4 Trends to Watch in the Multi-Family Market in 2024

Through the ups and downs of the real estate market, one class of property tends to maintain its value. Multi-family real estate provides a home for those who are either on their way up in the home market, or on the way down.  For this reason, Forbes identified multi-family housing as a “need-driven asset” that can remain stable as housing prices and interest rates rise and fall. 

While it is a strong asset class, it’s still important as a real estate investor to stay aware of the trends and fluctuations within this property category so that you can purchase the right multi-family property, rehab it accordingly and rent it out for maximum profits. 

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1.) Demand Remains High 

Despite an increase in construction for rental housing and a slowdown in overall economic growth, demand for multi-family rentals remained high in 2023. The average rent price of a multi-family rental home was 23.6% higher in 2023 than it was pre-pandemic. And as barriers to homeownership remain, such as strong interest rates and high credit balances, renters will continue to seek the affordability of multi-family housing. With these factors in mind, Fannie Mae expects the demand for multi-family housing to rebound in 2024, with over 424,000 units in demand. 

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2.) Making Multi-Family Rentals Feel More Like Single-Family Rentals  

Within a single month - from March to April of 2020 - the demand for single-family rentals skyrocketed - growing 650%! This was, of course, due to the effects of the Covid pandemic. However, the preference for single family homes remains. Once residents experienced greater spaciousness and their own outdoor space, it’s hard to go back to multi-family living. As a result, keen owners of multi-family rental properties are modifying their spaces to feel more like single-family rentals. 

Prudent real estate investors can follow suit by adding single-family home amenities such as private garages. Playspaces for children can also be constructed - and you can ask for even more rent if you provide tenants with their own private outdoor areas. Additionally, gardening areas and landscaping can create a similar feel of single-family living, as can updated window treatments and modern, matching appliances and decor.  

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3.) Conveniences Are Key  

If a multi-family renter is unable to lease a single-family home, they expect the modern conveniences of multi-family living. These can include co-working spaces with strong wifi for video conferencing; sophisticated security systems; and apps for easy rent payments like RentRedi and maintenance requests like UpKeep.  Additionally, modern technology like smart locks, digitally connected appliances and even EV charging stations are the upgrades that would make a renter who was searching for a single-family home switch their preference to a multi-family unit. 

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4.) A Greater Emphasis on Neighborhood and Community

With the Covid-lockdown era behind them, renters are searching for the opportunity to feel more connected to their neighbors. By marketing your property as a way to find that sense of belonging, you can increase your number of potential renters and price your rent higher. This is a great opportunity to incorporate local gym memberships, gift cards to nearby restaurants and incentives for local entertainment into your rental packages. If the neighborhood has a certain character or “vibe”, you can even incorporate that into the decor of the home to give the tenant a sense of belonging. 

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A Reliable Investing Partner Helps You Stay Ahead of the Trends 

When you work with a true financing partner, they’ll help you ensure you’re selecting a property that meets your real estate investing goals. Temple View Capital is one of those partners. As a firm built by real estate investors for real estate investors, they understand the hoops that too many firms make you jump through to obtain financing for your real estate investment. Temple View eliminates those hassles with easy digital processes and an experienced team dedicated to helping you. 

To get started on your next real estate investment, start a conversation with their team today. Whether you’re seeking financing for a multi-family property of four units or less; a single family rental; or ground-up construction, Temple View Capital is ready to help you make your next real estate investment a success. 

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