{"id":167496,"date":"2024-02-19T09:13:48","date_gmt":"2024-02-19T16:13:48","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=167496"},"modified":"2024-05-17T01:34:17","modified_gmt":"2024-05-17T07:34:17","slug":"multifamily-is-likely-to-recover-in-2024","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/multifamily-is-likely-to-recover-in-2024","title":{"rendered":"Multifamily Is Likely To Start Recovering in 2024\u2014Here\u2019s Why"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC9598418651\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><span data-preserver-spaces=\"true\">In&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/multifamily-crash-to-continue-through-2024\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">his recent article<\/span><\/a><span data-preserver-spaces=\"true\">, BiggerPockets CEO Scott Trench did a great job enumerating all the reasons why multifamily is in the difficult position it\u2019s in. If he had written these same things a year ago, I wouldn\u2019t be writing this rebuttal\u2014I would have simply said, \u201cDitto.\u201d&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But I don\u2019t believe that the picture he has painted is an accurate reflection of where things are headed. Here\u2019s why.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Where We Are<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Let me start by acknowledging the obvious:&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/finding-multifamily-properties\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Multifamily real estate<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;has had a difficult past 18 months.&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/cap-rate-real-estate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Cap rates<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;have expanded. Values have plummeted. Interest rate increases have imperiled a not-trivial percentage of deals.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Rate cap (the insurance multifamily operators use to offset interest rate spikes) prices have caused the same issues they were intended to protect against. And we\u2019re finally seeing which operators have gotten out over their skis, or perhaps who has been&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/the-tide-is-out-for-investors-where-do-you-put-money-now\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">swimming naked<\/span><\/a><span data-preserver-spaces=\"true\">\u2014whichever metaphor you prefer.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">And I won\u2019t stop there: Not only are there challenges in the rearview mirror, but some ahead as well.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Building starts (i.e.,&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/on-the-market-138\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">new construction<\/span><\/a><span data-preserver-spaces=\"true\">) are the highest in decades\u2014we\u2019re expecting over 500,000 new units to be delivered in 2024 alone, which will reduce occupancies and mute rent growth. Inflation is still a factor, with higher labor and materials prices than we\u2019ve ever seen.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In addition, interest rates aren\u2019t likely to plunge this year. And many current owners are still facing interest rate-induced headwinds for their properties.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Pretty scary picture, huh? On the surface, it most certainly is. But the reality is that most of these factors have already been priced into the current multifamily market. In fact, it turns out that the latter half of 2023 was already seeing much of the pain that plagued the industry start to subside.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Let\u2019s dig in and examine some of the data in greater detail, following the same outline Scott proposed in his original article.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Part 1: Cash Flow Isn\u2019t the Only Benefit of Real Estate<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">The suggestion that \u201cthere is only one reason investors buy multifamily\u201d is flawed. Unlike single-family investors, many multifamily limited partners (the folks who are providing a substantial amount of money for these investments) are in financial situations where&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/rental-property-cash-flow-analysis\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">cash flow<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;isn\u2019t the only reason they are investing in&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/commercial-real-estate-fundamentals\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">commercial real estate<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Many of these investors are looking for long-term growth. They want to put capital to work in order to generate profits three, five, or even 10 years down the road. Many don\u2019t live on their cash flow but instead understand the benefit of using real estate to build a nest egg they can eventually&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/money-466\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">retire on<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">And with multifamily values off 25% to 35% over the past 18 months, there\u2019s good reason to believe that the next five to 10 years could provide an opportunity that we haven\u2019t seen since the Great Recession to \u201cbuy low\u201d and generate strong multiyear returns.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In other words, there\u2019s still good reason for investors to look to multifamily as their preferred investment asset class. And that continued belief will serve to prop up demand moving forward.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But what are the specific data points that indicate multifamily is heading toward recovery?&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Scott hit the nail on the head when he said that the value of the sector is largely related to the likelihood of these four factors occurring:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Rents will grow.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Expenses will fall.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Interest rates will fall.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Cap rates will fall.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">But while Scott believes each of these is trending in the wrong direction, I disagree. And I believe the data supports my beliefs. Here\u2019s a look at each.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Rents will grow<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Yardi Matrix, which is one of the industry\u2019s leading sources of market data, along with nearly every other major industry data provider, projects positive rent growth in 2024. Specifically, Yardi Matrix projects rents to increase by 1.5% this year. I\u2019ll talk more about why this is later.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Expenses will fall<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">I think we all can agree that expenses aren\u2019t going to fall this year. But that shouldn\u2019t be a surprise; expenses rarely ever fall. Inflation tends to move in one direction, and year-over-year costs nearly always increase.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The real question isn\u2019t whether expenses will drop but whether they will grow more in line with historical averages than with recent trends. And with CPI inflation now nearing 3%, it\u2019s reasonable to assume that expense growth in 2024 will be much more manageable than in the past several years.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Interest rates will fall<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Most economists, and even the Federal Reserve, believe that interest rates will fall this year. The market itself is pricing in a reduction of the core interest rate (the federal funds rate) to be between 3.75% and 4%, from the current 5% to 5.25%.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">While this reduction in the core interest rate isn\u2019t likely to lead to the same reduction in mortgage rates, using historical averages (mortgage rates tend to hover about 2% above the federal funds rate) indicates that we could see mortgage rates drop below 6% this year.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Cap rates will fall<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">With over $300 billion in investor capital sitting on the sidelines, according to GlobeSt.com, the combination of these three factors is likely to lead many investors to come off the sidelines, which will increase asset demand and drive cap rates lower.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">So, while I agree with Scott that these are the right data points to be assessing, I disagree that they point to doom and gloom. If anything, I believe they are an indication that the market is recovering and moving in the right direction.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">One more thing before I move on: There are a lot of&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/passive-real-estate-investing\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">passive<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;multifamily investors who invest for&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/essential-tax-breaks-every-real-estate-investor-should-know\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">tax benefits<\/span><\/a><span data-preserver-spaces=\"true\">. Multifamily assets can provide tremendous \u201cpaper losses\u201d that can allow operators and limited partners to offset their other passive income. In some cases, these losses can also offset the high W2 income these investors are often generating as doctors, lawyers, athletes, engineers, or other high-paid workers.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">As I write this, it appears that&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/tax-relief-for-american-families-and-workers-act-could-bring-bonus-depcreciation-back\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Congress is about to pass new legislation<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;that will increase the tax benefits for real estate investors for 2023 and extend those benefits through 2025. This legislation alone should lure a good bit of that sidelined capital back into the markets.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Part 2: The Outlook for Rent Growth is Positive<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">I\u2019ve provided data that supports the notion that rents in multifamily are likely to increase, albeit modestly, in 2024. But that doesn\u2019t address the&nbsp;<\/span><em><span data-preserver-spaces=\"true\">why<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;behind the question of rent growth, and Scott has provided justification for his beliefs, so it\u2019s only reasonable that I dig in as well.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">As mentioned, there is a good bit of supply expected to come online in 2024\u2014again, Yardi Matrix has forecast over 500,000 units this calendar year. There\u2019s no doubt this will impact the industry, or at least part of the industry. The vast majority of this new inventory will be in the Class A space\u2014the nicest, most expensive tier of multifamily units.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For Class A multifamily, this will be a lot of new units to absorb, and Class A in many areas will likely struggle throughout much of the year as this new inventory comes online. Over the past couple of years, we\u2019ve seen Class A and Class B\/C cap rates start to converge, and we\u2019ll likely see that continue in 2024 as Class A is forced to absorb all this new inventory, putting downward pressure on Class A rents and values. Existing Class A owners could see significant softening in markets where there is a lot of supply coming online, specifically in the Sun Belt and Western states.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But most existing inventory in the multifamily sector is not Class A, and most of these newly built units are unlikely to compete with much of the existing housing on the market. Class B\/C housing is unlikely to have the same issues with new inventory coming online. There remains a lot of rental housing demand in general, so the small amount of new inventory in these classes should be absorbed relatively easily.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">So, where is this excess demand coming from?&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The two biggest places are&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/the-real-world-impacts-on-remote-work-and-what-it-did-for-investors\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">work-from-home employees<\/span><\/a><span data-preserver-spaces=\"true\">, who need more space, and the continued&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/on-the-market-145\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">unaffordability of single-family housing<\/span><\/a><span data-preserver-spaces=\"true\">. According to recent data, renting is currently 52% less expensive than buying a house\u2014the largest gap in history.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">It\u2019s unlikely that the current batch of renters is going to transition to homeownership during the current rate cycle, and household formations continue to increase. Those newly minted households will need a place to live, and multifamily housing is their most affordable option.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">More notably, housing starts have already peaked (starts were down 50% between the fourth quarter of 2022 and the third quarter of 2023, according to Marcus &amp; Millichap), so there should be significantly less new supply coming online by the end of 2024 and after. So, while there will be some downward pressure on rents from all the new inventory coming online, this pressure is likely to be short-lived, as housing remains millions of units short of demand.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Finally, consider that, with construction financing at a peak and labor prices still inflated, there could be significantly fewer deliveries in 2024 than expected. We\u2019ve seen this in the single-family world the last couple of years\u2014not nearly as much supply coming online as starts might indicate. Either way, 2024 will mark the peak of deliveries until rates come down, so inventory will not be a chronic problem for the industry.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">At the end of the day, demand is still likely to outpace supply, and with wage growth once again above CPI inflation (by about 1.8% in 2023), there\u2019s good reason to believe that projections are correct, and rents will increase in 2024.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Part 3: Expenses Growth is Slowing<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">There\u2019s no arguing that expenses are increasing. And the past several years have seen some of the largest expense growth in history in the following areas:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Insurance<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Property taxes&nbsp;&nbsp;<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Contractor labor<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Materials<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Property management payroll<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Utilities<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">In short, real estate has been absolutely pummeled on the expense side of the ledger.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But this applies nearly equally across all residential real estate. Single-family homeowners and investors are also struggling with increased expenses.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Why does that matter? Because there is a relationship between homeownership costs and rent costs. When one increases, the other generally does as well.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Multifamily owners pass these costs on to their tenants, and tenants have two choices\u2014they can move out and become homeowners, or they can absorb these additional costs. Given the cost of homeownership today\u2014and the fact that the cost of owning a house is increasing about the same as renting\u2014the reality is that it\u2019s unlikely that tenants are going to refuse to accept additional rent hikes and purchase their own homes.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Of course, there is one other option: Renters can move in with family or friends to reduce their costs. And we\u2019ve seen this over the past decade, with nearly half of young adults between 18 and 30 living with their parents.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But over the past decade, we\u2019ve also seen occupancy rates at record highs due to undersupply of housing, and even with more people cohabitating with family\/friends, it\u2019s likely that occupancies will remain at or above the historical average, and these additional expenses will be absorbed. (Unfortunately, it will likely be at the detriment of other parts of the economy, as renters will be paying a higher portion of the income to housing.)<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Part 4: Interest Rates Will Come Down, and There Won\u2019t Be a Major Recession<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">As mentioned, interest rates are on track to come down starting this year. With CPI inflation nearing 3%, it appears the Fed has increased rates above the neutral rate, and we are now in restrictive territory. The Fed has all but admitted this and signaled that we are at the end of the rate-hike cycle.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">While we likely won\u2019t see any drastic moves in rates in 2024, there seems to be agreement across the industry that the next move for rates is down. As Scott pointed out, this will likely flatten the yield curve, the 10-year Treasury yield could increase a bit, and this might put upward pressure on what I believe will be&nbsp;<\/span><em><span data-preserver-spaces=\"true\">falling<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;mortgage rates.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In other words, I believe the yield curve normalization will cause mortgage rates to fall much more slowly than they otherwise would, but I do think mortgage rates will decrease a bit as the Fed starts to loosen its monetary policy.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">As for how much of a decrease I think we\u2019ll see? Again, history does a good job of pointing us to where mortgage rates will likely land, and if history is the predictor, that\u2019s about 2% above the federal funds rate. Assuming the market is correct in the 3.75% to 4% federal funds rate, that puts mortgage rates at just under 6% by the end of the year.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">As for recession chances, we are now nine months from an election, and historically, we\u2019ve seen the Fed keep the course throughout an election cycle. Given the strong economic data we\u2019re currently seeing\u2014GDP, jobs data, and asset values are all continuing to see strong headline numbers\u2014and the Fed signaling that it is prepared to reduce rates and maintain its balance sheet, I think it\u2019s unlikely that the economy sees any sudden derailment before November.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Before I conclude, let me add a quick Part 5, as there is one other&nbsp;<\/span><em><span data-preserver-spaces=\"true\">very important<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;data point that hasn\u2019t yet been discussed.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Part 5: Lenders Are Hesitant to Take Back Properties<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">After the 2008 crash, lenders learned an important and difficult lesson: They don\u2019t want to own real estate. When a lender takes back a property\u2014especially a large commercial property\u2014that property will typically lose (even more) value between the foreclosure and the eventual sale. Lenders aren\u2019t in the business of asset and property management, and they aren\u2019t very good at it.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Since 2022, lenders have proven willing to work with operators in situations where financial difficulties are directly related to higher interest rates, loan termination timelines, and rate cap costs. Many deals that likely would have been foreclosed on after 2008 are still in the hands of operators, with the explicit agreement from the lender that as long as any financial issues are related to market conditions (as opposed to operator negligence), the lender will be open to working it out.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Additionally, back in June 2023, government bank regulators asked lenders to start working with credit-worthy borrowers who were facing financial stress with their commercial assets.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">So it appears that the government and lenders are working in lockstep to limit the number of foreclosures we see during the current CRE downturn.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">2024 is unlikely to be a banner year for multifamily operators who purchased property between 2020 and 2022. But it\u2019s also unlikely to be the meltdown many are predicting. And for many of those investors who survived the past 18 months and came out the other side relatively unscathed, 2024 is\u2014in my opinion\u2014an opportunity to start shoring up portfolios and perhaps even find some forward-looking opportunities.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Obviously, none of us have a crystal ball\u2014Scott and me included\u2014but those are my thoughts based on the data and on historical precedent.<\/span><\/p>\n\n\n\n<div class=\"wp-block-group has-slate-200-background-color has-background\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading has-text-align-center has-theme-slate-dark-color has-text-color\">Take Your Market Research to the Next Level<\/h2>\n\n\n\n<div class=\"wp-block-media-text has-media-on-the-right is-stacked-on-mobile is-vertically-aligned-center\" style=\"grid-template-columns:auto 34%\"><div class=\"wp-block-media-text__content\">\n<p class=\"has-theme-slate-dark-color has-text-color\">Need help finding the right market for your next investment? Dave Meyer created our brand new <strong>Picking a Market Worksheet<\/strong> to help investors like you identify and analyze the right locations for their next deals. <\/p>\n\n\n\n<p class=\"has-theme-slate-dark-color has-text-color\">Download our worksheet today for quick and easy analysis when researching your next market.&nbsp;<\/p>\n\n\n\n<div x-data=\"frictionlessSignupForm()\" class=\"button-account-type alignleft\">\n\n  \n\n  <!-- Guest Button -->\n      <template x-if=\"!$store.wp.isMember()\">              <button x-on:click=\"$store.wp.displaySignupPrompt()\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\">Sign Up to Download<\/button>\n          <\/template>  \n  <!-- Free Member Button -->\n      <template x-if=\"$store.wp.isMember() &#038;&#038; !$store.wp.isPaidMember()\">              <a href=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/02\/Picking-a-Market-Worksheet_v2.pdf\" target=\"_blank\"\n                    x-on:click=\"window.analytics.track('Blog | Market Intelligence | Picking a Market Worksheet', {\n            referrer: 'https:\/\/www.biggerpockets.com\/blog\/multifamily-is-likely-to-recover-in-2024',\n            account_type: 'free',\n          });\"\n                    class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\">Download the Worksheet<\/a>\n          <\/template>  \n  <!-- Pro Member Button -->\n      <template x-if=\"$store.wp.isPaidMember()\">      <a \n        href=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/02\/Picking-a-Market-Worksheet_v2.pdf\" target=\"_blank\"\n                x-on:click=\"window.analytics.track('Blog | Market Intelligence | Picking a Market Worksheet', {\n          referrer: 'https:\/\/www.biggerpockets.com\/blog\/multifamily-is-likely-to-recover-in-2024',\n          account_type: 'pro',\n        });\"\n                class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\">Download the Worksheet<\/a>\n    <\/template>  \n  <!-- Frictionless Popup -->\n  <\/div>\n<\/div><figure class=\"wp-block-media-text__media\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/01\/Picking-A-Market-1024x1024.jpg\" alt=\"picking a market worksheet\" class=\"wp-image-165579 size-full\" title=\"\"><\/figure><\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>In&nbsp;his recent article, BiggerPockets CEO Scott Trench did a great job enumerating all the reasons why multifamily is in the difficult position it\u2019s in. If he had written these same [&hellip;]<\/p>\n","protected":false},"author":2444,"featured_media":161000,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8,7119,5527,7357],"tags":[],"class_list":["post-167496","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-trends","category-biggerpockets-daily","category-commercial-real-estate-investing","category-multifamily-real-estate-investing"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/167496","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/2444"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=167496"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/167496\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/161000"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=167496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=167496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=167496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}