Multi-Unit Update 2022-07-23


Preface to the 2-to-4 Unit Property market:

  • Please make sure to check out the SFR market update because (a) the 2-to-4 Unit Property Market, for the most part, experiences similar headwinds and tailwinds as the detached single-family home (SFR) market, and (b) the detached SFR market has far more data than the 2-to-4 Unit Property market.  Hence, it is critical to factor in the collective wisdom of the detached SFR market into our thinking of the 2-to-4 Unit Property market.
  • The unit volume of business in the 2-to-4 Unit Property market can be anywhere from 10% to 20% of the detached SFR market during any given period of time depending on the dimension that one chooses to compare.  Hence, in the 2-to-4 Unit Property realm, we use “months of inventory” to convey our view of the market, instead of “weeks of inventory” as we do in the detached SFR market.

On the East Bay Front:

  • Inventory of 2-to-4 Unit Properties continues to climb across the East Bay at a faster pace than that going pending.  At the current level of demand, we now have almost 4 months of inventory on the market at the current level of demand, which is much in line with the COVID peak.
  • Note that the East Bay has experienced a steady flow of approximately 100 new listings each month this year in 2022 and we have a higher count in 2022 when compared with the same period last year in 2021.
  • However, the number of listings going pending has declined steadily since the 2022 peak of 97 in March, giving us the build-up of unsold inventory.  Note that the 2-to-4 Unit Properties currently have a median stay on the market of 25 days (of course, only if they are priced right!).

More insights coming shortly.