The Rent Roll with Jay Parsons EP#16 Greg Willett | Q1'25 U.S. Apartment Market Update
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Jan 9, 2025 Greg Willett, First Vice President and National Director of Research at IPA, shares his multifamily real estate expertise. He discusses the surprising demand hitting the U.S. apartment market in 2024, addressing occupancy trends and rent growth peaking at an 18-month high. Key markets in Texas show resilience despite new supply, while the stalled homebuyer market influences rental dynamics. Willett also highlights promising forecasts for Florida's apartment markets and the contrasting performance of different property classes. Get ready for valuable insights into the future of rental housing!
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Unexpectedly High Apartment Demand
- 2024 saw surprisingly high apartment demand exceeding new supply.
- This high demand, driven by factors beyond just low homeownership, suggests significant pent-up demand.
Demand Follows Supply
- Demand is following supply, especially in Texas, with Dallas, Houston, and Austin leading in net absorption.
- Washington D.C. and Houston significantly outperformed expectations for demand.
Occupancy Prioritized Over Rent Growth
- Despite high supply, occupancy rates held steady at 94.8% due to operators prioritizing occupancy over rent growth.
- This prioritization positions properties for faster rent growth rebounds as supply decreases.