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Rental Demand Stays Robust. Houston and Dallas have experienced the first and second strongest recovery rates, respectively, among the nation’s largest markets; in Dallas, occupancy rates have stabilized around 90%. Fewer New Deals: “Razor-thin” yield margins and increased financing costs have contributed to a significant slowdown in new development deals. Some developers are pausing new projects to allow the current supply of multifamily units to be absorbed. #Multifamily #RealEstate

Multifamily Minute | Noticeable Changes The Santa Monica apartment market has shown noticeable changes when comparing Q2 2023 to Q2 2022. The median price per square foot (PSF) has shown a significant decline of 16%, and the median price per unit followed a similar pattern, declining by 13%. This decline in pricing has been influenced by an increase in capitalization rates, which saw a rise of 55 basis points (bps). This indicates that investors are now demanding a higher rate of return, reflecting the consistent increase in borrowing costs that has been observed over the period. Additionally, transaction volume experienced a significant drop, declining by 35% with only 13 transactions recorded for the period. However, amidst these shifts, renter demand has shown signs of stability. The effective rent per unit managed to remain flat, and the vacancy rate saw a decrease of 92 bps. This combination of trends indicates a certain resilience within the market. As we move forward, market predictions for the rest of the year suggest a stabilization in pricing. This is due to investors adjusting to the higher interest rates, coupled with emerging signs of economic stability. Furthermore, there is a positive outlook for transaction volume, with expectations of an uptick towards the end of Q3 and into Q4 2023. Whether you are looking to expand your portfolio or cash out of this market, the True North CRE Team offers full-service guidance to help you make clear and confident decisions. Do not hesitate to reach out to get started. We look forward to hearing from you! Presented by: True North CRE Scott Syme Jr. Jacqueline Carroll, Multifamily Specialist #apartments #realestate #market #multifamily #losangeles

The multifamily market is showing surprising resilience despite the challenges of recent years. As rents begin to rise in cities with limited new construction, apartment owners may finally see some relief from elevated costs and competition pressures. However, this trend could have broader implications for the CRE industry, particularly concerning interest rates.

Increasing the Multifamily Value by ⭐ 2 MILLION ✈️ Buy 123 units with $100 rent increase(rents below market) Upon lease renewal, we will increase rent by $100(depending on business plan) 💡How does the math work? 💡 🎯 Market value = Net operating income(NOI)/cap rate NOI=($100)*12months =$1200/year. (rent increase) Assuming a 6.4 cap market, the market value increases =1200/.064=$18750 for one unit $18750 * 123 = $2,306,250 💎 Remember, multifamily properties are valuated based on the NOI that the property brings in and not on comps like single family residences. You have just increased the value of your MF property by $2,306,250 Some of the value add examples to multifamily are - Reserved Parking - $15/month Covered Parking - $30/month Common Area Fee - $15/month Washer/Dryer - $30/month Closed patios for ground floor - $30/month #10dayKREIchallenge #passiveincome #apartmentinvesting ---------------------------------------------- DM me "INVESTMENT" to discuss current opportunities CLICK ON 🔔 TO FOLLOW MY CONTENT

In the latest issue of Midwest Multifamily & Affordable Housing Business, Interra Realty Senior Managing Partner Joe Smazal, alongside other Chicago multifamily experts, gave their insights on what makes Chicago such a steady performer in the multifamily sector, and how Chicago's rent growth is outpacing the rest of the country. "Chicago’s market is historically slow and steady. We are insulated from big swings." Read the full article here: https://lnkd.in/g9sqt927

According to CoStar, The Omaha multifamily rental market continues to demonstrate its strength, with average rent around $1,150/month, a 5.0% increase from the prior year. Omaha rents have increased by a cumulative 18.5% in the past three years. #multifamilydevelopment #multifamilyrealestate #multifamilyinvesting #multifamilyinvestments #omahamultifamily #omaharealestateinvesting

The Los Angeles multifamily market is following a similar trajectory to the national industry. Overall rent growth is negative on a year-over-year basis, but some submarkets are growing. Others are feeling the pressure from new supply and expensive rents, leading to lower occupancy and negative rent performance. Check out our latest metro report here:

Multifamily rents continue to rise slightly as the market absorbs the steady supply of new apartments.  Over the next year or two, it may take longer to lease up new properties in high-supply Sun Belt markets.

The greater Portland multifamily market experienced a resurgence of demand in Q1 2024 as renters absorbed more than 1,300 units on a net basis. While new supply did slightly outpace demand, resulting in a seventh consecutive quarter of declining occupancy, the number of units absorbed in the first three months of the year is the highest Q1 absorption figure since 2021. Find the full Q1 2024 Portland Metro Multifamily Market Report from Colliers here: https://lnkd.in/eHUH3K6n

Way too many units have been built. Pull a demand study in any major market and there are thousands of units of negative demand in the next 36 months. I recently read a report showing that there are over 18k units under construction in the Miami area. Only 2k units were absorbed in the T12 months. In the Ft. Meyers MSA, there have been 4900 units brought online in the last 24 months with another 2900 coming online in the next 24. That market is currently at 12% vacancy in Class A. Imagine what another 2900 units will do. This is another major issue we're all going to need to deal with in multifamily.