A.CRE Consulting’s Post

U.S. Multifamily Market: Signs of Rebounding Apartment Demand For the first time in three years, vacancy rates in the U.S. apartment market are stabilizing as demand accelerates, potentially setting the stage for rent increases, according to a recent WSJ report. Vacancy Stabilization: Following a period of elevated vacancies due to a surge in construction, the market is finding balance. CoStar reports the highest demand since 2021, with over 1.2 million new units filled and vacancy rates dipping to 6.6%. Supply Constraints Tightening the Market: Apartment construction is expected to slow significantly, tightening rental conditions. By year-end 2024, 672,000 new units will complete, with just 336,000 projected for 2025. This reduction in supply could shift pricing power back to landlords. Investment Sales & Rent Growth: Apartment sales are also showing signs of recovery, with back-to-back quarters of growth. Regions like Denver, San Francisco, and the Washington, D.C. suburbs lead the way. Rent growth varies, with cities like New York and Los Angeles seeing 5%+ increases, while high-vacancy markets like Austin face stagnant rent growth. Outlook: Persistent high interest rates and housing costs are keeping many renters in the multifamily market, reinforcing rental demand into 2025. As market fundamentals strengthen, now is the time to explore multifamily investment. Reach out if you’re interested in partnering with us on upcoming opportunities in this evolving market. #realestate #multifamily #realestateinvesting

As we approach the end of 2024, the U.S. multifamily market continues to see robust demand balancing out ongoing high levels of new supply. Here is the state of play today: Rents: In Q2 2024, rents for newly built apartments saw a notable 6.2% YoY drop. The median rent now stands at $1,746, down 7.5% from its peak of $1,889 in early 2022. Supply: The U.S. multifamily market is expected to add ~575k units of supply in 2024, down slightly from 2023, but still high enough to place continued downward pressure on rents. Absorption: In Q2 2024, 180k units were delivered and 170k units were absorbed, highlighting continued strong demand for apartments despite historically high levels of supply. To that end, Q2 2024 had the smallest supply-demand gap in 11 quarters. Outliers: Cities like Austin, Dallas, and Nashville that have seen the largest influx of supply are experiencing the sharpest rent declines. Austin’s rents fell 17.6% year-over-year in August 2024 - a staggering decline. As we continue to source new opportunities, we remain especially bullish on the Northeast due to the region's strong underlying fundamentals driven by steady demand and a persistent lack of supply. Asking Rents Nationally:

Manhattan’s multifamily market remained relatively stable at the start of the year, in the context of a slower U.S. economy. Rents were up 0.4 percent on a trailing three-month basis through March, 20 basis points above the national level. On a year-over-year basis, however, rents were up 5.2 percent, taking the lead nationwide. Meanwhile, national rates also picked up, improving to 0.9 percent. Demand in the borough was solid, as occupancy levels—at 97.7 percent in February—continued to outpace the national average of 94.5 percent. New York City employment levels took a hit, however, with the rate of expansion 10 basis points below the U.S., to 1.9 percent as of December. This represented a net gain of 61,300 jobs. Unemployment stood at 5.1 percent in February, down 20 basis points year-over-year, and above the 3.9 percent U.S. rate, based on preliminary data from the Bureau of Labor Statistics. Education and health services led growth in 2023, with 114,900 jobs gained, followed by leisure and hospitality, which added 25,900. A few sectors lost a significant number of jobs, including information (-26,000), trade, transportation and utilities (-25,300) and professional and business services (-18,300).

The rental market is experiencing a shift, with single-family rents rising in some areas while multifamily rents are cooling down due to increased supply. #RentalMarket #HousingTrends #RealEstate https://ow.ly/3vla50RWHba

In 2023, the U.S. experienced a notable surge in apartment supply, marking the highest levels since 1987, with over 439,000 units completing construction, as reported by RealPage. 🏘 This influx provided renters with increased options and led to a significant slowdown in rent growth, with outright declines observed in many markets. The intriguing part? According to RealPage's latest forecast, 671,953 apartment units are projected to be completed in 2024—reaching the highest level since 1974. This surge in supply is expected to impact U.S. apartment rents, potentially contributing to fulfilling the Fed's inflation mandate. Considering this forecast, how do you foresee these trends influencing the rental and housing markets in the coming year? 🤔 https://lnkd.in/gsjEjyBk #RealEstateTrends #ApartmentSupply #HousingMarketInsights Matthew Haas Jennifer Castenson Rochelle Mills Anthony Gude, Doug Tollin Chris Nicely Gary Fisher Dave Clevenger Charly Ligety Erik Gillberg Kim Duty Candice Delamarre Jay Parsons Nicholas Polit Sean Armstrong James R. Arun Suresh Susan Fairchild,

𝐒𝐞𝐚𝐭𝐭𝐥𝐞’𝐬 𝐌𝐮𝐥𝐭𝐢𝐟𝐚𝐦𝐢𝐥𝐲 𝐌𝐚𝐫𝐤𝐞𝐭 𝐋𝐞𝐚𝐝𝐬 𝐭𝐡𝐞 𝐏𝐚𝐜𝐤! In the midst of 2024’s second quarter, Seattle’s multifamily fundamentals remained robust with strong demand driving rent growth. Here’s a snapshot of the key metrics: 📈 𝐑𝐞𝐧𝐭 𝐓𝐫𝐞𝐧𝐝𝐬: The average advertised asking rent improved for three consecutive months, reaching $2,205 by May. On a trailing three-month basis, rents were up 0.6%, while year-over-year growth was 1.1%, surpassing the national rate of 0.6%. 🏢 𝐎𝐜𝐜𝐮𝐩𝐚𝐧𝐜𝐲 𝐑𝐚𝐭𝐞𝐬: Last year’s limited delivery volume kept occupancy steady at 95.0% as of April, a slight 20-basis-point dip year-over-year. 🌍 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐎𝐮𝐭𝐥𝐨𝐨𝐤: Seattle made the top 10 on Oxford Economics’ Global Cities Index 2024, highlighting its economic strength. Employment grew 0.9% over the past year, slightly below the national average. 🏗️ 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 𝐚𝐧𝐝 𝐂𝐨𝐧𝐬𝐭𝐫𝐮𝐜𝐭𝐢𝐨𝐧: From January to May 2024, 4,282 units were delivered, with 24,910 units currently under construction. However, new construction nearly halted with only 203 units breaking ground during this period. Seattle’s multifamily market remains strong with consistent rent growth, stable occupancy, and a positive economic outlook. Despite a slowdown in new construction, the city continues to be a top performer in the global real estate landscape. Check out the full report in this Multi-Housing News article: https://lnkd.in/gXQqWNCk #seattleapartments #washingtonrealestate #pugetsoundrealestate #pnwrealestate #seattlerealestate #pugetsoundmultifamily #seattlemultifamily #pnwmultifamily 

The U.S. rental market marked 14 consecutive months of falling rents, with median rents down 0.5% YoY as of September. While cities like Cincinnati lead with rent growth, Southern markets, such as Nashville, see declines due to new multifamily housing supply. This trend offers a window into shifting rental affordability and housing market adjustments post-pandemic. #RealEstate #RentalTrends #MultifamilyMarket #Aspire

Following a challenging period marked by negative rent growth in some metro areas, the nation's Sun Belt market has delivered some encouraging metrics. Advertised rents increased in Austin, Dallas, Charlotte, Denver, Raleigh and Phoenix in July, according to the most recent Yardi Matrix national multifamily report. Each of these markets previously had recorded negative rent growth attributable to rapid supply and falling occupancy, giving renters plenty of choices. Overall, 24 of the Yardi Matrix top 30 metros posted rent gains in July. However, the firm said continued high levels of new deliveries over the next 15 to 18 months could present rent growth uncertainty. Several metros that had been performing well on a year-over-year basis saw rents decline in July and vice versa, said Yardi Matrix. Columbus, for example, had been a top-performing metro for several months – up 2.9% year over year – but saw advertised rents fall 0.4% month over month. Boston and Chicago followed a similar trend. Meanwhile, Austin posted a 0.6% month-over-month increase in July despite declines in rent for much of 2023 and 2024. Raleigh and Phoenix had similar trendlines. Rent growth has been highest in gateway metros in the East and secondary markets in the Midwest, according to the report. New York City led all markets with 5.2% year-over-year rent growth, followed by Washington, D.C., at 4%, Kansas City at 3.4%, and Columbus and New Jersey both at 2.9%. Metros that struggled with declining rents in July included Austin at -5.7%, Atlanta at -3.3% and Raleigh at -2.8%. Austin, which added 6% to its multifamily stock in the past year, was particularly impacted by high supply. Only two markets posted year-over-year occupancy increases in July, including Las Vegas, which was up 0.7% to 93.6% and Minneapolis/St. Paul at 95%, an uptick of 0.1%. Indianapolis, Houston, Dallas and Kansas City all had drops in occupancy rates of 0.8%. Single-family rental markets with high levels of new supply are beginning to feel pressure on rents, including in Orlando, where the average rent fell $19 month-over-month in July to $2,362 and advertised rents are down 1.1% year-over-year. In Savannah, Georgia, average rent fell $24 month-over-month to $2,283 and advertised rents were down 1.5% year over year. And in Huntsville, Alabama, the average rent fell $16 month-over-month to $1,602 and advertised rents were down 1.7% year-over-year.

U.S. Multifamily Market Sees Regional Divide Between Rent Growth and Declines, The rental market is experiencing a regional divide, Realtor.com said Wednesday. While rents dropped in many parts of the country, eight of the 10 Midwestern markets in the 50-metro report for September saw year-over-year rent increases in September, led by Cincinnati with 3.4% annual growth. In contrast, among the markets with the steepest rent declines last month, eight out of 10 were in the South, mostly driven by a surge in new multifamily housing developments. Nashville withstood the sharpest annual decline in rents at 4.8% “The balance between housing supply and demand is a key factor shaping regional rent patterns,” […] Gillian Executive Search recruiters in construction management, real estate development, architecture

U.S. Multifamily Market Sees Regional Divide Between Rent Growth and Declines, The rental market is experiencing a regional divide, Realtor.com said Wednesday. While rents dropped in many parts of the country, eight of the 10 Midwestern markets in the 50-metro report for September saw year-over-year rent increases in September, led by Cincinnati with 3.4% annual growth. In contrast, among the markets with the steepest rent declines last month, eight out of 10 were in the South, mostly driven by a surge in new multifamily housing developments. Nashville withstood the sharpest annual decline in rents at 4.8% “The balance between housing supply and demand is a key factor shaping regional rent patterns,” […] Gillian Executive Search recruiters in construction management, real estate development, architecture