10 Things to Know About the 2024 Apartment Housing Outlook

The 2024 Apartment Housing Outlook provides in-depth insight into the industry from two standpoints: Economic perspectives and an overview of the apartment sector. Uncover 10 facts you may not readily know about the Apartment Housing Outlook below.

1. For the 22nd consecutive month, the Small Business Optimism Index was below long-term norms.

2. The unemployment rate has reached its highest level in almost two years, standing at 3.9%.

3. There is a projected decrease in GDP growth for 2024 and the unemployment rate is expected to increase further, possibly reaching as high as 4.6%.

4. Forecasts suggest that the average inflation rate will remain below 3.0% next year, eventually stabilizing around the Federal Reserve’s long-term target of 2.0% by 2025.

5. Prices for properties on sale have shown inconsistency, briefly falling before returning to a consistent upward trend.

6. Existing home sales experienced a sustained decline, dropping below 4.0 million in September, after reaching a peak of 6.6 million units annually in early 2021 and maintaining an elevated level for a year.

7. Forecasts for 2024 single-family starts range from a decline of 4.5% to a growth of 10.6%.

8. Multifamily starts are projected to fall in 2024, with estimates ranging from 12.8% to 28.4%.

9. Rent growth is expected to range between 2.5% and 3.7% in 2024, with a slightly more robust growth forecast for 2025.

10. Discounting the likelihood of a significant economic downturn, rental housing is expected to experience steady, but consistent growth in 2024.

Read the 2024 Apartment Housing Outlook.

Erioreoluwa (Eri) Bajomo is NAA’s Industry Research Analyst.