FACTORS CHANGING THE MULTI- FAMILY RENTAL LANDSCAPE: SUPPLY, DEMOGRAPHICS, AND TECHNOLOGY
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The multifamily rental market is evolving with changing tenant demographics, technological advancements, and changing work dynamics, not to mention that a ton of new construction is about to wrap up. This shift presents new opportunities for property managers to leverage the demographic data and today’s innovative technologies to enhance their operations, increase foot traffic, and improve tenant retention. THE IMPACT OF NEW APARTMENT SUPPLY ON THE RENTAL MARKET A record number of multifamily units are set to hit the market this year. In 2022, building permits were issued for 707,000 multifamily units, the highest number since 1985. Projects initiated two years ago are now reaching completion. As a result, 2023 saw the most apartments enter the market since 1987. And 2024 is on track to surpass those numbers. Several factors are driving this increase in The surge in new apartment supply is already having a noticeable impact on rent prices and vacancy rates, which demonstrates the economic relationship between supply and prices. For investors and developers, these trends highlight the importance of carefully considering local market conditions.
A RECORD NUMBER OF MULTIFAMILY UNITS ARE SET TO HIT THE MARKET THIS YEAR.
construction. Low interest rates in the early 2020s made financing more accessible for developers, while strong rental demand and rising rents incentivized new projects.
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