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

Ivan Kaufman’s Real Estate Blog

Weekly Roundup: November 24, 2017

This week’s top multifamily developments highlight how rent prices continue to rise as demand and amenity offerings grow. First, Real Capital Analytics reports on data that illustrates the consistent price growth in the apartment sector. Next, National Real Estate Investor provides a glimpse of the features that are most important to renters. Property Management Insider then delves into the factors that are contributing to an increased demand for new, affordable apartments — population growth and an increasing propensity to rent are two major drivers. Then, the varying value of amenities in various markets is explored by Property Management Insider. Finally, Axiometrics examines the expected rent growth of the Raleigh-Durham apartment market, and the dynamics that are influencing the price increases.

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US Prices Rise 1.2% in October, RCA CPPI Report Shows

Real Capital Analytics – Nov. 22

“Price growth for apartments has been the greatest among the property types for the majority of 2017.”

What Apartment Renters Want

NREI – Nov. 21

“The most attractive features of an apartment unit to renters turn out to be good management, good cell phone reception and a rent that feels reasonable.”

NMHC is Up for the Challenge of Meeting Apartment Demand

Property Management Insider – Nov. 21

“Today, more than one-third of America rents, and industry analysts believe more apartments will be needed in the future just based on population growth and higher propensity to rent.”

Benchmarking Amenities to Determine Their True Value and Price

Property Management Insider – Nov. 22

“Depending on the market, a community feature can bring $15-$80 in additional rent per month, according to a National Apartment Association study released earlier this year.”

Raleigh-Durham Apartment Market Poised for Rent Growth Rebound

Axiometrics – Nov. 21

All the indicators are there for strengthening performance in the Raleigh-Durham apartment market: increasing Research Triangle job growth, declining supply (next year), improving Class A rent growth (in Raleigh) and a young-adult-fueled atmosphere with all those colleges around.”

 

Weekly Roundup: November 17, 2017

After new research from Axiometrics on the correlation between college enrollment and student housing demand, this week’s collection of multifamily news pieces features a mix of insights on millennial renters and new developments in the area of apartment affordability. First, National Real Estate Investor predicts the 10 suburban areas for millennial population growth and explores the unique drivers for the age cohort. Next, Bisnow examines how the preferences of millennial renters are expected to change the types of amenities that multifamily buildings need to provide. Research from Freddie Mac then reveals how the affordability crisis is expanding.  We round things off with an article from Fast Company exploring how repurposing parking lots could increase the number of affordable housing units, and begin to solve the shortage that currently exists.

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Student Housing Inventory Growth vs. Enrollment Growth

Axiometrics- Nov. 16, 2017


“Additional demand and insufficiency of purpose-built student housing in past decades motivated developers to ramp up construction.”

Top 10 Suburbs for Millennials

NREI – Nov. 15, 2017


“NREI looks at the top 10 suburban areas surrounding major cities that have the best potential for millennial population growth.”

6 Ways Millennials are Influencing the Multifamily Market of the Future

Bisnow – Nov. 14, 2017

“Tight finances and lifestyle preferences that challenge current stock could have developers and property owners scrambling if they do not keep up with millennials shifting preferences.”

Suburbs: Turn Rail Station Parking Lots into Affordable Communities

Fast Company – Nov. 14, 2017


“Building complete communities on the sprawling asphalt lots around regional transit hubs does the dual work of creating more affordability and accessibility, and de-incentivizing private car usage.”

Freddie Mac: Multifamily Affordability Problem Expands

ALEX Chatter – Nov. 13

“New research from Freddie Mac quantifies what many renters already know to be true — finding an affordable apartment is harder than it used to be.”

Weekly Roundup | November 11th, 2017

This week’s collection of top multifamily news features a good mix of stats and trends pertinent to smart apartment investing. To start, the Mortgage Bankers Association reports that commercial and multifamily mortgage loan originations increased 21% from a year ago, and by 8% from the second quarter. Next, Property Manager Insider investigates the simplistic amenities that renters continue to rank above all else. Arbor’s ALEX Chatter delves into why more renters are opting out of driving, and the new commute trends that are predicted to replace cars. National Multifamily Housing Council uncovers the new innovation shifts entering the multifamily landscape and how apartment firms can best prepare for the impending changes. Finally, Fannie Mae discloses how their unique products and financing techniques allow them to remain a leader in the Senior Housing sector.

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Commercial/Multifamily Borrowing Up 8% from 2Q, 21% from Year Ago

Mortgage Bankers Association – Nov. 9

“The MBA Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations said a rise in originations for hotel and health care properties led the overall increase in commercial/multifamily lending volumes.”

NMHC/Kingsley Report: Renters Prefer the Basics in Amenities

Property Management Insider – Nov. 6

“The 2017 National Multifamily Housing Council/Kingsley Renter Preference Report unveiled in October suggests apartment residents around the country have some very distinct favorites that don’t necessarily jive with where they live.”

Renter Commute Trends: Growth in Cycling, Walking Outpace Driving

ALEX Chatter – Nov. 06

“Autonomous vehicle (AV) and ride-share technology have the potential to fundamentally alter the relationship between work and housing locations. But what does today’s commute look like for apartment renters?”

Innovation Shifts into High Gear in Multifamily

NMHC – Nov. 2

“Think machine learning, virtual reality, blockchain and much more. According to participants at the Innovation Town Hall at the 2017 NMHC OPTECH Conference & Exposition, “watch out” sums up the operating environment for the next 18 to 24 months.”

Fannie Mae Finances Record Volume of Nearly $4 Billion in Multifamily Seniors Housing through Third Quarter of 2017

Fannie Mae – Nov. 7

“The unique DUS risk-sharing platform has provided pricing transparency and risk alignment to borrowers, lenders, and investors for nearly 30 years.”