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

Ivan Kaufman’s Real Estate Blog

Weekly Roundup Intro: Week of December 3, 2018

This week’s multifamily roundup features insights on this sector’s future outlook, the cities with the smallest average apartment size, and the market’s preparation for slower leasing activity in the fourth quarter. First, Kiplinger identifies three primary impacts the multifamily market will face heading into next year, including volatile financial markets and development risks. Then, Real Capital Analytics examines the most active Opportunity Zones for developers and investors. RENTCafé reports how Seattle has replaced New York as the metro with the smallest average size for a new apartment. Next, RealPage notes that despite a better-than-expected prime leasing season this year, the fourth quarter of 2018 will likely follow a normal pattern of weakness in leasing activity. Finally, NREI takes a look at why investors are turning to value-add multifamily opportunities in Los Angeles in their quest for yield.

karla-alexander-191523-unsplash

2019 Real Estate Report: How Does the Multifamily Market Look?

Kiplinger – December 5, 2018

“Three primary impacts will move the multifamily market in 2019, including pressure from volatile financial markets, a growing housing supply and emerging development risks.”

U.S. Opportunity Zones: A Baseline

Real Capital Analytics – December 4, 2018

“In the U.S., the newly-designated ‘opportunity zones’ account for 10% of the investable universe and have averaged $50 billion in annual acquisition volume in recent years.”

As Apartments Are Shrinking, Seattle Tops New York with the Smallest Rentals in the U.S.

RENTCafé – November 30, 2018

“The average size of a new apartment completed in 2018 in the U.S. is 941 square feet (sqft), 52 sqft less than the size of an apartment built ten years ago.”

After Strong Summer, Apartment Market Preps for Seasonal Slowdown

RealPage – December 3, 2018

“While the prime leasing season was more robust than usual this year, there’s no reason to believe 4th quarter will veer from its normal pattern of weakness in 2018.”

Value-Add Multifamily Properties Outside Los Angeles Downtown Attract Investors

NREI – December 4, 2018

“Investors are expected to buy more than $10 billion in multifamily properties in Los Angeles this year.”

 

Weekly Roundup: Week of November 19, 2018

This week’s multifamily roundup features insights on the keys to success in multifamily, millennial renters’ income profiles, and the impact of increasing labor costs on apartment developers. First, , NREI reports on the technologies that are likely to have the greatest impact on commercial real estate, including blockchain and the Internet of Things. Then, PMI reveals the top strategies to attract new residents and retain current tenants, while achieving high revenues. Arbor’s Chatter blog compares the income of millennial renters to their older neighbors, noting that young renters living alone often have higher incomes that the market average in downtown locations. Next, Real Capital Analytics observes that while apartment price growth still outpaces other property types, the speed of this growth has slowed since earlier this year. Finally, Trepp analyzes the impact of increasing labor costs on multifamily development, which has resulted from a shortage of qualified workers to meet the current demand.

ricardo-gomez-angel-660835-unsplash (1)

Which Emerging Technologies Are Likely to Have the Greatest Impact on the Commercial Real Estate Industry?

NREI – November 16, 2018

“From blockchain to the Internet of Things, technology might make commercial real estate investment and development easier.”

 The Keys to Operational and Revenue Success in Multifamily

PMI – November 20

“Some old-school fundamentals blended with the techy new trend of mining data can hold the key to if they attract new residents and retain the ones they have while achieving the highest possible revenue.”

Millennial Renter Income Profiles Mirror Market Averages

Arbor Chatter – November 20

“Young adult apartment renters earn as much as their older neighbors, with those living alone earning significantly higher income than the market average in downtown locations.”

 US Annual Price Growth Slows to 6.4% in October

Real Capital Analytics – November 21

“Apartment price growth still outpaces all other types at 9.6% year-over-year, though this pace has been easing since earlier in the year.”

Increasing Labor Costs Squeezing Multifamily Development Pipeline

Trepp – November 16

“Although low unemployment and increasing wage growth are indicators of a healthy and growing economy, apartment developers are getting pinched as the strong demand for workers continues to outpace supply.”

Weekly Roundup: Week of November 5, 2018

This week’s multifamily roundup features insights on the performance of multifamily originations in 2018, multifamily projects in rural communities, and the impact of resident mix on the apartment market. First, Mortgage Bankers Association forecasts that mortgage bankers’ multifamily mortgage originations will rise 7% in 2018. Then, RealPage reports that apartment leasing activity was strong in the second and third quarters of this year, with absorption levels up from the average of 214,000 units. Arbor’s Chatter blog compares rent prices in new and old apartment buildings, noting that small apartments present a strong value across the property age spectrum. Next, Urban Land Magazine examines the lack of affordable housing options in small and rural areas, despite strong demand across demographic groups. Finally, Property Management Insider identifies eight distinct renter segments across the apartment market that can provide insights for investors.daniel-dinuzzo-676370-unsplash

2018 Commercial/Multifamily Originations Forecast to Match 2017’s Record Year

Mortgage Bankers Association – November 8

“Mortgage banker originations of just multifamily mortgages are forecast to rise by 7 percent this year to $251 billion, with total multifamily lending at $302 billion.”

U.S. Apartment Market Sees Strong 2018 Prime Leasing Season

RealPage – November 6

“Demand volumes for the 2nd and 3rd quarters of 2018 totaled roughly 238,000 units nationwide. That’s notably better than the average absorption of 214,000 units recorded for that six-month period each year during the current economic cycle.”

How Do Rents Compare by Unit Mix in New and Old Buildings?

Arbor Chatter – November 6 

“Small apartment properties present strong value at both ends of the property age spectrum, with the most recent and prewar properties outperforming market averages across unit size.”

 Small Town, Big Need: Making Multifamily Projects Work in Rural Communities

Urban Land Magazine – November 5

“While perhaps not as obvious as in urban geographies, small communities require a range of housing options, including rental projects that offer access to jobs, transit, health care, and community amenities.”

How Resident Mix Impacts the Conventional Apartment Market

Property Management Insider – November 7

“Within the mix of the country’s 57 million renters that occupy 20.8 million apartment units are eight distinctive renter segments that offer valuable, granular information to investors.”