"Early in 2024, inflation pressures have significantly eased, providing a solid footing for the Fed to begin interest rate cuts," said
The new supply in the multi-suite residential rental market is expected to outpace demand for an eighth consecutive year in 2024. Approximately 450,000 new rental units are anticipated to enter the rental property inventory, continuing the peak phase of the construction cycle. Consequently, rent growth will be relatively modest in 2024 with the Midwest and Northeast regions expected to outperform.
Investment property transactions will remain below the most recent peak level through to the midway point of 2024, given the elevated cost of debt capital and heightened investment risk and economic uncertainty. Nevertheless, properties across the country have and will continue to sell with institutional groups focusing on acquiring stabilized, high-quality assets. Notably, private capital groups will remain relatively active, despite the high cost of debt capital and elevated sector risk.
The
Private Consumer Expenditure (PCE) growth is forecast to stabilize over the near term, driven by rising real disposable income levels and an increase in funds available to
Washington-Arlington Alexandria Metropolitan Statistical Area (WAA MSA)
The multi-suite residential rental market is forecast to be stabilized in the near term with robust construction activity and modest rent growth. The WAA MSA economy will see modest growth, driven by tourism, recreation, and government sectors over the near to medium term.
Raleigh Metropolitan Statistical Area (Raleigh MSA)
A surge in multi-suite residential rental property inventory is anticipated, resulting in a moderation of rent growth. Economic growth in the Raleigh MSA will moderate, led by the computer systems design, miscellaneous professional and technical services, and construction sectors.
A stronger trend in capital flow is anticipated to emerge in the second half of 2024 in the multi-suite residential rental investment property market, driven by lower costs of debt capital. New supply deliveries will continue at a brisk pace in the ASSR MSA multi-suite rental market in the near term, resulting in stabilized market rents.
Palm Beach Metropolitan Statistical Area (PB MSA)
Chicago-Naperville Elgin Metropolitan Statistical Area (CNE MSA)
Resilience will be the dominant theme in the CNE MSA multi-suite residential rental market in the near term, marked by a balanced dynamic between rental market demand and supply. Construction activity is expected to slow in 2024 amidst a relatively stable demand backdrop.
New Orleans-Metairie Metropolitan Statistical Area (NOM MSA)
Rental demand will outpace new supply in the NOM MSA's multi-suite residential sector in the near term with healthy demand anticipated for both the market's most expensive and lower-cost buildings. Consequently, rents are forecasted to continue gradually rising over the near term.
Dallas-Fort Worth-Arlington Metropolitan Statistical Area (DFWA MSA)
The DFWA MSA's multi-suite residential rental market is anticipated to face an elevated level of supply-side rental market risk in the near term as new supply deliveries have continued to be added to the inventory in recent years.
Supply risk in the DAL MSA's multi-suite residential rental market is projected to peak in the near term. Consequently, rent growth is expected to continue slowing down. However, job growth and the high cost of homeownership will help maintain relatively healthy rental demand patterns over the near term.
Los Angeles-Long Beach-Anaheim Metropolitan Statistical Area (LALBA MSA)
The LALBA MSA's multi-suite residential rental market is expected to stabilize over the near term, due to the combined effects of new supply delivery slowdown and a moderately stronger demand trend. This stronger demand is partly attributed to the resolution of actors' and writers' strikes and an improved economic outlook.
The 2024
SOURCE
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