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Spring 2024 Real Estate Market: The Investor’s Guide

Posted by Equity On Repeat on March 20, 2024
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Spring 2024 Real Estate Market: The Investor’s Guide

Spring is traditionally when real estate markets wake up — more inventory, more buyers, more activity. Spring 2024 is no different, though the backdrop of the past two years creates a distinctive context. Here’s where things stand for rental property investors entering the busiest season of the year.

Rates Have Come Down Slightly — But Remain Elevated

After peaking in late 2023, mortgage rates have drifted down modestly into the 7–7.5% range for investment properties. This isn’t the dramatic relief many investors hoped for, but it has been enough to encourage some buyers back into the market. The deals that work at these rates are fundamentally sound ones — properties in markets with genuine cash flow potential.

Inventory Is Improving

One of the defining features of 2022–2023 was near-record-low inventory as sellers who locked in 3% mortgages chose to stay put rather than sell into a high-rate environment. That dynamic is beginning to loosen as life events — job changes, divorces, estate sales, investors needing liquidity — continue to generate supply regardless of rate environment. Buyers have more options than 18 months ago.

New Construction Deals Are Available

Builders who oversupplied in some markets continue to offer meaningful incentives — permanent rate buy-downs, closing cost credits, and price flexibility — to move inventory. For investors, this creates the opportunity to acquire new construction at effective prices that wouldn’t have been available at market peak.

Rental Market: Still Strong

Occupancy rates in Midwest and Southeast rental markets remain high, and rent growth — while normalized from the 2021–2022 surge — continues to track positive in most markets. Investors who own properties in strong-demand areas are benefiting from both stability and continued income growth.

The Play for Spring 2024

Be selective, be prepared, and move decisively when you find a deal that works. The buyers who do best in spring markets are those who’ve done their homework before the season starts — they know their target market, have financing lined up, and can evaluate and act quickly.

Book a call with Equity on Repeat — we’re actively working deals in multiple markets and would love to include you.

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