Multifamily real estate is still offering some significant opportunities to investors—you just need to know where to look! Although the past two years have been rough for multifamily, with falling rents, rising interest rates, and higher vacancy, we may be on the way out of this vicious multifamily market we found ourselves in just a year or so ago. With new multifamily construction predicted to dry up significantly over the next few years, current multifamily rents are already beginning to rise. So, where should YOU be buying to take advantage of this positive trend?
Thomas LaSalvia, from Moody’s Analytics CRE, joins us to give a multifamily real estate update and share where to find the best multifamily opportunities in 2024. With some markets still seeing more supply than demand, investors could pick up deals from distressed owners. Plus, one often-forgotten region may see demand pick up in a big way—if you invest here, you could get ahead of the curve!
We’ll also discuss how multifamily rents have been performing, why new multifamily construction will see a huge slowdown in 2025 - 2026, whether today’s sluggish economy will affect multifamily, and the one big danger multifamily real estate investors (and future investors) CANNOT overlook.
In This Episode We Cover
A 2024 multifamily real estate market update and how apartments are performing now
The oversupplied areas with opportunities for investors to buy
One market that could see demand pick up soon (get ahead of the masses!)
Why hasn’t multifamily crashed, and where are all the “distressed” owners?
Affordable housing and the massive mismatch between supply and demand
Whether or not small landlords will be affected by big apartments moving into their areas
And So Much More!
Links from the Show
Join BiggerPockets for FREE
Want to Invest in Multifamily? Grab the Book “The Multifamily Millionaire, Volume I”
Find Investor-Friendly Lenders
See Henry and Kathy at BPCON2024 in Cancun!
Hear Our Last Episode with Thomas: Rent Unaffordability Crosses Dangerous New Threshold
On the Market Podcast
(01:28) Commercial vs. Residential Real Estate
(04:24) Rent Slowly Recovers
(09:02) Will Building Slow Down?
(12:33) Job Loss and Affordability Problems
(15:33) Affordable Housing
(19:09) Good for Small Landlords?
(25:17) Why Hasn’t Multifamily Crashed?
(28:14) Opportunities to Look For
(35:05) One Danger to Multifamily
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-995
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BiggerPockets Real Estate Podcast