📉 The Multifamily Construction Boom is Over — and That's Bullish for the Future. 2024 marked the tail end of a historic multifamily construction boom. New deliveries are hitting the market now, causing headlines about rent softening and oversupply in some metros. But here's what the headlines aren’t telling you: ➡️ New multifamily permits are down 27.1% from pandemic highs 🔗 GlobeSt, May 2025 https://www.globest.com/2025/05/06/multifamily-housing-permits-fall-to-lowest-levels-since-pandemic-in-most-us-cities/ ➡️ Completions have far outpaced new starts — by over 250,000 units in 2024 🔗 Jay Parsons, Feb 2025 https://www.linkedin.com/posts/jay-parsons-a7a6656_the-final-numbers-are-in-and-in-2024-multifamily-activity-7287454668761309184-wcGC/ ➡️ Most major U.S. metros are seeing construction pullbacks 🔗 Commercial Real Estate Daily, May 2025 https://www.credaily.com/briefs/multifamily-permits-drop-as-construction-slows-nationwide/ ➡️ State housing agencies are warning of a supply gap by 2026 🔗 Stateline, May 2025 https://stateline.org/2025/05/01/the-number-of-new-apartments-is-at-a-50-year-high-but-states-expect-a-slowdown/ ➡️ Even Redfin shows permits are now below pre-pandemic levels 🔗 Redfin, May 2025 https://www.redfin.com/news/multifamily-construction-permits-2025/ 🔁 What does this mean? While current supply may feel abundant, the pipeline is drying up fast. And because it takes 2–3 years to entitle and build, we’re heading toward a structural shortfall.

🌇 Market Update for Kansas City Investors 🌇 Headline: U.S. apartment rent growth flattens in July—but the Midwest stands strong Key Insights: - Nationwide rent growth is continuing to slow: national average monthly rent held steady at $1,717 with just a –0.03% change from June. Annual growth has tapered from 1.5% in January to 1.1% in July. - The Midwest leads the pack, seeing +0.06% month-over‑month and +2.6% year-over‑year rent growth. Kansas City benefits from this regional strength. - By contrast, the Sun Belt markets and the West are lagging due to oversupply. What this means for Kansas City portfolios: - Rents remain resilient, providing stable cashflows even amid national saturation. - Higher demand and controlled supply in the Midwest support ongoing performance—an encouraging environment for landlords. - A cooling national trend suggests continued caution—but Kansas City appears better insulated. https://product.costar.com/home/news/shared/1356708470?culture=en-US&source=sharedNewsEmail&t=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJjdWx0dXJlQ29kZSI6ImVuLVVTIiwiaWF0IjoxNzU0OTQzNjc1fQ.vRlz02Vz8W_V_pSR7OVyOnRQEr-nEvVXOlGHRnve9Xs

🚧 Construction Is Slowing Down. Rents Are Poised to Rise. 📈 Over the past two years, rising interest rates and now new tariffs have left many developers sidelined. Construction starts have declined meaningfully year-over-year. And while permits saw a slight uptick recently, the volume of actual starts is still far below previous highs. This chart tells a clear story: after 2026, net deliveries drop significantly. Meanwhile, absorption stabilizes and even strengthens — a sign that demand for multifamily living is here to stay. Vacancy rates are forecasted to fall below 8% and continue dropping. That’s a recipe for rent growth. 📊 What’s different this cycle? The consistency of demand. In past downturns, absorption and deliveries were more volitile. Not this time. In a landscape where new supply is constrained and population growth in certain markets remains steady, multifamily remains one of the strongest long-term investment plays. If you're waiting for the "perfect time" to get in — remember, the best deals are made before the headlines catch up. #Multifamily #ApartmentInvesting #CRE #Development #ConstructionTrends #RealEstateInvesting #RentGrowth #HousingCrisis #MultifamilyDevelopment #MultifamilyConstruction #SharplineEquity #BuildToRent #CapRates #RealEstateFinance

🚨 Big Moves in Overland Park! 🚨 The Kansas City Royals are eyeing Overland Park for a potential new ballpark, creating a ripple of excitement across the area! This game-changing development signals explosive growth potential for multifamily real estate investors. Why does Overland Park and Johnson County stand out? 📈 ✅ Average Household Income: Over $100,000, making it one of the wealthiest counties in the Midwest. ✅ Top Employers: Sprint, Black & Veatch, Garmin, and other HQs provide strong job growth and economic stability. ✅ Job Market: Johnson County continues to outpace the national average in employment growth, especially in tech, finance, and healthcare. ✅ Population Growth: Steady increases driven by corporate relocations and suburban desirability. At Sharpline Equity, we recognized the potential early and have heavily invested in Johnson County over the past year—positioning ourselves to capture the wave of demand sparked by these big moves. 🏙️ Now’s the time to get in. Whether it’s a Royals stadium or the continued influx of talent and capital, this region is primed for multifamily investment success. #MultifamilyInvesting #JohnsonCounty #OverlandPark #KCRealEstate #SharplineEquity #RoyalsBallpark #GrowthMarkets #RealEstateInvesting

🏘️ Multifamily Market Highlights 🔹 Rent Growth: National rent growth is projected to rise to 2.0%–2.5% in 2025 (up from 1.0% in 2024), fueled by job growth and strong demand from renters aged 20–34. 👉 Fannie Mae 🔹 Vacancy & Demand: Expected average vacancy rate for 2025: 4.9%. Rent growth projected at 2.6% with stronger demand and a shrinking construction pipeline. 👉 CBRE 2025 Multifamily Outlook 🔹 Supply Trends: Construction starts down 74% from 2021 peak and 30% below pre-pandemic average. This will support stronger rent growth into 2026. 👉 CBRE Construction Pipeline 💰 Macroeconomic Indicators 🔹 GDP Forecast: Fannie Mae revised 2025 GDP growth down to 1.7%, citing weak Q1 data and global trade policy shifts. 👉 Fannie Mae Economic Forecast 🔹 Labor Market: February saw 151,000 new jobs added. Unemployment rate: 4.1%, expected to average 4.2% for 2025. 👉 Fannie Mae Employment Data 🔹 Inflation & Rates: Core inflation now projected at 3.3% for 2025. Rates remain elevated, which continues to affect development and acquisitions. 👉 Bass Berry Multifamily Update 🏦 Capital Markets & Investment 🔹 Freddie Mac Forecast: $370–$380 billion in multifamily loan originations expected in 2025, as refinances and sidelined deals return. 👉 Freddie Mac 2025 Multifamily Outlook