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

Ivan Kaufman’s Real Estate Blog

Weekly Roundup | September 08, 2017

 

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. 

Photo by Daniel von Appen on Unsplash

Photo by Daniel von Appen on Unsplash

Most in Industry Optimistic about Multifamily

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?”

 

5 Facts About Millennial Households

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.”

 

How Does Building Age Impact Multifamily Rents?

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.”

 

5 Long-Time Resident Retention Tips

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.”

 

Commercial Asset Prices Climb Even as Deals Slow

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.”

Weekly Roundup | September 01, 2017

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.

Photo by Josh Rinard on Unsplash

Photo by Josh Rinard on Unsplash

Top 10 Factors in Apartment Renters’ Decision to Lease

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.”

 

Renters Want That ‘Homey’ Feeling

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%).”

 

Set It and Forget It: The Lure of Smart Apartments

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.”

 

Senior Renters Represent a Growing, Diverse Segment in Small Apartment Properties

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.”

 

Q2 2017 Apartment Cap Rate Trends by Region

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.”

Weekly Roundup | August 25, 2017

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. 

Photo by Samuel Foster on Unsplash

Photo by Samuel Foster on Unsplash

Long-Term Outlook for Rental Apartments Remains Positive

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.”

 

Top 10 Metros for Apartment Construction Pipelines

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.”

 

Overlooked Urban Locations Can Be Hidden Goldmines for Developers

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.”

 

Q2 2017 Affordable Housing Trends

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%.”

 

How to Captivate the Renters of Tomorrow Through 21st Century Marketing Tactics

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.”