The pipeline of new multifamily units is about to go off a cliff

The pipeline of new multifamily units is about to go off a cliff as new construction projects have been shelved. This means rents will likely be increasing over the next 1-4 years per Jamison Manwaring, the co-founder & CEO of Neighborhood Ventures, a real estate investment platform that is offering path for investors in multifamily housing.

Manwaring thoughts about where the housing market might be headed in the next 18 months. He pointed out that most people are still renters and because of new construction, rents have stayed flat and that’s true even though I always remind people that the media reports quarter over quarter changes in rent as if they were Peral Harbor.

Manwaring had a warning about rents and new units in the pipeline for the years ahead. “These construction projects were planned 2-3 years ago when interest rates were 3.5%. The pipeline of new units is about to go off a cliff as new construction projects have been shelved.

This means rents will likely be increasing over the next 1-4 years.”

www.forbes.com/sites/rogervaldez/2024/06...ain/?sh=5bc5c707640d

 

Not true in Texas

Definently true in Houston. Once this wave of supply hits the market there’s nothing else coming. 50% decline in multifamily starts y/y as of March 31.

rentalhousingjournal.com/what-does-sharp...uction-permits-mean/