What do Austin, San Antonio, and Phoenix have in common? They’re the top 3 markets with the deepest rent cuts for year-end November 2024. However, it isn’t all bad news for the Texas capital. Two indicators are pointing towards some recovery in the near term. ● November’s cut of 0.4% was the most mild monthly cut seen in Austin since May. ● Austin’s annual effective rent cut of 7.3% in November appeared less severe than last month’s annual decline of 8.1%. It also seems like the Western region is stabilizing as the major metros on the west avoided ranking on the list. ● Generally, effective asking rents were cut 0.6% on a monthly basis in the West Region in November. ● On an annual basis, rents have stagnated with no change in the West region. ● That was well below the growth rates seen in the Midwest (3.0%) and Northeast (2.5%) but above the rent cuts seen in the South region (-1.1%). #realestate #Texas #multifamily #propertymanagement
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🏙️✨ Exciting News from Austin, TX! 🚀 Did you know that amidst all the growth, Austin's unemployment rate remains impressively low at just 2.90%? 📉, according to the Bureau of Labor Statistics. 🏗️ With nearly 43k new multifamily units under construction, Austin is evolving like never before! 🌆✨ And guess what? 33k units are expected to come online by the end of 2024! 🏙️🚧 The skyline is changing, and the energy is palpable! We witnessed it firsthand this weekend - cranes everywhere and an electric atmosphere! ⚡ 📈 However, despite the influx of new multifamily units, housing actually is down 8.4% year-over-year, according to Austin’s Board of Realtors. 💼🔑 In fact, Business Insider said last week that Realtor.com predicts housing prices are projected to fall 12.2 % in 2024. What does this mean for Austin Texas? We believe that their prices be going back to a normalization and reaching equilibrium again. We know of clients over bidding homes in 2022, in Austin, by 70k and still being outbid. This is also what we saw with multifamily deals, over paying and now a price normalization will start to take affect as interest only rates come due and those sellers will have to come to the table to negotiate. What are your thoughts? Share in the comments below. 🌟 Follow us for more updates on the Texas markets and real estate investing opportunities! 💼✨ And if you're curious about real estate, drop us a message! We're here to help you navigate these ever changing dynamic markets! 🏠📲 #OpportunityAwaits #DynamicCity #RealEstate #FollowUs #SubscribeNow #AustinTX #TexasGrowth
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🏙️✨ Exciting News from Austin, TX! 🚀 Did you know that amidst all the growth, Austin's unemployment rate remains impressively low at just 2.90%? 📉, according to the Bureau of Labor Statistics. 🏗️ With nearly 43k new multifamily units under construction, Austin is evolving like never before! 🌆✨ And guess what? 33k units are expected to come online by the end of 2024! 🏙️🚧 The skyline is changing, and the energy is palpable! We witnessed it firsthand this weekend - cranes everywhere and an electric atmosphere! ⚡ 📈 However, despite the influx of new multifamily units, housing actually is down 8.4% year-over-year, according to Austin’s Board of Realtors. 💼🔑 In fact, Business Insider said last week that Realtor.com predicts housing prices are projected to fall 12.2 % in 2024. What does this mean for Austin Texas? We believe that their prices be going back to a normalization and reaching equilibrium again. We know of clients over bidding homes in 2022, in Austin, by 70k and still being outbid. This is also what we saw with multifamily deals, over paying and now a price normalization will start to take affect as interest only rates come due and those sellers will have to come to the table to negotiate. What are your thoughts? Share in the comments below. 🌟 Follow us for more updates on the Texas markets and real estate investing opportunities! 💼✨ And if you're curious about real estate, drop us a message! We're here to help you navigate these ever changing dynamic markets! 🏠📲 #OpportunityAwaits #DynamicCity #RealEstate #FollowUs #SubscribeNow #AustinTX #TexasGrowth
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Rents in Abilene, Texas, increased by 3.4% from $960 in Q3 2023 to $990 in Q3 2024 due to strong renter demand and a slowdown in new supply. This demand surge, especially for high-end and mid-priced units, has been supported by a slight population increase, with growth reaching over 1% in 2022 and 2023. Three-star units, which make up two-thirds of the market, saw the highest demand, with a nearly 4% rent increase over the past year. With minimal new supply expected, rent growth is forecast to remain between 3% and 4% through 2025.
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📈 Finalized Demand Stats for Central TX #Multifamily Demand for multifamily in Central Texas is STRONG. Austin Investor Interests LLC just finalized their Q2 numbers. In #Austin 1️⃣ The market has absorbed 8,252 units YTD. That’s more than all of 2023 (6,465 units) and 2022 (6,399 units). 2️⃣ Q2 absorption totaled 4,854 units, the most since 3Q21 during the COVID boom. 3️⃣ CBD rents are up 2.6% over Q2 (4.7% over 1H24) In #SanAntonio 1️⃣ The market has absorbed 3,504 units YTD, which roughly equals the net absorption between 2023 (615 units) and 2022 (-3,071 units). 2️⃣ Q2 absorption totaled 2,398 units, the most since 3Q21 during the COVID boom. 3️⃣ In Q2, San Antonio absorbed more units (2,398) than it added (2,012) ❓ Do you think we’ve already hit bottom? Or is this just an especially strong summer? JLL Multi-Housing - Central TX Ryan McBride | Robert Wooten Chris Roper | Nick Beardslee | Alex Fernandes
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These declines don't seem all that dramatic - except SF "The big declines in completion volumes are largely in the South, where they represent 60% of the top 10, by RealPage's count. This makes sense because that's where the biggest delivery pressure has been and the largest impact on vacancies and rents. Houston is at the top of the list, with a supply of 25,906 at the end of the second quarter in both 2024 and 2025. Plus, Q2 scheduled deliveries totaled 17,821, representing a 31.2% decrease. Minneapolis is next, going from 11,403 to 7,098, or -37.8%. Orlando is expected to go from 14,421 to 11,760, or -18.5%. Fort Worth is at 10,133 and might go to 7,964 for a drop of 21.4%. Next was Jacksonville, from 8,683 to 6,904, -20.5%. The bottom five are San Francisco (2,485 to 1,194, -52.0%); Nashville (13,188 to 12,042, -8.7%); Chicago (7,530 to 6,596, -12.4%); Columbus (7,611 to 6,889, -9.5%); and St. Louis (2,925 to 2,244, -23.3%)."
Here Are the Markets Where New Multifamily Deliveries Should Decrease
globest.com
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Did you know that average asking rent has reached a record high of $11.15 per sq. ft.? 📈 Despite rising vacancy rates, several major markets have seen significant year-over-year increases: 🌆 Houston: 32.5% 🏙 Minneapolis-St. Paul: 29.4% 🛣 Pennsylvania I-78/81 Corridor: 27.1% 🌴 Tampa: 21.8% 🌵 Dallas-Ft. Worth: 19.5% Download now! https://lnkd.in/d9ekfsfP #realestatetrends #marketupdate #recordhighs
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The Sunbelt is losing its shine. How I found 5 reasons why Midwest multifamily is outperforming the Sunbelt and why you should take note. 1️ - Lower Entry Prices Investors in the Midwest don’t need deep pockets. The average cost per unit in Midwest multifamily markets is 40% lower than in Sunbelt hotspots like Texas and Florida. You can buy more units for less—and start seeing cash flow faster. 2️ - Better ROI The Midwest may not be flashy, but it’s consistent. Investors in markets like Ohio and Indiana are reporting average cap rates that are 1.5-2% higher than in major Sunbelt markets. Markets including Phoenix, Austin, and Ft. Myers are experiencing rent retractions of up to 4% The margins are wider, which means a faster path to profit. 3️ - Steady Population Growth While coastal cities are seeing population declines, the Midwest is benefiting. Over 4 million people have moved inland from coastal cities since 2020, many finding homes in states like Ohio and Indiana. More jobs = more renters. 4️ - Less Competition The Sunbelt is crowded with big players. 8 of the top 10 hottest real estate markets are in the Sunbelt, according to market reports. In the Midwest, you can carve out a niche without fighting institutional investors. Less bidding wars = better deals. 5️ - Recession Resistance The Midwest thrives on its stability. In fact, during Q1 2023, the Midwest outperformed the Sunbelt in rental growth for the first time in years, showing resilience during market volatility. Fewer vacancies and more stable income for investors. Which factor do you think makes the biggest difference in the long-term? What factors do you look for when choosing a market?
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Avoid short-sighted reads of the market.⤵️ If your only data point for how a housing market is doing is a comparison to how it did in the last few years, then you missed the takeaway of the last few years. Right now, everybody is despairing that home prices in Austin are falling from their pandemic-era highs. It's true. The last few years were crazy in real estate, but don't miss the more important takeaway: your market reads shouldn't be reactive. Right now, it's en vogue to despair about the Austin market, even when it continues to perform in terms of GDP, population, and job growth. The fundamentals matter more than anything else - the market is correcting itself right now. 👊The city will continue to thrive. How many cranes are in your city? Austin is #antifragile. #austin #market #invictus
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Central Texas housing landscape evolves: June unveils a critical upswing in Austin-area homes, marking a turning point with the highest inventory since 2011. Amid a vibrant market, buyer decisions lean towards cautious selectivity, influenced by shifting interest rates. Prices adjust, mirroring a dynamic between supply and choice. This snapshot underscores a critical juncture for buyers and sellers in navigating future transactions. Discover more about these market nuances ⬇️ https://bit.ly/4cYHr8w #AustinRealEstate #HousingMarket #CentralTexas #MarketTrends #RealEstateInsights
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𝐒𝐞𝐚𝐭𝐭𝐥𝐞 𝐌𝐮𝐥𝐭𝐢𝐟𝐚𝐦𝐢𝐥𝐲 𝐌𝐚𝐫𝐤𝐞𝐭: 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬 𝐀𝐦𝐢𝐝 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬 Seattle's multifamily real estate market faces headwinds from high interest rates and a construction boom. However, strong fundamentals offer optimism for long-term investors. 📊 Vacancies: 6.8% overall; stabilized properties closer to 5% (CoStar Group). 📊 Rent Growth: Up 2.5% year-over-year. 📊 Sales Volume: $2.2 billion over the past year, below the five-year average. 💼 Interest Rates Challenge: Elevated rates impact transactions. 💼 Inventory Challenge: Sellers anticipate rate drops for better pricing. 🔍 Opportunities: Lower property prices may benefit investors when rates normalize. Consider loans with flexible terms. 🏗️ Construction & Economy: The construction boom is slowing, with high costs limiting new projects. Seattle’s economy, driven by Amazon and Microsoft, supports strong population growth, outpacing the national average. Be sure to check out our market reports for a more detailed analysis: https://lnkd.in/gwKF_Mgs Get more insights on how high pay scales, limited new inventory, and population growth keep Seattle's market strong in the J.P. Morgan article: https://lnkd.in/gnbqr5zX #seattleapartments #washingtonrealestate #pugetsoundrealestate #pnwrealestate #seattlerealestate #pugetsoundmultifamily #seattlemultifamily #pnwmultifamily
Seattle Multifamily Market Outlook | Chase
jpmorgan.com
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