America is experiencing a strange housing supply problem. On one hand, we don’t have enough housing supply nationally; on the other, we have too much housing supply in cities like Austin and Fort Myers, and as a result, these cities are seeing significant rent declines. Meanwhile, rents are still going strong in much of the Midwest, as their supply-constrained markets give landlords and real estate investors the upper hand. But, even in the “oversupplied” markets, is there a chance for rent price redemption in the future?

We brought on BiggerPockets’ own Market Intelligence Analyst, Austin Wolff, to share his latest findings on housing supply. Austin talks about why rents are growing in some parts of the US but declining in more oversupplied markets. But with the slowing down of construction, will these oversupplied markets become undersupplied? Will landlords in these markets be happy they held onto their properties in a few years?

Austin also shares the exact market he’s making his first real estate investment, which boasts high demand but has yet to see a significant supply bump for his asset class. Does higher supply always mean lower rents? Not quite, and we’ll get into why in this episode!

In This Episode We Cover

The state of our 2024 housing shortage problem and why we may be under and oversupplied

Where rent prices are falling and the cities with the most supply coming online

When demand could finally “catch up” to the high supply these markets are experiencing

The correlation between supply and rent prices (and why they aren’t ALWAYS opposite)

Long-term rent projections as building starts to slow and demand stays high

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Join BiggerPockets for FREE

Easily Identify Your Next Market to Invest In with BiggerPockets Market Finder

Dave's BiggerPockets Profile

Connect with Austin

Check Out Austin’s Data-Driven Blog Posts

Bureau of Labor Statistics

Census Data

CoStar

Zillow Data

Master the Simple Formulas Behind Every Great Real Estate Deal with “Real Estate by the Numbers”

Jump to topic

00:00 Intro

04:49 Our 2024 Housing Supply Problem

08:22 Where Rents Are Falling

13:13 Demand Will “Catch Up”

17:31 What Happens When Supply Rises? 

25:46 Long-Term Rent Projections

Check out more resources from this show on BiggerPockets.com and  https://www.biggerpockets.com/blog/on-the-market-260

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