Ivan Kaufman’s Real Estate Blog
This week’s multifamily roundup features insights on the top secondary metros for CRE investment, the role of small multifamily in workforce rental demand, and mortgage origination volume in 2018. First, the National Association of Home Builders notes that the market share of rental multifamily construction starts remained elevated in the second quarter of 2018. Then, Trepp identifies the top 20 secondary metros where commercial real estate activity is increasing. Arbor’s Chatter blog reports that small apartment buildings are vital to workforce rental demand in the top metros, while single-family rentals dominate the next 30 metros. Next, Mortgage Bankers Association provides an update on commercial and multifamily originations going into the latter half of 2018. Finally, USA Today explores an emerging trend among renters over the age of 50.
National Association of Home Builders – August 24, 2018
“The market share of rental multifamily construction starts remained elevated at 93% during the second quarter of 2018. In contrast, the historical low share of 47% was set during the third quarter of 2005.”
Trepp – August 22, 2018
“The average cap rates for secondary MSAs are higher on average than both top-tier and major MSAs, meaning there is opportunity for potential investors to reap higher returns.”
Arbor Chatter – August 22, 2018
“Small apartment buildings comprise the largest share of workforce housing demand within the top 20 metros, while single-family rentals dominate the next 30.”
Mortgage Bankers Association – August 21, 2018
“Investor demand for multifamily properties and hotels are helping push originations higher, even as loan demand for retail properties is down.”
USA Today – August 19, 2018
“During the next two decades, the number of renters 65 and older is expected to increase by 80 percent, to 11.5 million.”
This week’s multifamily roundup features insights on the growth of renting throughout the U.S., the workforce housing rental segment and the demographic shift taking place as baby boomers enter their golden years. First, MarketWatch examines the uptick in renting due to a variety of factors including young adults delaying marriage and starting families, and a strong preference for living in urban cores. Then, Trulia provides a visual interpretation of age distributions in the U.S. by county. Arbor’s Chatter blog explores the size and growth of the workforce housing segment across rental asset classes by categorizing households against the median income of their local economies. Next, CityLab explains the correlation that exists between age, income and homeownership. Finally, Multifamily Executive states that fundamentals, demand and economic growth remain strong according to Yardi, leading to the anticipation of steady growth in the apartment sector.
MarketWatch – August 8, 2018
“While the homeownership rate has notably begun to pick up, other factors including rising prices are expected to cause many households to continue to choose renting over homeownership.”
Trulia – August 8, 2018
“Call it the greying of America. As baby boomers enter their golden years, a great demographic shift is taking place. Across the nation, the median age is creeping up. Yet this aging is not consistent from one place to the next.”
Arbor Chatter – August 7, 2018
“Rental demand from the workforce housing segment is on the rise, with a relatively higher concentration in single-family and small asset properties.”
CityLab – August 8, 2018
“The populations of homeowners and renters aren’t flat across the U.S. There’s one major group of Americans who are more likely to rent than own: people in their 20s.”
Multifamily Executive – August 7, 2018
“Secondary markets with strong late-cycle economic performance led the nation in rent growth. Orlando’s YOY rent growth is strongest at 6.9%, followed by Las Vegas at 5.8%, the Inland Empire at 5.5%, and Phoenix at 4.9%.”
Ivan Kaufman, Chairman, President & CEO of Arbor Realty Trust, previously discussed the role of Millennials and its impact on the rental market throughout Arbor’s ongoing webinars and One-on-One video series with Chandan Economics Founder Sam Chandan. To provide an updated multifamily outlook, Sam Chandan recently visited the Arbor office and examined the growing trend among aging Millennials of leaving the urban core in search of more space and better school systems in suburban and transit-oriented areas. For more on why this is a trend to watch, check out the video above. Be sure to follow Ivan Kaufman on Twitter and Instagram for more information on Arbor.