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

Ivan Kaufman’s Real Estate Blog

Weekly Roundup Intro: Week of October 7, 2019

This week’s roundup takes a look at apartment occupancy and rent growth, New York City multifamily inventory trends and renter cost burdens. First, MBA reports that U.S. multifamily rent growth and occupancy were strong in the third quarter of 2019, with occupancy climbing to 96.3%. Next, NPR explores the increasing popularity of single-family rentals and the types of renters who are interested in the property type. Arbor’s Chatter blog breaks down the apartment inventory of New York City’s five boroughs, including the age and distribution of small and large buildings. Then, Apartment List reveals the results of its 2019 Cost Burden Report, which found that the share of renters who are cost-burdened increased from 49.5% in 2017 to 49.7% in 2018, representing the first time the national cost burden rate has increased since 2014. Finally, Millionacres explains how to find viable real estate investments regardless of where we are in the market cycle.

Apartment Occupancy, Rents Rise

MBA – October 8

“New household formation continues, and rentals are capturing a sizable share of the resulting housing demand. At the same time, loss of existing renters to home purchase remains limited relative to historical levels.”

Renters Only: These New Homes Aren’t For Sale

NPR – October 7

“In the past year, developers around the country built more than 40,000 homes as single-family rentals, the National Association of Realtors says.”

Small Multifamily Inventory Growing Fastest in New York City’s Outer Boroughs

Arbor Chatter – October 8

“New York City’s small multifamily inventory mostly consists of older, pre-war buildings, while large apartment buildings tend to be newer.”

2019 Cost Burden Report: Half of Renter Households Struggle With Affordability

Apartment List – October 9

“Although the rate is still well below its 2011 peak, that improvement has been primarily driven by compositional changes in the rental market, namely, an influx of high-income renter households.”

Understanding Real Estate Cycles to Find Profitable Investments in Any Market

Millionacres – October 7

“Understanding how our economy works on a macro and micro level means you can identify potential triggers, make informed decisions to increase profitability and mitigate risk, while still finding profitable investments regardless of where we are in the market cycle.”

Weekly Roundup Intro: Week of September 30, 2019

This week’s roundup highlights small multifamily market trends, U.S. cities’ job growth and wage growth, and student housing performance. First, Arbor’s Chatter blog releases a new annual report, 2019 Metro-Level Small Multifamily Investment Trends Report, which takes a look at the performance of small multifamily nationwide by breaking down the top 50 metros into three tiers. Next, MarketWatch lists the U.S. cities with the strongest employment growth and wage growth, according to Glassdoor’s latest job market report. RealPage takes a look at fall 2019 student housing fundamentals such as rent growth and pre-leasing, noting that the sector’s performance varies widely by college. Then, Multi-Housing News argues why apartments offer a more sustainable living option that can benefit both residents and property owners. Finally, GlobeSt examines how demographic trends like growing populations and an increasing preference for renting should support the multifamily market’s continued prosperity into the next decade.

2019 Metro-Level Small Multifamily Investment Trends Report

Arbor Chatter – October 4

“This new annual report takes a closer look at the sector’s performance by breaking out the top-50 U.S. metros into three tiers and analyzing the markets in terms of origination volume, cap rates, debt yields and more.”

Here Are the U.S. Cities With the Highest Job Growth and Wage Increases in September

MarketWatch – October 4

“The U.S. job market is still strong, but some cities appear to have more pep than others.”

Student Housing Performance Varies Widely by School

RealPage – October 3

“Overall year-end annual effective rent change was 1.7% as of August, compared to the U.S. average of 1.6% year-ago.”

Apartments: The Low-Impact Green Investment

Multi-Housing News – October 2

“Apartment buildings have the basic building blocks to be top sustainability performers in the housing industry.”

Multifamily Demographics Positioned for More Growth

GlobeSt – October 1

“There is an increase in rental rates, occupancy levels are stable and there are substantive conversations about affordable housing.”

Weekly Roundup Intro: Week of September 23, 2019

This week’s roundup offers insights on mortgage delinquencies, single-family rental (SFR) affordability and wage growth versus rent growth. First, MBA reports that commercial and multifamily delinquency rates are near record lows due to a strong economy and robust capital. Next, RealPage notes that Class C apartment product has been the national leader for occupancy since 2016 and experienced a two-decade high rate in mid-2019. Arbor’s Chatter blog takes a look at the SFR market’s affordability, which has improved over the course of this cycle due to factors such as a balanced supply pipeline. Then, Scotsman Guide examines how significant apartment demand has contributed to rent growth exceeding wage growth over the last seven years. Finally, Zillow identifies why young adults are taking longer to live independently, with reasons including lower marriage rates and rising income inequality.

Commercial and Multifamily Mortgage Delinquencies Remain Low in Q2 2019

MBA – September 23

“The strong economy, low interest rates, and liquid finance markets are all contributing to delinquency rates that are at or near record lows for commercial and multifamily mortgage loans.”

Class C Occupancy Rules in All but a Handful of Apartment Markets

RealPage – September 23

“Nationwide, Class C stock has reigned as the national leader for occupancy since the end of 2016. This lower tier was 96.5% occupied in mid-2019, a two-decade high rate.”

SFR’s Rising Affordability Counters National Crisis

Arbor Chatter – September 24

“Single-family rental residents have enjoyed a rise in rental affordability during this cycle, with rents as a share of household income declining.”

Wage Growth Trails Rent Growth, but a Shift Is Occurring

Scotsman Guide – September 24

“The main reason why rent growth has exceeded wage growth during this most recent expansion is because demand for apartments has been much stronger in the wake of the housing bust.”

People Start Living Alone Later – and Rising College Attendance Is not the Cause

Zillow – September 23

“Not surprisingly, it takes longer for young adults in more expensive places to live on their own. More than half of adults living outside of metropolitan areas have their own place by age 25, whereas their counterparts inside metro areas wait two more years, until age 27.”