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

Ivan Kaufman’s Real Estate Blog

Weekly Roundup | July 21, 2017

This week’s collection of multifamily must-reads center around unlocking multifamily value. We start off with an in-depth look into how ‘rentership’ has changed over the past 10 years from Pew Research. With 36.6% of U.S. households calling a rental unit home, the rentership rate is currently at a 50-year high. This is a national phenomenon across all market sizes, and as National Real Estate Investors points out, multifamily properties in smaller markets are also delivering big yields. This week’s list from MPF Research provides a look into the top secondary markets for rent growth in 2Q 2017. Market participants looking for additional income can consider a value-add strategy, and Property Management Insider has a look at some of the most cost-effective improvements. We’ll round things off with a look into how Los Angeles has overtaken New York as the top investment market during the first half of 2017.

Photo by Chris Barbalis on Unsplash

Photo by Chris Barbalis on Unsplash

More U.S. households are renting than at any point in 50 years

via Pew Research Center – July 19, 2017

“The current renting level exceeds the recent high of 36.2% set in 1986 and 1988 and approaches the rate of 37.0% in 1965.”

 

Multifamily Assets in Smaller Markets Can Deliver Big Yields

via National Real Estate Investor – July 18, 2017

“In rural and tertiary markets, apartment investors can avoid much of the competition they face in busier markets. There is little risk that a developer will build new apartments that overwhelm the market.”

 

Top Secondary Markets for Rent Growth in 2Q

via MPF Research – July 19, 2017

“Reno and Colorado Springs were by far the top performers among secondary markets, registering annual rent growth of 11.5% and 10.9%, respectively.”

 

How Apartment Renovations Can Improve ROI

via Property Management Insider – July 18, 2017

“Done right, a modest upgrade of a 20- or 30-year-old multifamily community can offer renters a lower price point than new construction. At the same time, the investment is lower and turnaround time to market much quicker.”

 

Los Angeles Overtakes Manhattan as Largest US Investment Market

via Real Capital Analytics – July 20, 2017

“Los Angeles pushed aside Manhattan to become the largest commercial real estate investment market in the first half of 2017, as capital migrated from higher-priced markets.”

Weekly Roundup | July 14, 2017

This week’s review of the top multifamily news stories starts off with a look at the rise in apartment demands at major metros. We’ll also examine the shift in student housing market, rising rents in senior housing and the Top 10 cities for millennials.

Photo by Emmad Mazhari on Unsplash

Photo by Emmad Mazhari on Unsplash

Top 15 Metros for Apartment Demand in 2Q

via MPF Research – July 10, 2017

“National multifamily absorption rose to near-record levels in 2nd quarter 2017, easily outpacing completions. A similar story played out in most major metros, which saw strong demand due to a number of factors.”

 

Student Housing Investment Spreads to Smaller Markets

via Axiometrics – July 13, 2017

“While the volume and value of apartment transactions have declined significantly from last year’s record levels, student housing investment continues to flourish as more and more investors discover the potential return in the off-campus housing sector – in markets of all sizes.”

 

How an Aging Population Impacts Seniors Housing Rent Growth

via ALEX Chatter – July 13, 2017

“It is no secret that the U.S. population is aging. From 2010 to 2015, the US population grew 3.9%, but the population of those over 60 grew 16.7%. This means that the under 60-year-old segment grew only 1.0%. Put in different terms, the percent of the U.S. population at or above 60 years old went from 18.6% to 20.9% in just five years.”

 

Apartment Vacancy Rates Remain in Low Single Digits in Gateway Markets

via National Real Estate Investor – July 11, 2017

“The strongest four markets in the country—New York, San Francisco, Los Angeles and Boston—seem almost impervious to shifts in new supply.”

 

The 10 Best Cities For Millennials In 2017

via Forbes – July 11, 2017

“If you’re a millennial thinking about moving to a new city, you’re likely mulling over its job market, cost of living and tendency for sunny days. But perhaps you’re also considering whether a city has a vibrant, diverse community.”