multifamily market

On a national level, Fannie Mae is predicting the multifamily market to remain subdued in 2024. Ever since interest rates began to rise, multifamily transactions have slowed considerably. Higher rates made profits fall, and as a result, buying and improving multifamily properties halted. And, with a massive lag in multifamily construction, new units were popping up left and right in already saturated markets, creating a race to the bottom for rent prices as multifamily operators struggled to keep their units occupied. But, the multifamily woes may be close to over. Kim Betancourt, Vice President of Multifamily Economics and Strategic Research at Fannie Mae, joins us to share the findings of a recent multifamily report. Kim knows that there are oversupplied multifamily markets across the country. Cities like Austin have become the poster child for what oversupply can do to home and rent prices. However, Kim argues that this is only a fraction of the overall housing market, and many markets are in need of more multifamily housing. So, if much of America is still struggling with having enough housing supply, shouldn’t rents be on an upward trend? Kim shares her team's findings and rent forecasts, explaining when rents could begin to climb, which multifamily properties will experience the most demand, and why we need MORE multifamily housing, not less. In This Episode We Cover: Fannie Mae’s 2024, 2025, and 2026 rent growth forecast for multifamily A “tale of two markets” and why the “oversupply” narrative isn’t the whole story Property classes and why B/C-class properties are seeing such strong demand The one metric that points to a growing or shrinking multifamily real estate market  Why so many millennials are “stuck” as renters and can’t become homeowners How rising rents could affect multifamily prices and boost valuations across the country And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast BiggerPockets Merch Join BiggerPockets for FREE Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area Expand Your Investing Knowledge With the BiggerPockets Books Be a Guest on the BiggerPockets Podcast Dave's BiggerPockets Profile Dave's Instagram Henry's BiggerPockets Profile Henry's Instagram BiggerPockets' Instagram Want More Up-to-Date Housing Market News? Check Out the “On the Market” Podcast Multifamily Is at High Risk of Continuing Its Historic Crash in 2024—Here’s Why These 10 Markets Are Building the Most Multifamily Housing—How Can Investors Take Advantage? Fannie Mae’s Insights and Reports: All Research January 2024 Multifamily Market Commentary February 2024 Multifamily Market Commentary February 2024 Economic and Housing Forecast Connect with Kim: Kim's LinkedIn Kim's Profile - Fannie Mae Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-905 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Multifamily real estate has crashed, but we’re not at the bottom yet. With more debt coming due, expenses rising, incomes falling, and owners feeling desperate, there’s only so much longer that these high multifamily prices can last. Over the past year, expert multifamily investors like Brian Burke and Matt Faircloth have been sitting and waiting for a worthwhile deal to pop up, but after analyzing hundreds of properties, NOTHING would work. How bad IS the multifamily market right now? Brian and Matt are back on the podcast to give their take on the multifamily real estate market. Brian sees a “day of reckoning” coming for multifamily owners as low-interest debt comes due, banks get desperate to be paid, and investors run out of patience. On the other hand, Matt is a bit more optimistic but still thinks price cuts are coming as inexperienced and overconfident investors get pushed out of the market. So, how does this information help you build wealth? In this episode, Brian and Matt share the state of the 2024 multifamily market, explain exactly what they’ve been doing to find deals, and give their strategy for THIS year that you can copy to scoop up real estate deals at a steep discount. Wealth is built in the bad markets, so don’t skip out on this one! In This Episode We Cover: The state of multifamily real estate in 2024 and how low prices could go A “day of reckoning” coming for inexperienced/overleveraged multifamily owners Whether or not we’ve reached the bottom for multifamily price drops  What rookie real estate investors should do NOW to take advantage of this down market Rising mortgage rates and how increased costs have KILLED many multifamily deals Exactly what Brian and Matt are investing in during 2024 to make money no matter how the market moves And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast BiggerPockets Merch Listen to All Your Favorite BiggerPockets Podcasts in One Place Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area Expand Your Investing Knowledge With the BiggerPockets Books Be a Guest on the BiggerPockets Podcast Dave's BiggerPockets Profile Dave's Instagram Join the BiggerPockets Virtual Summit Check Out Dave On the “On the Market” Podcast Top Multifamily Investors’ Advice for Buyers in 2023? DON’T Do It Books Mentioned in the Show Raising Private Capital by Matt Faircloth The Hands-Off Investor by Brian Burke Connect with Matt: Matt's BiggerPockets Profile Matt's Website Matt's Instagram Connect with Brian: Brian's BiggerPockets Profile Brian's Website Brian's Instagram Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-876 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices