Dear NexMetro Investors:
The U.S. rental housing market is reaching a turning point. The largest construction wave in decades is winding down, demand is outpacing new supply for the first time since 2021, and capital markets are stabilizing. For NexMetro investors, the setup ahead is the strongest we have seen since the cycle began. Finally.
As a recap of previous investor messages, the rental housing downturn is a convergence of rising interest rates and historic oversupply, resulting in negative rent growth and a 20–30% valuation reset from the 2022 peak.