ilmscore | Prediction Details
"I do think that uh this trend of softening rent is probably around for a little while longer in those cities because...we're still going to have a lot of new supply for the rest of this year and like maybe a a little bit into 20125 and then it's going to start to slow down and so do I think the trend will continue yes probably for the next couple of months in those specific markets again but I do think this is generally a temporary thing because as you've probably heard there is a lack of housing in the United States and in my mind the reason that we're just seeing an over Supply is is more of a timing thing a short-term timing thing than it is this big macro uh issue because demographics show us that there is going to be demand for housing and we do need these units the problem is like everyone's not moving at the same time and so if you have a market like Denver I'm just going to make up the numbers but like let's just say there's 4,000 people who need a new apartment every month in Denver and we just so happen because the way building Works getting 10 ,000 units that particular month those 10,000 units are going to have to fight and compete for the 4,000 renters and they compete by lowering prices and so we're sort of in this prolonged you know that's just a small example but we're in a period where we're having that happen over a prolonged period of time but eventually in my opinion these units are going to be absorbed because we just need more housing in the United States"
By BiggerPockets | July 12, 2024 | Pending
From video
Could This Trigger Mortgage Rate Cuts & Why is Everyone Moving HERE? 00:15:25 - 00:17:22
Interpreted Prediction
Softening multi-family rents in specific oversupplied cities will persist for the remainder of 2024 and possibly into early 2025 due to continued new supply, but this trend is temporary and these units will eventually be absorbed by underlying housing demand in the U.S.

Prediction Details

Topic
Multi-Family Rents

Comments

Be the first to share your thoughts.

Like this prediction?

Join to make your opinion count.