Ivan Kaufman’s Blog2017-07-19T16:32:21+00:00

Ivan Kaufman’s Real Estate Blog

Weekly Roundup Intro: Week of May 11, 2020

This week’s roundup highlights how COVID-19 is impacting metros and their multifamily markets differently, the decline of affordable rental housing, and what apartment investment opportunities might look like as a result of the coronavirus. First, Arbor’s Chatter blog provides an in-depth look on how the outbreak is affecting markets in different ways, with cities that rely heavily on tourism, entertainment and retail likely to take the biggest hits. Next, Multi-Housing News discusses the revised expectations for new multifamily supply and construction activity in 2020 as a result of COVID-19, noting the number of new units built will likely be much lower than previously forecasted. Harvard’s Joint Center for Housing Studies takes a look at the factors contributing to a deficit of affordable housing options, including the growing presence of high-income renters, the country’s overall limited housing supply and new construction activity focusing on Class A or high-cost properties. Then, GlobeSt offers tips on how multifamily investors can find opportunities and recalibrate their portfolios during COVID-19 and be prepared for future downturns. Finally, MBA covers how the coronavirus has impacted the small multifamily sector, citing research and insights from Arbor’s Q1 2020 small multifamily report

COVID-19 Report: Metro Labor Markets and Multifamily Demand

Arbor Chatter – May 15

Among the largest five U.S. metros, Los Angeles and Houston, with shares of around 30% impacted renters, are relatively more at risk compared to New York, Chicago and Dallas.

Coronavirus Dents Multifamily Development

Multi-Housing News – May 12

“New supply expectations fall this year, but future construction impact hinges on the downturn’s severity and length.”

The Continuing Decline of Low-Cost Rentals

Harvard JCHS – May 11

“The growth in high-income renters, the nation’s limited housing supply, and the tendency for new construction to be aimed at the top of the market have all contributed to the decline in low-cost rental housing over the past several decades.”

Waiting Out Multifamily Opportunities in the Aftermath

GlobeSt – May 11

“Like nearly every industry, the multifamily real estate market has taken a hit during the COVID-19 pandemic, but it may have one advantage that some industries don’t: people always need a place to live.”

COVID-19 Economic Impact Reaches Small Multifamily Sector

MBA – May 12

“Small multifamily originations reached a record-high $59.2 billion last year. The current estimate represents a 6.7 percent lending activity decline.”

Weekly Roundup Intro: Week of May 4, 2020

This week’s roundup offers insights on multifamily leasing amid COVID-19, apartment retention trends and the small multifamily sector’s performance in the first quarter. First, NREI reports on the innovative ways apartment owners are showing apartments during the current pandemic in order to continue leasing up their units. Next, RealPage notes that tenant retention in April reached a record high, largely due to renters’ inability or reluctance to relocate as a result of COVID-19. Arbor’s Chatter blog highlights the small multifamily sector’s finance and investment benchmarks for the first quarter, noting that the initial impacts of the coronavirus resulted in a slight decline in property prices. Then, NREI explains the tax provisions in the CARES Act that relate to real estate owners and operators, including 1031 Exchanges and Qualified Opportunity Funds. Finally, the Harvard Joint Center for Housing Studies releases a new series on how improved apartment and construction methods could help reduce the cost of building properties and increase affordability for renters.

Multifamily Owners Go Virtual to Get Leases Signed Amid COVID-19

NREI – May 6

“New technologies let apartments shoppers to check out potential homes without ever being in the presence of a leasing agent.”

Apartment Retention Hit Record High in April, But Revenue Growth Hit Nine-Year Low

RealPage – May 7

“Property owners and managers purposely did not capitalize on high renewal demand in April. In fact, renewal rent trade-out – which measures the change in rent for renters renewing leases in the same unit – came in at the lowest level since December 2010.”

Q1 2020 Small Multifamily Investment Trends Report

Arbor Chatter – May 5

“While the impact of COVID-19 contributed to a 0.9% decline in small multifamily prices in the first quarter of 2020, they are still up 5.5% from a year ago.”

An In-Depth Look into the Real Estate-Related Tax Provisions of the CARES Act

NREI – May 6

“Most of the legislation’s provisions relax changes made by the 2017 Tax Cuts and Jobs Act.”

Making Apartments More Affordable Starts with Understanding the Costs of Building Them

Harvard JCHS – May 5

“The public health crisis has highlighted the extent of housing insecurity among millions of US renters—a problem that can only be solved by building more housing at lower costs.”

Weekly Roundup Intro: Week of April 27, 2020

This week’s roundup highlights how the multifamily industry is preparing for life after quarantine, as well as COVID-19’s impact on single-family rental demand and renters’ behaviors. First, Multi-Housing News explores how various multifamily owners and operators are implementing changes at their properties as a result of the coronavirus, including their approaches to giving tours and reopening community amenities. Next, GlobeSt reports that the single-family rental market has experienced increased demand in recent months, particularly for build-to-rent assets as they tend to offer higher margins and longer tenant occupancy. RentCafé observes that apartment searching picked up in April, potentially signifying increased optimism among renters about resuming their moving plans. Then, the Terner Center provides an in-depth analysis of the number of renter households facing income losses due to COVID-19, as well as state and metro estimates on where renters are likely to be most severely impacted. Finally, RealPage shares some thoughts on what’s ahead for the apartment sector in May, including how rent collections will be impacted and how property managers will address these issues with their tenants.

Six Feet of Separation: Apartments Prepare for Life After Quarantine

Multi-Housing News – May 1

“Until there is a vaccine or a treatment, masks and social distancing will continue to be the new normal driving operations at apartment communities even after commerce and other activities are permitted to reopen.”

Demand Jumps in Single-Family Rental Market

GlobeSt – April 29

“Within the single-family rental market, the build-for-rent assets are the most popular among investors. BFR assets are built specifically for rentals, and can have higher margins than other single-family assets.”

Apartment Hunting Resumes in April, Pointing to High Renter Optimism

RENTCafé – April 24

“While in mid-March we saw searches on our website drop, the most recent April numbers are showing not only a return to pre-crisis levels, but a 17% increase compared to the beginning of March before the drop.”

Estimating COVID-19’s Near-Term Impact on Renters

Terner Center – April 24

“Nearly 16.5 million renter households have at least one worker in an industry likely to be immediately affected by efforts to flatten the curve in the COVID-19 pandemic.”

Ten Thoughts on Apartment Rent Payments Entering May’s Rent Week

RealPage – April 30

“The U.S. apartment industry held its collective breath going into April, and ended the month with a giant sigh of relief as rent collections far exceeded expectations.”