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

Ivan Kaufman’s Real Estate Blog

Weekly Roundup: Week of May 25, 2018

This week’s news pieces feature a mixture of commercial real estate topics including the impact of new supply, luxury apartments and the draw of single-family rentals. First, MBA predicts how the industry will continue to change in the future with insightful contributions from MBA Vice President, Jamie Woodwell. Then, NREI states that while apartment demand is expected to remain strong, it may not be able to keep pace with the addition of new supply. Real Page explains the difference in Class A and Class B properties when it comes to renter turnover. Next, Curbed highlights the importance of single-family rentals in meeting evolving consumer preferences. Finally, NREI concludes with an overview of America’s most prosperous cities and which factors influenced the results.

jeremy-galliani-446285-unsplash

 Predicting the Evolving Future of Commercial Real Estate

Mortgage Bankers Association – May 23, 2018

“I think it’d be a mistake to assume the mortgage world will be the same 10 years from now.”

 Apartment Market Weathers the Storm of New Supply

NREI – May 22, 2018

“Demand remains strong, but the number of new apartments opening has been trending higher than the number of apartments absorbed.”

 Luxury Apartments Hold Onto Fewer Renters at Lease Expiration

RealPage – May 22, 2018

“When leases for Class A apartments reached expiration in calendar 2017, 52.6% of the households opted to move. In comparison, 48.9% of the residents in Class B apartments moved at lease expiration.”

 Wall Street’s New Housing Frontier: Single-Family Rental Homes

Cubed – May 18, 2018

“Because the homes they bought are highly concentrated in areas affected by the foreclosure crisis, these companies could have an outsize impact on individual cities and specific neighborhoods.”

 A Look at America’s 20 Most Prosperous Cities

NREI – May 24, 2018

“The firm looked at the magnitude of proportional changes that affected their population, median income, home values, share of inhabitants holding a higher education degree, poverty rate and unemployment.”

Weekly Roundup: Week of May 18, 2018

The role of mass transit, rent gains and new development is discussed throughout this week’s collection of industry updates. First, NREI shares that renters are less willing to pay more to live near a subway or rail station since they have a greater selection of transportation options to choose from. Next, Scottsman Guide analyzes the growth in Q1 mortgage banker originations. MBA states that multifamily rents continued their strong seasonal gains in April, and that it’s a good sign that rent growth will remain resilient. NREI comments on the expanding pipeline of new development. Finally, Commercial Property Executive speaks with NYU’s real estate expert, Sam Chandan, on changing federal regulations, the growth of crowdfunding platforms and the future state of capital markets.

jon-flobrant-229726-unsplash

Is Proximity to Mass Transit Becoming Less of a Draw for Apartment Renters?

NREI – May 15
“In the few years since companies like Uber and Lyft began to offer their ride sharing and carpooling options to riders in San Francisco, the premium earned by apartments near mass transit has dropped.”

 Commercial Lending Posts Surprise Uptick in Q1

Scotsman Guide – May 17

“The Mortgage Bankers Association released the findings of its first-quarter survey of commercial/multifamily bankers on Thursday, and it showed that commercial mortgage origination volume unexpectedly rose, compared to last year’s first quarter.”

 Apartment Rent Gains Heat Up With Weather

Mortgage Bankers Association – May 11

“On a year-over-year basis, rents are up 2.4 percent through April, approaching the 2.5 percent growth range the market has averaged since early 2017.”

 SFR Investors Are Filling the Pipeline with New Development

NREI – May 14

“Developers built more than 36,000 houses for rent in 2017. That’s 6 percent more than the year before and the largest number of “build-to-rent” houses completed in any year for at least the last 14 years.”

 NYU’s Sam Chandan on the Changing Real Estate Capital Markets

Commercial Property Executive – May 16

“Probably the most significant development over the course of the last several months, which will carry over to 2018 and impact capital markets, is the changing interest rate environment.”

Weekly Roundup: May 11, 2018

This week’s industry news highlights are characterized by an increased interest in renting and a decreased interest in homeownership. First, The Washington Post states that mobility, convenience and community factors are driving a greater number of millennials and baby boomers to choose renting as a long-term option. Then, MBA Mortgage reveals that the number of college graduates in their twenties who live with their parents has increased from 19% in 2005 to 28% in 2016. Arbor Chatter takes a closer look at why small assets are seeing a rise in the number of baby boomers and seniors, as they look for neighborhood level amenities and services. Next, NMHC provides a comprehensive analysis of the apartment market, concluding that the first quarter was solid. CityLab explores the evolving views on homeownership and some of the factors behind its declining rates.

photo of building exterior

Forget Owning, Renting is Becoming an End Game for Many Millennials and Baby Boomers

The Washington Post – May 8, 2018

“Instead of viewing renting as a short-term phase, an increasing number of residents are choosing rental housing specifically because it offers a more-flexible lifestyle than homeownership.” 

In Boom/Bust Markets, Younger People Stay at Home

MBA Mortgage – May 10, 2018

“Today, tighter lending standards, high home prices and constrained inventory make breaking into the home-buying market more difficult for recent graduates.”

Older Households Make Gains in Small Asset Unit Demand, Millennial Households Form the Largest Share

Arbor Chatter – May 10, 2018

“A closer look at householder age indicates the steady graying of small asset apartment demand.”

Apartment Market Posts Solid Quarter

National Multifamily Housing Council – May 10, 2018

“RealPage’s national vacancy rate for investment-grade apartments rose 10 bps to 5.0 percent in the first quarter, remaining unchanged from the previous year’s 1Q figure.”

Mapping the Rise of Renting and the ‘Great Housing Reset’

CityLab – May 3, 2018

“The rise of renting in the U.S. isn’t just about high housing prices, or preferences for city living, but about the flexibility to compete in today’s economy.”