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

Ivan Kaufman’s Real Estate Blog

Weekly Roundup Intro: Week of April 8, 2019

This week’s multifamily roundup takes a look at national apartment rents, multifamily originations and macroeconomic factors impacting the housing market. First, RENTCafé reports that U.S. average rent growth remained strong in March, with over 90% of the nation’s largest cities seeing increases year-over-year. Next, MBA notes that multifamily lending had a record year in 2018 due to solid fundamentals, a low interest rate environment and rising property prices. Arbor’s Chatter blog takes a look at the emerging trend of older renters living on their own, with small multifamily assets seeing the most growth from this age cohort. Then, Nareit analyzes the connection between REIT performance and long-term interest rates, noting that the relationship is positive once again due to a robust economy. Finally, First American offers a video interview of its Chief Economist discussing the economic trends influencing the housing industry, including the labor market and wage growth.

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 The Average National Apartment Rent Kicks Off the Spring Rental Season at $1,430

RENTCafé – April 11

“92% of the country’s largest 253 cities have seen rents grow in March year-over-year, 6% of rents remained unchanged, while 2% of cities experienced rent drops compared to 2018.”

Mortgage Bankers’ 2018 Commercial/Multifamily Originations Rise to Record $573.9 Billion

MBA – April 11

“Solid fundamentals, growing property values, low interest rates and strong appetites from both borrowers and lenders all helped drive an 8% increase in recorded multifamily lending from a year ago.”

Older Renters are Increasingly Living Alone

Arbor Chatter – April 9

“A growing share of older renters is living alone, with small asset properties experiencing robust gains from this demand segment.”

 REITs and Interest Rates: A Positive Shift in the Market

Nareit – April 11

“REIT share prices generally rise as interest rates increase during periods of strong economic growth. The positive relationship is because a more robust economy boosts REIT earnings and the value of the buildings they own, while interest rates rise due to the demand for credit (and possibly inflation).”

Discussing the Macro-Economic Trends Influencing the Housing Market

First American – April 11

“First American Deputy Chief Economist Odeta Kushi was interviewed on Bloomberg earlier this month, providing her thoughts on macro-economic trends influencing home buyers and the housing market, including the job market and wage growth.”

 

Weekly Roundup Intro: Week of April 1, 2019

This week’s multifamily roundup offers insights on how big data is impacting multifamily, opportunity zone lending and aging Millennials’ renting preferences. First, GlobeSt.com takes a look at the benefits new data platforms can have for multifamily investors and owners, which include better understanding costs and the most popular amenities. Next, Real Capital Analytics analyzes loans originated last year for assets in Qualified Opportunity Zones, including which lender types are most active in these markets. Arbor’s Chatter blog explores how Millennials renting decisions change as they get older, with many moving out on their own or with a partner to start a family. Then, Apartment List reveals that year-over-year rent growth in April totaled 1.3% in April, down from the previous two years, according to its National Rent Report. Finally, Freddie Mac evaluates rental affordability in markets across the U.S. and identifies the cities that are most in need of affordable housing.

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 A Closer Look at the Impact of Big Data in Multifamily

GlobeSt.com – April 4, 2019

“Harnessed correctly, data can positively impact every aspect of multifamily, from acquisition through resident retention.”

Opportunity Zone Lending? Capital Is Already Active

Real Capital Analytics – April 2, 2019

“An analysis of the loans originated in 2018 for assets within QOZs shows that lenders with a broader social mandate do not dominate these areas.”

 As Millennials Age, So Do Their Renting Preferences

Arbor Chatter – April 4

“While a large share of Millennials still lives with roommates, this age group is beginning to move out on their own or starting families as they age.”

 Apartment List National Rent Report

Apartment List – April 1, 2019

“Phoenix and nearby Mesa, AZ, top our list for the nation’s fastest rent growth, with both cities experiencing year-over-year increases of 3.7%.”

Assessing Rental Burden in Metropolitan Areas

Freddie Mac – April 3, 2019

“Supply just hasn’t kept pace with demand in many metros, and that’s pushing affordable rents out of reach for millions of American families.”

 

Weekly Roundup Intro: Week of March 25, 2019

This week’s multifamily roundup takes a look at trends in vacancy rates, Class A apartments, and top amenities. First, Reuters reports that fewer U.S. metros saw their vacancy rate increase in the first quarter, while the national average only rose marginally from a year earlier. Next, RealPage observes that rent growth in Class A properties has begun to rebound after a few years of lagging behind Class B and C assets. Arbor’s Chatter blog analyzes renters’ living arrangements in small and large multifamily properties, with smaller buildings attracting more non-family households. Then, Curbed discusses the growing popularity among luxury developers of including high-end amenities at their projects, and what the impact has been on the market. Finally, Barron’s notes that while there are signs of a potential recession ahead, the commercial real estate industry should fare well due to its healthy fundamentals.

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U.S. Apartment Vacancy Rate Flat at 4.8 Percent in First Quarter: Reis

Reuters – March 28

“Far fewer metros saw a vacancy rate increase in the quarter: 15, down from 40 last quarter. Most of the increases were due to high construction that exceeded net absorption.”

Class A Makes a Comeback Nationwide

RealPage – March 26

“In early 2016, rent growth in the Class A stock fell below the increases in the nation’s Class B and C counterparts, and remained there until recently, when the expensive product line managed to pull itself out of the bottom rank.”

 Small Asset Multifamily Grows Share of Non-Family Households

Arbor Chatter – March 26

“Smaller multifamily properties have grown their share of non-family households. On the other hand, large properties are appealing most to married couples. The share of renters living with roommates continues to rise across all apartment property types.”

In the Apartment Amenity Arms Race, Service and Technology Win Out

Curbed – March 26

“Luxury apartments aren’t new. But today’s developers have elevated to an art form the practice of including amenities that pander to millennial lifestyle trends.”

A Recession May Be Coming, but Not for Commercial Real Estate Investors

Barron’s – March 25

“A detailed reading of the historical record indicates three types of excess that have preceded every recession and commercial real estate downturn: overbuilding, overheating, and over-indebtedness.”