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

Ivan Kaufman’s Real Estate Blog

Weekly Roundup Intro: Week of January 21, 2019

This week’s multifamily roundup provides insights on the top housing trends to watch this year, the impact of labor shortages on apartment development, and economic growth prospects in 2019 and beyond. First, MultifamilyBiz discusses the five trends set to impact the industry, including smart technology and 5G wireless capabilities. Next, Real Capital Analytics reports that the apartment sector had the strongest price growth of all property types at the end of 2018, but at a slower pace than at the start of the year. Arbor’s Chatter blog analyzes the most expensive markets for renting in the U.S., noting that many of the priciest cities are in California. Then, NREI examines how a shortage of construction workers is delaying multifamily development, at a time when the industry is in need of new supply. Finally, Fannie Mae reports that economic growth is expected to slow to 2.2% in 2019, according to its latest Economic and Housing Outlook.

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Five Quickly Evolving Multifamily Housing Industry Trends to Look Out for in the New Year

MultifamilyBiz – January 24

“Today’s communities are filled with smart home technology, hotel-like interiors, in-building retailers, and – believe it or not – there are even more exciting developments to note as we head into 2019.”

US Price Growth Slips to 6.2% in 2018

Real Capital Analytics – January 24

“Apartment price growth, at 8.9% year-over-year, was the strongest among the property types in December, albeit slowed from the double-digit pace set at the start of 2018.”

Major California Metros are the Most Expensive in the U.S. for Apartment Rentals

Arbor Chatter – January 23

“California included four of the five most expensive metros in the nation for apartment rentals, across both small and large asset multifamily.”

Labor Shortages Delay New Apartment Openings

NREI – January 22

“The extra time it now takes to finish an apartment building has added more uncertainty to expectations of how many new apartment units will open over the next few years.”

Slower Economic Growth Expected in 2019, but a Patient Fed Could Put Housing on Firmer Footing

Fannie Mae – January 22

“Economic growth in 2018 will likely turn out to be the strongest of the current expansion, and inflation remained anchored even as the unemployment rate dipped to multi-decade lows.”

 

Weekly Roundup Intro: Week of January 7, 2019

This week’s multifamily roundup takes a look at shifts in renter, buyer and seller sentiment, the top markets for rental inventory growth, and how elevated supply levels will impact the apartment market. First, Trulia notes that changes in housing trends, such as slowing home price appreciation, are causing younger would-be buyers to be less optimistic about homeownership. Next, Forbes reports that more than 1 million Americans will be priced out of the housing market in 2019, with mortgage rates increasing throughout the last year. Arbor’s Chatter blog analyzes the top markets for multifamily supply growth, noting that smaller metros are seeing the greatest increases in small and large apartment inventory. Then, Mortgage Bankers Association reveals the results of its 2019 outlook survey, which found that more than half of the top commercial and multifamily firms expect mortgage originations to increase this year. Finally, RealPage observes that 2018 markets the fifth consecutive year of U.S. delivery volumes reaching more than 250,000 units, with no signs of slowing down in 2019.

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As Housing Trends Shift, So Does Renter, Buyer and Seller Sentiment

Trulia – January 10

“The share of young Americans that say homeownership is part of their personal “American Dream” is falling, likely driven lower by increasing housing costs and a series of obstacles—from student loan debt to unsteady employment—that their older peers don’t have to contend with.”

More Than 1 Million Americans Will Be Priced Out of the Housing Market This Year

Forbes – January 10

“Home prices have been on a steady uptick since 2012, rising 7.7% just last year alone. Mortgage rates, aside from a small blip over the last few weeks, have also been on a tear, jumping more than 60 basis points across 2018.”

Top Markets for Rental Asset Growth

Arbor Chatter – January 8

“When analyzing the top markets for rental growth in the context of market segment peers, smaller metros registered impressive gains in both small and large multifamily as a share of total rental inventory.”

Majority of Firms Expect Originations to Increase

Mortgage Bankers Association – January 8

“More than half of the top commercial/multifamily firms (55%) expect originations to increase in 2019, with 13% expecting an overall increase of 5% or more across the entire market.”

Scheduled Deliveries Mark Big Shifts for Some Apartment Markets in 2019

RealPage – January 10

“Elevated delivery volumes in 2018 extended the record-breaking apartment supply cycle, and 2019 is expected to bring much of the same.”

 

Weekly Roundup Intro: Week of January 1, 2019

This week’s multifamily roundup highlights the factors driving rental demand, trends in small asset inventory and how rents performed in all 50 states. First, Mortgage Bankers Association reports that renter household growth has outpaced that of owner households, rising by nearly 10 million over the past decade. Next, Bloomberg notes that companies are finding value in developing built-to-rent homes in order to meet growing demand for leasing over owning. Arbor’s Chatter blog takes a look at rental inventory growth across U.S. metros, observing that smaller cities are seeing greater increases in small apartment building supply. Then, HousingWire breaks down how rents performed on a state-by-state basis, according to new data from Abodo. Finally, Multifamily Executive discusses the promising outlook for the apartment sector, which saw transaction activity increase 14.7% year-to-date in the third quarter of 2018.

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Demographics, Socioeconomics Driving Multifamily Housing Demand

Mortgage Bankers Association – January 4, 2019

“New renter households increased by nearly 10 million over the past 10 years, significantly outpacing the owner segment, which reported minimal growth.”

Homebuilders See a Bright Spot in the Gloom—And It’s Rentals

Bloomberg – January 4, 2019

“Companies that build rental houses are emerging as a bright spot, raising new capital to accelerate growth on a bet that it’s easier to lease homes than sell them.”

Small Asset Multifamily Activity Shifts Toward Smaller Metros

Arbor Chatter – January 2

“Rental inventory growth for year-end 2017 showed a clear contrast between the largest and smallest U.S. metros, with the latter displaying a greater increase in small asset multifamily inventory.”

Here’s What Rents Did in all 50 States in 2018

HousingWire – January 2, 2019

“As we’ve now officially crossed over to 2019, we can take a full look back at what happened in the multifamily industry in the year that just passed.”

2018’s Record Deal Volume Suggests Positive Trajectory for 2019

Multifamily Executive – January 2, 2019

“If 2018’s good fortune is any indication, the new year looks bright for apartment developers and investors hoping to capitalize on multifamily assets in 2019.”