2021 saw rent growth of nearly 19 percent, which blows long-term averages out of the water. The pandemic, house prices, and explosive job growth caused an unprecedented demand for apartments, which was the perfect storm for multifamily investors in Dallas-Fort Worth. The market then calmed down at the end of 2022, seeing negative absorption rates and slower rent growth. This has caused some investors to worry about the profitability of multifamily investments.
"That's three years of average rent growth pushed through in one year. You just can't expect that to continue — it's going to settle back down, said ApartmentData.com President Bruce McClenny. But slowing down from record-breaking growth isn't the end of the world for investors. According to the article, higher rents aren't scaring away potential tenants, and growth is still outpacing historical averages.
So what does that mean for us? Fortunately, Dallas-Fort Worth is well-positioned to withstand a recession or economic downturn. As a result, investors should focus on properties with strong fundamentals, such as good locations, attractive amenities, and solid demand. Overall, while the Texas multifamily market may not be as strong as it once was, it still offers opportunities for investors willing to adapt and invest in the right properties.
Read the full article on the BisNow website.
GREEN EMPIRE HAS A NEW TEAM LEADER!
Our landscape company, Green Empire, has a new team leader! We are pleased to introduce Fernando Gasque Gonzales, who joins us full of energy and ready to hit the ground running. He brings to the company knowledge and expertise that will help Green Empire run even more efficiently, offering better results for our investors and clients.
Fernando has eleven years of experience in landscape maintenance. He worked his way up through the ranks, starting as a laborer and eventually earning a spot in management. His previous experience ranges from small gas stations to exclusive neighborhoods in Windermere, Florida.
His mother was one of his biggest mentors, both in life and in lawn care. Her landscaping team won an award for "Best Looking Airport" for their work at the Orlando International Airport in the early 2000s. She showed Fernando that a good leader always leads from the front. Not only did she teach him to reach for excellence at work, but also to always do the right thing in life.
Fernando is also influenced by Roosevelt's speech, "The Man in the Arena." He re-reads it when he is facing hardships to remind himself that only timid souls know no defeat or victory.
Welcome to the team, Fernando! We are so happy to have you on board!
"We aren't bringing you that news to stress you out! But we do believe in transparency, and the market has changed. No one could expect the growth experienced over the past few years to continue forever. But this isn't our first rodeo - the team at Multifamily Empire has experience leading investments through various economic conditions. At Multifamily Empire, we recognize that there is still potential profit in a challenging multifamily market, but choosing the right partners is essential. It's crucial that investors find the right firm to work with - one that focuses on the details. Multifamily Empire does just that. We help investors mitigate risks and maximize returns by leveraging our experience and resources to navigate uncertainties, make informed decisions, and adapt strategies to changing market conditions. We also recognize that during these times, it is extra important to invest in the right properties. Reputable operators with a track record of success are more likely to focus on acquiring and managing properties with the key factors that make them more resilient to market fluctuations and more likely to generate steady cash flows and long-term returns. As always, we are here to ease our investors' concerns, so feel free to schedule a call with us if you're ever in doubt!" - Delia and Neander Lima
"Multifamily Empire has been an outstanding partner to work with. Neander, Delia, and the team consistently provide top-notch service with their diligent management of the property. They stay in close communication with their investors and navigate any challenges gracefully ensuring everything runs smoothly!"
Ronnie Shalev,Co-founder of Shalwin Properties
Keep an Open Mind
Especially with the current uncertain and changing market conditions, being open to new ideas and opportunities can help investors stay competitive. Investors with an open mind can more easily adapt, learn new skills, and achieve greater success.
Know Your Options
Being aware of different investment strategies, asset classes, and market trends can help investors identify opportunities and mitigate risks. Weighing all of your options helps investors remain profitable with high-stakes investments.
Invest in Your Education.
Never stop learning! As you should know, investments can come back tenfold, so take the same thought process regarding your education. Continuous learning allows investors to adapt to changing economic environments and maintain a competitive edge in the industry.
