Exploring Today’s Housing Market: Challenges and Opportunities for Multifamily Investments
The FOA Fall Global Summit by Phoenix Realty Group delves into the current landscape of U.S. housing markets. With housing prices down 30% and multifamily production at a 20-year low, we analyze the impact of elevated public/private debt levels on real estate dynamics. Explore the trend reversal in U.S. consumer savings and its effect on rental occupancy rates, which are now below 90%. As interest rates rise and supply declines, find out what the future holds for multifamily investments and the potential for recovery driven by the Millennial generation.
Exploring Today’s Housing Market: Challenges and Opportunities for Multifamily Investments
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Presentation Transcript
FOA Fall Global Summit Phoenix Realty Group
U.S. Public/Private Debt as a % of GDP – 1920 to Date Behind Today’s Housing MarketsThe Role of Leverage • Public/Private Deleveraging • Balance Sheet driven “Reset” following highest levels debt in U.S. history. • U.S. Consumer Savings Rate • Reversing several decades long trend for the first time in 50 years.
Today’s Housing MarketsRental Occupancy Below 90% - Reduced Rents
Today’s Housing MarketsMultifamily Production at 20-year Low
Today’s Housing MarketsMultifamily Pricing Returns to 2001 Spreads
The Future for Multifamily • Supply is Limited • Starts at historical lows • Rising interest rates will suppress development • Demand is Brewing • Occupancy at historical lows • Economic recovery and “Millennial” generation on horizon
Target Product Types Broken Condos Stabilized Rental New Development for Rental Failed Condo Conversions/ High-vacancy Rental
Stabilized Rental Baltimore ApartmentsLa Mesa, CA406 Units
Stabilized Rental Baltimore ApartmentsLa Mesa, CA406 Units
Broken Condos Trio ApartmentsPalisades Park, NJ71 Units
Broken Condos Trio ApartmentsPalisades Park, NJ71 Units
Failed Condo Conversions Laguna Bay ApartmentsNaples, FL368 Units
Failed Condo Conversions Laguna Bay ApartmentsNaples, FL368 Units
Investment Structures Public Funds Private Funds Partnerships Direct Ownership
FOA Fall Global Summit Phoenix Realty Group