Ivan Kaufman’s Blog2017-07-19T16:32:21+00:00

Ivan Kaufman’s Real Estate Blog

Weekly Roundup Intro: Week of June 24, 2019

This week’s multifamily roundup takes a look at build-to-rent housing, Harvard’s latest housing study, and baby boomer/seniors lifestyle preferences. First, CNBC reports on the increasing popularity of the build-to-rent investment strategy, with elevated demand for the single-family rental product encouraging larger investors and developers to enter the space. Next, Harvard JCHS releases its “State of the Nation’s Housing 2019” report, which notes that housing supply is still not keeping up with the need for units, resulting in rents and home prices remaining high. Arbor’s Chatter explores the differences in internet usage across age groups, with senior renters proving to be more dependent on home-based access. Then, HousingWire explains how more Baby Boomers choosing to age in place is causing “near-gridlock” in the housing market, with less supply available to potential new buyers. Finally, NREI observes a shift among developers and owners from focusing on physical amenities at their apartment buildings to now emphasizing service offerings. 

Build-to-Rent Housing Market Explodes as Investors Rush In

CNBC – June 26

“The homes will be built in contiguous tracts and sold in bulk to large-scale investors. Putting dozens of homes in one location makes property management much easier and far less expensive.”

The State of the Nation’s Housing

Harvard JCHS – June 25

“Although household growth is returning to a more normal pace, housing production still falls short of what is needed, which is keeping pressure on house prices and rents and eroding affordability.”

Wired Up: Senior Renters More Dependent on Home-Based Internet Access

Arbor Chatter – June 24

“Looking at internet access types across age groups presents wider gaps in usage patterns. Younger, tech-savvy households are more likely to adopt multiple access options compared to Seniors and Baby Boomers.”

Baby Boomers Creating “Near-Gridlock” by Aging in Place

HousingWire – June 25

“Instead of moving to retirement communities like many of their parents did when they got older, Baby Boomers are opting to age in place. The “near-gridlock” is keeping about 1.6 million houses off the national market.”

Amenities vs. Services: Property Managers and De-escalating the Amenity War

NREI – June 25

“Today, we are seeing a shift among developers and property owners away from the physical amenity war that’s been going on for the last several years to a focus now on services.”

Weekly Roundup Intro: Week of June 17, 2019

This week’s multifamily roundup provides insights on single-family rent growth, CRE collateralized loan obligations (CLOs) and senior housing needs. First, CoreLogic notes that single-family rents have been climbing steadily since 2010, achieving 3% year-over-year growth in April. Next, Freddie Mac discusses the need for energy and water upgrades at older multifamily properties and how green financing programs can help owners and managers make these improvements. Arbor’s Chatter blog reports on the growth and maturation of the CRE CLO market as more investors and issuers enter the space. Then, RealPage reports that rent premiums for living in downtown areas vary widely by city, spotlighting metros with the priciest urban cores. Finally, NREI argues that as the need for affordable middle-income seniors housing grows, the industry will need to innovate in how it can offer more affordable housing options to the age group, such as using public-private partnerships.

 

Single-Family Rent Growth Picks Up a Bit

CoreLogic – June 18

“Single-family rents climbed steadily starting in 2010, and annual rent increases have stabilized, fluctuating between 2.9% and 3.2% for the past 12 months.”

Investing in Greener Multifamily Housing

Freddie Mac – June 17

“The buildings most in need of water and energy upgrades aren’t luxury, newly-built high rises. They’re the 30-year-old garden apartments in communities large and small. They dot the country and provide good homes to working people.”

CRE CLOs Grow in Popularity Among Investors and Issuers

Arbor Chatter – June 18

“CRE Collateralized Loan Obligations (CLOs) have emerged as a sophisticated and reliable financing tool post-crisis.”

Urban Core Apartments Command Rent Premium

RealPage – June 17

“Though it has been widely understood that urban living is pricier than suburban living, the premium that downtown living commands ranges widely.”

Who Will Meet the Seniors Housing Needs of Middle-Income Boomers?

NREI – June 17

“Solutions that cater to boomers’ lifestyles need to look different than today’s seniors housing. Not only will boomers reject many of the features of today’s seniors housing, they also can’t afford them.”

Weekly Roundup Intro: Week of June 10, 2019

This week’s multifamily roundup takes a look at apartment occupancy, cap rates and sustainability in real estate. First, RealPage reports that strong leasing activity has led U.S. multifamily occupancy to reach a level not seen since the early 2000s. Next, Real Capital Analytics observes that cap rates have not moved much over the last year, even as interest rates have seen a significant change in direction. Arbor’s Chatter blog analyzes how senior renters’ internet usage has evolved and the differences in access based on property type. Then, CNBC highlights the migration patterns of high-income Millennials, noting that this segment is moving toward the South and West Coast. Finally, Urban Land reveals several strategies real estate firms can implement to successfully identify sustainability opportunities when looking to buy or sell a property.

 

U.S. Occupancy Surges to Highest Level in Nearly Two Decades

RealPage – June 11

“Meanwhile, average annual rent growth among the nation’s apartments held solid at 3.1% in May, landing well above May 2018’s level of 2.6%. May marks the 10th consecutive month of annual rent growth at 3% or higher.”

What Difference Does a Year Make to US Cap Rates?

Real Capital Analytics – June 13

“This time a year ago we looked at how Federal Reserve moves to raise interest rates were impacting commercial real estate. The answer at the time was that the rate environment was affecting deal volume and not cap rates.”

Senior Renter Internet Usage Gaining Bandwidth

Arbor Chatter – June 14

“While internet usage is pervasive in today’s society, technology usage still varies significantly across household segments. Factors such as user age, income and education level play a role.”

Millennials Who Earn $100,000 or More are Flocking to These 10 States

CNBC – June 12

“Highly paid millennials are moving out of the Northeast and heading toward the South and the West Coast.”

Embedding Sustainability in Real Estate Transactions

Urban Land – June 10

“The potential value at stake for embedding sustainability is significant, and in some cases can represent a 50 percent–plus increase in asset value over the lifetime of an investment.”