_{Presented by Astra Properties LLC}
Multifamily Real Estate Outlook 2024: In-Depth Analysis and Future Projections
_{By Nicholas Burrus · 01/24/24
Thanks for tuning in to today’s read! Read time for today is roughly 5 mins.}

Happy Wednesday 🌆 

Welcome back and thank you for tuning in!

As you know, 2023 was pretty volatile, to say the least!

But there's one segment that showed a consistently strong performance: multifamily housing 🤑 

And there's also no sign that it will slow down this year.

If you're thinking about investing in 2024, what are important things to watch out for?

We're here to give you our fearless forecasts -

Let's go!

Multifamily Real Estate Trends in 2024 💥 

^{2024 is shaping up to be a positive year}

Despite economic landscape shifts and inflationary periods, multifamilys showed resilience last year. 

And this year, this segment will continue its winning streak!

Cooling inflation and interest rates leads to leveling rents and a strong demand for multifamily housing 💯 

For those thinking of finally taking the plunge and investing in multifamily real estate, you need to pay attention - this year could be a great one for you!

Here are our fearless forecasts: 

Increasing rental rates and a strong demand for multifamily 🤑 

The combination of high mortgage rates and tight home inventories means low to moderate-income households will skip buying a house and continue to rent in 2024. 

Rental rates will continue their gradual increase this year thanks to a stable labor market and demand for housing.

According to experts, rental rates could rise from 3% to 4% this year.

And with a strong demand comes high occupancy rates!

Occupancy rates reached 94.5% in the third quarter of 2023, and this trend will continue in 2024. 

A moderate increase in rental rates

2024 is all about stabilization - at least in the multifamily housing segment!

According to Zillow, rent growth will see a moderate increase this year, continuing its positive growth that started in October last year when the rent rate grew by 1.5% to 2%. 

The increase in 2024 will be modest, about 1% and 2%, but it's significant after months of intense fluctuations.

New properties may heighten competition, but construction in 2023 fell 58.6% year-over-year, so economists aren't anticipating a drop in rent growth.

Societal shift to long-term rentals

Many households are holding on to their rental spaces instead of buying a house. 

Rising mortgage rates and a shifting perspective from traditional inclinations to homeownership lead to a growing demand for long-term rentals.

In short, many residents prefer to rent - not because they can't afford to buy a house, but because long-term rentals are more practical and fit their lifestyle. 

Of course, this puts a little pressure on landlords.

Because more people now prefer extended rental periods, renters will demand more from their rental spaces. Operators and landlords should satisfy these demands to maintain 100% occupancy. 

The single-family rental is the market to watch out for 👏 

We're seeing a demand for single-family rental spaces - a market that bridges the gap between apartment living and home ownership.

Single-family rental communities are perfect for young families looking for centrally located rental communities because there are lots of green spaces, parks, and recreational spaces for their kids and pets. 

Rental communities near schools, shopping districts, and parks will be in high demand this year. There might even be a waitlist if you own one of these rental spaces.

The South will be big this year

Suburban areas in the South are expected to surge, with Texas leading the pack. In fact, four cities in Texas - Houston, San Antonio, Dallas, and Austin - are fast becoming popular among rental residents.

Tennessee, Georgia, North, and South Carolina are not far behind! Cities from these estates are expected to gain consistent growth this year. 

Rental properties are popping up to keep with the demand, particularly in Atlanta and Charlotte, but still, tenants remain plenty. Rent increased by 5.4% in some cities, particularly Atlanta. 

💫 What Else is Poppin? 💫 

Motorola is Back with Bigger Plans and Higher Ambitions

^{Two words: Motorola Razr}

Motorola, a handset company that once ruled the mobile phone market, is back with its Chinese owners, and they're planning to make a huge comeback!

Matthew Zielinski, the executive vice-president for Lenovo, is confident that they can, once again, captivate their audience just like they did back in the '00s with the Motorola Razr.

"I would bet a paycheck that in three years we will be number three around the world," Zielinski declared at the World Economic Forum in Davos.

In 2011, Google acquired Motorola for a cool $12.5 billion and was later sold to Lenovo for just $2.9 billion 😮 

Crazy, right? 

The company plans to join rivals Apple and Samsung in the running for the world's best smartphone makers. 

Can they do it?

Currently, Apple and Samsung commands 20.1% and 19.4% of the market share, respectively. Trailing behind are Oppo, Xiaomi, and Vivo, all Chinese handset brands.

Motorola is nowhere near the top 5 but has been doing pretty well in Latin America. 

Motorola's market share peaked in 2006, a year before Steve Jobs introduced the first iPhone. Since then, the company has lost out to Apple and its rival, the South Korean smartphone brand Samsung. 

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