Ivan Kaufman’s Blog 2017-07-19T16:32:21+00:00

Ivan Kaufman’s Real Estate Blog

Weekly Roundup: January 19, 2018

This week’s industry highlights consist of an outlook of multifamily in 2018, a growing trend among Baby Boomers to rent and how advancements in technology will continue to disrupt the traditional apartment sector. First, Freddie Mac’s David Brickman tells Commercial Observer how he manages to keep an emphasis on affordability without sacrificing overall profits. Then, a NAREIT’s panel with five leading economists reveals that although 2018 may not see big gains in prices, job growth and strong fundamentals will keep the market promising. The Washington Post then uncovers that some Baby Boomers are choosing to rent apartments for reasons such as not being responsible for repairs and the flexibility to move as frequently as they would like. Next, NMHC creates a redefined view of multifamily with innovations that will focus on meeting the needs of human experiences, changing employment developments, e-commerce, and health/wellness. Lastly, National Real Estate Investor concludes that although multifamily will mainly remain stable in 2018, Class A assets will continue to see competition, rents may continue to rise and markets like Houston will continue to develop and show potential.

yellow door of an apartment building

Freddie Mac’s David Brickman on GSEs’ Special Role and the Outlook for Multifamily

Commercial Observer – Jan. 18

“A year shy of his 20th anniversary with the agency lender, David Brickman answers to an intricate pair of overlapping mandates: earn a sensible economic return from loan activities while assertively promoting liquidity and affordable housing even during economic crises.”

Economists See Strong U.S. Fundamentals Boding Well for Real Estate

NAREIT – Jan. 18

“NAREIT’s panel also expounded on trends, structural shifts, sectors and cap rates in the coming year.”

Downsizing Baby Boomers Face a Key Decision: Is it Better to Rent or to Buy?

The Washington Post – Jan. 18

“The rent-or-buy decision is more commonly thought of as a dilemma for young professionals establishing their households, not people approaching retirement.”

NMHC Multifamily Disruption Report

NMHC – Jan. 18

“Eight major trends will be game changers for apartments moving forward. These tectonic shifts are poised to radically reshape our customers’ experiences as well our industry’s approach to designing, developing and operating our communities.”

Seven Predictions for the Multifamily Sector in 2018

NREI – Jan. 18

“‘Stable.’ That’s the one word that encapsulates the anticipated state of the multifamily sector this year — that was also the sentiment expressed by other industry experts as well, when asked for their forecasts for the upcoming year.”

Weekly Roundup: January 12, 2018

We start off this week’s collection of top multifamily news items with a look at the growing demand for Class B apartments as investors begin to realize the shortage of workforce housing. Next, we explore where the workforce is growing with a look at 10 booming cities from CNBC.


Turning to tax reform, Urban Institute examines how the new policy will make renting more attractive than owning a home. Multifamily Executive then walks us through the finer points of the relationship between property tax assessments and acquisition price. This week’s round up closes with a look at some often-overlooked cities experiencing revivals.

Class B Apartments in Demand: Investors Look to Capitalize on Workforce Housing Shortage

CoStar – Jan. 8

“Apartment investors will be hunting for Class B properties this year – not as the value-added proposition they’ve been seen as recently, but as a way to address the shortage of workforce housing.”

10 Cities with Booming Employment Growth in 2017

CNBC – Jan. 9

“While job creation has actually slowed by 6 percent in 2017, some cities are still experiencing tremendous employment growth.”

For Many, Tax Reform Will Make Renting More Attractive Than Owning A Home

Urban Institute – Jan. 9

“The increased standard deduction means fewer taxpayers will itemize. The reduction in tax rates also suggests less of a benefit for those who do itemize.”

Look Beyond Acquisition Price to Reduce Property Tax Assessments

Multifamily Executive – Jan. 10

“Many jurisdictions have specific assessment statutes that result in taxable values well below the property’s purchase price or the value indicated under the income approach.”

The U.S. Cities Left Behind Now Get Their Turn

Bloomberg – Jan. 8

“The current recovery brings a chance for places like Fort Wayne, Indiana, and Riverside, California, to reinvent themselves.”

Weekly Roundup: January 5, 2018

This week’s selection of multifamily news pieces reveal the expected performance outlook of the 2018 multifamily market as well as the amenities that matter most to renters. First, Mortgage Bankers Association identifies that the strength and stability of the CRE market will likely be sustained due to factors like increasing asking rents. Next, Axiometrics explores the dynamics that are causing small metro markets to outperform their counterparts. Alex Chatter discusses the significance of offering residents high speed connectivity and access to evolving technologies. Then, NREI predicts that 2018 will be another strong year for multifamily with an elevated level of transaction volume, low cap rates and a continued focus on secondary and tertiary markets. Lastly, The Wall Street Journal discovers that while nearly all residents say they care about having an on-site fitness center, less than half take advantage of the facilities they have.


3Q Commercial/Multifamily DataBook Reports ‘Strong, Steady’ Markets

MBA – Jan. 4

“Commercial real estate and finance markets were strong and steady during the third quarter, with fundamentals holding tight, prices still climbing, finance activity growing and loan performance extremely strong.”

Smaller Metro Apartment Markets Often Outperform Larger Neighbors

Axiometrics – Jan. 4

“What might be causing the discrepancy in market performance between these marquee-name markets and their lesser-known neighbors? There are a few potential explanations.”

Need for Higher Speeds: An Updated Look at Internet Use in Small Apartment Buildings

ALEX Chatter – Jan. 2

“While Internet access makes steady inroads in small apartment buildings, renter preference for faster connectivity is shifting access to newer technologies.”

Investors Expect 2018 to be Another Solid Year for Apartment Sales

NREI – Jan. 2

“Investors bought a lot of properties as 2017 came to a close, partially making up for the year’s slow start.”

Renters Love the Gym—but Only in Theory

The Wall Street Journal – Jan. 3

“82% of respondents say an on-site fitness center is important in apartment buildings, but 42% note they rarely or never use those facilities.”