The article focuses on three major trends occurring in multifamily at this time: the supply/demand imbalance, economic unpredictability, and demographic changes. Ms. Marcie Williams, CEO of RKW Residential, a firm that manages 33,000 units, opines on the trends stating that multifamily supply is at a 37-year high and due to the demand imbalance, rental rates in many markets are flat or declining. Such is the case in Salt Lake City. Further challenging owners is the fact that expenses such as payroll, insurance and taxes are increasing, obviously impacting a property’s bottom line. Economic unpredictability exacerbates the decision-making process of owners and operators as maturing loans, coupled with today’s higher interest rates, challenge underwriting, valuations and lending for those properties with loans coming due. And renter profiles are changing in 2024 where a younger cohort who may have been buying homes in the past are remaining as renters for longer periods of time.

 

 

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.