Multifamily Predictions Converge on Optimism

As we move further from the uncertainty and rent growth stagnation of 2023, an increasing number of sources are finding room for optimism in the multifamily investment market. A looming drop-off in multifamily supply, the consequence of an interest-rate-driven decline in new construction projects, has become a central part of projections for the multifamily market,…

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Single Family Rentals and the Multifamily Market

Single Family Rentals

Single family rentals are a growing portion of the housing market, and while the single family market is correlated and connected to multifamily performance, single family rentals are not necessarily a competitive threat to the multifamily market.

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Could the Apartment Market Crash in 2024? Really?

Market Crash 2024

This month’s inflation report came in slightly higher than expected, causing some worry that the much-anticipated interest rate cuts from the Fed may not arrive as quickly as previously thought. A “higher for longer” environment is one reason why some are pessimistic about multifamily in 2024, but there is little evidence for continued declines in…

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Gray Report Newsletter: February 15, 2024

Could Multifamily Crash? Really? This month’s inflation report came in slightly higher than expected, causing some worry that the much-anticipated interest rate cuts from the Fed may not arrive as quickly as previously thought. A “higher for longer” environment is one reason why some are pessimistic about multifamily in 2024, but there is little evidence…

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2024 U.S. Investor Intentions Survey: Investment Activity Expected to Increase

Source – CBRE: “2024 U.S. Investor Intentions Survey: Investment Activity Expected to Increase” We’ll be looking at demand from apartment renters in a moment, and I’ll say right now that compared to the demand from multifamily investors, we have a fairly crystal-clear view of the demand of apartment renters. Maybe it’s just me! But I…

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Optimism and Clarity in the Multifamily Market

Optimism and Clarity

Compared to the prevailing uncertainties of 2023, a better view of the multifamily market and its driving forces points to increased investment activity as the year progresses. Significant challenges remain for apartment operators in 2024, but greater clarity on apartment construction, interest rates, housing demand, and the economy, alongside pent-up demand from investors who were…

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Gray Report Newsletter: February 8, 2024

Multifamily Investment Picture Keeps Improving Compared to the prevailing uncertainties of 2023, a better view of the multifamily market and its driving forces points to increased investment activity as the year progresses. Significant challenges remain for apartment operators in 2024, but greater clarity on apartment construction, interest rates, housing demand, and the economy, alongside pent-up…

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NMHC Insights on the Apartment Market in 2024

NMHC-Insights

The enormous amount of apartment supply expected this year should temper any expectations of apartment demand, but ⁠newly-published⁠ ⁠research⁠ on the topic argues that U.S. housing needs are far larger than can be addressed even with the historic amount of multifamily completions last year and forecasted for this year. On the capital markets side, ⁠recent data⁠ points to a substantial…

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One Good Year Does Not Solve America’s Housing Shortage

Report Commentary - Feb 12

Source – Moody’s Analytics: “One Good Year Does Not Solve America’s Housing Shortage” Multifamily construction projects increased by 11.1% in succession, reaching a seasonally adjusted annual rate of 509,000 units. However, household formation and mobility, which were high during the last half of 2021 and early half of 2022 due to lifestyle changes, location preferences,…

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Gray Report Newsletter: February 1, 2024

Are We Underestimating Apartment Demand? The enormous amount of apartment supply expected this year should temper any expectations of apartment demand, but newly-published research on the topic argues that U.S. housing needs are far larger than can be addressed even with the historic amount of multifamily completions last year and forecasted for this year. On…

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