MORE EXPENSES & TENANT-FRIENDLY LAWS
We are optimistic about 2024 and see this as a year of recovery and achieving equilibrium. We are encouraged by stabilizing rates and the confidence that they will bring to the market. Inventory concerns remain, but we expect to see improvement there as sellers who have been on the sidelines begin to list their properties. Higher FHA loan limits and attractive lending options for owner-occupied multifamily will continue to breathe life into the market and fuel demand for new construction residential buildings. HIGHER FHA LOAN LIMITS WILL HELP
The multifamily rental market remained strong in our area, but real estate sales definitely softened over the last year. High interest, higher prices and low inventory don’t appear to be improving soon! Add the anticipated economic turbulence that could occur in the upcoming election year, and perhaps the safe play in 2024, is to tighten up the current portfolio rather than grow. That being said, real estate is king and never pass up an opportunity if one presents itself! INVESTORS WILL PLAY IT SAFE
I have 5 key predictions for the rental industry this year: 1. Operating expenses will continue to outpace rent growth. 2. Vacancy will rise in new construction residential properties. 3. Borrowing costs will decrease modestly (100 basis points) by the end of the year. 4. Transaction volumes will increase from 2023 lows but not to the level of 2022. 5. Regulation will increase against housing providers making Los Angeles even more tenant friendly.
THE SAFE PLAY IS TO TIGHTEN UP THE CURRENT PORTFOLIO RATHER THAN GROW.
REGULATION WILL INCREASE AGAINST HOUSING PROVIDERS.
WE ARE ENCOURAGED BY STABILIZING RATES.
Staci Slattery & Karen Biazar Founders Biazar Group Connect with Them
David Evans Senior Associate Kidder Mathews Connect with David
Norm Spivey Real Estate Investor Author of Collect Rent, Don’t Pay It! Connect with Norm
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