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The non-nullable type is 'String' within parent type 'Content'","path":["readnext","contents",5,"uri"],"extensions":{"classification":"NullValueInNonNullableField"}}],"data":{"articleData":{"uri":"/2024/07/24/the-factors-weighing-down-multifamily-rents-and-profit-margins/","canonicalUrl":"https://www.globest.com/2024/07/24/the-factors-weighing-down-multifamily-rents-and-profit-margins/","generatedId":"fmj45flijfg","naturalId":"blogAndPostId/blog/post/296-285623","type":"ARTICLE","postFormat":"news","kickerPresentedBy":null,"breadcrumb":[],"presentedBy":"","title":"The Factors Weighing Down Multifamily Rents and Profit Margins","readtime":"3","timeToRead":"3 minute","prettyModified":"July 24, 2024 at 03:30 PM","prettyDateTime":"July 24, 2024 at 05:27 AM","needToKnow":[],"byline":"Erik Sherman","showDisclaimer":true,"authors":[{"name":"Erik Sherman","description":"","imageLarge":"https://secure.gravatar.com/avatar/11b1a0223656735c596d861fb8d077d5?s=136&d=mm&r=g","webUrl":"/author/profile/erik-sherman/"}],"publication":"Globe Street","kicker":"Analysis","kickerNode":[{"name":"Analysis","slug":"analysis","uri":"/analysis/","sectionName":"Analysis"}],"prettyDate":"July 24, 2024","pubDate":"2024-07-24 05:27:26.000","modifiedDate":"2024-07-24 15:30:06:783","isDownload":"false","primaryCategory":{"channelName":"","sectionName":"","name":"","uri":"","slug":"","channelUri":""},"tags":[],"image":{"uri":"https://images.globest.com/contrib/content/uploads/sites/296/2022/10/pushing-boulder-uphill-facing-challenges-Article-202210210801.jpg","width":"620","height":"372","alt":""},"embed1":"","embed2":"","summary":"Operating costs and more of a supply and demand imbalance leave landlords with almost zero rent growth.","categories":[{"name":"National","uri":"/markets/national/","channelName":"GlobeSt Market"},{"name":"Multifamily","uri":"/sectors/multifamily/","channelName":"Globest Sectors"},{"name":"Midwest","uri":"/region/midwest/","channelName":"Region"},{"name":"Northeast","uri":"/region/northeast/","channelName":"Region"},{"name":"Southeast","uri":"/region/southeast/","channelName":"Region"},{"name":"","uri":"/region//","channelName":"Region"},{"name":"West","uri":"/region/west/","channelName":"Region"}],"bodyArray":["<p>It's going to be another challenging year for multifamily owners and operators. Many factors will converge and control what owners must do to survive the business. Frequently, that will mean lower rental growth and increased operating expense, leading to narrower margins. Not only will that affect return, but the attractiveness to lenders for refinancing.</p>","<p><strong><a href=\"https://cre.moodysanalytics.com/insights/cre-news/elevated-completions-continue-to-weigh-on-multifamily-rent-growth/\">Moody's estimate for rent growth</a></strong> in the U.S. as of the second quarter of 2024 is low-to-mid-1% range. The gap between asking and effective rents on average remains above $90. That's been true for three quarters running now. That is an expression of the highest concession levels in Moody's tracking history. Whether lowering average monthly rent or providing rent-free periods in negotiations.</p>","<p>Over-supply has been the most important driving factor on the rent front. There has been explosive growth in the number of housing units, particularly multifamily. In June 2024, private-owned housing completions had increased sequentially by 10.4% to a seasonally adjusted annual rate of 1.71 million units. That includes both single-family and five-or-more-unit multi-family. The latter represented the bulk of the construction at 656,000 units. That was an increase of 26.2% month over month or 40.2% year over year. That's the highest seasonally adjusted rate since September 1974.</p>"],"slides":[],"video":""},"articlePackages":[],"youmightlike":[{"uri":"/2024/11/07/logistics-real-estate-faces-mini-cycle-of-subdued-demand/","title":"Logistics Real Estate Faces Mini-Cycle of Subdued Demand","byline":"Kristen Smithberg","prettyDate":"November 07, 2024","readtime":"3","image":{"uri":"https://images.globest.com/contrib/content/uploads/sites/296/2024/10/Industrials-warehouse-Article-202410041653.jpg","width":"620","height":"372"},"summary":"Subdued demand has persisted despite healthy GDP and consumption."},{"uri":"/2024/11/07/multifamily-outlook-brightens-while-office-questions-linger/","title":"Multifamily Outlook Brightens While Office Questions Linger","byline":"Kristen Smithberg","prettyDate":"November 07, 2024","readtime":"3","image":{"uri":"https://images.globest.com/contrib/content/uploads/sites/296/2024/02/Business-Outlook-Article-202402090801.jpg","width":"620","height":"372"},"summary":"A 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concerns."},{"uri":"/2024/11/07/these-regions-will-see-the-highest-multifamily-rent-growth-in-2025/","title":"These Regions Will See the Highest Multifamily Rent Growth in 2025","byline":"Erik Sherman","prettyDate":"November 07, 2024","readtime":"2","image":{"uri":"https://images.globest.com/contrib/content/uploads/sites/296/2024/04/Wichita-KS-Article-202404171503.jpg","width":"620","height":"372"},"summary":"Expect the Southwest and West to fare better but there is more to it."},{"uri":"/2024/11/07/developers-line-up-for-howard-terminal-redo-in-oakland/","title":"Developers Line Up for Howard Terminal Redo in Oakland","byline":"Jack Rogers","prettyDate":"November 07, 2024","readtime":"3","image":{"uri":"https://images.globest.com/contrib/content/uploads/sites/296/2023/02/oakland-Article-202302070848.jpg","width":"620","height":"317"},"summary":"A's departure opens up coveted Port of Oakland economic development 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