Among the nation’s 50 largest apartment markets, 26 markets are expected to see 2024 job growth above the U.S. average.
Demonstrating its economic preeminence, the state of Texas is home to more Fortune 500 headquarters than any other state in the U.S., according to the updated list released by Fortune in June 2023.
Analyzing the apartment market requires an examination of both supply and demand dynamics, with the anticipation of increased demand in our forecast period, particularly in Sun Belt markets.
To say a property falls “below replacement cost” refers to the idea that if that existing property were built from scratch today, it would be more expensive to develop given significantly higher construction costs, including land, building materials, labor, and permitting. Therefore, when acquiring a commercial property at a significant discount to replacement cost, investors can potentially be afforded a safety margin and a competitive edge, all else being equal.
Remote work is having an outsized impact on office real estate, bringing down rents and occupancy across most markets, according to Green Street Advisors – a decline which is expected to continue into the foreseeable future.
During economic slowdowns and rising interest rate environments, commercial real estate (CRE) investors tend to refocus attention on distressed real estate opportunities, believing that such opportunities can offer more attractive pricing and the potential for higher returns.