Tipping Point for the Apartment Market? episode artwork

EPISODE · Oct 13, 2024 · 1H 12M

Tipping Point for the Apartment Market?

from The Gray Report Podcast · host Spencer Gray

Commercial real estate investment activity has not changed much since last month's interest rate reduction from the Federal Reserve (nor has it had much time to adjust), but sales volumes will almost certainly improve in 2025, given the strong investment prospects for CRE assets at the start of a rate cutting cycle. For multifamily apartments, unambiguous signs of strong demand point to improved performance in the medium-to-long-term, but in the shorter term, elevated levels of apartment supply and typical seasonal demand trends could mean that rent growth continues to trend lower until Spring of next year. Sources discussed in this episode: "As is often the case, we are navigating by the stars under cloudy skies," from "Inflation: Progress and the Path Ahead," Jerome Powell, Aug. 2023 Bureau of Labor Statistics: “Consumer Price Index, September 2024” - https://www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category.htm# CBRE: “What Could Be in Store for Commercial Real Estate” - https://www.cbre.com/insights/briefs/cotw-what-could-be-in-store-for-commercial-real-estate RealPage: “Strong Apartment Demand Persists in 3rd Quarter as Supply Hits 50-Year High” - https://www.realpage.com/analytics/3q-2024-data-update/ Apartment List: “National Rent Report, September 2024” - https://www.apartmentlist.com/research/national-rent-data Yardi Matrix: National Multifamily Report, September 2024 - https://www.yardimatrix.com/publications/download/file/6228-MatrixMultifamilyNationalReport-September2024 Fannie Mae: “September 2024 Home Purchase Sentiment Index” - https://www.fanniemae.com/media/53371/display For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

Commercial real estate investment activity has not changed much since last month's interest rate reduction from the Federal Reserve (nor has it had much time to adjust), but sales volumes will almost certainly improve in 2025, given the strong investment prospects for CRE assets at the start of a rate cutting cycle. For multifamily apartments, unambiguous signs of strong demand point to improved performance in the medium-to-long-term, but in the shorter term, elevated levels of apartment supply and typical seasonal demand trends could mean that rent growth continues to trend lower until Spring of next year. Sources discussed in this episode: "As is often the case, we are navigating by the stars under cloudy skies," from "Inflation: Progress and the Path Ahead," Jerome Powell, Aug. 2023 Bureau of Labor Statistics: “Consumer Price Index, September 2024” - https://www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category.htm# CBRE: “What Could Be in Store for Commercial Real Estate” - https://www.cbre.com/insights/briefs/cotw-what-could-be-in-store-for-commercial-real-estate RealPage: “Strong Apartment Demand Persists in 3rd Quarter as Supply Hits 50-Year High” - https://www.realpage.com/analytics/3q-2024-data-update/ Apartment List: “National Rent Report, September 2024” - https://www.apartmentlist.com/research/national-rent-data Yardi Matrix: National Multifamily Report, September 2024 - https://www.yardimatrix.com/publications/download/file/6228-MatrixMultifamilyNationalReport-September2024 Fannie Mae: “September 2024 Home Purchase Sentiment Index” - https://www.fanniemae.com/media/53371/display For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

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Tipping Point for the Apartment Market?

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Commercial real estate investment activity has not changed much since last month's interest rate reduction from the Federal Reserve (nor has it had much time to adjust), but sales volumes will almost certainly improve in 2025, given the strong...

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