More than half of the country’s 100 largest cities report decreasing rents. Significant drops are seen in “zoom towns” like Arizona, Nevada, Idaho, with Oakland, California, noting an 8.7% decline. Meanwhile, Midwest and New England cities, such as Chicago and Boston, show modest recent rent growth compared to prior years.
Category Archives: Market Trends
Commercial Real Estate Market Trends
For years, renting in the suburbs meant shelling out less than city rents. However, recent data indicates that this traditional disparity is lessening, leading many to wonder why.
The CRE industry is navigating challenging waters with higher interest rates, limited financing options, and a slowing economy. Yet, promising developments (“green shoots”) suggest potential growth opportunities.
A rising number of the super-rich are placing their bets on the US rental market as falling prices in the apartment sector make it increasingly attractive.
Capital scarcity in multifamily is leading developers and operators to explore alternative funding, with preferred equity gaining popularity due to its higher-than-average returns.
This year sees a marked decline in new apartment construction, attributed to elevated interest rates, reduced rents, and overbuilding worries in select regions.