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. 

In This Episode We Cover
Fannie Mae’s 2024, 2025, and 2026 rent growth forecast for multifamily 
A “tale of two markets” and why the “oversupply” narrative isn’t the whole story 
Property classes and why B/C-class properties are seeing such strong demand 
The one metric that points to a growing or shrinking multifamily real estate market 
Why so many millennials are “stuck” as renters and can’t become homeowners 
How rising rents could affect multifamily prices and boost valuations across the country 
And So Much More!

Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-905
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