America is experiencing a strange housing supply problem. On one hand, we don’t have enough housing supply nationally; on the other, we have too much housing supply in cities like Austin and Fort Myers, and as a result, these cities are seeing significant rent declines. Meanwhile, rents are still going strong in much of the Midwest, as their supply-constrained markets give landlords and real estate investors the upper hand. But, even in the “oversupplied” markets, is there a chance for rent price redemption in the future?
We brought on BiggerPockets’ own Market Intelligence Analyst, Austin Wolff, to share his latest findings on housing supply. Austin talks about why rents are growing in some parts of the US but declining in more oversupplied markets. But with the slowing down of construction, will these oversupplied markets become undersupplied? Will landlords in these markets be happy they held onto their properties in a few years?
Austin also shares the exact market he’s making his first real estate investment, which boasts high demand but has yet to see a significant supply bump for his asset class. Does higher supply always mean lower rents? Not quite, and we’ll get into why in this episode!
In This Episode We Cover
The state of our 2024 housing shortage problem and why we may be under and oversupplied
Where rent prices are falling and the cities with the most supply coming online
When demand could finally “catch up” to the high supply these markets are experiencing
The correlation between supply and rent prices (and why they aren’t ALWAYS opposite)
Long-term rent projections as building starts to slow and demand stays high
And So Much More!
Links from the Show
Join the Future of Real Estate Investing with Fundrise
Join BiggerPockets for FREE
Easily Identify Your Next Market to Invest In with BiggerPockets Market Finder
Dave's BiggerPockets Profile
Connect with Austin
Check Out Austin’s Data-Driven Blog Posts
Bureau of Labor Statistics
Census Data
CoStar
Zillow Data
Master the Simple Formulas Behind Every Great Real Estate Deal with “Real Estate by the Numbers”
Jump to topic
00:00 Intro
04:49 Our 2024 Housing Supply Problem
08:22 Where Rents Are Falling
13:13 Demand Will “Catch Up”
17:31 What Happens When Supply Rises?
25:46 Long-Term Rent Projections
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-260
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On The Market