All Forum Posts by: Vincent Ribes

If you look closely at the latest data, the signs are starting to stack up.

Mortgage rates remain stubbornly high, sitting around 6.7% as of this month (source: Freddie Mac). Inflation is cooling compared to last year, but it’s not falling fast enough to prompt the Fed to cut rates yet. That means housing affordability remains stretched for buyers—and demand for rentals stays strong.

But the bigger story is what’s happening on the supply side.

According to the U.S. Census Bureau, multifamily housing starts fell 32% year-over-year in March, pushing new construction to its lowest point since 2012. Builders have pulled back sharply due to high financing costs, tighter bank lending standards, and overall market uncertainty.

At the same time, rental occupancy remains solid.

RealPage reports national Class B and C occupancy rates are holding firm above 94%, as renters continue to seek more affordable options amid economic pressures. In many secondary markets—think places like Columbus, Indianapolis, and Tampa—these mid-tier properties are outperforming luxury Class A developments both in rent collections and demand stability.

What does this mean for investors?

It sets up a classic supply-demand imbalance. With construction slowing and demand holding steady (or even rising slightly as new households form), we’re likely to see rental rates stabilize in 2025, and potentially accelerate again by late 2026 into 2027.

Importantly, any new construction started today wouldn’t realistically deliver until 2027 or beyond. Projects require land acquisition, entitlement, financing, and build-out—none of which happen quickly, especially in a high-cost environment.

That gives current investors a window.

Class B and C assets, particularly in growth markets with strong job creation and limited new competition, are positioned to see the biggest upside. Not only are these properties cash-flow resilient today, but they may also benefit from strengthening rental pricing power as supply constraints bite deeper over the next two to three years.

Waiting for rates to drop before acting might sound logical, but the market often moves ahead of those headline moments. Investors positioning now, while sentiment remains cautious, are setting themselves up for the next expansionary phase.

A few key takeaways for investors right now:

Focus on supply-constrained markets: Secondary cities with positive net migration and healthy job growth offer the best setup.

Prioritize affordability: Class B and C properties remain where the broadest, most resilient tenant base sits.

Plan for longer holding periods: Given the construction slowdown, cash-flow stability will matter even more before appreciation kicks in later.

Stay close to the data: Tracking starts, occupancy, and rent growth rates will be critical over the next 18 months.

Want to hear more about the markets and opportunities we’re focused on right now? Shoot me a message , always happy to connect, exchange notes, and brainstorm the opportunities this market is quietly serving up.

#USRealEstate #MarketUpdate #SmartInvesting

Totally get where you're coming from—"once in a decade" feels like overhype when real estate cycles naturally come with swings. That said, it does feel like the spotlight’s on distress plays right now—especially in MF rescue deals and SFRs where fundamentals still look solid long-term. Timing’s tricky, but when you’ve got capital and patience, inefficiencies like these can really open the door. 

2025 is off to a cautious start. With the economy flashing mixed signals, interest rates staying sticky, and recession chatter heating up, many investors are holding their breath.

But maybe opportunities are opening up for those ready to move.

We’re seeing more distressed assets, over-leveraged developers, and stalled projects that don’t pencil anymore under today’s construction costs. That’s creating serious room for acquisition especially in value-add Class B/C multifamily and workforce housing.
But it’s not all upside.

Construction and rehab costs are on the rise again:
• Tariffs on imported materials (steel, aluminum, etc.) are tightening supply.
• Lumber from Canada is getting pricier due to renewed trade friction.
• Labor shortages haven’t eased much either.

If you’re underwriting deals in 2025, you have to account for these cost escalations. There’s real value in acquiring existing product well below replacement cost.

And here’s what I’m watching closely: a rebound by Spring 2026.

If the Fed begins easing in late 2025 and consumer sentiment stabilizes, we could see:
• Renewed buyer activity
• Cap rate compression
• Rental growth re-igniting in strong secondary markets

It’s early, but the smart money is getting into position now.

If you’re looking at deals, reassessing construction budgets, or planning to scale acquisitions in the next 12 months, let’s connect. Timing the cycle is tough, but being ready is everything.

hashtag#RealEstateInvestment hashtag#ConstructionCosts hashtag#Tariffs hashtag#LumberPrices hashtag#MultifamilyStrategy hashtag#RecessionPlanning hashtag#Spring2026Rebound hashtag#ValueAddOpportunities hashtag#DistressedAssets

Quote from @Eric Gerakos:

My Class A tenants are not "desperately chasing" affordability. Lol. Rents recently raised 6%, 0 concessions ever. I'm sure this is very location dependent. 

Totally fair! Class A in the right spots is a whole different game—strong demand, zero concessions, and tenants willing to pay for premium living. That said, when the market shifts, Class B tends to ride the wave a bit smoother. It's wild how much this can vary zip code to zip code.

The U.S. real estate market in 2025 is experiencing a dynamic shift. While recent tariffs and economic fluctuations have introduced some uncertainties, they also present unique opportunities for savvy investors. With an anticipated economic rebound in 2026, now could be an opportune moment to delve into Single-Family Rental (SFR) investments.


Tariffs: A Double-Edged Sword

Recent tariffs on imported construction materials like lumber, steel, and appliances have led to increased building costs. For instance, tariffs on Canadian lumber have added approximately $7,500 to $10,000 to the cost of a new single-family home . While this might seem daunting, it also means that fewer new homes are being built, tightening housing supply and increasing demand for existing rental properties.


SFRs: Steady Demand Amidst Market Fluctuations

Despite the challenges, the SFR market remains robust. Occupancy rates are high, with nearly one-third of U.S. markets exceeding 95% occupancy . Additionally, in many areas, renting remains more affordable than buying, making SFRs an attractive option for tenants and a reliable income source for investors .



Looking Ahead: Economic Rebound on the Horizon

Economists predict a positive shift in the housing market, with home sales expected to increase by 9% in 2025 and 13% in 2026 . As mortgage rates stabilize and the economy strengthens, property values are likely to rise, offering potential appreciation for SFR investors.

Key Metrics to Monitor
• Cash-on-Cash Return: Evaluates the annual return on the actual cash invested, providing insight into the property’s profitability.
• Capitalization Rate (Cap Rate): Helps compare the potential return on investment properties by analyzing the ratio of net operating income to property value.
• Debt-Service Coverage Ratio (DSCR): Assesses the property's ability to cover its debt obligations, crucial for securing financing.
• Tenant Turnover Rate: High turnover can erode profits; aim for strategies that promote tenant retention.

While tariffs have introduced new challenges, they also underscore the value of existing rental properties in a constrained housing market. With strong occupancy rates and an anticipated economic rebound, SFR investments offer both stability and growth potential. Now might be the ideal time to capitalize on these market conditions and invest in single-family rentals.

It’s no secret—2025 is throwing curveballs at the residential market.

📈 Inflation’s still high.
🏦 The Fed isn’t budging.
📉 Mortgage rates are stuck near 6.7%.
🏡 Homeownership feels like a dream for many.

But here’s the upside: these conditions are creating a golden moment for smart real estate investors. Specifically, for those eyeing Class B and Class C multifamily properties in B-grade areas. That means one thing for a lot of would-be buyers: they’re staying renters.

So, where does the money should go right now?

Answer: Class B and Class C multifamily assets—especially in B-grade neighborhoods.

1. Construction Is Slowing Down—Big Time

New multifamily construction starts have nosedived—by over 30% year-over-year. The pipeline is thinning out, and experts say we could be staring at a major supply crunch by 2026–2027. The last time we saw a gap this wide between starts and completions was way back in 1974. That’s huge.

Fewer new builds = less competition in the future.

2. Rent Growth Is Happening in the Middle of the Market

Surprised? Check this out:
Class C rentals saw 2.6% rent growth in 2024, which beats both Class A and Class B properties. Why? Because they’re more affordable—and affordability is what renters are desperately chasing right now.

This puts mid-tier, value-based housing in a great spot. While luxury units sit empty or offer concessions, Class B/C units are quietly outperforming.


3. These Assets Are Built for the Hold-and-Flip Playbook

Class B and C buildings, especially in decent but not-too-expensive neighborhoods, are tailor-made for investors who want both:

Steady cash flow (hold)
Forced appreciation through value-add (flip)

With limited new supply and strong tenant demand, modest renovations can yield outsized returns.

You don’t need a gut-reno. You just need to upgrade a few key things—add amenities, improve curb appeal, tighten up management. That’s where the win is.

4. Long-Term Positioning Looks Strong

This isn’t just about playing defense in a tough year. It’s also about positioning for long-term value. When supply eventually catches up (and it will), the assets that already have strong bones and a tenant base will shine brightest.


Bottom Line

If you’re looking to scale your residential investment strategy in 2025, Class B and C properties in underbuilt markets deserve your attention. They’re affordable, in demand, and they offer multiple paths to value—now and in the future.

Detroit is not just reclaiming its title as a center of automotive innovation; it’s also becoming one of the most exciting places to invest in real estate. The city’s electric vehicle (EV) boom, fueled by billions in investment, is driving demand for housing, office space, and mixed-use developments. For real estate investors, this transformation is more than a headline it’s a once-in-a-generation opportunity.

A New Wave of Jobs and Talent

With companies like General Motors, Ford, and Stellantis expanding their EV operations, Detroit is experiencing a surge in high-quality jobs. GM alone is converting its Orion Assembly plant into an EV hub, creating thousands of new positions. Stellantis and Daimler Truck North America are adding hundreds more. This influx of talent with engineers, technicians, and executives that needs places to live, work, and shop, creating a ripple effect throughout the local housing and commercial real estate markets.

The Impact on Residential Demand

New jobs and a steady flow of skilled workers mean higher demand for residential properties. Downtown Detroit and surrounding neighborhoods like Corktown are seeing increased interest from young professionals and families drawn to the city’s growing opportunities. As EV production ramps up, the need for quality housing close to these new employment centers will only intensify, driving both rental yields and property values upward.

Revitalized Neighborhoods and Mixed-Use Developments

Ford’s $740 million Michigan Central Station project is a prime example of how EV investment is revitalizing Detroit’s neighborhoods. By transforming a once-abandoned train station into a cutting-edge innovation hub, Ford is creating a magnet for tech talent and start-ups. This kind of mixed-use development increases the appeal of nearby residential areas and boosts commercial real estate values. Investors who get in early can benefit from rising property prices and steady tenant demand.

Long-Term Growth Potential

Detroit’s EV transformation isn’t just a short-term story. The city is positioning itself as a long-term leader in clean energy and advanced manufacturing. The continued investment from global automakers and the ecosystem of suppliers and tech firms around them will drive sustained economic growth. For real estate investors, this means stable, long-term appreciation and solid returns in a city that’s on the rise.

Why Now is the Time to Invest

Detroit’s reinvention as an EV hub offers real estate investors a unique chance to capitalize on a city in motion. The combination of new jobs, revitalized neighborhoods, and ongoing development creates a perfect storm for growth. By investing now, you’re not only getting in on the ground floor of the EV revolution you’re also investing in the future of a city poised for continued success.