---

IN JUST 5 MINUTES OR LESS TODAY, YOU’LL LEARN ⏬ :

---

2024 Multifamily Market Predictions: Embrace the Wealth that Awaits

Well, here we are again…

2023 is coming to a close, the holiday spirit is in full swing, and we’re looking forward to some much needed rest and reflection as we prepare for another amazing year of multifamily investing excitement! ✨

This past year was truly one for the books. 

We hope that you’re spending your last bit of 2023 doing whatever brings you joy as well!

Maybe you take some time off, enjoy holiday traditions with family, or even just watch that saaaame comfort movie you’ve seen 100 times that STILL makes you laugh.

Umm, anyone else love the movie Elf? 😂

However you choose to spend the rest of this year, we’d like to help get you in the mood for what’s to come with some 2024 multifamily market predictions!

We know that feeling of uncertainty or nervousness about changes in the housing market and how they could affect your real estate investing decisions, butttt let’s finish this year on a positive note – discussing the housing trends and financial forecast of the year ahead. 

2024 is looking good for investors in the multifamily market

We’ll get to the details in a moment, butttt let’s start off with the punchline. We’re not trying to bury the lead and make you guess about what’s in store for you. 

After all, this is a time for good tidings of great joy, not confusion. 😉😉

So, go ahead and pop that champagne 🍾 (or pour the eggnog if that’s more your jam), because 2024 is going to be an amazing year for investors looking to grow wealth in the multifamily market!

The cat’s out of the bag and we couldn’t wait another second to share that with you. 

But now that you know the ending to this story (or really, the beginning of a bright future), let’s get specific and dive into the data. 

Just keep in mind, we can’t actually see into the future, but we’ve done the research for you – through our lenses as 🏢 multifamily apartment syndicators – to bring you the most important multifamily market predictions you should know. 

Inevitable economic shifts and housing market changes are always going to be a part of your real estate investing journey.

By learning what the data means and how it affects your future investments, you can feel confident and prepared in your decisions, and get excited about the possibilities that lie ahead. 🤩

Supply and demand for the multifamily market 

First, let’s chat about supply and demand – two important indicators for how the multifamily market will perform this year. 

We saw a record number of multifamily apartment constructions near the end of 2023, with 1 million complexes being built. Heading into 2024, data shows that about 600,000 multifamily properties are on track to be completed. 

There will be a slight decrease in new construction in early 2024, mostly due to low funding and caution for economic uncertainties, but supply is still expected to supersede demand throughout the year, with demand for multifamily properties remaining steady.

Here’s a quote from Apartment List to consider…

“Even in the most bullish scenario, it’s unlikely that demand will be strong enough to outstrip all the new supply that we know is coming.”

The surge of supply and consistency of demand will affect the multifamily market in one specific way: expected rent growth. 

Rent growth is predicted to stay in the low single-digits

When supply is higher than demand, rent prices tend to adjust downward, which is just an example of basic economic principles. 

👉 So, we can expect to see a slight rise in rent growth early on, while working through new supply, before lowering to about a  2-4% range by Q3 or Q4.

This is a similar range to the rent growth levels of 2022, which is not a bad thing.

It just means that multifamily rent growth will be stabilizing and catching up this year, instead of gaining new ground. 

We can expect to see more of a rise in the coming years as a result.  

Barriers to homeownership point towards more long-term renters

The truth is that 2024 will not be a good time to buy a home – mostly due to things like high housing prices and spiking mortgage rates.

Although rates are expected to cool a bit in 2024, it most likely will not be enough to make homeownership more accessible for many people.

The result will be more long-term renters looking to settle down in affordable housing options – turning them towards multifamily apartments and rental homes, which includes the rising trend of build-to-rent properties. 

Even though people want the perks of owning their own home, it’s simply not a viable option with mortgage rates at about 8%, and a record low number of homes for sale. 😞😞

But, long-term renters who want to find a place to make their own without having to secure a large down payment will help keep multifamily demand strong for many years to come. 

And that, for multifamily investors, is a very, very good thing. 👏

Here are a few other housing trends and market predictions to consider: 

✔️ Work-from-home trends are still high

More people are working from home or adapting a hybrid of home and office working routines. This means that long-term renters are seeking larger, more comfortable living spaces that offer lots of amenities to suit their flexible work schedules and needs. 

✔️ High insurance rates are expected to continue in 2024

Insurance rates will stay high due to more risk of things like weather-related disasters. This creates another barrier to homeownership and could result in more people switching over to apartments or rental properties.

✔️ AI advances are making rental processes simpler

Technology continues to improve, making communication between renters and property owners smoother and easier.  Throughout 2024, renters can expect upgrades to the processes of their rental agreements, adding to the benefits and draw of long-term renting. 

✔️ Market optimism remains high, despite uncertainties

Many market professionals, like David Sherer of Origin Investments, will agree that the multifamily market still offers excellent real estate investing opportunities.

With the potential of 10-15% returns, it would be a mistake to wait too long to start investing in the real estate market. 

Why the Kitti Sisters are excited about the future of multifamily apartment investing

The future of the multifamily market is bright ☀️ – offering lots of opportunities for investors who may be wondering if they should get involved. 

If you ask us…the answer is a big, fat YES. 

In the past, we’ve seen a massive undersupply of housing, even since the Great Recession. With supply trending upward this year, we are on track to meet the high demand we’ve been facing, while providing the much-needed necessity of housing. 

Shelter is one thing that doesn’t go out of style, you see.

There will ALWAYS be a need for it, making multifamily apartments an excellent real estate investing option for long-term wealth growth. 😏😏

With the added benefits of things like tax perks and depreciation, multifamily investors can expect opportunities for multiplying their returns over time – leading to a more financially stable future. 

Don’t wait to get involved, okay? 

Now is the time – while you’re reflecting on this past year and prepping for a new one – to set yourself up for financial freedom and generational wealth through multifamily apartment investing. 

You can start by joining the Kitti Freedom Club, where you’ll find everything you need to succeed in the multifamily market. 

Join the Kitti Freedom Club today! 💫

Source:  Freddie Mac [Annual Supply as a % of Current Inventory and YoY Rent Growth]

According to Freddie Mac’s Multifamily 2024 Outlook, cities like Salt Lake City, Nashville (Tennessee), Austin (Texas), Charlotte (North Carolina), and Colorado Springs (Colorado) are expected to see a lot of new property development, with each city having more than a 5.5% increase in new housing.

➡️ Conversely, cities like Tulsa (Oklahoma), Rochester (New York), Long Island (New York), Syracuse (New York), and New Orleans are predicted to have very little new property development, each with less than a 0.4% increase in new housing.

💡 The Growing Pool of Accredited Investors

📰 Equinox’s $1 Billion Debt Talks: What’s Ahead?

🌊 Stockdale’s 850 Apartments: San Diego Mall Redevelopment