Joe Fairless Discusses the Future of Multi-Family Investing for 2024

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Joe Fairless says that the multifamily investment sector is a dynamic and ever-evolving landscape. As we enter 2024, there are a number of key trends that are shaping the future of this asset class. Understanding these trends can be crucial for many people who are looking into the housing market in any capacity within the next 12 months.

Continued Strong Demand

One of the most important trends impacting the multifamily sector is the continued strong demand for rental housing. This is being driven by a number of factors, including:

  • Rising home prices, which are making homeownership less affordable for many people.
  • Increasing urbanization, which is leading to more people living in cities where apartments are the primary housing option.
  • A growing population of young adults who are delaying marriage and starting families, and are more likely to rent than own.

These factors are expected to continue to support demand for multifamily housing in the years ahead. The continuous demand is one of the main factors that could lead to a gradual increase in home prices. 

Moderating Rent Growth

While demand is expected to remain strong, rent growth is likely to moderate in 2024. This is due to a number of factors, including:

  • Rising interest rates, which are making it more expensive for developers to finance new construction.
  • A potential increase in the supply of new apartments, as projects that were started in previous years come online.

Focus on Affordability

With rising costs, affordability is becoming an increasingly important concern for renters. This is leading to a growing demand for apartments at more affordable price points. The search for affordable housing options could also mean growing demand for rental properties in certain neighborhoods that had previously been stagnant.     

The Rise of PropTech

Property technology (PropTech) is having a major impact on the multifamily sector. PropTech companies are developing innovative solutions that are making it easier and more efficient to manage apartments and to connect with tenants. 

Environmental Sustainability

Investors are increasingly looking for ways to make their multifamily properties more environmentally sustainable. This is being driven by a number of factors, including:

  • The growing demand from tenants for green apartments.
  • The potential cost savings associated with energy-efficient buildings.
  • The desire to reduce the environmental impact of the real estate industry.

The multifamily investment sector is well-positioned for continued growth in 2024. Understanding these trends can be the key to making the decisions that will render positive results in the future. It’s important to keep in mind that the trends in the housing market could impact both homeowners and people who are looking to rent out new units.   

Published by: Martin De Juan


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