Tuesday, September 19, 2017

Affordable Housing Developers Face New Challenges via National Real Estate Investor

Affordable housing developers are facing more obstacles to building new projects, even though the need for affordable housing seems to grow stronger every year.

“We believe affordable housing production, that is, the development or preservation of projects financed with Low Income Housing Tax Credits (LIHTCs), will be at best flat to last year,” says Richard Gerwitz, co-head of Citi Community Capital, a community lending and investment arm of Citi.

Read more...Affordable Housing Developers Face New Challenges | National Real Estate Investor

August 2017 Market Trends via Axiometrics

Effective rent growth dips from the previous month in 29 out of the 50 major apartment markets led to a decrease in the national rate in August, which has been typical in August in all but the most booming years.

August’s rate of 2.2% was down 19 basis points (bps) from July’s 2.4% and was 66 bps lower than the 2.9% of August 2016. Despite, the decline, apartment market performance remained remarkably stable this year, with rent-growth rates staying within a 41-bps range since November 2016.

Read more...Axiometrics.com | August 2017 Market Trends

Texas Multifamily Investors Focused on Dallas, Tertiary Markets via Urban Land Magazine

Texas markets are meeting a healthy demand for multifamily housing from millennials who are reaching renting age and baby boomers who are downsizing, while attracting investment from around the United States.

“The millennial cohort is just coming into the rental pool,” said Gary Goodman, senior vice president of Passco Cos., an Irvine, California–based acquirer of Class A multifamily properties. “That’s a huge demand factor.” Millennials, unlike previous generations, are delaying marriage, children, and homebuying while showing a penchant for living in an urban, multifamily setting.

Read more...Texas Multifamily Investors Focused on Dallas, Tertiary Markets - Urban Land Magazine

Yardi: Rent Growth Decelerates as New Completions Slow via Multifamily Executive Magazine

The average U.S. monthly rent rose by $1, to $1,352, in August, remaining essentially flat as apartment completions begin to slow across many of the 121 markets in Yardi Matrix’s Matrix Monthly survey. Meanwhile, the national rent-growth rate fell to 2.4%, down 20 basis points (bps) from July. (Despite these slowdowns, rents have increased every month this year.) Economic conditions and multifamily demand remain strong.

Read more...Yardi: Rent Growth Decelerates as New Completions Slow | Multifamily Executive Magazine

Friday, September 15, 2017

What Can Texas CRE Owners Expect from the Insurance Process? via National Real Estate Investor

It’s been nearly three weeks since Hurricane Harvey made landfall in Rockport, which lies along the southeastern coast of Texas. While emergency response efforts in the wake of the massive storm, which dumped a record-setting 51 inches of rain on the region, may be winding down, the insurance process for commercial and residential property owners is just getting under way.

The question yet to be definitively answered is: Just how much damage did the storm inflict on the region’s real estate, and how much will insurance cover the claims?

Read more...What Can Texas CRE Owners Expect from the Insurance Process? | National Real Estate Investor

Wednesday, September 13, 2017

5 Ways to Help Residents Calculate Renters Insurance Coverage via Property Management Insider

Property managers have probably heard over and over the reasons why residents or applicants don’t want renters insurance. “Renters insurance is too expensive,” “My stuff isn’t worth that much anyway,” and “The apartment is already insured, right?”

These are some of the common misconceptions, according to the National Association of Insurance Commissioners (NAIC). While including renters insurance in leases is an effective way to cover everybody in the event of an apartment loss, the concept can at times be hard for residents to swallow. For some prospects, the mere mention of mandatory renters insurance could be enough to lose a potential lease.

Read more...5 Ways to Help Residents Calculate Renters Insurance Coverage

Dallas apartment permits dip 20 percent in the first real sign of a building slowdown via Dallas News

The long-predicted slowdown in North Texas apartment construction may finally be in the works.

With over 50,000 rental units under construction, Dallas-Fort Worth has been the top apartment building market in the country in recent years. But a significant slowdown in permits for new apartments this year may herald a decline in building cranes on our horizon.

Read more...Dallas apartment permits dip 20 percent in the first real sign of a building slowdown | Real Estate | Dallas News

Tuesday, September 12, 2017

Weighing the CMBS Impact of Harvey and Irma via GlobeSt.com

A pair of back-to-back hurricanes in the space of a week may cause a near-term rise in CMBS delinquencies, according to Fitch Ratings and S&P Global Ratings. The exposure of billions of dollars in securitized commercial mortgages to the effects of Hurricanes Harvey and Irma comes as maturity performance is largely in line with expectations and the delinquency rate continues to decline.

Exactly how much property has been stricken by flooding, wind damage and other effects of Harvey and Irma isn’t yet clear.

Read more...Weighing the CMBS Impact of Harvey and Irma | GlobeSt.com

Rents are collapsing in some of America's biggest cities via Business Insider

An inconvenient math for housing is beginning to dog Chicago: The third largest city in the US has been losing population for years. Not huge numbers, but it adds up… In 2016, according to the Census estimate, the population dropped by about 9,000 people. Since 2014, the population has dropped by about 14,000 people. Chicago’s fiscal woes, junk credit rating, and the threat of bankruptcy hanging over it don’t help.

Since 2012, nearly 26,000 multifamily rental units have been completed in the city, according to Fannie Mae, which for 2017 sees “elevated volume of new supply, particularly in the Loop/River North/Gold Coast submarkets.” This does not include condos and single-family homes that were bought by investors and have reappeared on the rental market. Over the same five-year period, Chicago’s population has dropped by 9,000 people.

Read more...Rents are collapsing in some of America's biggest cities - Business Insider

Friday, September 8, 2017

Hurricane Harvey’s Multifamily Impact via Multi-Housing News Online

The devastation of Hurricane Harvey has destroyed around 100,000 homes, with 15 percent of the multifamily stock being wiped out. With many families being displaced and in need of shelter, the multifamily community is working on assessing damage, beginning reconstruction and getting operations back in working order.

Read more...Hurricane Harvey’s Multifamily Impact