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

Ivan Kaufman’s Real Estate Blog

Weekly Roundup: Week of October 29, 2018

This week’s multifamily roundup features insights on identifying value-add multifamily opportunities, shifts in apartment inventory, and technology trends in the rental market. First, NREI reports that investor appetite remains strong for value-add multifamily, as the search continues for yield in a highly competitive market. Then, CNBC notes that household income growth is lagging U.S. home prices, rising only 30% since March 2012, compared to 60% for home prices over the same period. Arbor’s Chatter blog examines how new apartment inventory has skewed toward larger unit sizes over recent decades in both small and large multifamily assets. Next, RENTCafé takes a look at the rise in young renters’ preference for smart apartment features like automated and remote-controlled devices. Finally, HousingWire reveals that the nationwide median asking rent hit more than $1,000 for the first time ever in the third quarter of 2018.

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Identifying Lucrative Value-Add Multifamily Opportunities as the Cycle Lengthens

NREI – October 31

“The appetite for value-add multifamily investments remains strong—and in light of this increasing competition, many investors are struggling to identify and secure assets that present high-reward opportunities.”

S. House Prices Are Rising Faster Than American Wages

CNBC – October 30

“In cities where prices have gained the most, an increase of as little as half a percentage point in the borrowing rate can be the difference between buying and continuing to rent.”

 Apartment Inventory Reveals Decades-Long Shift Toward Larger Unit Sizes

Arbor Chatter – October 29 

“While small and large apartment buildings are specialized in terms of unit mix, inventory additions over time have been skewed toward larger units across both asset classes.”

 Tech Trends in Renting: The Rise of the Smart Apartment

RENTCafé – October 29

“Nearly 90 percent of millennials they surveyed were willing to pay more for a unit that was outfitted with automated or remote-controlled devices.”

Rent Just Hit An All-Time High… Again

HousingWire – October 31

“Earlier this week, the U.S. Census Bureau reported that during the third quarter, the nationwide median asking rent topped $1,000 for the first time ever.”

 

Weekly Roundup: Week of October 15, 2018

This week’s multifamily roundup features insights on rising interest rates’ impact on cap rates, how multifamily landlords are incorporating coworking space, and the top trends to watch in commercial real estate. First, Real Capital Analytics reports that cap rates remain low despite several interest rate increases over the last several years. Then, Bisnow explores the trend of coworking space becoming a top amenity in apartment properties as more renters work from home. Arbor’s Chatter blog discusses the major trends on the minds of real estate players at the ULI Fall Meeting. Next, NREI reveals why greater demand for apartment rentals is here to stay. Finally, RENTCafé takes a look at the rise of second-tier metros as renters look for more affordable places to live.

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All Eyes on US Cap Rates amid Interest Rate Hikes

Real Capital Analytics – October 18, 2018

“Investors have been anticipating cap rate increases for some time now – almost hoping for increases in some cases. It hasn’t happened yet.”

Working from Home Never Looked So Good

Bisnow – October 17, 2018

“As remote work increases, multifamily landlords are increasingly swapping out clubroom or lobby space for coworking.”

ULI Special Report: Top Trends to Watch in Commercial Real Estate

Arbor Chatter – October 17, 2018

“Slow and steady growth coupled by cautious optimism seemed to be the overall sentiment…at the 2018 ULI Fall Meeting in Boston, where panelists revealed their forecast for the U.S. economy and real estate market heading into 2019, as well as the annual ULI-PwC Emerging Trends in Real Estate Report.”

 Apartment Rentals Make Up a Larger Share of New Housing Units in the U.S. Than They Have in Decades

NREI – October 17, 2018

“Apartment rentals have been luring residents away from other kinds of housing since the housing crash—and that is not likely to change in the foreseeable future.”

Goodbye L.A., Hello Phoenix: Affordable Housing Makes Second-Tier Metros Top Choices for Moving

RENTCafé – October 11, 2018

“Living in a big metro like New York or Los Angeles may come with a high income and more opportunities, but the cost of housing in these expensive areas can place a middle-class lifestyle too far out of reach.”

Weekly Roundup: Week of October 1, 2018

This week’s multifamily roundup features insights on price growth across U.S. metros, the leading cities for job creation, and the small balance multifamily market’s performance in Q2 2018. First, Real Capital Analytics reports that after years of synchronized movement during the Global Financial Crisis and the corresponding recovery, U.S. metros’ price growth is diverging. Then, Real Page discusses the cities that contributed the most to the nation’s 16.2% job growth since the end of the recession. Arbor’s Chatter blog provides a snapshot of the latest investment trends in the small multifamily arena in the second quarter. Next, Multifamily Executive notes that while vacancy rates are expected to rise, rent growth should remain positive for the foreseeable future. Finally, NREI takes a look at why multifamily investors continue to accept low cap rates even as interest rates rise.

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Price Growth Across US Metros Diverges

Real Capital Analytics – October 4, 2018

“After years of synchronized movement during the Global Financial Crisis and into the later stages of recovery, U.S. metros are now responding to their own local and individual dynamics.”

Job Growth Leaders for the Current Cycle

RealPage – September 27, 2018

“The U.S. job count has grown by nearly 15.8 million positions, or 16.2%, since the end of the Great Recession.”

Small Balance Multifamily Investment Snapshot — Q2 2018

Arbor Chatter – October 1, 2018

“Here’s a quick look at the small balance multifamily finance and investment benchmarks for Q2 2018.”

 Rent Growth Holds at 1.2% as Vacancy Rate Rises in Q3 2018

Multifamily Executive – October 3, 2018

“Occupancy is expected to remain positive, although vacancy rates are expected to increase, as new supply will outpace demand growth. Still, as long as job growth holds steady, we expect rent growth to remain positive over the next few quarters.”

Multifamily Investors Continue to Accept Low Cap Rates, But for How Long?

NREI – October 2, 2018

“Cap rates on apartment acquisitions have averaged 5.6 percent since 2017, with almost no movement.”