Chris Wilson

CoStar reports, in Q1 2024, the U.S. multifamily market witnessed a strong resurgence in demand, absorbing 104,000 units—the highest figure since Q3 2021. Factors such as steady economic expansion and increased consumer confidence contributed to this rebound, prompting pent-up household formation. However, the market’s supply-demand dynamics remained imbalanced due to the completion of 140,000 new units during the same period. Although the vacancy rate rose by 10 basis points, it was the smallest increase observed recently, hinting at potential stabilization. Notably, rent growth seems to be recovering, with national annual growth reaching 0.8%. While most major markets are expected to return to positive rent growth in 2024, some may struggle to reach their pre-pandemic averages, particularly in Sun Belt regions. Read more: https://bit.ly/3QI6LqC #MarketRent #MultifamilyMarket #SunBeltRegions #RentTrends #RentGrowth

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CoStar Group reports, over the past two years, the U.S. #multifamily market has seen unprecedented supply additions, reminiscent of the mid-1980s. However, demand has lagged behind supply for 11 consecutive quarters, pushing the #vacancy rate from a record low of 4.8% in Q3 2021 to 7.9% in June 2024. During this period, 1.5 million rental units were completed, while absorption totaled 820,000 units. In the top 50 U.S. markets, #Austin and #Dallas-Fort Worth lead with the highest excess supply. The #SunBelt region, which added nearly 40% of new multifamily units, dominates the top 15 markets. However, many markets, like #Nashville, show manageable levels of overhang and could see vacancy rates stabilize by 2026. Conversely, some major markets like #Chicago, #OrangeCounty, and #SanJose have little to no overhang and vacancy rates below pre-pandemic levels. These markets maintained steady construction pipelines, avoiding the overbuilding seen in the Sun Belt. Read more: https://bit.ly/3ZpR78u #MarketRent  #RealEstate #MultifamilyMarket #HousingSupply #VacancyRates #RealEstateTrends #MarketInsights #SunBelt #PropertyInvestment #HousingDemand #EconomicForecast 

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According to a new report from RealPage Market Analytics, markets for apartments in urban cores are catching up with their suburban competitors in terms of both occupancy and rent growth. Read on. #housing #multifamily

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The labor market I think is still something we do not pay enough attention to when looking at the upcoming impacts to commercial real estate. While U-6 Unemployment seems to be slightly lower than the recent long-term trends, our Labor Force Participation Rate is still lower than pre-pandemic. This along with trends of working from home is just going to continue to change the way we utilize space. There was a recent South Park episode where they were poking fun that everyone in town with degrees was in a Home Depot parking lot trying to sell their knowledge while the rich blue-collar workers) were driving the expensive cars telling the college-educated people to “go learn to fix something”. While the premise is funny, it is interesting that this isn’t far off from where we are heading. With AI advancement, less focus on college but back to certifications, and work from home, we are seeing the make up of our work force change and with that we will see the change in the need and utilization of space in the commercial real estate market. What's your thoughts?

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