Rogers Capital July Market Watch??

Hey there - welcome to the latest edition of our monthly real estate industry breakdown

Let’s dive into it - what’s been happening in the real estate world, and what’s the latest w/ STRs….

Rent-to-Income Ratios Keep Dropping

Apartment rent-to-income ratios fell to 22.7% in June, continuing their steady decline since October 2023. The drop is linked to the slowdown in rent growth nationwide.

Midwest cities are seeing the lowest ratios, while some California markets have the highest. Average monthly incomes on new leases hit nearly $8,800 in June, or about $105,000 per year. Renters are finding more affordable options, especially in the Midwest.

Recession Risk Drops, But Economic Concerns Persist

A survey by the National Association of Business Economics shows a significant drop in recession risk over the next 12 months. Only 7% of respondents see a 0%-10% chance, while 50% predict a 26%-50% chance.

Inflation and the upcoming presidential election are major concerns, affecting staffing and investment decisions. Despite rising prices for 57% of firms in Q2 2024, sales growth lags, with only 47% reporting higher sales. Skilled labor shortages remain a challenge.

Though the survey isn't statistically representative, it highlights key economic trends and challenges.

Multifamily Absorption Hits Record High Since 2000

Demand for multifamily units surged in Q2 2024, with 138,000 units absorbed, marking the strongest quarter since 2000, per Cushman & Wakefield. Year-to-date absorption is nearly 230,000 units, close to the 253,000 units absorbed in all of 2023.

Vacancy rates dropped to their lowest since mid-2021, now at 8.6%. The Midwest and Northeast lead in annual rent growth, while the Sunbelt and West saw slight increases. Rent growth remains modest at 1.7% annually.

Despite 695,000 units still under construction, new starts have sharply declined, affecting future supply. Cushman expects market fundamentals to recover by 2025-2026.

Checking out STR Investing, The Podcast!

A great listen for anyone who wants to learn about STRs.

Created and hosted by two of our leadership team members, episodes feature professional perspectives on developing and operating a rental as an investment. Here are two episodes that have already gone live:

Transforming Airbnb Expenses Into Revenue Streams

Unlocking Revenue Potential: A Deep Dive into STR Investing Strategies

Listeners can gain insight into the extensive work involved in running and scaling an STR business, understanding the expertise needed to succeed. Each episode offers tips for those who may want to develop their own and illustrates the detailed process of creating successful rentals, showing how much our fund handles on behalf of passive investors.

Secure Your Spot in Our STR Fund

If you’re looking to grow your passive income through a newer real estate asset class, now is the time to act. Our short-term rental (STR) fund offers a unique opportunity for robust returns.

Here’s a Couple of Noteworthy Highlights:

• Our open portfolio, the one you can invest into, has already acquired 63+ properties with $38,000,000 to date
• 50 of the 63 properties are already live as rentals, producing cash flow for investors. You’ll be joining during the ramping phase, with some properties entering their stabilization phase this summer.
• $4.8M distributed in cash flow to investors across portfolios as of Q1 2024
• For the past 6 months, from December to June, our operator has consistently generated over $1,000,000 in revenue each month thanks to the high performance of live properties across portfolios.

Interested in joining us? Let’s connect! This is your chance to invest in a high-growth asset class with proven returns.

Book a Call

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Download Concise Investment Summary

Reserve Your Spot - Short-Term Rental Fund 2