Ivan Kaufman’s Real Estate Blog
In this week’s collection of multifamily reads, we explore the industry’s take on multifamily housing, learn more about millennial households, understand how building age impacts multifamily rents, long term resident retention tips and more.
Freddie Mac – September 6, 2017
“How do lenders, developers, builders and investors feel about the market and where it’s going? What areas pose the greatest challenges? And where should the market be focused in the future?”
Pew Research Center – September 6, 2017
“Looking at households is important because many economic and spending decisions, such as whether to own or rent a home, tend to revolve around the household rather than the individual adult.”
ALEX Chatter – September 5, 2017
“When it comes to apartments, general wisdom says that the newer the building, the higher the rent. This holds true until you reach the ‘prewar’ vintage, which can approach new inventory rent rates for smaller properties.”
Property Management Insider – September 7, 2017
“We spend our money and time on marketing to new residents, even standing on the corner banging our drum, to drive new business. Too often we forget the most important thing—keeping people we’ve got.”
Scotsman Guide – September 6, 2017
“Commercial asset prices made more gains in July even as deal volume has fallen off, according to three leading indices.”
In this week’s collection of multifamily reads, we get a closer look at how renters make decisions. First, we examine the results from Village Green’s recent resident survey. Unsurprisingly, the national apartment manager found that cost and location are the two greatest factors influencing a decision to lease. In third place was a ‘community environment’, which 49% of respondents said was the most important element impacting a leasing decision.
Technology is starting to play an important role in deciding where to lease — and it’s not just about internet speed. Bisnow shares an update on how smart home technology is making its way into multifamily. It starts with best-in-class Wi-Fi and ends with automated thermostats, lighting and coffee makers that learn your morning routine. Smart apartments are also expected to make their way into the seniors housing sector. Technology can aide seniors looking to age-in-place — a growing component of the small apartment market — and notify relatives or caretakers if something is amiss in a daily routine.
This week’s collection of articles ends with an examination of cap rate trends — a factor high up on the list of the market fundamentals investors use when weighing investment decisions.
via National Real Estate Investor – Sept. 1, 2017
“Three factors—rent, location and community environment—make up the top drivers of apartment leasing decisions among renters of every age and across geographic markets.”
via Multifamily Executive – August 29, 2017
“The homey look and feel of the community was the top response for millennials (62%), Gen Xers (66%), and baby boomers (61%).”
via Bisnow – August 27, 2017
“Often, the demand for new technology is driven by its ability to simplify tasks and make things easier. That is also true for smart apartments, which can help make residents’ lives easier and apartment access and control simpler.”
via ALEX Chatter – August 28, 2017
“Seniors are not a monolithic renter group, but rather have varying needs from early retirement to skilled care services. Small property operators must prepare for this generational demand as more seniors are choosing to rent.”
via Reis – August 28, 2017
“We see that the cap rates in most regions have changed very little except for the Southwest that has historically shown the most volatility.”
This week’s collection of top multifamily reads is all about demand. Demographic and economic factors are keeping the long-term outlook for apartment properties positive, with 4.6 million new units needed between now and 2030 to keep pace with demand and obsolescence, according to NMHC/NAA. MPF Research brings us a look at where many of those units will rise with the latest list of the 10 metro areas with the highest construction-to-inventory ratios. While many of those markets are familiar faces, Multifamily Executive brings us some insight into some overlooked urban locations where develops might want to take a look. A conversation about multifamily is not complete without addressing affordable housing – which at 1.7% vacancy – is the tightest apartment sector.
via National Real Estate Investor – August 24, 2017
“Developers will need to build 4.6 million new rental apartments between now and the end of 2030 just to keep up with
demand and the loss of older apartments to obsolescence, according to NMHC/NAA.”
via MPF Research – August 21, 2017
“Apartment completions in the U.S. are expected to peak in early 2018 – but there are still several metros with aggressive development pipelines.”
via Multifamily Executive – August 23, 2017
“Thriving but less-saturated cities are often overlooked despite their lucrative investment options. When rents eventually plateau in the coastal markets, secondary markets like these could become the goldmines of the industry.”
via Reis – August 23, 2017
“National vacancies for Affordable Housing remained tight at 1.7% in the second quarter, with national asking rent growth rising by a strong 1.0%.”
via MultifamilyBiz.com – August 21, 2017
“With modern burdens such as large student loans and a stagnant job market, younger generations of renters do not seem to be rushing towards home ownership anytime soon.”