Joe Dichoco’s Post

Rents ticked up last quarter after a lukewarm year for the downtown apartment market, a sign that demand is strong as the supply pipeline begins to wane. Net monthly rent at top-tier, or Class A, apartment buildings downtown was $3.61 per square foot in the third quarter, up 2.27% from the same time frame in 2023, according to the Chicago office of appraisal and consulting firm Integra Realty Resources. That’s the largest year-over-year increase since the second quarter of 2023. #realestate#apartment#Chicago#Illinois#Rent

After 21 months of gains, the Sydney housing market has finally recorded a drop in values. CoreLogic's Monthly Index showed home values, both units and apartments, declined in October, the first time since January 2023. CoreLogic Research Director Tim Lawless notes, however, that the stronger performance across the more affordable end of the market is a consistent theme across the capital cities. Read more about what happened in the Sydney off the plan apartment market in October. TWT Property Group | Belle Property | Thirdi Group | Phoenix Property Investors | Scion Group | Meriton Group Author: Joel Robinson ------------ 📣 Was this update of interest to you?🔥 Join 17,000+ of your residential property development colleagues who follow Urban on LinkedIn. We regularly post free insights about: 💡  New project launches and updates 💡  What buyers are searching for on AU’s largest off-the-plan buyer platform 💡  Weekly interviews with industry leaders Follow Urban.com.au or connect with our CEO Mike Bird to keep your finger on the pulse of the apartment and townhouse market.

It has been a few weeks of numbers (and more numbers) on the GTHA new residential market. Our GTHA Zonda Urban team is pleased to release our Q1-2024 survey results to add to the discussion. It was another tough quarter; however, our outlook asks whether the GTHA market for new condos and townhouses has reached a bottom, in the context of slowing declines, and that the Calgary and Vancouver markets appear to be turning a corner posting positive annual growth in Q1. Additional highlights also outlined in the press release below: -Sales of new condominium apartments and townhouses in the GTHA totaled 2,321 in Q1-2024, down 12% on an annual basis. New condominium apartment sales fell 23% to 1,626, while townhouse sales remain on a growth trend, rising 34% year-over-year to 694 -Just 3 new condominium apartment projects launched in Q1-2024 but they did sell 76% of the 455 units released at an average $1,071 psf. These exclude the recent downtown launches (those are Q2!) and the return to the market of one development that opened and was subsequently, shelved last fall -The pace of delivery of new units sold on average 4 years ago is outstripping stagnant start activity--7,351 units in buildings reached occupancy in Q1 compared to 2,979 starts, the latter nearly 50% below the 5-year average. We pay a lot of attention to these parameters for the quarterly numbers. The present gap between a high volume of completions and a trickle of starts is contributing to a high contraction in units under construction. 87,586 new condominium apartment units were under construction as of Q1, down 17%, or 17,500 units from the market peak in Q4-2022. At the current pace, construction volume could fall 30% off-peak by the end of 2024. This has significant implications for the delivery of new residential supply in the GTHA from 2026 onwards Our next FRAME event is upcoming this following Tuesday morning, May 14th where we do a deeper dive into the market survey results and macro trends. It is being held at Malaparte, TIFF building. If you are interested in attending you can register here and all proceeds for the nominal fee go to Covenant House Toronto: https://lnkd.in/gs5vpzue

Out Q1 Market Reports are available. Let me know if you would like a copy!

Innovative real estate marketing isn't solely in the hands of big developers or their expensive marketing agencies. Instead, small builders have great ideas too, and they are selling their products in a tough market. Learn what HMV Homes chose to build in East York. #MrRealEstateToronto

How affordable! As of September 2024, the median house price on the Gold Coast sits at approximately $1,100,000, marking a 9% growth over the past year—outperforming the national average and even Sydney's returns. According to soho.com.au the market’s upward trajectory is supported by robust demand factors, including interstate migration and job market expansion, painting a picture of a housing market that is as dynamic as it is desirable. Rental demand remains strong, with prices rising 7.1% over the past year and an impressive 53.1% over the last five. Despite a slight dip in gross rental yields from 4.5% to 4.2%, the region’s low vacancy rate continues to support a robust rental market. CoreLogic recently named Gold Coast-Tweed Heads as the least affordable rental market outside the major capitals, with a median rent of $832 per week. Still, the area’s dynamic growth offers promising opportunities for both homeowners and investors.

Occupancy in market-rate apartments held steady at 94.2% in July, marking the third straight month of occupancy remaining at that rate. Historically speaking, occupancy tends to level off in July. https://lnkd.in/gXenUr3y #CRE #DFWrealEstate #landdeveloment #landinvestment #industrial

Apartment Market Update: Strong Demand Meets Rising Supply The U.S. apartment market showed a mixed bag in Q1 2024, according to reports by RealPage and Apartments.com. Here's a quick breakdown: Good News! Demand is Back: Apartment demand surged in Q1, with absorption (occupied units) reaching the highest level since Q3 2021. This points to a return to normalcy after pandemic disruptions. Solid Rent Growth: Rent growth continues, albeit at a slower pace than the previous year. It's hovering around 1% nationally, with some regions like the Midwest and Northeast experiencing stronger growth (2.2% and 1.3% respectively). YEAH!!! Our City - #Chicago! Construction Boom: Apartment construction remains high, with Q1 2024 seeing record completion volumes. Challenges to Watch: Supply & Demand Imbalance: The high number of new units entering the market is outpacing demand, leading to a slight rise in vacancy rates. This is putting pressure on rents, particularly in the South where oversupply is most concentrated. Market Variations: Performance varies geographically. Luxury apartments are experiencing negative rent growth due to oversupply, while mid-priced options are seeing positive growth due to increased demand. Overall: The #apartment market is in a transitional phase. While strong demand is positive, it's being met with a surge in new construction. #Investors should be mindful of regional variations and price points when making #investment decisions. You can find the full articles linked in the comments. This photo captures a springtime business lunch we had with our valued partners in downtown Chicago. #multifamily #realestateinvesting #investmentproperty

A new report highlights the impact of increased spending on home renovations during the pandemic on single-family home prices, despite market pressures. Re/Max Canada's recent study delves into the evolving housing stock and trends influencing home values in Toronto and Vancouver, Canada's largest real estate markets. Released on Tuesday, the report reveals a significant surge in national renovation spending, estimated at $300 billion from 2019 to 2023, driven primarily by renewal and revitalization projects in Toronto and Vancouver. #RealEstate #HomeRenovations #HousingMarket #MarketTrends

The graph in this article from Rachel Herzog in Crain's Chicago Business, visualizing the newly built apartment units, its annual absorption rate in 2024 as well as the currently planned and financed apartment units over the next few years in Chicago, is one of the most important graphs to understand the economic health and future of our city. Here are the key take-aways from this article: - Chicago rents ticked up last quarter by slightly over 2% from the same time frame in 2023, making it the largest year-over-year increase since the second quarter of 2023. - More than 3,200 new apartment units have been delivered so far this year with a total expected unit delivery of almost 3,800 which is the highest since 2021. - Unit occupancy is currently at around 95% downtown - Future supply coming onto the market is much lower than what we have seen historically. Unfortunately the pipeline for new apartment units is shrinking significantly. Currently, there are only 500 units projected for delivery in 2025, around 1,000 in 2026 and 1,500 in 2027. The projections of historic lows of new apartment units in our city should be alarming to all of us. All these data points indicate to a higher rent increase than what we have historically seen in Chicago, potentially undermining our city's important advantage as an affordable place to live. Let's build more.