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

Ivan Kaufman’s Real Estate Blog

Weekly Roundup: March 30th, 2018

Rental affordability, thriving metros and the introduction of mixed-use design are the key topics discussed in this week’s multifamily news updates. First, Urban Institute examines how affordable homeownership is to renters in various metros across the U.S. Then, NREI takes a closer look at the advantages of investing in affordable properties, concluding that steady demand and generally high occupancy make this an attractive asset class. Arbor’s Chatter blog provides an investment snapshot of the Los Angeles market followed the United States Census Bureau’s analysis of the population growth of Texas by city and county. Finally, Multifamily Executive determines the pros and cons associated with the implementation of mixed-use design projects.

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Where Can Renters Afford to Buy Homes?
Urban Institute – March 29
“Our index shows that, nationwide, more than one in four renters have incomes that put homeownership within reach.”

The Appeal of Affordable Housing to For-Profit Investors
NREI – March 27
“Affordable housing properties tend to produce consistent, steady income from rents. In many markets, they are fully-occupied, dependable performers and can often be safer investments than conventional, class-A apartment buildings.”

Los Angeles Multifamily Rents Hit New Highs for 2017, Class B/C Vacancies Decrease
Arbor Chatter – March 30
“Los Angeles remained one of the more sought-after multifamily markets in the U.S. during 2017, as rent growth and investment volume ranked near the top nationally.”

New Census Bureau Population Estimates Show Dallas-Fort Worth-Arlington Has Largest Growth in the United States
U.S. Census Bureau – March 22
“The top 10 largest-gaining counties were in Texas — Bexar, Collin, Dallas, Denton, Harris and Tarrant. The remaining four counties on the list were Maricopa County, AZ; Clark County, NV; Riverside County, CA; and King County, WA.”

10 Urban Projects That Nail Mixed-Use Design
Multifamily Executive – March 15
“The “live-work-play” lifestyle is a growing priority for renters, and mixed-use developers are responding with designs and amenities that set their community apart from the rest.”

Weekly Roundup: February 2nd, 2018

This week’s collection of industry trends is marked by rising demand for apartments, how renters are finding multifamily spaces and how rethinking the suburbs could be part of the solution to housing affordability. First, CityLab suggests that replacing single family homes with small apartment buildings can be a natural way to start improving housing stock and density. Then, Trepp reveals how the lending market is responding to growing levels of demand. Arbor’s Chatter blog uncovers the most popular search modes for finding new apartments. Next, Urban Institute notes that due to factors like the difficulty of obtaining a mortgage, lack of entry-level inventory and costs of building a home, homeownership is no longer a realistic goal for everyone. Finally, National Real Estate Investor examines how increasing home prices are impacting would-be first-time buyers — many are turning to renting as a more affordable option. 

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Density’s Next Frontier: The Suburbs

CityLab – Feb. 1

“America’s real housing problem—and a big part of the solution to it—lie in closer-in single-family-home neighborhoods that were built up during the great suburban boom of the last century, and that have seen little or no new housing construction since they were initially developed.”

Can Multifamily Sector Keep up with Rising Demand?

Trepp – Jan. 31

“Multifamily demand has risen to its highest level in more than 25 years (which roughly equates to the duration of one generation) thanks to demographic trends, population growth, and changing consumer preferences.”

How do Small Building Renters Find their Apartments

Chatter Blog – Jan. 25

“Traditional word of mouth referrals and Internet searches are most popular among renters seeking small building rentals. But search modes vary with the end purpose of the move.”

Homeownership and the American Dream

Urban Institute – Jan. 31

“The pendulum seems to have swung too far the other way, and many now may have too little faith in homeownership as part of the American Dream.”

Apartment Renters Continue to Dominate Many of the Nation’s Cities

NREI – Jan. 30

“Renter households now make up the majority in 42 of the 100 largest cities in the U.S., according to RENTCafé. That’s up from 20 cities where renters dominated within city limits in 2006.”

Weekly Roundup: January 19, 2018

This week’s industry highlights consist of an outlook of multifamily in 2018, a growing trend among Baby Boomers to rent and how advancements in technology will continue to disrupt the traditional apartment sector. First, Freddie Mac’s David Brickman tells Commercial Observer how he manages to keep an emphasis on affordability without sacrificing overall profits. Then, a NAREIT’s panel with five leading economists reveals that although 2018 may not see big gains in prices, job growth and strong fundamentals will keep the market promising. The Washington Post then uncovers that some Baby Boomers are choosing to rent apartments for reasons such as not being responsible for repairs and the flexibility to move as frequently as they would like. Next, NMHC creates a redefined view of multifamily with innovations that will focus on meeting the needs of human experiences, changing employment developments, e-commerce, and health/wellness. Lastly, National Real Estate Investor concludes that although multifamily will mainly remain stable in 2018, Class A assets will continue to see competition, rents may continue to rise and markets like Houston will continue to develop and show potential.

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Freddie Mac’s David Brickman on GSEs’ Special Role and the Outlook for Multifamily

Commercial Observer – Jan. 18

“A year shy of his 20th anniversary with the agency lender, David Brickman answers to an intricate pair of overlapping mandates: earn a sensible economic return from loan activities while assertively promoting liquidity and affordable housing even during economic crises.”

Economists See Strong U.S. Fundamentals Boding Well for Real Estate

NAREIT – Jan. 18

“NAREIT’s panel also expounded on trends, structural shifts, sectors and cap rates in the coming year.”

Downsizing Baby Boomers Face a Key Decision: Is it Better to Rent or to Buy?

The Washington Post – Jan. 18

“The rent-or-buy decision is more commonly thought of as a dilemma for young professionals establishing their households, not people approaching retirement.”

NMHC Multifamily Disruption Report

NMHC – Jan. 18

“Eight major trends will be game changers for apartments moving forward. These tectonic shifts are poised to radically reshape our customers’ experiences as well our industry’s approach to designing, developing and operating our communities.”

Seven Predictions for the Multifamily Sector in 2018

NREI – Jan. 18

“‘Stable.’ That’s the one word that encapsulates the anticipated state of the multifamily sector this year — that was also the sentiment expressed by other industry experts as well, when asked for their forecasts for the upcoming year.”