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

Ivan Kaufman’s Real Estate Blog

Weekly Roundup: September 3, 2018

This week’s multifamily roundup features insights on the top U.S. markets for rent increases, trends in the small balance multifamily investment market, and wellness-focused multifamily communities. First, Houston Chronicle notes that West Texas’ oil boom has resulted in skyrocketing rents for multifamily properties. Then, NREI explains why real estate remains a safe haven for investors, supported by strong fundamentals and economic growth. Arbor’s Chatter blog features a new report produced with Chandan Economics on the performance of small balance multifamily loans in the second quarter of 2018. Next, Mortgage Bankers Association reports that low interest rates and ample financing support second-quarter commercial and multifamily delinquencies staying at low levels. Finally, Multifamily Executive examines renters’ increasing preference for communities that make health and wellness a top priority.

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Midland, Odessa Top U.S. for Rent Increases

Houston Chronicle – September 5, 2018

“The two cities, which primarily serve the oil and gas industry in the Permian Basin, had the largest year-over-year changes in the nation, according to RENTCafe, an apartment search website.”

Despite Rising Interest Rates, Real Estate Offers Opportunity to Investors

NREI – September 4, 2018

“Long-term trends can—and will—affect real estate positively or negatively, but despite raucous political and economic news, real estate just continues to offer a safe harbor for clients.”

Q2 2018 Small Balance Multifamily Investment Trends Report

Arbor Chatter – September 6, 2018

“Strong economic growth, rising interest rates, and exceptionally tight labor markets contributed to small balance lending volume reaching an annualized rate of $47.0 billion through the first half of 2018.”

Second Quarter Commercial/Multifamily Delinquencies Remain at Low Levels

Mortgage Bankers Association – September 4, 2018

“Strong property fundamentals and values, coupled with low interest rates and ample financing options, all continue to support commercial real estate owners and their abilities to repay their mortgages.”

Wellness-Focused Communities Take Resident Health to Next Level

Multifamily Executive – September 4, 2018

“Renters want their apartment to provide more than a shelter they escape to in between work and play: It must make their all-around well-being its top priority.”

 

Weekly Roundup: August 27, 2018

This week’s multifamily roundup features insights on the value of secondary and tertiary markets in CRE investment, single-family rental rates, and the role of multifamily in Millennial students’ housing decisions. First, Forbes discusses the draw of investing in secondary and tertiary markets and the value of their real estate offerings. Then, Mortgage Bankers Association reports that single-family rental rates are up in the first half of 2018 due to high demand and low supply. Arbor’s Chatter blog examines the size and distribution of collegiate Millennials over accommodation types. Next, Property Management Insider notes that apartment owners need to be nimble when it comes to planning their amenity spaces. Finally, Urban Land Magazine explains how technology is becoming integral to real estate development in metros that had not traditionally been known for high tech.

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Understanding Secondary, Tertiary Markets and the Value of Their Real Estate Investment Offerings

Forbes – August 29, 2018

“Looking at hard data in smaller markets and comparing it to qualitative economic drivers will show higher yields and greater spreads for secondary and tertiary market real estate investments.”

Single-Family Rental Rates Up 4.1% in First Half

Mortgage Bankers Association – August 27, 2018

“High demand and low supply of lower-priced single-family rental properties continue to push up rents for this segment of the rental market.”

What Role Do Apartments Play in Off-Campus Student Housing Demand?

Arbor Chatter – August 28, 2018

“A sizeable share of collegiate Millennials lives in off-campus rental accommodations, with apartment buildings dominating this segment.”

Apartment Amenities that Sell: Back to the Basics          

Property Management Insider – August 30, 2018

“Many renters crave luxury features and demand vacation-like experiences where they live but often don’t want to pay extra in rent.”

Tech and Manufacturing Driving Growth in Southern U.S. Markets

Urban Land Magazine – August 27, 2018

“Technology has become integral to the South’s economic well-being and is becoming a factor in real estate development in areas that had not been known for high tech.”

 

Weekly Roundup: August 20, 2018

This week’s multifamily roundup features insights on the top secondary metros for CRE investment, the role of small multifamily in workforce rental demand, and mortgage origination volume in 2018. First, the National Association of Home Builders notes that the market share of rental multifamily construction starts remained elevated in the second quarter of 2018. Then, Trepp identifies the top 20 secondary metros where commercial real estate activity is increasing. Arbor’s Chatter blog reports that small apartment buildings are vital to workforce rental demand in the top metros, while single-family rentals dominate the next 30 metros. Next, Mortgage Bankers Association provides an update on commercial and multifamily originations going into the latter half of 2018. Finally, USA Today explores an emerging trend among renters over the age of 50.

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Multifamily Built-for-Rent Share Remains Elevated

National Association of Home Builders – August 24, 2018

“The market share of rental multifamily construction starts remained elevated at 93% during the second quarter of 2018. In contrast, the historical low share of 47% was set during the third quarter of 2005.”

The Top 20 Secondary Metro Areas for CRE Investment

Trepp – August 22, 2018

“The average cap rates for secondary MSAs are higher on average than both top-tier and major MSAs, meaning there is opportunity for potential investors to reap higher returns.”

Small Apartment Properties Form Core of Workforce Rental Demand in the Top Metros

Arbor Chatter – August 22, 2018

“Small apartment buildings comprise the largest share of workforce housing demand within the top 20 metros, while single-family rentals dominate the next 30.”

Commercial/Multifamily Originations Up in Second Quarter, on Pace with Year Ago

Mortgage Bankers Association – August 21, 2018

“Investor demand for multifamily properties and hotels are helping push originations higher, even as loan demand for retail properties is down.”

More Renters Over Age 50 Turning to ‘Golden Girls’ Trend

USA Today – August 19, 2018

“During the next two decades, the number of renters 65 and older is expected to increase by 80 percent, to 11.5 million.”