Fall 2024 Market Update: What Rental Investors Should Do Right Now
Fall 2024 Market Update: What Rental Investors Should Do Right Now
Fall 2024 is arriving with some meaningful developments for rental property investors — a modest but real rate decline, continued strong rental demand, and a market that’s been grinding through an extended period of reduced transaction volume. Here’s where things stand and what the right moves look like right now.
Rates Have Come Down
After months of holding, mortgage rates for investment properties have moved into the 6.5-7.5% range in many markets — still elevated historically, but a meaningful improvement from the 8%+ levels of late 2023. This 50-100 basis point improvement translates to real cash flow improvement on new acquisitions and has brought some buyers back into the market.
Motivated Sellers Are Still Out There
Many sellers who’ve been waiting for a “better market” have started to accept that their timeline is their own, not the market’s. Estate sales, relocations, investor portfolio adjustments, and distress situations continue to generate motivated sellers — often at prices that make sense at current financing levels. The window between “nobody’s buying” and “everyone’s buying” is historically when the best deals get done.
Rental Occupancy Remains Exceptional
In Midwest and Southeast markets, occupancy rates remain near all-time highs and rent growth continues at a healthy 3-5% pace. Investors who bought at any point in the last several years are benefiting from this — cash flows have grown, equity has built, and the thesis remains intact.
What to Do Right Now
Get your financing lined up so you can move quickly. Build relationships in your target market before you need them. Run conservative underwriting at current rates — don’t build in rate improvement that may or may not materialize. And buy where the fundamentals are strongest: cash flow positive at current rates, strong rental demand, growing market.
Book a strategy call with Equity on Repeat — we’re actively working deals in multiple markets and the activity level is picking up.