Housing affordability remained low with high house prices and increased mortgage interest rates. Housing

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Intel

Metro Phoenix Is Sprouting the Most Build-To-Rent Communities. Here’s Why

Thousands of new homes have gone up in metro Phoenix during the past few years that homebuyers can’t purchase. But the new houses are for rent, and many people are opting for them over apartments. Called single-family rentals, the Valley is considered “the birthplace” of houses that typically are just like homes built to sell. More houses are under construction in the Phoenix area than anywhere else in the U.S., and more have been built.

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Intel

Report: Americans Are Renting by Choice

As 41% of renters say their “American dream” has nothing to do with homeownership, an increasing number of Americans are placing higher value on renting than owning a home. One in 5 (20%) expect to be lifelong renters, a 33% increase from 2021, according to Entrata’s The New American Dream report. Because renting offers flexibility and freedom, 66% of renters say renting fits their current lifestyle more than owning a home, 23% of renters like

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Intel

Why New Supply Won’t Dampen Housing Demand

The post-pandemic resurgence in apartment demand is being driven largely by strong job growth, improving consumer sentiment and a housing market undergoing a major shift. While leasing demand remains strong, it’s not enough to keep pace with the country’s largest apartment construction surge in 30 plus years. For the first time ever, in 2023, CBRE revealed that 1 million new apartment units were under construction, with completions expected to peak in 2024. This wave of

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Intel

Multifamily Rents Tick Up Slightly in February

In a sign the multifamily market is stable, national asking rents posted their first increase in seven months. According to the latest Yardi Matrix National Multifamily Report, the average U.S. asking rent increased $1 to $1,713 in February, a 0.6% year-over-year increase. The national occupancy rate decreased 60 basis points year over year to 94.5% as of January after peaking at 96.2% in late 2021. According to Yardi Matrix, occupancy rates will likely slide further,

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Intel

Multifamily Rents Are on the Rise Again in Phoenix

Phoenix apartment rents are gathering momentum as the pivotal spring leasing season approaches. The average asking rent rose 0.3% in February, the second consecutive month of increases and the largest two-month gain since spring 2022. While last month’s performance lags the 0.5% gain the market averaged in February between 2015 and 2019, it is an encouraging sign for Phoenix-based landlords who have grappled with flat or negative growth since June 2022. The Valley’s workforce housing

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Intel

5 Multifamily Trends to Watch

The multifamily investment market over the past couple of years has been driven by institutional acquisitions bringing market sales volume up until the end of Q4 2022. From Q4 2021 until Q4 2022, BREITS and S-REITs generated sales activity of approximately $10 billion per quarter or $100 million daily. Money was inexpensive and inflation high, which is ideal for real estate investment. Last year, as we all know brought that volume to a halt. There

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Intel

Multifamily Investment Conditions on The Upswing

Multifamily investors appear to be paying less per dollar of property income compared to one year ago, according to Freddie Mac’s latest quarterly update of its Multifamily Apartment Investment Market Index (AIMI). That’s because while mortgage rates have risen significantly, the increase has been partly offset by a steep drop in property prices, while net operating income — rental income minus expenses — was virtually flat for the year as a whole. The AIMI combines

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