Fannie Mae: Multifamily Is STILL Undersupplied, Rent Growth Incoming

Fannie Mae is predicting a serious change in the multifamily real estate market. Ever since interest rates began to rise, multifamily has been on a downward spiral. Higher rates made profits fall, and as a result, buying and improving multifamily properties halted. And, with a massive lag in multifamily construction, new units were popping up left and right in already saturated markets, creating a race to the bottom for rent prices as multifamily operators struggled to keep their units occupied. But, the multifamily woes may be close to over.

Kim Betancourt, Vice President of Multifamily Economics and Strategic Research at Fannie Mae, joins us to share the findings of a recent multifamily report. Kim knows that there are oversupplied multifamily markets across the country. Cities like Austin have become the poster child for what oversupply can do to home and rent prices. However, Kim argues that this is only a fraction of the overall housing market, and most markets are in dire need of multifamily housing.

So, if much of America is still struggling with having enough housing supply, shouldn’t rents be on an upward trend? Kim shares her team's findings and rent forecasts, explaining when rents could begin to climb, which multifamily properties will experience the most demand, and why we need MORE multifamily housing, not less.

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Multifamily Is at High Risk of Continuing Its Historic Crash in 2024—Here’s Why:
https://www.biggerpockets.com/blog/multifamily-crash-to-continue-through-2024?utm_source=youtube&utm_medium=description&utm_campaign=none
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These 10 Markets Are Building the Most Multifamily Housing—How Can Investors Take Advantage?
https://www.biggerpockets.com/blog/housing-markets-building-the-most-multifamily-housing?utm_source=youtube&utm_medium=description&utm_campaign=none
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Fannie Mae’s Insights and Reports:
All Research: https://www.fanniemae.com/research-and-insights
January 2024 Multifamily Market Commentary: https://www.fanniemae.com/media/document/pdf/mf-market-commentary-012024
February 2024 Multifamily Market Commentary: https://www.fanniemae.com/media/document/pdf/mf-market-commentary-022024
February 2024 Economic and Housing Forecast: https://www.fanniemae.com/newsroom/fannie-mae-news/housing-activity-expected-pick-2024-rates-move-lower
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Show notes at: https://link.chtbl.com/BPRE


00:00 Intro

02:02 Multifamily Rents Go Negative

05:20 1M More Units Incoming

10:37 Renters Are Stuck

16:20 Fannie Mae's 2024/2025 Rent Forecast

19:02 Affordability Still Struggles

22:02 We Need MORE Multifamily?

23:59 Multifamily Values Could Jump