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In recent conversations within leaders in the multifamily industry, the focus on revenue growth has severely intensified. Revenue Management (RM) in the multifamily industry is an intricate dance of numbers and strategies. It's not solely about hiking up rents but about leveraging advanced analytics to finely tune the balance between risks and opportunities. This ensures that every property is managed for peak performance. Dynamic pricing is a cornerstone of RM. Adjusting pricing in alignment with real-time market conditions not only maintains a competitive stance but also significantly boosting profitability. This strategic application of RM underpins its role in refining operational efficiencies and boosting tenant contentment. If owners and managers can leverage revenue management strategies to dynamically adjust rents based on market conditions and tenant demographics, they will maximize profitability while maintaining high occupancy rates. This is the not-so-secret “secret” to thriving in today’s competitive real estate market. Need to have, not nice to have. There has been a lot of chatter about revenue growth and management in the multifamily industry. According to Apartments.com (a CoStar Group company) rental rates at the beginning of the year showed a modest increase of 0.7%. However, it's important to note that rental growth does not always directly translate into revenue growth. Amidst controversies, it's important to understand that multifamily revenue management (RM) is more than just about increasing rents. RM employs advanced analytics to finely balance risks and opportunities, ensuring properties are managed for optimal performance. By dynamically adjusting prices based on real-time market conditions, RM not only maintains a competitive advantage but also boosts profitability. This strategic approach helps dispel common misconceptions and underscores the role of RM in improving operational efficiencies and enhancing tenant satisfaction. Checkout the latest report: https://lnkd.in/gR5c_BWV #multifamily #revenuemanagement #ai #proptech

These are exciting times in the multifamily market as we head into 2024! Here are some key trends to watch: Surging Supply: An unprecedented number of units are forecasted to hit the market, with a staggering 510,000 new apartments expected this year alone. Rising Concessions: To counter pressure on rents and occupancy, developers are increasingly offering concessions to attract tenants. Upward Movement: The rental landscape is shifting, with class B residents moving to class A properties, thanks to aggressive concessions making high-end living more accessible. Regional Variances: The South and West are bracing for a high influx of new apartments, while the Midwest, Northeast, and select Southern markets may see more balanced growth. Choosy Customers: With more options on the table, renters are becoming more discerning, seeking out the best deals and amenities. https://lnkd.in/eRphktxz #MultifamilyMarket #ApartmentTrends #RealEstateDevelopment #Concessions #MarketAnalysis #Colliers #Pittsburgh #MoreIn24 #ThriveIn25 #ClosersCoffee

The Rental Report reveals a rental market that is favoring tenants seeking affordability. The fifth consecutive month of year-over-year rent decline for 0-2 bedroom properties indicates a sustained trend towards more budget-friendly options. Median rent prices have fallen, making housing more accessible for many renters. The most intriguing aspect of this report is the strong demand for affordable units. The significantly higher absorption rate for these units compared to pricier alternatives suggests a shift in tenant preferences towards cost-effective housing options. As market professionals, it's imperative to consider these findings in our investment and business strategies. Data-driven decisions will be crucial in navigating this evolving rental landscape. Understanding the market's response to economic fluctuations and tenant preferences can inform property management, investment decisions, and financial planning. In the coming months, it will be essential to monitor these trends closely, adapt to changing market conditions, and continue to leverage data analysis to make informed choices in the real estate and finance sectors. 📊🏡💼 #RealEstateAnalysis #MarketTrends #DataDrivenDecisions #RentalMarketInsights https://lnkd.in/eyGkWiAU

Five questions I ask myself when analyzing market comps To enter or reposition a multifamily property in the market, you need to know the market you’re in. Developers and property managers will want to keep up with the Joneses and position the property in the market to succeed. Market analysts will look for unit mix, size per unit, cost per unit, vacancy rates, and demographics Architects will look at the suite of amenities at the comps to compare, contrast, and help the owner decide. But that’s only part of it. To effectively position a property in the market, you also need to see it from the prospect’s point of view Why will someone choose one property over the other? When I’m visiting multifamily comps, here are five things I’m asking myself, putting myself in the prospect’s POV: → What’s the property telling me? Before visiting the property, I’m visiting their website. By identifying the primary messaging and the tone of voice in which they speak, I’ll get a sense for the main value proposition and personality of the place. → What’s my first impression? They say it takes just a fraction of a second for a person to make a judgement on someone else. First impressions matter, a lot. The sequence of events from the drive to the greeting from a leasing consultant are all part of the critical first impression. → How are the amenity spaces utilized? Amenity spaces are some of the most costly spaces of a multifamily residence. They can sell a property, but they can also deter people away. If they’re designed to establish a sense of community and connection between residents, but they’re not utilized at all, what does that say about the community? → Is the leasing consultant knowledgeable about the property? Much of the visiting experience is in the hands of the leasing consultant. They are your biggest brand ambassador and need to know the ins-and-outs of the property to give prospects a positive and enjoyable experience. → Does the online experience match the real life experience? There's a lot people, tech, and touchpoints involved in the customer experience journey of a prospective resident. A well-designed experience is seamless and creates connection between online research and in-person visit. The online experience sets the right expectations, prompts residents to visit, and then over-delivers in real life, to exceed their expectations to close the deal. Analyzing market comps is crucial, but it's not just numbers and data. It's about creating a differentiated experience that makes it the only choice. _ Like this? ↓ Sign up for Build Mode, a monthly update with a deep dive on a brand topic and how it might apply to your practice and projects mudeo.co/buildmode

Based on the Apartment List National Rent Report for January 2024, here are key takeaways: 1. U.S. median rent decreased by 0.8% in December 2023, marking a five-month negative rent growth trend. 2. Year-over-year, rent growth is down by 1%, with current rents slightly lower than a year ago. 3. The national vacancy index has increased to 6.5%, indicating a more relaxed rental market. 4. In December, 83 out of the 100 largest U.S. cities saw rent reductions. 5. Despite recent declines, current rental rates are about $250 per month higher than three years ago. 6. The Midwest, including Pittsburgh, is showing positive rent growth, contrasting with the broader national trend. For a full analysis, read the article here: https://lnkd.in/eEbZNhfT. #RealEstate #RentalMarket #MarketTrends #HousingData #Colliers #Pittsburgh #MoreIn24 #ThriveIn25 #ClosersCoffee

🏘️ CoreLogic Single-Family Rental Trends Analysis 📈 National Overview: Single-family rental growth stabilized in April, maintaining a year-over-year increase of 3%. Price Tier Analysis: * Highest Price Tier (≥ 125% of regional median): Increased by 3.2% compared to 1.8% last year. * Lower-Priced Tier: Up by 3.1%, down from 6% in April 2023. * Lower-Middle Priced Tier: Grew by 3.5%, down from 4.2% last year. * Higher-Middle Priced Tier: Rose by 3.3%, slightly lower than the 3.6% in April last year. Regional Insights 🌍 * St. Louis: Led with a 6.3% year-over-year increase. * New York: Followed closely at 5.6%. * Boston: Recorded a 5.4% rise. Market Dynamics 🏠 * High Demand Areas: Markets with rents exceeding $3,200 saw significant gains. * Challenges: Miami and Austin faced annual rental price declines, reflecting localized market pressures. * Attached Rentals: Condominiums saw a 0.5% decrease year-over-year, possibly due to increased multifamily apartment supply. * Detached Rentals: Showed stronger growth than the national average, suggesting a preference for more personal space amidst high homeownership costs. Insight from Molly Boesel, CoreLogic Economist 💬 * "Annual single-family rent growth has stabilized around the long-term trend, with potential for 3% growth through 2024." * "Monthly rent growth in April was notably higher, indicating momentum in the market." These insights from CoreLogic's latest SFRI underscore the steady growth and evolving dynamics within the single-family rental market across the United States. 🏘️ https://lnkd.in/gCb-kMjy

Apartment Demand Hits Three-Year High, Rent Growth Sluggish The latest report from CoStar Group's Apartments.com reveals that the U.S. is experiencing its strongest apartment move-in demand in almost three years, with 170,000 units absorbed in Q2 2024. However, a construction boom adding 180,000 new units has kept rent growth subdued at just 0.9% year-over-year. Key Highlights: - Southern U.S. Impacted: Rent growth in the South lagged behind the rest of the country, with cities like Austin and Tucson seeing declines. - Regional Differences: The Northeast and Midwest saw rent increases of 2.4%, while the West experienced weaker demand. - Market Leaders: Louisville, KY led with a 4.9% rent increase, followed by Cleveland, Washington, D.C., and Richmond, VA. With nearly 574,000 new units expected in 2024, rent prices are likely to remain stable, particularly in luxury segments. Stay updated on the latest market trends with our expert insights. 🏢THE SUMMIT GROUP 👨💼DerekFoster 📞(478)750-7507 📱(478)997-1024 📧 dfoster@tsgmacon.com 🌐 thesummitgroupmacon.com #RealEstate #Apartments #MarketTrends #CRE #derekfostercommercialrealestatebroker

The evolution of the commercial real estate market into segmented niches is a well-discussed trend at this point. For many investors, gone are the days of the traditional basic food groups (office, retail, multifamily, industrial). The most interesting deals are found, instead, in the sub-segments, where specific market dynamics are driving varying degrees of risk and return.   Daniel Cohen's well-researched piece in Thesis Driven this week offers what I think is a really interesting & unique insight into the trends coming down the pipe for the institutional residential space in particular:   First: in response to regulatory pressure to protect tenants, typical residential leases will lengthen to three years or longer with baked-in inflation bumps. Interestingly, this should create a win-win, giving (i) tenants more security from annual non-renewal fears and high rent increases, (ii) lenders more certainty in the cash flow underlying their loans, and (iii) landlords more predictable - and likely lower - opex obligations as turnover, leasing, marketing, and admin expenses are reduced. An incredibly important insight here: the data suggests landlords are unlikely to sacrifice upside by tying rent bumps to inflation. Second: in response to demand for more flexibility in lease structure (from young, urban renters, especially), landlords will increasingly offer more customized leases that can accommodate shorter terms, furnished living, or even single bedroom occupancy within a large space. I can personally attest to the need - and dearth of supply - for this segment of the market. Data from AirBnB already suggests these renters are a strong and growing cohort making a strong case for their own niche.   From an investor perspective, tracking these trends creates opportunity to invest in and capture sub-markets that aren't yet being directly addressed. I find Dan's case here compelling, and look forward to watching as the space evolves. #realestate #multifamily #residential

Our latest rental trends tracker has just been released and unsurprisingly the average asking rent has hit a new all-time high. Constraints on supply and consistently strong tenant demand continue to push rents higher with the average property only staying on the market for 17 days. #UKproperty #rentalproperty #rentalmarket #pricetracker #ukpropertydata #analytics https://lnkd.in/etx4hzPm

After several months of rent declines, some high supply markets – namely Austin, Raleigh-Durham and Nashville – recorded increases in May, fueled by strong absorption, according to Yardi Matrix. Austin, which was -5.8% year-over-year in May, posted month-over-month gains of 0.5% in the luxury segment, which Yardi calls the Lifestyle sector and 0.4% in its renter-by-necessity category. Raleigh-Durham, which was -2.4% year-over-year, posted 0.9% growth in Lifestyle and 0.7% growth in RBN. Nashville, -1.7% year-over-year, posted a 0.6% increase in Lifestyle and a 0.4% increase in RBN. In general US rents rose 0.3% month-over-month in May, with 26 metros posting modest gains, it reported. Rents rose 0.3% month-over-month in the RBN segment and 0.4% in the Lifestyle segment Overall, monthly rent gains were led by Denver and New York (both 0.9%), and Raleigh (0.8%). The few markets that posted modest declines include Phoenix, the Twin Cities and Charlotte (all down 0.1%). Rent growth was positive in the majority of top 30 metros in both Lifestyle and RBN. New York and Las Vegas recorded the largest increases in Lifestyle (both 1.0%), while Denver (0.9%) and Washington, D.C. (0.8%) led in RBN. Detroit rose 0.9% in Lifestyle and 0.7% in RBN.