Sponsored by

Multifamily Capital Activity to Pick Up This Year link

• The Mortgage Bankers Association (MBA) forecasts a significant increase in lending and borrowing for the multifamily sector in 2024. This year is expected to see $576 billion in loans for commercial real estate (CRE) and multifamily, marking a 29% rise from 2023.

• Multifamily is set to absorb $339 billion, a 25% increase from the previous year. This growth trend is anticipated to continue into 2025, with projections reaching $717 billion for all CRE and $404 billion specifically for multifamily lending.

• This positive shift in the multifamily sector indicates a recovery and growth phase. It reflects a broader trend of increasing investment and confidence in the multifamily and CRE sectors, signaling a robust market outlook for the coming years.

2024 U.S. Investor Intentions Survey link

• Investors in 2024 face challenges such as higher-for-longer interest rates, tight credit conditions, and differing buyer and seller expectations. Over half of the investors surveyed plan to buy more assets in 2024 than in 2023, despite less favorable pricing conditions.

• Dallas, Miami, Raleigh, Atlanta, and Nashville are top investment markets, with a preference for Sun Belt cities and high-growth secondary markets. Investors are increasingly adopting opportunistic and core-plus strategies, seeking higher yields and stable income.

• Recession fears have eased compared to last year, with over 60% of investors expecting to purchase more real estate in 2024. Despite lower property values, 40% plan to sell more assets in 2024, indicating a significant shift in investor sentiment and strategy.

Apartment Owners Report Surge In Rental Application Fraud link

• Over 70% of major apartment landlords have observed a significant increase in fraudulent rental applications in the last year. This alarming trend highlights the growing challenge in the rental market.

• According to a survey by the National Multifamily Housing Council and the National Apartment Association, 93% of the 75 owners and managers experienced fraud in the past 12 months. The rise in fake documents for securing apartments is a concerning issue for property owners.

• The estimated increase in fraudulent applications is around 40% compared to the previous year. This surge indicates a pressing need for more stringent verification processes in the rental application system.

Before we continue, a quick word from our sponsor

Ok, back to the newsletter 🙂