Why renting may be a better option in 2024

  • Surge of rental housing hitting the market will bring more choice and incentives
  • More large multifamily construction projects completed in 2023 than any comparable period since 1987
  • Softening rents with the median national rent 1.1% lower than one year prior
  • Expectation of 450,000 new multifamily deliveries in the new year
  • Deals and concessions available for luxury renters
  • Growing demand for single-family rentals as the new starter home
  • Investors drawn to single-family rentals for relative stability
  • Affluent renters embrace multifamily rentals while lower-income renters feel squeezed
  • Rents likely to grow less than normal in 2024 due to new multifamily supply
  • Investors should focus on areas with good economic growth prospects

Prospective first-time home buyers may choose to continue renting in 2024 due to a surge of rental housing hitting the market, providing more choices and incentives. The completion of more large multifamily construction projects in 2023 than any comparable period since 1987 has led to softening rents, with the median national rent 1.1% lower than the previous year. In the new year, there is an expectation of 450,000 new multifamily deliveries, offering even more options for renters and continuing discounts and incentives. Additionally, there is a growing demand for single-family rentals, with experts predicting that the new starter home will be a single-family rental. Investors are drawn to single-family rentals for their relative stability. However, while affluent renters embrace multifamily rentals, lower-income renters are feeling squeezed due to affordability issues. Despite the near-term supply glut, investors should focus on areas with good economic growth prospects for long-term rent growth. Overall, renting may be a better option in 2024 for those seeking more choices, incentives, and growing demand.

Factuality Level: 7
Factuality Justification: The article provides information about the surge of rental housing hitting the market and how it may affect first-time home buyers. It cites data from census and real estate firms to support its claims. However, there are some speculative statements and opinions presented as facts, such as the shift in preferences and the assertion that the new starter home will be a single-family rental. Overall, the article provides relevant information but could benefit from more balanced reporting.
Noise Level: 6
Noise Justification: The article provides some relevant information about the surge of rental housing hitting the market and the potential shift in preferences towards renting instead of buying. It also mentions the increase in multifamily construction projects and the impact on rents. However, the article lacks in-depth analysis and evidence to support its claims. It also does not provide actionable insights or solutions for readers. Overall, the article contains some useful information but lacks depth and rigor.
Financial Relevance: No
Financial Markets Impacted: No
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article does not pertain to financial topics and does not describe any extreme events.
Public Companies: CoStar (unknown), Zillow (unknown), Redfin (unknown), John Burns Research and Consulting (unknown)
Key People: Jay Lybik (CoStar’s national director of multifamily analytics), Lu Chen (senior economist at Moody’s Analytics), Rick Palacios, Jr. (director of research at real estate data firm John Burns Research and Consulting)

Reported publicly: www.marketwatch.com