I was happy to read from 2 good sources about 2024 interest rate predictions:

• UBS Prediction: UBS anticipates the Federal Reserve to start cutting rates as early as March 2024, with a total reduction expected to be around 2.75%. This prediction aligns with concerns about an impending economic downturn.
• Wall Street Banks’ Adjustment: Following a dovish signal from the Federal Reserve, institutions like Bank of America and Goldman Sachs have adjusted their 2024 forecasts, now expecting the end-of-year interest rates to be around 4.6%, a decrease from previous estimates of 5.1%.

And on Demand … I think it is hard to argue that as long as the population of the U.S. continues to grow, so will the need for new multifamily construction. Either that, or we have to start manufacturing a bunch of tents. I mainly recruit in the Southeast. Here are a few population growth estimates for southeastern states:

• North Carolina – 724,983 by 2030 (NC Office of Budget & Management)
• South Carolina – 758,930 by 2035(SC Revenue & Fiscal Affairs Office)
• Florida – 3,024,069 by 2030 (Florida Chamber of Commerce)
• Tennessee – 665,998 by 2040 (Univ. of Tennessee Knoxville)

(Current population estimates were sourced from worldpopulationreview.com)

So, I’m optimistic about the multifamily construction industry in the near future vs the past few quarters. I have a feeling late 2024 and all of 2025 are going to be a wild ride!

Your thoughts?