Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

I want y’all to understand this concept #multifamilystrategy #businesstips101✔️

12 Mar 2025 · 1 min

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0:31

In this short advisory clip, Christian Osgood explains how rapid, news‑driven development in a hot multifamily market can create an oversupply of units. He describes the classic supply‑and‑demand cycle: developers rush to build when demand appears strong, but if construction continues unchecked the market eventually stabilizes or slows, leading to excess inventory. The resulting oversupply raises vacancy rates and can even push rents down, which hurts owners who have fewer tenants paying less rent. Osgood cautions viewers that even markets with solid population growth become risky when they are heavily publicized and attract many investors. His practical recommendation is to skip such “prime” markets that are on everyone’s radar and instead look for less‑overheated opportunities.

Chapters

Remember supply and demand? The oversupply. When you learn, oh my gosh, all this development's coming in here, this is a super hot market. Developers go crazy and they build and they build and they build. And what happens? The market slows down at some point or it just stabilizes. But they kept building. So now we have an oversupply, vacancy increases, and in extreme cases, rent will even begin to drop. If you have less people paying less money in your building, that's a huge bummer. So even in a hot market with population growth, if it is all over the news, if it's a prime market that everyone else is investing in, my recommendation: skip it.