Trey Feraco’s Post

The Houston multifamily market is showing resilience, particularly in the luxury segment, where vacancy rates have decreased despite new supply pressures, that’s according to Marcus & Millichap’s latest Houston Multifamily Market Report from 2Q 2024. The Houston metro area is expected to see only a slight increase in inventory, with 2024 deliveries projected just above the trailing decade average of 16,300 units. Average effective rent in Houston is projected to inch up to $1,372 per month in 2024, reflecting softening demand and rising vacancies. Despite a slowing job market, Houston is projected to have the second-largest employment addition nationally in 2024, with annual job growth remaining robust. Source: Connect CRE

🚀 RealPage, Inc. on Metros Where Multifamily Demand Stands Out 🚀 📉 Current Market Overview: * An imbalance between multifamily demand and supply has led to increased vacancy rates and downward pressure on rents. * A notable shift in demographics and business relocations to southern and western parts of the U.S. has created a need for more housing. * Despite a surplus in some markets, multifamily absorption hit a 24-year record in Q2 2024, with 390,000 net units leased—eighth highest annual figure since 2000. 📈 Key Insights: * Vacancy Trends: Multifamily vacancies dropped by 10 basis points due to high absorption levels. * Top Markets for Absorption: A few metros are leading the way, showing exceptional demand amidst the broader trend. 🌟 Top 10 Performing Metros: * Dallas-Plano-Irving, TX 🌟 * Austin-Round Rock, TX 🌟 * Phoenix-Mesa-Scottsdale, AZ 🌟 * Houston-The Woodlands-Sugar Land, TX 🌟 * New York-White Plains, NY 🌟 * Atlanta-Sandy Springs-Roswell, GA 🌟 * Denver-Aurora-Lakewood, CO 🌟 * Nashville-Davidson-Murfreesboro-Franklin, TN 🌟 * Washington-Arlington-Alexandria, DC–MD-VA 🌟 * Seattle-Bellevue-Everett, WA 🌟 🔍 Market Performance: * From April to June, net absorption reached 161,700 units, with the top 10 markets accounting for 37.8% of this total. 🏢 * These markets also led in apartment unit deliveries over the last 18 months. 🏘️ Why This Matters: * Despite excess supply, areas with high population growth and business expansion are experiencing robust demand. * Developers are responding to these trends, with a natural lag between construction and occupancy. 💡 Conclusion: The current landscape shows how strategic development in high-growth areas can lead to significant absorption and reduced vacancies. Keep an eye on these top markets for future opportunities! https://lnkd.in/g-BXMZFq

News from Portland’s Multifamily Market! 🚀 • The greater Portland multifamily market is on the rise, with renters absorbing more than 1,300 units in Q1 2024, the highest Q1 absorption figure since 2021. • Despite new supply slightly outpacing demand, the market is expected to re-absorb the existing vacancies and new supply, leading to a return of rent growth and occupancy rates near the 95% benchmark. • Multifamily investment activity experienced a bump in Q1 2024. Sales volume recorded by quarter end surpassed the $250 million mark, a 51% year-on-year increase. The average price per unit jumped 15% when compared to the same period a year prior to $270,560. • The development pipeline continues to trend downward with 8,250 units under construction, representing just 3.5% of the existing inventory. This could protect the market from supply-side shocks. And let’s not forget about the newly redone airport, which is sure to attract even more residents and investors to our vibrant city!

📉 Multifamily Vacancy Update 📈 The multifamily vacancy rate dropped to 5.3% in Q3, close to its long-term average of 5%, per a CBRE report. Although new supply has slowed rent growth, the Midwest led with a 2.7% increase. Notably, Providence and New York have the lowest vacancies at 2.7% and 3%, respectively. Demand remains robust, with net absorption near record highs, especially in New York, Washington D.C., and Houston. This trend highlights the sector’s resilience amid shifts in supply and demand. #CRE #Multifamily #RealEstate https://lnkd.in/e-v47YKf

What other industry in America puts its primary revenue drivers in the lowest-paid, entry-level positions? Other than multifamily I mean... It’s wild that this is still happening in multifamily, a $4.6 trillion dollar industry in the U.S alone. You’ve got leasing associates—often brand new to the industry—on the front lines, responsible for driving revenue and occupancy. The people interacting with your prospects and customers the most have the least amount of experience. Yet, they’re handed minimal training and left to figure it out...all while often being the lowest paid on the job. And we wonder why conversion rates are low... It’s time to rethink how you value the onsite talent directly impacting the bottom line. 👉 Talent drives revenue. 👉 Revenue drives growth. Everyone loves to say, "We're a people business" or "We're people-first!" and then their site teams all expire after one year on the job after working every weekend, getting virtually no training beyond the first day, and being at the bottom of the totem pole. We've got a different approach to this problem, and to learn more about it give Real Wins 14: Multifamily Mistake: Entry-Level PM Positions a listen. Chris Arnold | Michael DiMella

Multifamily Real Estate Market in Greenville The multifamily real estate market in Greenville is experiencing steady growth 📈. With a 30% increase in inventory since 2015, the city has maintained a strong demand for rental properties, keeping the vacancy rate at a low 5.7% 📉. Rent prices have increased by 13.6% year-over-year, yet they remain below national averages, attracting both renters and investors alike. National investors are particularly drawn to Greenville’s multifamily sector due to its affordability 💰 and high potential for returns 📊. With downtown revitalization and a growing job market, now is the time to explore multifamily real estate opportunities in Greenville. #MultifamilyRealEstate #RentalMarket #GreenvilleSC #SPARKInvestmentGroup #InvestmentOpportunities https://lnkd.in/g6taqsux

Exciting news for San Francisco's multifamily market! 🌆 Despite some lingering challenges, like vacancies above the long-term average and rents not fully rebounding yet, recent trends are pointing in the right direction, according to experts. Chen, a leading voice in real estate, notes that the allure of coastal and urban living remains strong. 💼 Meanwhile, David Diggs, Managing Director at JPMorgan Chase, sees stability and strength in most parts of the city and peninsula. New construction, especially in the South of Market area, is boosting vacancy rates slightly. However, this might put a damper on rent growth, projected to rise by 1.5% this year after a 2.2% dip in 2023, according to Moody's. Interestingly, luxury apartments seem less affected than more affordable units. Chen highlights the steady income growth in higher-earning households, driving demand in this segment. Yet, affordability remains a concern, especially for moderate- to low-income households. Slower rent growth, coupled with inflation and rising costs, poses challenges for property owners. Despite these hurdles, the Bay Area's job market is resilient, with overall growth observed, despite some tech layoffs in 2023. 📈 #SanFranciscoRealEstate #MultifamilyMarket #UrbanLiving #AffordableHousing #JobGrowth #investnow #pacwestscre #berkshirehathaway #globalrealestate #coast2coastliving #

Apartment rents are on the rise! Yardi Matrix's recent report highlights increases in multifamily asking rents, especially in midsize cities across the Northeast and South. Discover how these trends reflect the evolving rental market.

📊 Market Insights: Multifamily Trends in the Twin Cities The multifamily market is undergoing a notable shift! After years of rapid lease-ups, we’re now seeing a more gradual absorption of new deliveries. This change comes as the market responds to a surge in supply—over 46,000 units added since Q1 2020—fueled by pandemic-era low interest rates. While this influx temporarily raised vacancy rates, there’s a silver lining. With the recent slowdown in development due to rising interest rates, existing properties are gaining traction! The Twin Cities have experienced a significant drop in the average vacancy rate, decreasing by 130 basis points in just six months, from 8.6% to 7.3%.

Interestingly enough, Miami has become a hotspot for multifamily real estate investment! 🏢 According to the latest report by MMG Equity Partners, a trend of increasing multifamily rental rates and occupancy levels indicate a robust market in Miami. Some of the key factors driving this surge include Miami's continue population growth, low unemployment rates, and strong economic fundamentals. 📈🏖 But it's not just about the numbers - people are catching the Miami wave. As the saying goes, "there's no smoke without fire!" The shift in the multicultural and multilingual environment has attracted a diverse workforce, making Miami a top choice for both domestic and international investors. 🌎💸 So, why not ride the wave? If you're an investor or simply someone who has been contemplating about diving into real estate - this might just be the right time for you. A melting pot of opportunities is simmering right in the heart of Miami. Do you want to be a part of it? Let's chat more about this exciting opportunity. 🙌 #MiamiRealEstate #MultifamilyInvestment #EconomicGrowth