Mike Haigh’s Post

One of the common things we hear about Jacksonville is "beware of oversupply!" While this is true for a great portion of the Jax MSA, not all pockets are the same. Delving deep into your submarkets helps you find gem assets like Portofino Club, where new supply is extremely limited in a five mile radius. If you're interested in learning more about this investment, or would like to reserve an allocation, comment "JAX" below.

The latest from the U.S. Census Bureau shows continued weakness in the home building space. At the start of the third quarter, the annual rate of privately owned housing starts was 6.8% below the June 2024 estimate, and 16% below the July 2023 rate. Both single-family and multifamily housing starts were below their 2023 levels. Building permits activity was 4% lower than the prior month and 7% lower than their levels last year. On a positive note, housing completions in July were 13.8% higher than their 2023 levels, and single-family housing completions were slightly higher than in June 2024. This should be welcome news for markets that have been hampered by low inventory levels. https://lnkd.in/eTtJNStC

🏗️📉 March saw a decline in both multifamily and single-family starts compared to February, according to the seasonally adjusted annual rates from the latest U.S. Census Bureau data release. Multifamily starts took a significant dive of 20.8%, while single-family starts also experienced a notable drop of 12.4%. #ConstructionTrends #HousingMarket #RealEstateData #CensusBureau

Growth rates for new, single-family homes are on an upward swing, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. New home sales were up in February 5.9% from this time last year. New single-family home inventory in February was up 1.3% from January. Homes advertised for sale but not started construction have increased almost 18% over the last year. #HomeSales #RealEstate #Construction https://lnkd.in/eFWxGkvC

Some insight into the housing development market on the national level. On the whole both multi family and single family starts are down by about 4% from last year. Not necessarily unexpected given the rise in interest rates and still relatively high construction costs. However, there are definitely some geographic areas that show high growth in terms of new units coming to market. Showing that it's crucial to understand your market from both a development and investor standpoint.

🏗️📉 March saw a decline in both multifamily and single-family starts compared to February, according to the seasonally adjusted annual rates from the latest U.S. Census Bureau data release. Multifamily starts took a significant dive of 20.8%, while single-family starts also experienced a notable drop of 12.4%. #ConstructionTrends #HousingMarket #RealEstateData #CensusBureau

CNBC Make It analyzed rent estimate data from Apartment List for April 2019 to April 2024, filtering metropolitan statistical areas, as defined by the Census Bureau, by those with at least 500,000 residents to find the metros with the biggest rent increases for a one-bedroom apartments. Knoxville landed in the #1 spot on the list. The Knoxville, Tennessee metro area saw rent for one-bedroom apartments increase the most from 2019 to 2024. Rent in the area went from $582 to $907, or a 55.8% increase. https://lnkd.in/ePjr9uem

Migration trends influence the housing market in a big way. Developers rely on these trends to predict housing demand, influencing their decisions on where to concentrate their efforts on new residential and commercial development. In my latest blog post, I break down a great data analysis article from Anat Nusinovich, Economist at the National Association of REALTORS®. Please check it out below 👇 The Nation’s Most Popular and Fastest Growing Metropolitan Areas in 2023. P.S. For my Chicagoland friends, it probably comes as no surprise that we are seeing a net population outflow. 👎 #housingmarket #housingmarketupdates #migrationtrends https://lnkd.in/gUXfgDwa

Which is more likely? A) interest rates drop by 50% to make deals pencil B) Regulation/Zoning cut by 50% to make construction risk/complexity less C) Cost of construction materials & labor drops enough to overcome the other two? D) none of the above

Thanks to Jay Parsons for sharing the critical insights below! The latest Census data highlighting the significant decline in multifamily starts underscores a pivotal shift in the commercial real estate landscape. At LakeRock Capital, we recognize the substantial impact of rising interest rates and stagnant lease-up rents on new developments. As development becomes increasingly challenging, the focus is evidently shifting towards acquiring existing properties rather than initiating new projects. This trend reshapes investment strategies and calls for a keen understanding of market dynamics and timing. Looking ahead, the forecasted lower supply of new multifamily units by 2026-27 presents a unique opportunity for strategic investment and market positioning. For industry professionals, this is a crucial period to reassess portfolios and consider the long-term implications of current market conditions. Let's discuss: How are your investment strategies evolving in response to these trends? Are you seeing similar shifts in your markets? #CommercialRealEstate #Multifamily #InvestmentStrategies #MarketTrends #LakeRockCapital