📉 Apartment occupancy is declining

Written By Dave Parish

Chart of the Day - Apartment occupancy is declining

According to John Burns, horizontal apartment occupancy is declining much faster than other Build-To-Rent (BTR) categories because:

  • Horizontal apartments are cheaper but also compete more with traditional apartments.

  • Despite the higher cost, detached homes and townhomes are popular as BTR assets due to high occupancy rates.

  • BTR typically targets different demographics from traditional apartments, explaining its higher occupancy rates.

Will BTR development strategies change? Hard to say—downsizing may not be the best move, as renters prefer larger, pricier options.

Our Take

We agree with this analysis, as Build-to-Rent (BTR) is a popular trend due to significant barriers to single-family home ownership. That's why our attention is on creating townhome communities for newcomers to the Lone Star State. When you're ready to explore the Texas miracle, let's have a conversation.

#buildtorent #btrtownhomes #multifamilydevelopment #multifamilyrealestate #multifamilyinvesting #privateequity

Source: CRE Daily and LinkedIn, May 1, 2024

Dave Parish
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