Tag: pbsa

Positive momentum is building across the national multifamily landscape. Decades-high inflation shook the financial confidence of many households in 2022, leading to a freeze in formations. The net absorption of rentals returned to positive territory last year, however, accelerating each quarter, and the positive momentum is set to continue this year as inflation tapers. Tight housing market underscores need for rentals. The cost to buy a condo or a single-family home today has skyrocketed, due to both elevated mortgage rates and stubbornly-high sale prices. The typical mortgage payment on a median-priced home now exceeds the average Class A apartment rent by over $800, a record. Fewer renters will transition to homeownership this year, which will further grow the renter pool amid new household formation. The nation still faces a long-term shortage of housing, warranting the magnitude of the current multifamily pipeline, if not the condensed timeline.

International real estate investment manager Savills Investment Management (Savills IM) has announced its global outlook for real estate investment markets in 2024, highlighting several key sectors it believes offer rewarding opportunities for informed investors. Although higher inflation and bond yields provide a challenging backdrop for the sector in 2024, Savills IM believes that real estate will continue to provide highly attractive value creation opportunities for investors through compelling yields, capital protection or capital growth.