On The Market 49: Rents Start to Reverse: Could Cash Flow Get Cut Off?
Landlords got used to rent prices growing every month. As home prices rose and affordability shrank, more landlords took steps to secure their cash flow by increasing rents by sometimes ten, fifteen, or even twenty percent. And, with inflation stronger than ever, most renters would be willing to pay for it. But, a reversal is happening in the housing market—one that many landlords aren’t prepared for.
Our data-first duo of Dave and Kathy are back on the show today to have a one-on-one debate over what’s causing rent prices to drop. Kathy, who has invested in numerous market cycles, knows a thing or two about what causes rents to dry up, and when we can expect growth to come back. Surprisingly, even large investors like Kathy welcome this change in rent direction. Her team has been expecting this for quite some time now!
Dave also brings in some high-value data this week to show which housing markets are seeing the most dramatic drops in rent and which are seeing double-digit growth even as the economy starts to stall. Finally, Dave and Kathy touch on multifamily’s vacancy dilemma and why there are contradictory opinions on where apartment investments could head next. If you collect rent, pay rent, or want to make cash flow, this data is crucial to you!
In This Episode We Cover
What caused rent growth to increase so much over the past two years
How the federal reserve manipulated the housing market to cause high home prices coupled with higher rents
Why rents are starting to slow down and a hint at why many landlords aren’t so worried
The real estate markets that are seeing the worst and best rent growth in America
Our continuous supply and demand problem and why millennials have been forced to pay high prices
Multifamily rental data that could spell out a dream or disaster scenario for apartment investors
And So Much More!
Links from the Show
Find an Investor-Friendly Real Estate Agent
Join the Future of Real Estate Investing with Fundrise
Connect with Other Investors in the “On The Market” Forums
Subscribe to The “On The Market” YouTube Channel
Hear Our Interview with Multifamily Expert, Caitlin Sugrue Walter
Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-49
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