Apartment rents are climbing at a faster rate than new-home prices, according to a comparison of pricing generated through Census Bureausingle-family data and Axiometrics’ apartment data.
The Census Bureau calculates a price index for new home sales that is shown in the following chart, using data from its Survey of Construction. The survey collects information on the physical characteristics and prices of new single-family houses gathered from monthly interviews with builders or owners of a national sample of new houses. The base year for the index is 2005, but the price data begins in 1963.
Read more...Apartment Rents Higher Above Trend Line than House Prices
Monday, December 14, 2015
Wednesday, December 9, 2015
Boomers Will Drive Apt. Growth via GlobeSt.com
The Baby Boom generation will lead the way in apartment demand growth, followed by Millennials, says a new research report from Yardi Matrix. The report also notes that demand for rental housing seems likely to increase strongly “for another decade? or more.”
Prepared by Paul Fiorilla, associate director of research at Yardi Matrix, the report says Boomers have been “underrated” in the discussion around multifamily demand, which has tended to focus on Millennials. Yet the 50-plus age cohort is projected to grow twice as fast over the next 15 years as the number of Americans ages 25 to 49, and Boomers have been renting in increasing numbers as they approach retirement age.
Read more...Boomers Will Drive Apt. Growth - Daily News Article - GlobeSt.com
Prepared by Paul Fiorilla, associate director of research at Yardi Matrix, the report says Boomers have been “underrated” in the discussion around multifamily demand, which has tended to focus on Millennials. Yet the 50-plus age cohort is projected to grow twice as fast over the next 15 years as the number of Americans ages 25 to 49, and Boomers have been renting in increasing numbers as they approach retirement age.
Read more...Boomers Will Drive Apt. Growth - Daily News Article - GlobeSt.com
Why it’s so hard to afford a rental even if you make a decent salary via The Washington Post
Last year in America, the median asking rent for a newly built apartment was an astonishing $1,372 a month. That's about 50 percent more than the typical rent nationwide. It marked a dramatic rise from what brand-new apartments were renting for just a few years ago.
And the steep sum shows a troubling disconnect in the country's rental market: While pressure has been building on low- and moderate-income households struggling to find affordable housing, we have mostly been building new supply tailored for the wealthy.
Read more...Why it’s so hard to afford a rental even if you make a decent salary - The Washington Post
And the steep sum shows a troubling disconnect in the country's rental market: While pressure has been building on low- and moderate-income households struggling to find affordable housing, we have mostly been building new supply tailored for the wealthy.
Read more...Why it’s so hard to afford a rental even if you make a decent salary - The Washington Post
Monday, December 7, 2015
Dallas Beige Book 12/2/15 via Dallas Fed
The Eleventh District economy grew at a modest pace over the past six weeks. Most respondents in manufacturing and services reported that demand either held steady or increased. Auto sales rose while reports on broader retail sales were mixed. A seasonal slowdown occurred in home buying, but broader real estate activity remained strong overall, except for some weakness in Houston. Energy activity was still depressed. Price pressures remained subdued and employment held steady or increased.
Read more...Dallas Beige Book - Dallas Fed
Read more...Dallas Beige Book - Dallas Fed
Austin Economic Indicators December 2015 via Dallas Fed
Growth in the Austin economy moderated slightly in October but remained strong. The Austin BusinessCycle Index continued to expand, and job growth accelerated to a brisk 5 percent annualized rate. The unemployment rate rose for a second month but is still indicative of a tight labor market. Manufacturing remains weak, and leisure and health care have slowed from a rapid pace of growth earlier in the year. Healthy expansion in construction, high-tech and other industries should continue to propel the local economy the rest of this year.
Read more...Austin Economic Indicators December 2015 via Dallas Fed
Read more...Austin Economic Indicators December 2015 via Dallas Fed
Friday, December 4, 2015
MF Rent Growth Remains Flat via GlobeSt.com
In keeping with normal seasonal patterns, US multifamily rent growth was basically flat in November, just as October was unchanged from the month before. However, Yardi’s latest Matrix Monthly report, released Friday, also shows a near-term deceleration in the hottest markets as well as the effects of supply growth.
November’s national average of 111 apartment markets covered by Yardi Matrix showed a $1 decline in rents to $1,165 per month. Rents increased by 6.4% year-over-year in November, representing a 30-basis-point decline from October but 190 bps higher than the year-ago period.
Read more...MF Rent Growth Remains Flat - Daily News Article - GlobeSt.com
November’s national average of 111 apartment markets covered by Yardi Matrix showed a $1 decline in rents to $1,165 per month. Rents increased by 6.4% year-over-year in November, representing a 30-basis-point decline from October but 190 bps higher than the year-ago period.
Read more...MF Rent Growth Remains Flat - Daily News Article - GlobeSt.com
Thursday, December 3, 2015
Multifamily Lending Brief: Q3 2015 via Property Management Insider
In the wake of the great recession, the entire financing environment shifted to benefit the multifamily industry. As such, MPF Research will provide high-level, but relevant updates on an on-going, quarterly basis. These updates include details on loan balances by lending category, overall market share, delinquency rates, as well as activity from Fannie Mae and Freddie Mac.
Read more...Multifamily Lending Brief: Q3 2015 | Property Management Insider
Read more...Multifamily Lending Brief: Q3 2015 | Property Management Insider
The U.S. Could Build a Lot More Apartments via Bloomberg View
Developers are putting up new apartment buildings in the U.S. as fast as they were before the real estate crisis. Yeah, there was a decline in multi-family construction in October, probably because of flooding in the South. But overall the picture from the Census Bureau's monthly building permits data has been one of growth.
By contrast, building permits for single-family homes, while they too have been on the rise, are still only at about 40 percent of the peak they hit in September 2005.
Read more...The U.S. Could Build a Lot More Apartments - Bloomberg View
By contrast, building permits for single-family homes, while they too have been on the rise, are still only at about 40 percent of the peak they hit in September 2005.
Read more...The U.S. Could Build a Lot More Apartments - Bloomberg View
Affordability Fears: Overhyped and Misdirected via GlobeSt.com
In a July 31 earnings call, Camden Property Trust CEO Rick Campo was asked directly about the risk of rising rents pushing apartment renters out the door.
His tongue-in-cheek response: Camden renters “have the ability to pay higher rents and we want to give them that opportunity.”
Campo’s answer was a succinct rebuttal to the widely accepted narrative of runaway rents pushing renters to the ceiling of affordability. There’s abundant evidence that market-rate apartments, on the whole, are nowhere near an affordability crisis. And these misdirected fears are distracting attention from a distinctly separate and far more worrisome problem—the nation’s severe shortage of designated affordable housing units.
Read more...Affordability Fears: Overhyped and Misdirected - Commentary Article - GlobeSt.com
His tongue-in-cheek response: Camden renters “have the ability to pay higher rents and we want to give them that opportunity.”
Campo’s answer was a succinct rebuttal to the widely accepted narrative of runaway rents pushing renters to the ceiling of affordability. There’s abundant evidence that market-rate apartments, on the whole, are nowhere near an affordability crisis. And these misdirected fears are distracting attention from a distinctly separate and far more worrisome problem—the nation’s severe shortage of designated affordable housing units.
Read more...Affordability Fears: Overhyped and Misdirected - Commentary Article - GlobeSt.com
Apartment Renter Preferences Revealed via National Real Estate Investor
What are your apartment renters really thinking? A new survey shows the amenities that renters want the most and are willing to pay for. It also shows how renters hunt for apartments and pay attention to the social media efforts of property managers. The National Multifamily Housing Council (NMHC) partnered with real estate research and consulting firm Kingsley Associates to survey nearly 120,000 apartment residents, as a follow-up to their first Renter Preferences Survey, released in 2013.
The results match what some apartment experts have observed for years. Residents value some amenities at their apartment buildings much more than others.
Read more...Photo Gallery: Apartment Renter Preferences Revealed | National Real Estate Investor
The results match what some apartment experts have observed for years. Residents value some amenities at their apartment buildings much more than others.
Read more...Photo Gallery: Apartment Renter Preferences Revealed | National Real Estate Investor
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