Ivan Kaufman’s Real Estate Blog
This week’s collection of top multifamily reads takes a step back to examine some overarching trends impacting the apartment market. We’ll start off with an article I contributed to National Real Estate Investor (NREI) looking at two distinct multifamily market climates that often exist within the same metropolitan area. While certain cities are starting to feel the impact of an oversupply of new Class A product, nearly all markets have an unprecedented and growing demand for quality, affordable units of workforce housing. Our second story comes from Alanna McCargo, Co-Director of Urban Institute’s Housing Finance Policy Center, and examines four major trends contributing to this lack of affordability.
The solution to affordability will likely need to manifest in the suburbs, as Tom Toomey, ULI Chairman and President & CEO of multifamily REIT UDR, Inc., points out that 79% of the population in the largest 50 metro areas live in the suburbs. His Q&A with NREI’s John Egan also gets into the rise of interest in ’18-hour cities.’ Next, we turn to another thought leader – Doug Bibby, President of the National Multifamily Housing Council (NMHC) — who walks us through new research showing the country needs to add 4.6 million new apartment homes between now and 2030 to keep up with demand. This week’s roundup tops off with Freddie Mac’s midyear multifamily outlook, which shows that the market remains healthy as we move towards 2018.
via National Real Estate Investor – July 28, 2017
“This guest byline by Arbor’s Chairman, President & CEO Ivan Kaufman examines how the multifamily cycle has diverged into two distinct market climates – oversupply of new Class A product in certain metros concurrent with an unprecedented and growing demand for quality, affordable housing for the workforce.”
via Urban Institute – July 27, 2017
“The rental housing landscape in America is rapidly changing: new people are becoming renters and many properties are aging. Meanwhile, the pace at which new rental housing supply is being created can’t meet growing demand.”
via National Real Estate Investor – July 25, 2017
“In a Q&A with NREI, Toomey discusses the challenges facing commercial real estate, the role of the suburbs in today’s market and the outlook for the multifamily sector.”
via Multifamily Executive – July 21, 2017
“We’ll have to build 4.6 million new apartments between now and the end of 2030 to keep up with growing apartment demand—or risk exacerbating today’s existing housing shortage.”
via Freddie Mac – July 26, 2017
“Through the first half of 2017, the economy’s growth continued to support strong multifamily fundamentals, while the market continued to moderate on a national level.”
Ivan Kaufman, Chairman, President & CEO of Arbor Realty Trust Inc., sits down with Steve Johnson, Vice President of the Small Loan Business at Freddie Mac, and Sam Chandan, Silverstein Chair at the NYU SPS Schack Institute of Real Estate to discuss how new technology has enabled multifamily borrowers to secure financing for their investment and refinancing needs faster than ever before.
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.
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.”
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.”
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.”
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.”
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.”