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StoneRiver seeks to achieve superior risk-adjusted returns by investing in, improving and managing multifamily properties in attractive submarkets in the Southeastern U.S. As we enter 2024, below are a few major trends and themes that have our attention and support our investment strategy. We are excited about the opportunities the year could bring to identify and execute high-quality investments and create value for our investors.

The Southeast continues to show strong growth.

The Southeast’s low cost of living, high quality of life and robust employment continue to attract inbound migration. From July 2022 to July 2023, the region led the nation in population growth, strengthening multifamily demand, as seen on the charts below. In 2023, Southeastern cities comprised 12 of the top 15 fastest-growing markets for apartment renters.

Interest rate stabilization should increase deal flow.

Transaction volume in 2023 was sluggish, due in large part to elevated interest rates. The Federal Reserve recently signaled it will hold interest rates steady and may begin reducing rates in 2024. This stabilization and possible reduction should help close the bid-ask spread between buyers and sellers and spur deal flow.

New supply should taper after this year, supporting value creation in our portfolio.

Construction deliveries were high in 2023 and may remain elevated in 2024. However, construction starts have dwindled due to increased interest rates and development costs. This will lead to lower levels of new multifamily housing supply beginning in 2025, which should boost occupancy and rent growth across the sector and in our portfolio.

StoneRiver’s diverse sourcing channels and deep market knowledge give us a competitive edge in our target markets.

Despite a slow year for transaction activity, in 2023 StoneRiver nearly tripled the number of off-market opportunities underwritten compared to 2022. We also expanded our reach by hiring two senior investment professionals. We expect that the Southeast will continue to attract attention from investors due to its healthy demographics and fundamentals. Our advantage comes from our robust access to deal flow through multiple channels, our deep market knowledge and our relationships in the Southeast that stem from over 25 years of experience investing in, managing and developing properties in the region.