Connors added that Sinatra has been exploring vacant sites to build single-affordable-family homes, as some states through programs are offering incentives for these developments. Particularly, the company has been looking at these opportunities in New York State, according to Connors, who manages a $255 million development pipeline in the area and Florida.

Another thing that he is looking at is "unique conversions," while noting that construction costs and interest rates have dropped from his point of view. Office-to-residential is something that's been picking up, especially in a hot market like New York City — but other asset types could work for multifamily as well.

Sinatra is "looking in a little bit more creative spaces, such as hotel conversions, or, even utilizing some of the various municipalities that have zoning acts that can take [a] retail Plaza and convert it."

KEY SUNBELT AREAS SLUMPING

In the current state of the multifamily market, Connors listed regions such as Austin, Texas, and parts of Florida that are seeing a slowdown due to an influx of supply.

The opposite is happening in a state like New York, where he says there's a "significant demand for not only affordable housing but workforce housing." Plus, the supply is scarce for workforce properties, according to Connors.

But across the board, there's been a shift in positive demand for single-family rentals, as home prices have been out of reach for many. Furthermore, a December report from Zillow found that single-family rents cost a 20 percent premium compared to multifamily assets.

"That's kind of another layer to the multifamily space too," Connors said of SFRs. "So we have to account for that."

As we head into 2025, Connors thinks that Florida will continue to see its population surge. The Sunshine State has been attracting a number of wealthy individuals since the pandemic. And with the Los Angeles wildfires, he believes people will be relocating from there.

COMFORT WITH NEW ADMINISTRATION

Also, Connors feels confident that the multifamily market will benefit from President Donald Trump's new administration. Without delving too much into the political landscape, Trump, of course, has a background in real estate with his The Trump Organization, which manages luxury assets. The comfort is there for many in the industry.

"I think it is favorable to have someone that's in the field that we are in, in [The Oval Office]," Connors noted.

Connors further noted that Sinatra will aim to stay in its markets where it has office spaces, which include Buffalo, New York, and Tampa Bay Florida. On the flip side, it will try to avoid oversaturated multifamily regions.