Ivan Kaufman’s Blog2017-07-19T16:32:21+00:00

Ivan Kaufman’s Real Estate Blog

Weekly Roundup Intro: Week of May 6, 2019

This week’s multifamily roundup takes a look at housing affordability, the top metros attracting Millennials and how to implement value-add strategies. First, Mortgage Bankers Association reveals that multifamily is this year’s most favored investment opportunity, according to a recent survey from Deloitte and Situs RERC. Next, Brookings analyzes the factors causing affordability challenges for middle-income families, including commuting and access to homeownership. Arbor’s Chatter blog examines the cities seeing the most in-migration of Millennials that are moving from other states. Then, NREI discusses the strategies investors looking to reposition their properties should implement in order to keep apartments affordable, including modestly increasing rents while making necessary repairs. Finally, Redfin observes the cities with the highest net inflow and outflow, according to more than 1 million user searches.

Multifamily Most Favored Property Type

MBA – May 10

“Just over one-third of respondents said they believe multifamily assets would offer the most favorable investment opportunity in 2019.”

Cost, Crowding, or Commuting? Housing Stress on the Middle Class

Brookings – May 7

“While housing affordability has long been a problem for low-income families, middle-income families are increasingly facing affordability challenges, especially in urban areas with strong labor markets.”

Top Markets Attracting Millennial Renters from Other States

Arbor Chatter – May 7

“The top metros attracting Millennial renters from other states are typically medium-sized with relatively fast-growing economies.”

How to Implement Value-Add Strategies at Apartment Buildings Without Making Them Too Expensive

NREI – May 7

“When value-add investors renovate an older apartment building, they should plan to charge rents that are considerably lower than the cost to live in a brand-new building.”

Redfin Migration Report: Phoenix is the Top Destination

Redfin – May 6

“Net inflow for Phoenix hit 7,949—the highest net inflow on record not only for Phoenix, but for any metro area to date since Redfin began reporting net migration data in early 2017.”

Weekly Roundup Intro: Week of April 29, 2019

This week’s multifamily roundup offers insights on the sector’s performance, mortgage originations, and small balance investment trends. First, RealPage reports that despite a slow winter, apartment absorption annually remains strong due to a healthy prime leasing season in 2018. Next, Real Estate Weekly reveals that more than half of the top multifamily and commercial companies expect mortgage originations to increase in 2019, according to the MBA’s 2019 outlook survey. Arbor’s Chatter blog releases its Q1 2019 Small Balance Multifamily Investment Trends Report, featuring exclusive insights on the small multifamily market. Then, PMI recommends several tips to attract renters, including enhancing social media efforts and brand awareness. Finally, HousingWire explains the recent boost in rent growth, which hit 3.7% in March.

Despite Seasonal Slowdown, U.S. Apartment Market Held Strong in Early 2019

RealPage – May 1

“Demand in these cold weather months was light, even compared to the normal seasonal pattern, but annual absorption remains strong thanks to the robust prime leasing season that ended in September.”

Multifamily Mortgages Set for Another Strong Year

Real Estate Weekly – May 1

“More than half of the top commercial/multifamily firms (55%) expect originations to increase in 2019, with one-in-eight (13%) expecting an overall increase of 5% or more across the entire market.”

Q1 2019 Small Balance Multifamily Investment Trends Report

Arbor Chatter – April 30

“Whether a period of economic weakness is years away or just around the corner, the small balance multifamily sector is projected to remain healthy in 2019.”

How to Boost Buzz and Attract More Renters

PMI – May 1

“Effectively bringing together and leveraging a property’s brand, while simultaneously generating positive brand awareness in conjunction with lead generation and nurturing efforts, only helps generate high-quality leads more consistently.”

What’s Behind the Recent Surge in Rental Growth?

HousingWire – April 30, 2019

“Is the recent surge in rental growth an indicator of tightening rental markets?”

Weekly Roundup Intro: Week of April 22, 2019

This week’s multifamily roundup explores the most popular rental markets, moving rates for young adult renters and central Florida’s population boom. First, HotPads ranks the top 50 cities where renters are looking to move and current residents want to stay put, with many of the highest-ranked metros offering strong job markets and affordable options. Next, RealPage notes that apartment properties with one to three stories are experiencing the fastest rent growth in the nation. Arbor’s Chatter blog takes a look at the growing trend of young adult renters moving less frequently than their parents and grandparents. Then, Zillow reports that the homeownership rate dropped in the first quarter of 2019, including in the under 35 age group which has fueled homeownership rate gains in the last few years. Finally, Curbed examines the markets posting the fastest population growth rates, including Tampa and Orlando.

These are the Most Sought-After Rental Markets

HotPads – April 24

“Chicago and Los Angeles are the most popular markets right now, followed by Atlanta and Seattle.”

Garden Apartments Lead Rent Growth

Real Page – April 22

“Pricing is up 3.7% on an annual basis in properties of one to three stories, with the performance strengthening a little compared to the growth rate recorded in early 2018.”

Staying Put: Young Adult Renters are Moving at Declining Rates

Arbor Chatter – April 24

“While higher shares of young adults move into apartment buildings annually, moving rates for this age group are in decline, keeping with the broader national trend.”

Q1 2019 U.S. Homeownership Rate: Anemic Growth Among Younger Buyers

Zillow – April 25

“The homeownership rate among those under the age of 35 dropped 1.1 percentage points during the first quarter to 35.4%, reversing most of the gains of the past year and putting homeownership rate for this group more or less flat from a year ago.”

Central Florida’s Boom Shows True Picture of U.S. Real Estate Trends

Curbed – April 23

“Last year’s data show that the domestic migration is not driven by retirees. The metro’s population is younger, on average, than many other parts of Florida.”