The Commercial Real Estate Alpha Site

by Nicki Howell via Colliers – Click here for full report

The Future of Multifamily Real Estate: Key Trends to Track in 2024 Key Takeaways: Multifamily deals with assumable financing are in high demand. While Sunbelt markets are seeing declining rent growth, traditionally slower growth markets are experiencing upticks. With $1 trillion in loan maturities coming due through 2028, savvy investors can realize new opportunities.

As the multifamily market moves forward, Jodka is watching occupancy rates. He explains that there are significant differences between markets experiencing limited new development and those with rapid inventory growth. Generally, the markets with the most development also exhibit strong, longterm demographic trends.

As new groundbreakings become scarce and the current development cycle finishes, Jodka forecasts a shortage of new properties entering the market. This shift will enable markets to rebalance, leading to a resurgence in rent growth. “History has shown that investors that acquire assets at or near the bottom of a real estate cycle outperform their peers during their hold periods,” Jodka says. “Investors are able to find deals where the cost of acquisition is below replacement cost. The thesis for a multifamily investment strategy remains sound. The U.S. is under-housed, and that is not going to change anytime soon.”