The Trend forecast for the multi-family apartment community in 2024, suggests a complex and evolving landscape.

1. High Construction Activity: Currently, there is a significant amount of construction activity in the multi-family housing sector, with over 750,000 multifamily units under construction. This represents the highest level of construction since the 1980s housing boom. This surge in construction is mainly concentrated in markets that experienced substantial in-migration during the COVID-19 pandemic.

2. Slowdown in Construction Starts: Despite the high demand and construction activity, there is an emerging challenge due to the rapid increase in construction costs. Factors such as inflation and disruptions in the supply chain have led to higher costs and subsequently slowed down the pace of construction starts. This slowdown implies that the peak of construction is likely happening at present.

3. Short-Term Surplus: The combination of significant ongoing construction and the slowdown in starts may lead to a surplus of multifamily units in the short term.

4. Future Demand: Looking ahead, the forecast suggests that the nation will require an additional 2.3 million new multifamily units over the next 10 years to maintain a healthy balance between supply and demand. Even as the largest portion of the current delivery wave concludes in 2024, there will still be a need for approximately 200,000 additional units annually to ensure a proper supply-demand equilibrium.

5. Long-Term Impact: Despite the potential of a development surplus in the current year, this surplus is seen as instrumental in establishing a solid foundation for a healthy market in the upcoming market cycle. It is expected to contribute to the overall supply of housing units, which will be essential for meeting the demands of a growing population over time.

While there might be some short-term fluctuations and challenges due to construction costs and supply chain disruptions, the forecast indicates a long-term need for multifamily housing units. This need is driven by population growth and in-migration trends. The current construction activity, even with its challenges, is anticipated to play a vital role in addressing the demand for housing units in the years to come.