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An Investor’s Guide to the 2024 Housing Market

2024 Housing Market Predictions and Strategies for Real Estate Investors

The 2023 Housing Market experienced a lot of ebbs and flows as high interest rates and low inventory slowed the transaction rate significantly. But the market avoided the doom and gloom predictions of falling rents and declining home prices in most markets to produce a decent year for many investors.

In fact, investors in some markets experienced the exact opposite of doom and gloom predictions. For example, ATTOM’s Q3 data showed that fix and flips were completed at a faster rate than in Q2 2023.

Additionally, the national average flip profit increased from $65,000 to $70,000 over the quarter.

What does mean for the 2024 housing market? How can investors build on the successes of 2023 and create more wins based on this year’s housing market forecast?

Lima One's 2024 Housing Market Outlook

Builders, brokers, and investors have adapted to and accepted the “new normal” of rising interest rates and home prices. The good news is that Lima One’s 2024 Housing Market Outlook shows that the market is in better shape this year than it was last year. The projections found in Lima One’s outlook reflect a real estate market with slight improvements and more stability than 2023.

Here are a few projections based on our research team’s findings.

Rental

Rental occupancy has dipped slightly, but it’s still in a healthy range as supply grows.

The combination of increasing listings and modest SFR price increases indicates that the supply/demand mix for SFR is right where it should be entering 2024.

New Construction

The SFR new construction market is set to thrive in 2024 with a projected increase of 9%. 

Expect builders to accelerate single-family starts in 2024 as they try to meet the pent-up demand for inventory in the market.

That alone will be a major contributor to growth in the single-family new construction market alone.

Fix & Flip

The news got better for flippers in 2023, as the market finally shook off the aftereffects of pandemic shutdowns.

As a result, flips have consistently hit 20-year highs in terms of the rate of flipped homes against total sales.

This demonstrates that real estate investors can find deals on fix and flip homes and make solid profits.

Multifamily

2024 is slated to be a banner year for the multifamily market.

With close to 1 million units under construction, experts project that 600,000 will hit the market by the end of 2024.

Even if the market experiences supply issues, 2024 is projected to deliver more multifamily units than any other part of the past four decades.

Housing Markets Poised for Growth in 2024

The hottest housing markets of 2024 are all on the east coast, according to Zillow research, with Buffalo, NY projected to be the nation’s hottest housing market this year.

Housing markets that Zillow projects as the hottest for 2024:

1. Buffalo, NY
2. Cincinnati, OH
3. Columbus, OH
4. Indianapolis, IN
5. Providence, RI

These housing markets are poised to stand strong this year, and the market nationally is still rebounding from the low inventory, high mortgage rates, and home prices that marked 2023. Mortgage rates have dropped significantly in recent weeks, and experts project improved affordability and home sales in 2024.

Let’s Expand Your Real Estate Portfolio in 2024

The housing market can be challenging to navigate if you don’t have the right lending partner. Lima One offers many options to help real estate investors achieve success on their investments.

Lima One Capital is the premier private money lender with years of experience. We provide our clients with robust loan options all across the country, and we’re constantly adding to our loan programs to further service real estate investors.

Our 2024 Market Outlook Analysis influences the products we offer. Lima One uses this information to design product offerings that fit investor needs for 2024, and we share this outlook with real estate investors of all types to help them design strategies to profit and scale in the year to come.

Contact us today to discuss your next deal, or if you have a deal in hand, accelerate the process by applying now.