Apartment rent growth has been underwhelming lately and that is expected to continue this year. Most analysts such as Orphe Divounguy, Zillow's senior economist, are calling for about 2% annual rent growth in 2024.
Operators, in turn, are focusing this year on reducing expenses by reducing expenses and operating more efficiently through technology.
Speaking at the National Multifamily Housing Council's Apartment Strategies Conference a few weeks ago in San Diego, Angela Biggs, Managing Director, Investment, Grosvenor, said assets are seeing a 20% decline in asset value so when that happens the NOI has to go up by 4% or 5% to make up for it.
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