The Rent Roll with Jay Parsons EP#14 Jay Parsons | What I Got Wrong (And Right!) In 2024
Dec 19, 2024
Jay Parsons reflects on his 2024 predictions for the rental housing market, revealing what he got right and wrong. Surprising trends in renter retention rates defy expectations, while the build-to-rent market's role is clarified against misconceptions. The discussion touches on the importance of new housing construction to enhance affordability. Jay also tackles how to communicate the complexities of rent control's impact on affordability challenges, emphasizing that diverse rental options can benefit neighborhoods.
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Deal Flow Miss in 2024
- Jay Parsons expected moderate deal flow increase in 2024 but saw volumes drop below 2023.
- Low distress and delayed loan maturities reduced transactions and subdued activity in the market.
Surprising Increase in Renter Retention
- Contrary to expectations, renter retention rates rose in 2024 despite record-high supply and vacancy.
- After years of steep rent hikes, renters accepted moderate renewal increases and stayed, boosting occupancy.
Strong Apartment Demand Sustains Market
- Fundamental apartment demand stayed strong in 2024 due to consumer confidence, jobs, and wages outpacing rents.
- This kept occupancies healthy and prevented broad rent collapses despite high new supply.