195: What Happens to Rent Prices When 1,000,000 New Units Come Online in 2024? w/Chris Salviati
On The Market
Shownotes Transcript
Rent prices peaked in 2022 after a double-digit percentage run-up. Due to more household formation, disposable income, and remote work) availability, Americans were doing whatever they could to upgrade their housing to bigger, better, and often more expensive options. But, after interest rates) shot up, the** economy began to cool**, and work-from-home became a not-so-sure thing, Americans became more budget-conscious. As a result, vacancies rose, and rent prices began to fall. So, how close are we to seeing rent growth return?
Apartment List’s senior housing economist, Chris Salviati), joins us to share what his team has seen in the nationwide rent data. Chris looks mostly at large apartment data—the sector that’s been hit the hardest in recent years. With multifamily properties struggling)** to find renters** and lowering their asking prices to prompt demand, you’d think the market had found a bottom—but this isn’t the case.
A tidal wave of multifamily inventory is about to come online, and when it does, multifamily investors will be forced to compete with the newest and most luxurious options on the market. Will this oversupply trickle down to single-family rentals, or will renters turn away from the A-class buildings in search of more affordable options? Chris gives us his thoughts, plus future rent growth predictions, in this episode!
In This Episode We Cover:
What happens to rent prices when 1,000,000 more multifamily units come online
Markets that have the most oversupply and could see significant rent cuts
The massive concessions multifamily apartments are giving new renters
When real estate investors can expect rent growth to pick back up
2024 rent price predictions) and whether demand could come back
How single-family rental) prices will be affected by multifamily’s huge oversupply
And So Much More!
Links from the Show
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Rents Show Biggest Decline in 3 Years—Should Landlords Panic?)
Multifamily Is at High Risk of Continuing Its Historic Crash in 2024—Here’s Why)
2024 Rental Market Outlook: Is a Shift Coming?)
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