In 2023, 416,500 new apartments were delivered into markets across the United States, the highest amount of deliveries since 1996, 27 years ago. The article claims that in 2024 there are 900,000 units under construction in the country with approximately 440,000 apartments to be delivered in 2024. As a result of the surge of new units from 2022 to 2023, average monthly lease-up activity has slowed from 15.3 leases/month to 11.7 leases/month, a 24% decline. That’s significant and would suggest that traffic to properties is off by a similar percentage…fewer people, fewer leasing opportunities. And with the anticipated delivery of 440,000 units in 2024, traffic levels and signed lease averages will almost assuredly go down. A challenging time for owners and operators.

 

 

Svikhart & Associates, a Salt Lake City-based real estate services company, focuses on asset management, brokerage listings and sales, and all aspects of a multifamily investment. Specific diligence regards property operations and strategies to maximize asset performance and value. Additionally, the firm assists owners regarding economic, financial and market factors that impact returns on investment. The firm targets ‘Mid-Tier’ assets which it defines generally as 10-to-60-unit properties.

 

Please find us at svikhart.com or contact us at 801-550-5684 to learn about the real estate services the firm provides. To subscribe to the firm’s newsletter addressing events of the day please follow this link Newsletters.