Willy was joined by economist, advisor, and speaker Jay Parsons. He is also a Principal and Head of Investment Strategy at Madera Residential, a Texas-based multifamily owner/operator with 11k + units, and additionally serves as an independent consultant and speaker to apartment and SFR groups nationally.
He and Willy covered a range of topics including Jay’s retrospective look at the rental market in 2024, his outlook on rates, tariffs, inflationary pressures, and the Fed, the dramatic amount of new multifamily supply and the overall resiliency of the sector, home sales and their impact on the broader market, implications of the election, sunbelt vs. coastal markets, national rent growth, and much more.
Key Points In The Webcast:
00:00 Introduction
01:16 Jay’s background, family life, and interests.
02:19 Optimism is back in the market
03:41 What makes price capitulation happen?
06:12 Should the ten-year stay in the 4-4.5 range?
08:29 Operators’ strategy for maintaining occupancy.
10:33 Renewals at 3% growth vs. moving to a new property
13:14 Why we need a stronger housing market long term
14:34 Multifamily rent growth vs. cost growth
17:22 Do middle markets stand a chance against big homebuilders?
19:36 Secured and unsecured financing: The role banks play
21:51 The implications of the election outcome
26:28 The why behind limited distress in multifamily
29:10 The reason behind the multifamily default rate increase
31:35 Older properties and the ability to push rents
34:17 Comparing sunbelt and coastal rent growth
37:31 Coastal suburbs vs. coastal cities: Renewal rates
40:50 The need for consistency on economic governance
46:26 Rent reductions on Class C apartments
49:29 Renter demand on various income levels
51:47 How much income goes to rent in 2012 vs. 2024
54:27 Rents being flat and the decrease in rent burden
56:17 How politics affect the rental market
01:00:05 Private equity firms and home ownership
01:02:09 Private equity firms shouldn’t be the cause for concern
01:04:47 Is it the best time to build?
01:09:16 What all this means for valuations
01:10:30 Cap rate projections
01:11:41 The curveball that markets aren’t thinking about
01:12:40 Will local regulation step up?
01:14:03 How the secondary mortgage market helped GDP growth
0:15:43 Advice on where to invest in the rental market
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