On a national level, Fannie Mae is predicting the multifamily market to remain subdued in 2024. Ever since interest rates began to rise, multifamily transactions have slowed considerably. Higher rates made profits fall, and as a result, buying and improving multifamily properties halted. And, with a massive lag in multifamily construction, new units were popping up left and right in already saturated markets, creating a race to the bottom for rent prices as multifamily operators struggled to keep their units occupied. But, the multifamily woes may be close to over.
Kim Betancourt, Vice President of Multifamily Economics and Strategic Research at Fannie Mae, joins us to share the findings of a recent multifamily report. Kim knows that there are oversupplied multifamily markets across the country. Cities like Austin have become the poster child for what oversupply can do to home and rent prices. However, Kim argues that this is only a fraction of the overall housing market, and many markets are in need of more multifamily housing.
So, if much of America is still struggling with having enough housing supply, shouldn’t rents be on an upward trend? Kim shares her team's findings and rent forecasts, explaining when rents could begin to climb, which multifamily properties will experience the most demand, and why we need MORE multifamily housing, not less.
In This Episode We Cover:
Fannie Mae’s 2024, 2025, and 2026 rent growth forecast for multifamily
A “tale of two markets” and why the “oversupply” narrative isn’t the whole story
Property classes and why B/C-class properties are seeing such strong demand
The one metric that points to a growing or shrinking multifamily real estate market
Why so many millennials are “stuck” as renters and can’t become homeowners
How rising rents could affect multifamily prices and boost valuations across the country
And So Much More!
Links from the Show
Find an Agent
Find a Lender
BiggerPockets Youtube Channel
BiggerPockets Forums
BiggerPockets Pro Membership
BiggerPockets Bookstore
BiggerPockets Bootcamps
BiggerPockets Podcast
BiggerPockets Merch
Join BiggerPockets for FREE
Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts
Get More Deals Done with The BiggerPockets Investing Tools
Find a BiggerPockets Real Estate Meetup in Your Area
Expand Your Investing Knowledge With the BiggerPockets Books
Be a Guest on the BiggerPockets Podcast
Dave's BiggerPockets Profile
Dave's Instagram
Henry's BiggerPockets Profile
Henry's Instagram
BiggerPockets' Instagram
Want More Up-to-Date Housing Market News? Check Out the “On the Market” Podcast
Multifamily Is at High Risk of Continuing Its Historic Crash in 2024—Here’s Why
These 10 Markets Are Building the Most Multifamily Housing—How Can Investors Take Advantage?
Fannie Mae’s Insights and Reports:
All Research
January 2024 Multifamily Market Commentary
February 2024 Multifamily Market Commentary
February 2024 Economic and Housing Forecast
Connect with Kim:
Kim's LinkedIn
Kim's Profile - Fannie Mae
Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-905
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.
Learn more about your ad choices. Visit megaphone.fm/adchoices
