Many real estate investors have an agecutoff. They prefer a certain “vintage” of property, and will avoid buying anythingolder than a certain year. Sometimes these rules are built into their strategies.Developers focus on new developments unless they can add significant value throughrepositioning. Public and private real estate investment trusts (REITs) willhave investment mandates that restricts them from purchasing properties olderthan, say, the 2000s.
While the Sunbelt has not been immune to oversupply and rising interest rates, population growth, business expansion, and continued demand for rental housing position the region for long-term growth. The Sunbelt continues to attract new residents, companies, and capital. Investors who recognize these trends are positioning themselves to benefit from long-term appreciation and stable cash flow.
The multifamily sector is experiencing a significant shift in supply and demand. According to the National Multifamily Housing Council (NMHC), new construction has slowed considerably, with multifamily starts down by approximately 40% from peak levels. This reduction in supply is expected to decrease vacancy rates and support healthy rent growth throughout 2025. The Urban Land Institute's (ULI) Emerging Trends in Real Estate 2025 report indicates that the completion of new apartment units is projected to decrease to around 300,000 in 2025, down from over 400,000 in previous years. This limited supply, coupled with sustained demand, is expected to boost rents and property values. That should positively affect our in-place assets.
The past year has been marked by significant trends and shifts in the multifamily real estate market, and it's essential to understand these dynamics to make informed decisions for the future. Whether you're a seasoned investor or just starting your journey, our goal is to provide you with valuable insights and actionable advice to help you navigate the evolving landscape.
The November update from Carbon Real Estate highlights the shift to secondary markets for multifamily investments, citing benefits like population growth, affordability, and higher returns. Key markets include Raleigh and Austin, despite some recent rent declines. Carbon’s strategy focuses on data-driven choices and community investment.
The October update from Carbon Real Estate centers on multifamily real estate investment. It highlights strong rental demand, a growing cost gap favoring renting over buying, and opportunities in workforce housing. Carbon’s strategy includes targeting affordable rentals, enhancing underperforming properties, and preparing for potential market shifts. Despite rising costs and market changes, Carbon sees favorable conditions ahead, especially if interest rates stabilize, benefiting refinancing and acquisitions.
The September update from Carbon Real Estate emphasizes the resilience and advantages of multifamily real estate investing, highlighting strong rental demand, stable income, property appreciation, and tax benefits. It features an opportunity to invest in The Kenzie, a 213-unit property in Hoover, AL, with strong financial prospects and upcoming cash flow distributions. Investors are encouraged to get involved, with detailed guidance provided.
The August update from Carbon Real Estate covers recent shifts in the multifamily housing market. Despite challenges from COVID-19 and fluctuating interest rates, there are emerging opportunities as sellers adjust prices. Large investors like KKR are taking advantage of the current market, expecting future gains. Carbon maintains a cautious buying strategy, focusing on cash flow and risk management. The update also provides a progress report on The Kenzie, a 213-unit renovation project in Alabama, highlighting completed improvements and upcoming renovations. Carbon aims to provide valuable real estate insights and is dedicated to guiding investors through a changing market landscape.
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