BiggerPockets Daily State of Multifamily—Will Things Get Better?
13 snips
Jan 15, 2025 The multifamily market faces a daunting crossroads, grappling with rising vacancies and operational costs. It examines the oversupply of units and competition impacting investor strategies looking ahead to 2025. Regional trends, especially in the Sunbelt, reveal a complex landscape marked by rising insurance and property taxes. Amid these challenges, insights into adapting to market shifts and identifying opportunities in underserved areas provide a glimmer of hope. The discussion promises actionable advice for navigating the evolving multifamily investment terrain.
AI Snips
Chapters
Transcript
Episode notes
Multifamily vs. Commercial
- Multifamily properties, four or more units, differ from commercial properties like retail or office spaces.
- Commercial real estate, particularly in urban areas, has been in a correction since the pandemic.
Multifamily Market Correction
- The multifamily market is also in a correction due to oversupply, rising costs, and macroeconomic shifts.
- These factors will impact investing strategies in 2025 and beyond.
Multifamily Boom and Oversupply
- Between 2020 and 2022, a multifamily construction boom occurred due to rising rents and low vacancy rates.
- The completion of these projects in 2023-2024 led to increased vacancies and a competitive leasing environment.