Mid-Year 2024 Rental Market Check-In: What’s Changed and What Hasn’t
Mid-Year 2024 Rental Market Check-In: What’s Changed and What Hasn’t
Six months into 2024, it’s worth stepping back and taking stock of where the rental property market actually stands — not where we hoped it would be, but where it is. Some things have played out as expected. Others have surprised investors on both sides.
What’s Changed
Transaction volume has picked up modestly from the 2023 freeze. More sellers have accepted the reality of current rates and adjusted prices accordingly. New construction incentives from builders have created some of the best value-for-dollar opportunities we’ve seen in years on quality properties. And in many Midwest and Southeast markets, motivated sellers have created negotiating room that simply didn’t exist in 2021-2022.
What Hasn’t Changed
Rates are stubbornly higher than most investors hoped. The Fed has been patient, and the 7-8% range for investment property financing remains the reality heading into the second half of the year. Cash flow underwriting still requires discipline — the deals that work are specific, not general. And rental demand in strong markets remains robust, with occupancy holding well and rent growth continuing at a normalized 3-5% pace.
Where the Opportunity Is Right Now
The best opportunities in mid-2024 are in secondary Midwest and Southeast markets where prices haven’t recovered to peak levels, motivated sellers are present, and rental demand from job growth and population movement remains intact. New construction from builders carrying unsold inventory continues to represent value with meaningful incentives attached.
The Bottom Line
2024 hasn’t been the rate-relief bonanza many hoped for, but it has been a functional market for prepared, selective investors. The second half of the year should bring continued deal flow and the possibility of incremental rate improvement.
Book a call with Equity on Repeat — we’re finding and closing deals in this environment and would love to show you what’s working.