According to Yardi’s U.S. Multifamily Outlook 2024, multifamily demand is likely to remain healthy in 2024, though rent growth will be tested by decelerating economic growth and a rapid supply uptick in some markets. In addition, Yardi says the higher interest-rate environment will stress property values and threatens to increase loan defaults. Indeed… “Multifamily faces a mixed outlook in 2024. Property performance remains healthy for most apartments, but challenges will come from a wave of deliveries, rapid growth in expenses, a potential economic slowdown, and the increase in mortgage rates.” Click here to read the full report at Yardi.
Author: Brad Beckett
Brad Beckett
Director of Education & Outreach, National Real Estate Investors Association
The U.S. Government is reporting that sales of new single-family houses in November, 2023 were at a seasonally adjusted annual rate of 590k, which is 12.2% lower than October’s revised rate but is 1.4% higher than one year ago. The median sales price of new houses sold in November was $434,700 with an average sales price of $488,900. There were an estimated 451k new houses for sale at the end of November representing a 9.2-month supply at the current sales rate. Click here to read the full report at the U.S. Census Bureau.
Local Market Monitor, a National REIA preferred vendor, recently released their monthly National Economic Outlook where they share their thoughts on developments taking place in the U.S. economy. National Economic Outlook By Ingo WInzer December, 2023 Overall, in October, jobs grew 1.9 percent compared to last year, continuing a trend towards slower growth as more pandemic job losses are recovered. That’s still the case at restaurants, in healthcare (nursing homes) and government (state government). Our best estimate of where growth is headed is provided by the very large business services sector, where job growth now is around 1 percent. This…
The National Association of Realtors is reporting that existing home sales were up 0.8% in November to a seasonally-adjusted annual rate of 3.82 million (down 7.3% year over year). Total housing inventory at the end of November was 1.13 million units, down 1.7% from October but was up 0.9% from one year ago. Unsold inventory sits at a 3.5-month supply at the current sales rate with properties remaining on the market for around 25 days. The median existing-home price for all housing types in November was $387,600, up 4% from one year ago. Click here to read the full report…
The U.S. government is reporting that privately‐owned housing starts in November were at a seasonally adjusted annual rate of 1,560,000, which is 14.8% higher than October’s revised number and is 9.3% higher than one year ago. November’s rate for units in buildings with five units or more was 404k. Privately‐owned housing units authorized by building permits in November were at a seasonally adjusted annual rate of 1,460,000, which is 2.5% lower than October’s revised number but is 4.1% higher than one year ago. Authorizations of units in buildings with five units or more were at a rate of 435k in…
Statista says after a year of high prices, high interest rates and economic uncertainty, American consumers would have been excused to cut back on their spending this Christmas season. However, that doesn’t seem to be the case. Consumers are expected to spend an average of $885 on core holiday items including gifts, decorations, food and other related purchases – up 5% from last year. Today’s infographic shows us exactly where Americans are getting their gifts this holiday season. Stay and have a Merry Christmas (and a Happy Friday)!!! Hat tip to Statista.
According to the latest U.S. Home Flipping Report from ATTOM, 72,543 single-family houses and condominiums were flipped in Q3, 2023 representing 7.2% of all home sales in the third quarter. ATTOM says Investor returns increased for the third quarter in a row with margins, along with raw profits, rising to the highest levels since the middle of last year. “The comeback for the home-flipping industry is looking more like a real trend than a temporary break in what had been a pretty bleak couple of years…For sure, investment returns still aren’t anywhere close to where they were a couple of…
On a recent episode of the Rental Property Owner & Real Estate Investor Podcast, Brian Hamrick talks with Shannon Robnett, who believes that Industrial is the hidden ATM of real estate investing. He will break down the numbers and reasons why Industrial is such a strong asset class. “One of the hottest real estate asset classes right now is industrial. On the surface, industrial investment sounds great – you have a few tenants who pay their rent, all the bills, and sometimes even the property tax. But is it as easy as that?” Click here to listen on Spotify. …
The U.S Bureau of Economic Analysis released official statistics of real state personal consumption expenditures (Real PCE) by state for 2021-2022. According to the report, Real PCE by state increased in 42 states and the District of Columbia in 2022, with the percent change ranging from 5.7% in Alaska to –3.2% in New Hampshire. In addition, Real personal income declined in 45 states and the District of Columbia in 2022, with the percent change ranging from 3% in North Dakota to –8.9% in Rhode Island Click here to read the full report at the Bureau of Economic Analysis.
The American Automobile Association (aka AAA) says that over 115 million people will be traveling this holiday season – up 2.2% from last year and the second highest year-end travel forecast since 2000. In addition, AAA expects nearly 104 million people will drive to their holiday destinations, an increase of 1.8% compared to 2022. “This year-end holiday forecast, with an additional 2.5 million travelers compared to last year, mirrors what AAA Travel has been observing throughout 2023…More Americans are investing in travel, despite the cost, to make memories with loved ones and experience new places.” Said Paula Twidale, AAA’s Senior…
