Ivan Kaufman’s Real Estate Blog
Happy to introduce the first installment of my new social media series, “Entrepreneurial to the Core,” where we talk to industry leaders, athletes, and others about their business journey and the entrepreneurial approaches they’ve used to achieve success.
Pleased to kick off this series with Alex Rodriguez.
This week’s roundup highlights year-end single-family rental (SFR) trends, population growth’s impact on cities and the cost of renting across the U.S. First, Arbor’s Chatter features its “Q4 2019 Single-Family Rental Investment Trends Report,” which reflects on the growth and maturation of the SFR market in the post-recession period. Next, Trepp discusses the key factors contributing to the commercial real estate industry’s continued growth, despite last year’s concerns of a slowdown. Another Chatter blog offers an infographic displaying the small multifamily sector’s performance to end 2019, which was characterized by low interest rates and record lending volume. Then, Harvard’s Joint Center for Housing Studies presents research on population change to explain the seemingly conflicting trend of major U.S. cities still growing while losing people to migration. Finally, HousingWire examines why the cost of renting continues to rise, citing drivers such as a lack of affordable housing, and increased land and construction labor costs.
Arbor Chatter – February 20
“Over the past decade, the market for single-family rentals (SFRs) has evolved. In a few years, we will likely look back and consider 2019 to be the sector’s inflection point, where it transitioned from a niche, alternative asset class to a mainstream property type.”
Trepp – February 20
“Instead of upward pressure on cap rates and downward pressure on property values, we enter 2020 with the potential of downward pressure on cap rates and (further) upward pressure on property values.”
Arbor Chatter – February 18
“Annualized small multifamily lending volume reached $59.2 billion in fourth-quarter 2019, the highest level of activity in Chandan Economics’ post-crisis estimates. Here’s a quick look at the quarter’s small multifamily investment and finance benchmarks.”
Harvard JCHS – February 20
“Nearly one-quarter of large central metro counties (16 counties) lost migrants overall but still grew in 2018 due to their natural population increases.”
HousingWire – February 19
“Rents are likely to maintain an upward streak throughout 2020, as the number of renters continues to rise in the U.S.”
This week’s roundup offers a look at small multifamily investment, the hottest housing markets and workforce renter trends. First, Arbor’s Chatter releases the Q4 2019 Small Multifamily Investment Trends Report, which reveals that lending in the $1 million to $7.5 million segment reached record-high volume to end the year. Next, Realtor.com reveals its top 20 housing markets for January, with more than half of the cities seeing elevated sales activity being in California. Another Chatter blog analyzes the size of the workforce renter segment across property types, noting that small apartment properties and single-family rentals are seeing the highest concentrations of these households. Then, Trepp spotlights Denver’s apartment market, which is performing well due to strong employment and population growth. Finally, RealPage observes the widening gap between rents in major metros and smaller metros over the last decade, which is largely due to high-end new supply being added in the larger cities.
Arbor Chatter – February 11
“Year-end 2019 estimates for small multifamily lending volume reached $59.2 billion, beating the prior quarter’s forecast by $1.4 billion.”
Realtor.com – February 13
“The Phoenix, AZ metro area has seen the largest increase in its hotness ranking among larger metros over the past year.”
Arbor Chatter – February 13
“Across all housing types, 28% of the nation’s 111.3 million households fall under the ‘workforce housing’ designation.”
Trepp – February 13
“The Mile High City continued its growth within commercial real estate in 2019, particularly within the multifamily sector.”
RealPage – February 13
“While major markets have led for total rent growth on a same-store basis over the cycle, the difference is relatively slight. The bigger difference has come in new supply.”