The Best Ever CRE Show JF3792: Supply Pipeline Analysis, Apartment Absorption Trends, & Regional Market Outlook ft. Jay Parsons
Jan 21, 2025
Dive into the multifamily housing market as experts discuss a positive demand forecast despite current challenges. They debunk media myths about luxury apartments impacting affordable housing. Absorption trends reveal significant housing demand in cities like Phoenix and Dallas. The conversation highlights construction hurdles, financing issues, and policy impacts shaping market dynamics. Discover regional insights, especially in the Midwest and Northeast, and explore the implications of natural disasters on housing demand, pointing to emerging opportunities in Sunbelt markets.
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Luxury Apartments and Affordable Housing
- New luxury apartments do not negatively impact affordable housing availability.
- They free up existing units as higher-income renters move up.
2024 Q4 Absorption
- 2024's Q4 absorption rates were surprisingly high, even with methodology changes.
- RealPage's adjusted numbers still suggest a strong absorption year, aligning with CoStar's data.
Drivers of 2024 Absorption
- Several factors drove high 2024 absorption: a better economy, consistent household formation, and wage growth outpacing rent increases.
- Increased supply also played a role in unlocking pent-up housing demand.