In 2023, the U.S. multifamily market has seen a significant upswing in renter demand, especially for mid-priced apartments rated three stars. This shift marks a recovery from a sluggish performance in the latter half of 2022.
For renters who’ve felt the sting of rapidly increasing costs, there’s a sigh of relief on the horizon. The rapid inflation of rent prices, which has been a pressing concern for many in recent years, is showing signs of stabilization.
Investors are flocking to student housing as its rent growth outpaces traditional multifamily properties, lured by its resilience during economic downturns and higher-than-average returns.
More than half of the country’s 100 largest cities report decreasing rents. Significant drops are seen in “zoom towns” like Arizona, Nevada, Idaho, with Oakland, California, noting an 8.7% decline. Meanwhile, Midwest and New England cities, such as Chicago and Boston, show modest recent rent growth compared to prior years.
The CRE industry is navigating challenging waters with higher interest rates, limited financing options, and a slowing economy. Yet, promising developments (“green shoots”) suggest potential growth opportunities.
The multifamily sector deviates from these patterns. Due to its short lease structures, this sector is more responsive to economic changes. In the last downturn, transaction volume slowdown and price declines in multifamily occurred simultaneously, with prices stabilizing much faster than in other sectors.
As 2024 nears, the rental housing market grapples with challenges and opportunities in a fluctuating economic landscape, shaped by inflation and rising costs. Here are 5 key trends expected to influence the sector in the coming year.
Join eXp Commercial’s Cost Segregation Partner CSSI for a comprehensive exploration of the intricate world of cost segregation and gain valuable insights to demystify the application of Tangible Property Regulations, resulting in significant reductions in your taxable income.
Multifamily real estate can benefit first-time and experienced commercial real estate investors. Scaling up a real estate portfolio is much simpler with multifamily buildings thanks to their multiple units or “doors.”
Navigating the multifamily property sales landscape can be a complex endeavor, requiring careful planning, strategic execution, and expert guidance. To ensure a seamless and profitable sale, thorough preparation is essential. This comprehensive guide outlines the key steps involved in preparing your multifamily property for sale, empowering you to achieve its full market value.
eXp World Holdings, Inc. (Nasdaq: EXPI), the holding company for eXp Realty®, Virbela and SUCCESS® Enterprises, today announced it ranked No. 350 on the Deloitte Technology Fast 500™, citing its 369% revenue growth over last year.
eXp Commercial, the fastest-growing national commercial real estate brokerage firm, announced the sale of a 12-unit multifamily property located at 557-559 Ashland Ave. in Aurora, IL, for $1,395,000. The property was exclusively listed and sold by Randolph Taylor, CCIM Senior Associate and Commercial Real Estate Broker with the eXp Commercial Chicago office. Randolph can be contacted at [email protected] | (630) 474-6441
In a slower market environment where every transaction counts, eXp’s agents in the U.S. significantly outperformed the market during the third quarter. This outstanding performance speaks to the differentiated nature of eXp’s platform and the power of our unique, success-oriented culture.
The passage of the Tax Cuts and Jobs Act (TCJA) in 2017 significantly changed the rules for bonus depreciation by allowing businesses to immediately write off 100% of the cost of eligible property acquired and placed in service after September 27, 2017
Just Sold: 18.504 SF Net Leased Industrial Property Akhan Semiconductor in Gurnee, IL Randolph Taylor, CCIM Senior Associate and Commercial Real Estate Broker with eXp Commercial in Chicago, exclusively listed and brokered the deal. Randolph can be contacted at [email protected] or (630) 474-6441
Join us tomorrow Tuesday, November 7, at the Q4 Investor Forum, presented by eXp Commercial, where we will delve into key insights to help you make the most of your investment opportunities as we approach the end of 2023.
Although rent growth has cooled significantly over the past year, the national median rent is still 23 percent higher than it was just three years ago, and in some markets, the increase has been even more substantial.
Just Sold: 23-Unit Multifamily Property in Morrison, IL Randolph Taylor, CCIM Senior Associate and Multifamily Investment Sales Broker with the eXp Commercial Chicago office, brokered the deal and represented both the buyer and seller. Randolph can be contacted at [email protected] or (630) 474-6441
Floating rate CRE loans are a challenge when interest rates are rising, which makes sense. Unless an investor, developer, owner, or operator has planned ahead, the increasing rate tide means there is a good chance that whatever floating rate a plan has anticipated won’t be enough.
eXp Commercial is pleased to present to market Indian Creek Apartments, a fully occupied 24-unit multifamily complex on the northeast side of Aurora, Illinois, bordering affluent Naperville, Illinois, just to the east. The property is in good condition, with considerable upside in rents with modest unit updates. All units have separately metered tenant-paid water, sewer, electricity, heat, and hot water. Also offered is an attractive low-interest assumable debt of $1.453 million at a 3.32 percent interest rate not due until December 2028.
In Chicago, there is a great inventory of multifamily properties. But we still have not been able to keep up with rental demand. The higher interest rates have kept some people from buying single-family homes.
Rent growth seems likely to regain momentum as early as spring 2024, when the normal seasonal upturn in leasing velocity should coincide with obvious signs that today’s new supply excess is temporary. Price increases should then prove robust during 2025.
Dollar volume of sale leaseback deals rose 8.3% to $5.1 billion in the second quarter over the first, while the transaction count remained in line with 165 versus 173 in comparing the same two quarters
Multifamily investors are learning how to navigate a new reality. The market is returning to standard seasonal patterns, thanks largely to the strong labor market and increased household formations, which is supporting positive rent growth and stabilizing occupancy rates.
Modifications on commercial real estate-related collateralized loan obligations spiked in the second quarter to $4B as more property owners sought refuge from encroaching maturity dates and rising interest rates. That figure is a 300% increase from the first quarter
The battle between renting and owning is intuitive. If renting is significantly cheaper than owning a home, more of the population will gravitate towards renting. If homeownership is only moderately more costly than renting, people will be more inclined to pursue ownership.