905: Fannie Mae: Multifamily Is STILL Undersupplied, Rent Growth Likely w/Kim Betancourt

Fannie Mae is predicting a serious change in the multifamily real estate market. Ever since interest rates began to rise, multifamily has been on a downward spiral. Higher rates made profits fall, and as a result, buying and improving multifamily properties halted. And, with a massive lag in multifamily construction, new units were popping up left and right in already saturated markets, creating a race to the bottom for rent prices as multifamily operators struggled to keep their units occupied. But, the multifamily woes may be close to over. Kim Betancourt, Vice President of Multifamily Economics and Strategic Research at Fannie Mae, joins us to share the findings of a recent multifamily report. Kim knows that there are oversupplied multifamily markets across the country. Cities like Austin have become the poster child for what oversupply can do to home and rent prices. However, Kim argues that this is only a fraction of the overall housing market, and most markets are in dire need of multifamily housing. So, if much of America is still struggling with having enough housing supply, shouldn’t rents be on an upward trend? Kim shares her team's findings and rent forecasts, explaining when rents could begin to climb, which multifamily properties will experience the most demand, and why we need MORE multifamily housing, not less.

Episode 905 of the BiggerPockets Real Estate Podcast podcast, hosted by BiggerPockets, titled "905: Fannie Mae: Multifamily Is STILL Undersupplied, Rent Growth Likely w/Kim Betancourt" was published on March 1, 2024 and runs 31 minutes.

March 1, 2024 ·31m · BiggerPockets Real Estate Podcast

Summary

On a national level, Fannie Mae is predicting the multifamily market to remain subdued in 2024. Ever since interest rates began to rise, multifamily transactions have slowed considerably. Higher rates made profits fall, and as a result, buying and improving multifamily properties halted. And, with a massive lag in multifamily construction, new units were popping up left and right in already saturated markets, creating a race to the bottom for rent prices as multifamily operators struggled to keep their units occupied. But, the multifamily woes may be close to over. Kim Betancourt, Vice President of Multifamily Economics and Strategic Research at Fannie Mae, joins us to share the findings of a recent multifamily report. Kim knows that there are oversupplied multifamily markets across the country. Cities like Austin have become the poster child for what oversupply can do to home and rent prices. However, Kim argues that this is only a fraction of the overall housing market, and many markets are in need of more multifamily housing. So, if much of America is still struggling with having enough housing supply, shouldn’t rents be on an upward trend? Kim shares her team's findings and rent forecasts, explaining when rents could begin to climb, which multifamily properties will experience the most demand, and why we need MORE multifamily housing, not less. In This Episode We Cover: Fannie Mae’s 2024, 2025, and 2026 rent growth forecast for multifamily A “tale of two markets” and why the “oversupply” narrative isn’t the whole story Property classes and why B/C-class properties are seeing such strong demand The one metric that points to a growing or shrinking multifamily real estate market  Why so many millennials are “stuck” as renters and can’t become homeowners How rising rents could affect multifamily prices and boost valuations across the country And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast BiggerPockets Merch Join BiggerPockets for FREE Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area Expand Your Investing Knowledge With the BiggerPockets Books Be a Guest on the BiggerPockets Podcast Dave's BiggerPockets Profile Dave's Instagram Henry's BiggerPockets Profile Henry's Instagram BiggerPockets' Instagram Want More Up-to-Date Housing Market News? Check Out the “On the Market” Podcast Multifamily Is at High Risk of Continuing Its Historic Crash in 2024—Here’s Why These 10 Markets Are Building the Most Multifamily Housing—How Can Investors Take Advantage? Fannie Mae’s Insights and Reports: All Research January 2024 Multifamily Market Commentary February 2024 Multifamily Market Commentary February 2024 Economic and Housing Forecast Connect with Kim: Kim's LinkedIn Kim's Profile - Fannie Mae Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-905 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Episode Description