Taking a cue from sturdy native revenue progress, Richmond, Va., and San Jose, Calif., are forecast to be the rent-growth leaders in 2024, each rising by 4%, in accordance with a new report from RealPage.
Such native prosperity usually drives the steeper rental value will increase, in accordance with Arben Skivjani, a Deputy Chief Economist and Director of Forecasting for RealPage.
Shut behind these two are West Palm Seashore (3.9%) and Anaheim, Pittsburgh, and San Francisco, every above 3.4%. Columbus, Riverside, Baltimore, and Philadelphia are anticipated to rise by 3.2%.
“The financial system is continually altering, affecting the housing business in some ways,” Skivjani mentioned within the report. “Whereas inflation has not too long ago decreased, it stays worrying as shoppers, buyers and the Federal Reserve try to regulate rising costs – which has confirmed to be a really troublesome job.
In the meantime, the job market seems regular, and shoppers have been pretty resilient. Nonetheless, these exterior forces affect key indicators throughout multifamily housing markets.
Dallas, Phoenix, and Austin (in that order) high RealPage’s market lists for highest demand and most provide.
In Dallas, practically 38,000 items are underway – simply exceeding the 33,362 in second-place Phoenix. Different high development markets embrace Austin, Denver, Charlotte, and Los Angeles, every with over 20,000 new leases delivering in 2024.
Finishing RealPage’s high 10 are Atlanta, Houston and Raleigh/Durham, which is able to every obtain greater than 20,000 new items subsequent 12 months.
For demand, Dallas, Phoenix, and Austin once more rank extremely for attracting residents and jobs, permitting condo demand to stay robust by 2024.
“Our most up-to-date forecast mannequin exhibits Dallas absorbing virtually 37,000 items, whereas fast-growing markets like Charlotte, New York and Denver will even see robust multifamily demand,” Skivjani mentioned.
“With populations and jobs nonetheless rising in lots of of those market, tight situations will possible proceed.”
Newark, New York Metropolis, Boston, and Riverside are anticipated to keep up the strongest occupancy, all exceeding 96%.
“Unsurprisingly, these markets all have restricted housing provide and dense populations, permitting the property operators to fill items,” Skivjani mentioned.
RealPage additionally expects occupancy charges over 96% in Los Angeles, San Diego, and Anaheim.
