Midwest's tight apartment supply pushes its annual rent growth well above the US average "The U.S. multifamily market is still feeling the heat after its rise in apartment complex groundbreakings, leaving the nation with a bloated inventory of four- and five-star properties. Yet, most Midwest markets maintained a construction completion rate below the national average for more than seven years." https://product.costar.com/home/news/shared/544160871?culture=en-US&source=sharedNewsEmail

Video Response to a question regarding the following topic is multifamily at the turning point for the positive https://urbanland.uli.org/property-types/multifamily/2025-an-inflection-point-for-the-multifamily-market?fbclid=IwY2xjawGU4f5leHRuA2FlbQIxMAABHbvD2b_7v3qDq8AhvP70qi5-lN-uiNg8nMn54F2AhJq2r7OQr_XN79QDXA_aem_tC71pXYqJPa2aJy8NvqZLg I said in another platform if / when the fed lowers the short end of the curve which would effect bridge loans first (lower rate bridge loans) one could take advantege of troubled selelrs at great basis compared to two years ago. Underwrite for higher refi rates in the future to protect yourself A question was asked Chris, do you think this will affect a certain class of MF first? Larger unit size (100unit+)? We’re certainly seeing more “reasonably” priced deals coming online I gave my video answer below Multifamily Real Estate Investment Strategy in Changing Markets Objective To understand the current market dynamics in multifamily real estate investing and strategize on the best approach to capitalize on emerging opportunities while mitigating risks. Key Steps 1. Focus on Asset Quality: Avoid investing in distressed C-class properties with high capital expenditure needs and low occupancy due to high interest rates. 2. Target Better Asset Vintages: Look for multifamily properties with better vintage brands, higher rents, and lower price per door, typically in the 20 to 80 unit range for easier capital raising. 3. Secure Safe Equity: Prioritize raising safe equity over large amounts of risky capital to avoid detrimental financial structures that can harm investors in the long run. 4. Consider Bridge Loans: Explore the potential of bridge loans if equity raising is challenging, as short-term rate adjustments may make bridge loans more accessible for larger deals. 5. Evaluate Debt Structure: Ensure the right debt structure, CapEx, business plan, management, exit strategy, and property vintage alignment before finalizing any investment decisions. 6. Stress Test Investments: Conduct stress tests on potential investments to assess their viability under different interest rate scenarios and ensure financial sustainability. 7. Gradual Investment Growth: Start with smaller multifamily units (e.g., 20 to 80 units) to gain experience, build confidence, and gradually scale up investments in line with market conditions. 8. Avoid Risky Equity Structures: Steer clear of prep equity or sophisticated equity lenders that may compromise common equity positions and lead to forced asset sales in case of underperformance. 9. Stay Active in Market: Continuously monitor market trends, transaction volumes, and asset prices to identify and capitalize on favorable investment opportunities while avoiding undue risks.

Thoughts? Apartment REITs see end to supply glut, elevate outlook for 2025 https://product.costar.com/home/news/shared/1063329375?culture=en-US&source=sharedNewsEmail

https://www.credaily.com/briefs/midwest-multifamily-outperforms-national-average-occupancy/?utm_source=newsletter.credaily.com&utm_medium=newsletter&utm_campaign=commercial-real-estate-market-shows-signs-of-revival&_bhlid=2dcf102ac7f535db6531e5b58c164d74bda7118a

This is an excellent review of real fears for the future of Florid real state. https://x.com/stealthqe4/status/1845278754047668584?s=46 Florida is still a very desirable place to live. Will it be enough to counteract a very real insurance risk that will weigh down values in the future?