Ivan Kaufman’s Real Estate Blog
We start this week’s round up of the top multifamily reads with a look at what apartments owners can do to keep their renters around. An article from the National Apartment Association (NAA) examines the top value-add features that not only increase retention but also raise rents. Tech and smart-home features have joined traditional upgrade areas (kitchens, bathrooms and floors) as top targets. While more renters are choosing to renew their leases today compared to five years ago, certain metro areas see a greater prevalence of renters staying put. A guest contributed article from Real Page analyst Brandon Crowell in Forbes dives into the details. Two of the top 10 markets for renter retention – Chicago and Northern New Jersey – also appear on the top 10 list of investment sales markets for the first half of 2017 compiled by National Real Estate Investor (NREI). We close this week’s list of stories with RCA’s update on overall U.S. commercial real estate prices, which hit a new high in June.
via National Apartment Association – July 24, 2017
“At this point in the cycle, it is harder to make money building or buying pristine, core apartments. But if you can add value through renovation—taking an apartment community from a B-minus apartment to a B plus or an A, there is still potential to make a significant return.”
via Forbes – July 31, 2017
“More apartment renters nationwide are choosing to renew their leases when they expire, rather than move out. That trend has been growing for more than five years. The question is where are renters more likely to stay in place?”
via Real Capital Analytics – August 1, 2017
“The US National All-Property Composite index rose 0.9% in June from a month earlier and climbed 7.9% from a year ago.”
via National Real Estate Investor – August 2, 2017
“Even with a decline in transaction volume, sales remain relatively robust in most major metros. Combined, the top 10 most active sales markets during the first half of the year accounted for 35 percent of total sales at $74.4 billion.”
This week’s collection of top multifamily reads takes a step back to examine some overarching trends impacting the apartment market. We’ll start off with an article I contributed to National Real Estate Investor (NREI) looking at two distinct multifamily market climates that often exist within the same metropolitan area. While certain cities are starting to feel the impact of an oversupply of new Class A product, nearly all markets have an unprecedented and growing demand for quality, affordable units of workforce housing. Our second story comes from Alanna McCargo, Co-Director of Urban Institute’s Housing Finance Policy Center, and examines four major trends contributing to this lack of affordability.
The solution to affordability will likely need to manifest in the suburbs, as Tom Toomey, ULI Chairman and President & CEO of multifamily REIT UDR, Inc., points out that 79% of the population in the largest 50 metro areas live in the suburbs. His Q&A with NREI’s John Egan also gets into the rise of interest in ’18-hour cities.’ Next, we turn to another thought leader – Doug Bibby, President of the National Multifamily Housing Council (NMHC) — who walks us through new research showing the country needs to add 4.6 million new apartment homes between now and 2030 to keep up with demand. This week’s roundup tops off with Freddie Mac’s midyear multifamily outlook, which shows that the market remains healthy as we move towards 2018.
via National Real Estate Investor – July 28, 2017
“This guest byline by Arbor’s Chairman, President & CEO Ivan Kaufman examines how the multifamily cycle has diverged into two distinct market climates – oversupply of new Class A product in certain metros concurrent with an unprecedented and growing demand for quality, affordable housing for the workforce.”
via Urban Institute – July 27, 2017
“The rental housing landscape in America is rapidly changing: new people are becoming renters and many properties are aging. Meanwhile, the pace at which new rental housing supply is being created can’t meet growing demand.”
via National Real Estate Investor – July 25, 2017
“In a Q&A with NREI, Toomey discusses the challenges facing commercial real estate, the role of the suburbs in today’s market and the outlook for the multifamily sector.”
via Multifamily Executive – July 21, 2017
“We’ll have to build 4.6 million new apartments between now and the end of 2030 to keep up with growing apartment demand—or risk exacerbating today’s existing housing shortage.”
via Freddie Mac – July 26, 2017
“Through the first half of 2017, the economy’s growth continued to support strong multifamily fundamentals, while the market continued to moderate on a national level.”
Ivan Kaufman, Chairman, President & CEO of Arbor Realty Trust Inc., sits down with Steve Johnson, Vice President of the Small Loan Business at Freddie Mac, and Sam Chandan, Silverstein Chair at the NYU SPS Schack Institute of Real Estate to discuss how new technology has enabled multifamily borrowers to secure financing for their investment and refinancing needs faster than ever before.