Price growth for single family homes is weakening and could slow further through the end of the year, but underlying drivers of housing demand point to stronger growth in 2025. In the apartment market, rent growth in 2024 has followed a similar trajectory as 2023, but as new apartment supply is expected to decline through 2025 and into 2026, continued growth among the renter population will bring stronger performance for apartment assets at the same time as (expected) lower interest rates should fuel more sales activity for multifamily properties. The apartment market may be cooler in late 2024, but investors are ready for a much hotter market in 2025.
Sources discussed in this episode:
CoreLogic: “U.S. Home Price Growth Reaches Lowest Level in a Year in August” - https://www.corelogic.com/intelligence/us-home-price-insights-october-2024/
Marcus & Millichap: “Homebuying Out of Reach for Many Households Despite Lower Debt Costs” - https://www.marcusmillichap.com/research/research-brief/2024/09/research-brief-september-housing
Goldman Sachs: “US house prices are forecast to rise more than 4% next year” - https://www.goldmansachs.com/insights/articles/us-house-prices-are-forecast-to-rise-more-than-4-percent-next-year
Colliers: “National Migration Trends” - https://www.colliers.com/en/research/nrep-us-national-migration-trends-report
Moody’s Analytics: “Q3 2024 CRE Preliminary Trends: Positive macroeconomic developments [and] relative stability across most sectors” - https://cre.moodysanalytics.com/insights/cre-trends/q3-2024-preliminary-trend-announcement/
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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.
