Thursday, February 27, 2020

Apartment Developer Keep Building, Despite Fears of More Rent Control Laws via NREI

In spite of fears surrounding the expansion of rent control laws throughout the nation, developers in some of the biggest U.S. apartment markets haven't pulled back on new projects.

“These laws alone probably won’t slow down new construction,” says John Sebree, senior vice president and national director of Marcus & Millichap’s national multi housing group, based in Chicago. “However, these new rent control laws will do absolutely nothing to resolve the shortage of housing.”

Read more...Apartment Developer Keep Building, Despite Fears of More Rent Control Laws via NREI

Yardi: National Average Rent Falls $1 to $1,463; Rent Growth Steady at 3% via Multifamily Executive

The national average rent fell by $1 in January 2020, down to $1,463, while year-over-year rent growth has remained at 3%, according to the latest Yardi Matrix Multifamily National Report. January marks the third consecutive month of declines for the average U.S. rent, which Yardi Matrix attributes to seasonality and expects to continue for a few more month

Read more...Yardi: National Average Rent Falls $1 to $1,463; Rent Growth Steady at 3% via Multifamily Executive

Wednesday, February 26, 2020

Workers’ pay is rising faster in Dallas than the rest of the U.S. via Dallas Morning News

A rising economic tide is lifting workers’ pay, especially in Dallas County.

Private sector workers in Dallas saw average wages rise by 5.1% in the 12 months ended in September, according to newly released federal data. It was the biggest increase for the period since 2016, and Dallas County’s rise surpassed the average gain for the rest of the country.

That’s a reverse of recent trend. In four of the previous five years, wage growth in Dallas County had lagged increases nationwide.

Read more...Workers’ pay is rising faster in Dallas than the rest of the U.S. via Dallas Morning News

Tuesday, February 25, 2020

Is the Multifamily Asset Class Immune to Economic Shifts? via NREI

Most agree the real estate recovery post-recession has been lengthy and that multifamily has performed well across all stages of our current, mature cycle. At various points in time over the last decade, the other commercial real estate classes haven’t all fared as well as apartments, however.

This begs the question. Are apartments counter-cyclical and immune to economic shifts that negatively impact other types of real estate? Will multifamily maintain its position as the darling of the industry?

Read more...Is the Multifamily Asset Class Immune to Economic Shifts? via NREI

What Lenders Are Thinking as Multifamily Evolves via GlobeSt

Recently the Federal Housing Finance Agency created a new group with the goal of ensuring that both Fannie Mae and Freddie Mac foster a competitive, liquid and resilient multifamily market. “By creating a new group, it speaks to a commitment and dedication to focus on affordability in multifamily,” according to Siobhan Kelly, associate director for multifamily at the FHFA.

Read more...What Lenders Are Thinking as Multifamily Evolves via GlobeSt

Friday, February 21, 2020

The Future of Multifamily Investment via Multi-Housing News Online

Multifamily investment is exploding across the South and Western United States, particularly in suburban areas of Atlanta, Dallas and Phoenix, where garden apartments are plentiful. Mid- and high-rise multifamily assets are also selling in Manhattan, Seattle and Los Angeles, but Integra Realty Resources’ 2020 Viewpoint Multifamily Report notes that tertiary markets are the biggest beneficiaries of the search for yield.

“There is continued optimism, rent growth and investor interest in the multifamily sector, particularly in tertiary markets,” IRR CEO Anthony Graziano told Multi-Housing News.

Read more...The Future of Multifamily Investment via Multi-Housing News Online

Renewal-Lease Rent Growth Holds Steady via RealPage

Apartment rents climbed 4.5% during the past year for households who stayed in place at initial lease expiration. Renewal-lease rent growth now has stayed a little under the 5% mark for three consecutive years, after price inflation came in at higher levels during 2014 and 2015.

Rents are continuing to climb faster for renewal leases than for leases where a new resident is renting at a property for the first time. That new-resident annual rent growth has been running around the 3% mark since late 2016, specifically registering at 2.8% as of the end of 2019.

Read more...Renewal-Lease Rent Growth Holds Steady via RealPage

Top Markets for Rent Growth Shuffle in January via RealPage

The U.S. apartment market started 2020 in better occupancy shape than it did any other year in nearly two decades.

U.S. apartment occupancy hit 95.5% last month, the best January occupancy rate since the early 2000s. That rate was down somewhat from a 20-plus-year high of 96.3% achieved in August. But occupancy typically softens in winter, as many renters opt not to move in the coldest months.

Read more...Top Markets for Rent Growth Shuffle in January via RealPage

Investors Want to Place Capital Before the Next Recession via GlobeSt

Investors are anticipating the next downturn, but rather than taking their chips off the table, investors are looking to place capital this year before the next recession. According to an investor sentiment report from RCM LightBox, investors are looking to place capital in the first half of the year and before the November election.

Read more...Investors Want to Place Capital Before the Next Recession via GlobeSt

Tuesday, February 18, 2020

New Housing Starts Spike in December via RealPage

Total housing starts across the U.S. hit a record high in December. Multifamily starts haven’t reached current levels in more than 30 years and single-family starts are at a 13-year high, according to U.S. Census figures.

The seasonally adjusted annual rate for annual multifamily starts rose 32% from last month and 74.6% from year-ago figures (to 536,000 units). Single-family starts climbed 11.2% from the previous month and 29.6% above year-ago figures (1,055,000 units). Together, total residential starts rose almost 41% above 2018’s pace of 1.61 million units.

Read more...New Housing Starts Spike in December via RealPage