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

Ivan Kaufman’s Real Estate Blog

Weekly Roundup: December 21, 2017

This week’s collection of industry news stories touch upon the movement patterns of renters along with predictions for financial and digital trends in multifamily. First, The New York Times reports that there has been a drop in mobility for renters and homeowners alike. Then, Axiometrics weighs in on the risks and returns of investing in apartments, concluding that the flexibility of the sector leads to a more stable cash flow than some alternatives. MBA introduces us to the final ‘Duty to Serve’ plans that Fannie Mae and Freddie Mac will use to meet the needs of low income families by focusing in on manufactured housing, affordable housing preservation and rural housing. Next, City Lab forecasts that even as millennials age, the number of those who choose to live in the city will remain fairly consistent. Lastly, Property Management Insider suggests that multifamily owners should pay close attention to developments in video consumption, social media and artificial intelligence to maximize their returns in 2018.

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Renters Are Staying Put

The New York Times – December 21, 2017

“Only 21.7 percent of renters moved in 2017, a historically low rate, according to newly released United States Census Bureau data. Homeowners moved at an even lower rate — 5.5 percent, a slight uptick from 2016.”

Apartment Investments Continue to be Sound in Comparison

Axiometrics – December 19, 2017

“Their value is solid, whether compared to other commercial real estate assets or to stocks, bonds and T-bills, even if transaction volume is down from one year earlier.”

Fannie Mae, Freddie Mac Publish ‘Duty to Serve’ Plans

Mortgage Bankers Association – December 19, 2017

“The statute requires Fannie Mae and Freddie Mac to serve three specified underserved markets–manufactured housing, affordable housing preservation and rural housing–by increasing the liquidity of mortgage financing, for very low-, low- and moderate-income families.”

No, Young People Aren’t Fleeing Cities

CityLab – December 19, 2017

“’Peak Millennial’ doesn’t mean what it used to, because Millennials are getting older. And even still, they’re sticking around cities more than older generations.”

The Top 3 Digital Trends for 2018

Property Management Insider – December 15, 2017

“As we prepare for a new year, it’s clear that residents and consumers are spending more time online. Here are the top three digital trends that multifamily should pay attention to in 2018:”

Weekly Roundup: December 15, 2017

Trending locations for multifamily developments, and the characteristics of candidates who are likely to rent, are analyzed throughout this week’s selection of industry news pieces. First, National Real Estate Investor covers multifamily in suburban submarkets, and how these suburban locations are accounting for most of the inventory’s growth. Next, Axiometrics explores how the apartment market is benefitting from the growing number of young adults who are delaying marriage. The National Apartment Association speaks to how amenities will continue to evolve to meet the complex social needs of residents in 2018. Then, MPF Research identifies the U.S. metro markets that continue to lead the way in issuing multifamily permits. Finally, CNBC delves into the significant influence of baby boomers on rental growth, and the reasons behind their choice to rent.   

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Has the Multifamily Market Growth Been Stronger in Urban or Suburban Settings?

NREI – Dec. 12

“Few recognize that the bulk of the apartment inventory is located in suburban submarkets, either within the city limits or outside.”

Marriage, Family Household Statistics Could Help Explain Propensity to Rent

Axiometrics – Dec. 12

“One reason commonly thought to contribute to the increased propensity to rent among millennials is the fact that many young adults are choosing to marry later in life, delaying combining households and the lifestyle that comes with it.”

Apartment CEOs Pick the Top Amenities for 2018

NAA – Dec. 11

“Offices are in and tennis courts are out as developers look to build places where residents can “want to be by themselves with others.”

Metro Leaderboard for Annual Permits Remains Largely Unchanged in October

MPF Research – Dec. 11

“The latest permits data shows national permit totals are plateauing. According to the U.S. Census Bureau, local governments across the country approved 416,000 units in the year-ending October 2017.”

 Older, Wealthier Americans are the New Renters

CNBC – Dec. 14

“The number of higher-income rental households has doubled in the last decade, according to a new report from Harvard’s Joint Center for Housing Studies, and that trend will likely increase in the coming years as more baby boomers downsize.”

Weekly Roundup: December 8, 2017

Changing homeownership views, amenity offerings and the growth in small loans are covered in this week’s selection of multifamily news highlights. To begin, Ten-X discusses the emerging trend of people strategically choosing renting over home buying because it aligns with their lifestyle. Next, RIS Media explores the idea of ‘surban’ development and how they are expected to experience growth by attracting residents who seek a mixture of urban and suburban life. Then, ALEX Chatter investigates the expansion of millennial apartment demand with insights on how their building preferences are largely dependent on age. Property Management Insider examines the value of implementing amenities and services that foster a sense of community among residents. Finally, the Mortgage Bankers Association examines how the small balance multifamily loan market continues to grow.

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Renting has Growing Allure for Would-Be Homebuyers

Ten-X – Dec. 5

“For a lot of people, real estate ownership and all that it traditionally represents in terms of success and status has become much less interesting. In its place, renting has gained new appeal.”

2018 Real Estate Trends to Watch: ‘Surban’ — That Sweet Spot Between City and Suburb

RISMedia – Dec. 4

“Surban refers to a suburban area that has the feel of an urban area, with walkability to great retail and restaurants from a house or apartment, and it’s what all the real estate trend predictors are talking about.”

The Changing Rental Preferences of Aging Millennials

ALEX Chatter – Dec. 7

“Segmenting the Millennial market by younger (18-25 years) and older (26-33 years) renters shows differences in building preferences, which are likely to play out fully in the coming years.”

Top Multifamily Amenities and Services to Consider Next

Property Management Insider – Dec. 4

“The expense and implementation of smart technology can lose its luster compared to a hands-on environment that promotes the resident experience.”

Steady Rise in Small-Balance Lending

Mortgage Bankers Association – Dec. 5

“Small-balance multifamily lending fell 3.1 percent during the quarter, but lending volume through the first three quarters was 7.3 percent higher than during the same period last year.”