Arc Equity Group, LLC

Wrapping Up 2024: A Look at the Top Trending Rental Markets The Midwest and affordable metros have proven to be resilient leaders, with Suburban Chicago proving to be a boon as it continues to attract renters with strong lease renewals and limited supply. Here are the Top 10 Trending Rental Markets of 2024 based on RentCafe’s Rental Competitiveness Index (RCI): 1️⃣ Louisville, KY – RCI: 76.3 2️⃣ The Piedmont Triad, NC – RCI: 73.2 3️⃣ Suburban Chicago, IL – RCI: 88.0 4️⃣ Silicon Valley, CA – RCI: 80.2 5️⃣ Las Vegas, NV – RCI: 73.2 6️⃣ Eastern Los Angeles County, CA – RCI: 83.4 7️⃣ Bridgeport-New Haven, CT – RCI: 77.2 8️⃣ Washington, D.C. – RCI: 76.0 9️⃣ Baltimore, MD – RCI: 77.5 🔟 Sacramento, CA – RCI: 73.1 What’s Ahead for 2025? New supply entering the market might ease competition slightly, but tight inventory and high lease renewals are expected to keep demand strong in affordable metros. #RealEstateInvesting #RentalTrends #MultifamilyInsights

The latest rental market report reveals exciting opportunities ahead for the Midwest in 2025. While national RCI trends show strong competition across the board, the Midwest leads the way with an average RCI score of 74—exceeding the West, South, and Southeast regions. Midwest cities offer an attractive balance of affordability, economic growth, and tenant stability. Cities like Indianapolis and Kansas City continue to stand out with manageable new supply and high demand from renters priced out of coastal markets. 💡 Looking ahead: Rising homebuying costs and limited rental supply in affordable metros keep the Midwest at the forefront of multifamily investment strategies. At Arc Equity, we're leveraging this momentum to target opportunities in top-performing markets like these.

As we head into 2025, the Midwest continues to shine as a hub of opportunity in multifamily real estate. With an average Rental Competitiveness Index (RCI) of 74, the region is outperforming national trends, offering investors strong lease renewal rates, affordable rents, and stable demand. Key regions like Suburban Chicago, Milwaukee, and Indianapolis are thriving, with apartments leasing quickly and retaining tenants at high rates. In areas like Suburban Chicago, with an impressive RCI of 88, markets are drawing renters with affordability and proximity to major cities. Meanwhile, Milwaukee boasts 70% lease renewals, highlighting tenant stability that landlords and investors value. With competition steady and demand growing, the Midwest remains a key target for Arc Equity's strategic multifamily investments in 2025.

Family offices are redefining investment strategies, embracing alternative assets in a move away from traditional portfolios of stocks and bonds. As J.P. Morgan’s “2024 Global Family Office Report” reveals, the average family office allocates 45% of its portfolio to alternatives, including private equity, real estate, and hedge funds. This shift underscores a growing appetite for illiquidity risk to achieve higher long-term returns. Alternative Allocation Growth: Family offices lead institutional investors in hedge fund allocations and are increasingly drawn to private equity and real estate. Regional Leadership: North America continues to dominate with the largest number of family offices and the most assets under management worldwide. This trend highlights opportunities for multifamily investments as family offices diversify into real estate to balance risk and reward. For investors, this signals a robust market for alternatives heading into 2025. Explore the full article here: The Family Office Boom Is Proving Hugely Positive for Alternative Investments https://hubs.la/Q030fXNc0

Choosing between Core-Plus and Value-Add investments can shape your financial future. In our latest blog, we break down these two popular real estate strategies: 🔹 Core-Plus: Offers steady cash flow, lower risk, and minimal management. Ideal for investors seeking stable income with moderate growth potential. 🔹 Value-Add: Focuses on enhancing property value through improvements, offering higher returns but also higher risk. Suited for hands-on investors with a longer-term outlook. Explore the benefits, challenges, and best use cases for each strategy to determine which aligns with your goals. Whether you prioritize stability or growth, understanding these approaches can help you build a balanced, resilient portfolio. 🏢💼 📖 Dive into the full article on our website! #RealEstateInvesting #CorePlus #ValueAdd #Multifamily #ArcEquity https://hubs.la/Q02-xvXx0

2024 Multifamily Market Snapshot from RealPage Market Analytics Apartment occupancy levels remain resilient at 94.8%, aligning with long-term averages, while regional trends paint a varied picture. The Northeast leads with a robust 96.3% occupancy rate, signaling demand stability. Meanwhile, the South lags at 93.9%, impacted by oversupply, and regions like the Midwest (95.3%) and West (95.2%) showcase steadier performance. Top Rent Growth Markets: Midwest Leads the Way Detroit, Kansas City, and Chicago are standout performers with significant rent increases, driven by moderate supply growth and consistent demand. Opportunities in Stabilizing Markets Despite the West seeing a slight monthly rent decline, markets like San Jose and Seattle are now showing above-average rent growth, signaling recovery. The Midwest remains a beacon for stable investment opportunities, thanks to its moderate supply pipeline and consistent demand. Source: RealPage Market Analytics

Great insights on the multifamily space in 2025 from Ellie Perlman of Blue Lake Capital via Forbes Business Council: 1️⃣ Cap Rate Compression: With interest rates expected to decline, cap rates will likely follow suit. This creates an environment for increased property values and better investor returns. High-growth markets, especially in the Sun Belt, stand out as areas where this dynamic could offer significant upside. 2️⃣ Strong Demand Meets Limited Supply: A slowdown in new construction paired with persistent demand is setting the stage for potential rent growth. Markets with job growth and tight inventory—like the Midwest and select Sun Belt cities—are positioned to benefit most. 3️⃣ Sun Belt Strength: Cities such as Phoenix, Dallas, and Atlanta continue to attract multifamily investments, driven by affordability, economic growth, and population increases. These markets remain key focus areas for 2025. 4️⃣ Tech Integration & Efficiency: From property management software to tenant experience platforms, technology will further streamline operations. Investors should pay attention to how tech adoption can enhance property performance and reduce costs. 5️⃣ Sustainability as a Differentiator: With renters prioritizing eco-friendly spaces, sustainable practices like energy-efficient designs and green certifications are becoming essential. Properties that embrace sustainability may command premium rents and attract long-term tenants. 📊 For more detailed insights, check out the full article on Forbes https://hubs.la/Q02YXl6T0

New Blog: Demystifying Real Estate Syndications 📢 Curious about real estate syndications? Our latest blog breaks down everything you need to know to make informed decisions. From understanding syndication structure to the role of sponsors, we've got you covered on key steps like due diligence, committing capital, and assessing investment objectives. Discover the benefits of syndication investing, such as access to larger deals, professional management, and potential for higher returns, while also considering the risks and tax implications. Ready to explore this hands-off way to diversify into real estate? 📖 Read the full article on our website! https://hubs.la/Q02Yh9kc0 #RealEstateInvesting #Syndication #PassiveIncome #InvestmentTips #ArcEquity

Multifamily Construction Slows, but Pipeline Remains Strong 📊 Multifamily construction starts are down 50% from early 2023, but Yardi Matrix reports that completion rates will stay high into early 2026 due to longer project timelines. The pipeline remains robust, with nearly 1.2 million units under construction and lease-up activity steady. #MultifamilyInvesting #RealEstateTrends #ArcEquity

For the first time in three years, apartment demand is surging, stabilizing vacancy rates and setting the stage for potential rent growth by 2025. After a period of record construction adding over 1.2 million new units to the market, we’re now seeing demand catch up, especially in cities like Denver, San Francisco, and Washington, D.C. As new apartment builds slow down—projected to fall by half in 2025 compared to 2024—landlords and investors may find increased pricing power. With affordability challenges pushing many out of homeownership, renters are staying put, contributing to high occupancy and stronger retention. Market Insights: Stabilized Vacancy Rates: Demand has reached its highest point since 2021, leveling off vacancies across many markets. Regional Trends: Coastal cities like NYC and Los Angeles, and Midwest hubs like Indianapolis, are leading in rent growth. Investment Growth: Investor confidence is returning, with increased transaction activity in high-demand areas. With rental demand on the rise and fewer new apartments expected, 2025 could present valuable opportunities for apartment investors. #MultifamilyInvesting #RealEstateInvestment #CRE #ApartmentDemand #ArcEquity #InvestmentTrends #RealEstateNews