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After a few months of noise, the latest market data demonstrates strong performance and a positive outlook regarding multifamily investment. Check the market insights below that support the long position of multifamily real estate:
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There was a notable surge in demand for rental units in the second quarter of 2024. Nearly 400,000 market-rate apartment units were absorbed on net in the past 12 months leading up to 2024Q2 according to RealPage. The number is the third-largest in U.S. history except the pandemic era peak (mid-2021 to mid-2022). The demand surge reflects a variety of factors including job, demographics, wage growth, pent-up demand, immigration, and consumer health.?
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A slowdown in new construction significantly limits the multifamily supply for the coming years. According to the U.S. Census Bureau, supply is coming down sharply in 2024Q1, with a 40% fall from 2022Q4 to 2024Q1. The three-month moving average for multifamily starts hits the lowest since the fall of 2013. NAHB anticipates that the apartment construction will record a significant decline in 2024, mainly because of current high inventory, elevated costs, and tight financing. Along this trend, the shortage in the supply side is likely to appear, and new construction starts are expected to bounce back in 2026 and 2027.
Now is the time to act! - Explore multifamily investments and capitalize on these market dynamics.
Learn more at https://www.aspireres.co
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Source: https://RealPage
https://www.NAHB.org