James Kandasamy, MBA, CCIM’s Post

📰 Rent Growth! Rent Growth! Read All About It! RealPage, Inc. is forecasting rent growth across the country in 2025. In #Austin, rent growth of 1.7% is expected over the next 12 months. In #SanAntonio, rent growth of 1.8% is expected over the next 12 months. This is driven by forecasts that demand (absorption) will outpace supply (deliveries) and increase occupancy back to near the five-year average. 📉 Nationally, RealPage is forecasting that supply will decrease by ~20% in 2025. They project that “50% of the top 50 markets should see annual rent growth between 2% and 3% in calendar year 2024”. Interestingly, #Atlanta and #Jacksonville are the ONLY markets forecasted to experience rent declines greater than 1% in 2024. ❕ In 2025, nearly ALL markets are forecasted to experience positive rent growth. Here’s the breakdown for the top 50 markets: ~40% could experience rent growth of >3% ~55% could experience rent growth of 2-3% ~5% could experience rent growth <2% With the supply cliff in sight (within 12 months), third party data providers are beginning to confidently forecast positive rent growth. Article: https://lnkd.in/gZxFwavf JLL Multi-Housing - Central TX Ryan McBride | Robert Wooten Chris Roper | Nick Beardslee | Alex Fernandes

Despite the U.S. experiencing a modest 0.3% annual rent growth in 2023, the Midwest stood out with over 2% price increases. This trend is rare, with Midwest rent growth surpassing the national average only three times in the past 17 years. During these periods, when the U.S. apartment market was in or near a downturn, the Midwest consistently showed a 1.4% performance premium. This highlights the region's resilience and strength in challenging economic times. 🏢📈 #MidwestRealEstate #RentGrowth #RealEstateTrends #MarketResilience

In 2023, while the U.S. experienced modest annual rent growth of 0.3%, the Midwest saw more substantial success with price increases exceeding 2%. This marked a notable trend, as over the past 17 years, there have been only three other instances where Midwest rent growth surpassed the U.S. average. Interestingly, during these periods, the U.S. apartment market was either in a downturn or on the verge of one. In such down years, the Midwest consistently demonstrated a performance premium of approximately 1.4% above the national norm. This underscores the resilience and relative strength of the Midwest's apartment industry during challenging economic periods. 🏢📈 #MidwestRealEstate #RentGrowth #RealEstateTrends #MarketResilience

The Build-to-Rent hype is real. One reason? Compelling economics: lower maintenance costs and tenants willing to pay more for new homes with amenities. Sounds like a win-win. But as the sector matures and competition increases, it's important to reexamine assumptions. Do BTR units really command a rent premium over traditional scattered single-family rentals? Parcl Labs got to work in the 🧪 and analyzed millions of data points at the unit level. The results? It may not be what you expect: 🇺🇸 Nationally, scattered site rentals are outperforming BTR on a price per square foot basis. 👀 From near-parity in January 2020, we've seen a growing gap. As of July 2024, scattered rentals commanded a 7% premium over BTR properties. At least at the national level, since 2020, BTR hasn't commanded higher rents vs. scattered sites across the US. National trends are one thing. We've also analyzed 7 key institutional markets where corporate owners have gone the biggest with scattered SFR and BTR acquisitions. The trends at a more local level? Even more 👀. I'll be sharing market-specific price performance data in the coming days... P.S. Want this data for every market? This price analysis is from our "Rise of BTR" report - which is also packed with data on supply, vacancies, and investor activity. It offers a different perspective for anyone operating in the space. DM me or email jason@parcllabs.com for access.

Retention rates have significantly improved year-over-year, leading to reduced turnover for operators. Over 53% of renter households renewed their leases in Q2 2024, contributing to stabilized occupancy numbers. Our lease-up trends indicate that the market is effectively absorbing new supply. However, there are potential headwinds. Regionally, we're seeing varied performance across different markets. The Midwest and Northeast metros, with their low supply, are leading the way with rent growth between 2% to 3%. On the other hand, the Sun Belt is grappling with a peak in new supply over two generations. Despite strong demand, there's still work to be done to achieve supply and demand equilibrium. Join my colleague Carl Whitaker and me at 1 PM CT today for the U.S. Summer Apartment Outlook. This is a webcast you won't want to miss! https://lnkd.in/eVtXRzHz #multifamily #multifamilyrealestate

Here's the quick scoop from Yardi Matrix: 📉 Rents: National multifamily rents dipped slightly to $1,748, but demand remains strong with 329,000 units absorbed through September. 📊 Rent Growth: Year-over-year growth steady at 0.9%, but some markets like Austin and Phoenix are seeing negative trends. 🏡 SFR Demand: Despite lower rents, demand for single-family rentals (SFRs) is still strong, with 2.5M households moving into SFRs in the past year. 📍 Regional Highlights: Northeast and Midwest markets are leading rent growth (NYC +5.3%), while Sun Belt cities are struggling due to oversupply. 🛠️ Supply: Short-term oversupply keeps rents flat, but a construction slowdown will likely boost rent growth in 2026-2027. The takeaway? Demand is strong, but strategy is key—especially in high-growth markets. Want to chat about how these trends could shape your investments? DM me! 💬 #multifamily #realestateinvesting #rentrends #investmentstrategy #housingmarket #supplyanddemand #yandimatrix

The Midwest is the current darling for rent growth. As units are absorbed over the next 12-24 months, there should be upward pressure on rents in currently oversupplied markets. If you can buy now with acceptable metrics, profit should follow in the next 1-2 years.

Rents continue to go up across the US. This is a great indicator of resilience and potential for recovery across various metros. Let's keep an eye on the data as these markets evolve. From Yardi Matrix "The national average asking rent rose to $1,721 in March, with the year-over-year growth rate increasing to 0.9%. Markets in the Midwest and Northeast remain atop the Matrix top 30 metro rankings, led by New York City (5.0% year-over-year), Columbus (4.5%), Kansas City (3.7%), Indianapolis (3.5%) and New Jersey (3.4%). Negative rent growth is slowing for a number of metros that were recording significant rent declines for the last several months, as Austin (-5.9%) is the only metro in Matrix’s top 30 markets that is down by 3.0% or more year-over-year. Austin continues to contend with a high volume of deliveries." #multifamily #realestate https://lnkd.in/eCguTjiS

𝐌𝐮𝐥𝐭𝐢𝐟𝐚𝐦𝐢𝐥𝐲 𝐌𝐚𝐫𝐤𝐞𝐭 𝐔𝐩𝐝𝐚𝐭𝐞: 𝐑𝐞𝐧𝐭 𝐆𝐫𝐨𝐰𝐭𝐡 𝐚𝐧𝐝 𝐎𝐜𝐜𝐮𝐩𝐚𝐧𝐜𝐲 𝐓𝐫𝐞𝐧𝐝𝐬 Recent data from Yardi Matrix reveals interesting shifts in the multifamily landscape: 🌇 𝐍𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐚𝐯𝐞𝐫𝐚𝐠𝐞 𝐚𝐬𝐤𝐢𝐧𝐠 𝐫𝐞𝐧𝐭: $1,721 in September 2024 🌇 𝐘𝐞𝐚𝐫-𝐨𝐯𝐞𝐫-𝐲𝐞𝐚𝐫 𝐫𝐞𝐧𝐭 𝐠𝐫𝐨𝐰𝐭𝐡: 0.6% 🌇 𝐎𝐯𝐞𝐫𝐚𝐥𝐥 𝐨𝐜𝐜𝐮𝐩𝐚𝐧𝐜𝐲 𝐫𝐚𝐭𝐞: 94.8% (down 20 basis points year-over-year) Top performers for year-over-year rent growth: 🌇 Indianapolis (3.6%) 🌇 Columbus (3.3%) 🌇 Kansas City (3.2%) At Carbon, we're closely monitoring these trends to inform our investment strategies. What's your take on these market dynamics? #MultifamilyRealEstate #RentTrends #MarketInsights

Dive into the dynamic world of multifamily real estate with our latest blog post! 🏢💼 Discover how the Northeast is defying national trends with a surprising surge in revenue. Uncover the intricate dance of occupancy rates, rent fluctuations, and market cycles that shape the fortunes of landlords and tenants alike. This is your insider's guide to understanding the forces at play in 82 key markets across the U.S. Don't miss out on these crucial insights—read on for a deep dive into Moody's multifamily market analysis. #RealEstate #MarketTrends #InvestmentInsights Read my latest blog post: https://lnkd.in/eQu4R7Ta