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

Ivan Kaufman’s Real Estate Blog

Weekly Roundup Intro: Week of January 13, 2020

This week’s roundup covers apartment supply in 2020, commercial real estate’s performance over the decade and recent rent control regulations. First, City Observatory examines the relationship between a neighborhood’s level of walkability and the value of its housing, noting that many markets command a walkability premium. Next, RealPage reports that 371,100 new apartments are scheduled to be completed by the end of 2020, driven by several cities expecting to double or triple their inventory. Arbor’s Chatter blog observes why many of the metros experiencing the greatest year-over-year rent growth are still seeing rent levels below the national average. Then, Real Capital Analytics looks back at the robust level of commercial real estate investment activity over the last decade. Finally, NMHC reviews the rent control policies that took effect in 2019 and what’s anticipated for the year ahead. 

Walkable Places Are Growing in Value Almost Everywhere

City Observatory – January 16

“We haven’t been building new walkable neighborhoods in large enough numbers to meet demand; nor have we been adding housing in the walkable neighborhoods we already have fast enough to house all those who would like to live in them.”

New Apartment Supply to Surge in 2020

RealPage – January 15

“This run-up in supply will grow the total number of new apartments completed in this decade-old cycle by 17%, which represents a 50% increase from 2019’s new supply total.”

Small Multifamily, Small Cities Are Riding the Same Rising Tide

Arbor Chatter – January 14

“Small multifamily rents have been growing faster in metro areas with rent levels below the national average. This phenomenon has, by and large, also been true for the large multifamily asset class.”

A Fantastic Decade for US Commercial Real Estate

Real Capital Analytics – January 16

“The headline national RCA CPPI climbed a cumulative 103% from the close of the previous decade and investor interest in the sector continues at a high level.”

Rent Control: A 2019 Recap and a 2020 Look Forward

NMHC – January 15

“Housing affordability is clearly top-of-mind for many lawmakers, but the fact remains that too many view rent control as a source of immediate relief while they work out longer term solutions that address the supply shortage.”

Weekly Roundup Intro: Week of January 6, 2020

This week’s roundup highlights the top global real estate investors, the cities with the most expensive rents, and the most favorable markets for tech talent and employers. First, Real Capital Analytics takes a look at the investment activity of the top 50 biggest commercial real estate investors in 2019, noting that buying and selling volume was down from the previous year. Next, Bloomberg observes population trends across the U.S., particularly in states like New York and California where people are moving out due to high costs of living. Arbor’s Chatter blog analyzes the cities in which renters are paying the highest prices, with four of the top 10 most expensive metros being located in California. Then, Zillow examines why big tech companies are no longer flocking to the obvious tech hubs of San Francisco and Seattle and where they are finding better opportunities for growth. Finally, Zumper releases its January rent report, noting that while the top 10 markets saw relatively flat monthly rent growth changes, some cities saw major year-over-year changes, including Washington, D.C. and San Diego. 

Top Global Investors: Changing Appetites in 2019

Real Capital Analytics – January 9

“The biggest global commercial real estate investors were still hungry for assets in 2019, though stripping out the activity of the largest single global investor shows a more muted appetite.”

Where People Leaving New York, California and Illinois Are Going

Bloomberg – January 9

“Thanks to babies and immigrants, New York City and most of its suburbs have gained population over the past decade as the rest of the state has shrunk.”

Rents in Major California Cities Among the Highest in the U.S.

Arbor Chatter – January 8

“Four major California cities were the most expensive areas in the nation for small multifamily rentals, reflecting the state’s ongoing affordability crisis.”

Why The Most Favorable Markets for Tech Expansion Aren’t Where You Might Think

Zillow – January 8

“Markets smack in the middle of the so-called “Silicon Prairie” top the list of those that may appeal to growing tech companies, followed by markets in the Midwest and the South that have the ability to draw talent and the tech companies looking to hire them.”

Zumper National Rent Report: January 2020

Zumper – January 6

“Rent prices overall will continue to rise but at a slower rate than the last couple of years, underpinned by more and more renters settling down later in life and wanting to live a more flexible lifestyle.”

Weekly Roundup Intro: Week of December 30, 2019

This week’s roundup takes a look at U.S. rent growth in 2019, factors impacting apartment investment and U.S. pricing trends. First, CityLab examines an emerging effort among cities on the East Coast to build denser housing to help curb the affordable housing crisis, following in the footsteps of several cities on the West Coast. Next, Abodo reveals its review of the U.S. rental market in 2019, noting that strong multifamily price increases were driven by a healthy economy and robust demand for apartments, among other forces. Arbor’s Chatter blog compares rent growth trends in different property types, with small multifamily seeing the highest rent growth due to its larger unit sizes and relative affordability. Then, MBA reports that the Freddie Mac Multifamily Apartment Investment Market Index rose in the third quarter as record-low mortgage rates drove apartment investment. Finally, Real Capital Analytics offers an analysis of U.S. investment activity in the major property sectors, with apartment and industrial seeing increased interest.

Denser Housing Is Gaining Traction on America’s East Coast

CityLab – January 3

“Virginia became the first eastern state to see a proposal to prohibit bans on duplex housing across the state, among other housing fixes. Not to be outdone, Maryland will weigh a upzoning bill in 2020, plus a sweeping experiment to build European-style social housing across the state.”

America’s 2019 Rental Market in Review: Did Renters Pay More?

Abodo – December 30

“Fueled by an economy that refuses to weaken, one-bedroom US median rent prices increased by 4.1 percent, while two-bedroom prices rose by 5.5 percent.”

Small Multifamily Rent Growth Leads All Other Property Types

Arbor Chatter – January 3

“Small multifamily rent growth is fueled by the asset class’ proximity to job centers, larger unit sizes, and relative affordability to other rental property types.

Falling Rates, Increasing NOIs Boost Apartment Investment

MBA – December 30

“The Freddie Mac Multifamily Apartment Investment Market Index rose 5.5 percent during the third quarter as mortgage rates dropped 39 basis points, their largest quarterly decline in five years.”

Chart: US Monthly Volume and Pricing Trends by Sector

Real Capital Analytics – December 30

“Investors have been ramping up activity in the U.S. apartment and industrial sectors over the last five years while moving away from the retail sector.”