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

Ivan Kaufman’s Real Estate Blog

Weekly Roundup: December 1, 2017

Growth in the already high performing multifamily market and predictions for future shifts in amenity offerings are explored in this week’s news top industry news stories. To start, the Mortgage Bankers Association reports that delinquency rates for loans have reached a 24-year low, proving that commercial and multifamily mortgages are performing extremely well. Then, National Real Estate Investor investigates how improved fundamentals and robust investment sales are contributing to a stable outlook in multifamily. ALEX Chatter considers the possibility of a future where parking as an amenity is no longer necessary due to transportation transformations. Also from ALEX Chatter, an exploration of how increasing demand factors, corporate relocations and new supply are working together to generate stability and strength in the Chicago market. Finally, Real Estate Weekly reveals the most important amenities that renters will be searching for in apartments as we enter 2018.

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3Q Commercial/Multifamily Delinquencies Remain Low; Bank Delinquencies Match Lowest on Record

Mortgage Bankers Association – Nov. 30

“Strong property fundamentals and values and ready credit availability are all helping contribute to this extraordinary performance.”

Exclusive Research Reveals Stable Outlook for the Multifamily Sector

NREI – Nov. 29

“While sentiment has dampened slightly, investors still prefer apartments over other commercial real estate property types.”

Autonomous Vehicles and the Future of Multifamily Parking

ALEX Chatter – Nov. 27

“With the introduction of autonomous cars, transit-oriented development and the rise of ride-sharing companies, it seems inevitable that parking will take somewhat of a back seat.”

Chicago Multifamily Market Update: Deal Volume Up as Investors Chase Yield

ALEX Chatter – Nov. 27

“The Chicago multifamily market remained strong during Q3 2017, as rents continued to set new record highs. Rising vacancy rates remained in line with the market’s historical average, despite a historically high influx of new supply.”

List of 2018’s Must-Have Apartment Amenities – and Why it Might Surprise You

Real Estate Weekly – Dec. 1

“It is important to assess not only what tenants want but what they expect to pay for various features and amenities. The following is an overview of some of the top items on the minds of U.S. apartment renters.”

Weekly Roundup: November 24, 2017

This week’s top multifamily developments highlight how rent prices continue to rise as demand and amenity offerings grow. First, Real Capital Analytics reports on data that illustrates the consistent price growth in the apartment sector. Next, National Real Estate Investor provides a glimpse of the features that are most important to renters. Property Management Insider then delves into the factors that are contributing to an increased demand for new, affordable apartments — population growth and an increasing propensity to rent are two major drivers. Then, the varying value of amenities in various markets is explored by Property Management Insider. Finally, Axiometrics examines the expected rent growth of the Raleigh-Durham apartment market, and the dynamics that are influencing the price increases.

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US Prices Rise 1.2% in October, RCA CPPI Report Shows

Real Capital Analytics – Nov. 22

“Price growth for apartments has been the greatest among the property types for the majority of 2017.”

What Apartment Renters Want

NREI – Nov. 21

“The most attractive features of an apartment unit to renters turn out to be good management, good cell phone reception and a rent that feels reasonable.”

NMHC is Up for the Challenge of Meeting Apartment Demand

Property Management Insider – Nov. 21

“Today, more than one-third of America rents, and industry analysts believe more apartments will be needed in the future just based on population growth and higher propensity to rent.”

Benchmarking Amenities to Determine Their True Value and Price

Property Management Insider – Nov. 22

“Depending on the market, a community feature can bring $15-$80 in additional rent per month, according to a National Apartment Association study released earlier this year.”

Raleigh-Durham Apartment Market Poised for Rent Growth Rebound

Axiometrics – Nov. 21

All the indicators are there for strengthening performance in the Raleigh-Durham apartment market: increasing Research Triangle job growth, declining supply (next year), improving Class A rent growth (in Raleigh) and a young-adult-fueled atmosphere with all those colleges around.”

 

Weekly Roundup: November 17, 2017

After new research from Axiometrics on the correlation between college enrollment and student housing demand, this week’s collection of multifamily news pieces features a mix of insights on millennial renters and new developments in the area of apartment affordability. First, National Real Estate Investor predicts the 10 suburban areas for millennial population growth and explores the unique drivers for the age cohort. Next, Bisnow examines how the preferences of millennial renters are expected to change the types of amenities that multifamily buildings need to provide. Research from Freddie Mac then reveals how the affordability crisis is expanding.  We round things off with an article from Fast Company exploring how repurposing parking lots could increase the number of affordable housing units, and begin to solve the shortage that currently exists.

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Student Housing Inventory Growth vs. Enrollment Growth

Axiometrics- Nov. 16, 2017


“Additional demand and insufficiency of purpose-built student housing in past decades motivated developers to ramp up construction.”

Top 10 Suburbs for Millennials

NREI – Nov. 15, 2017


“NREI looks at the top 10 suburban areas surrounding major cities that have the best potential for millennial population growth.”

6 Ways Millennials are Influencing the Multifamily Market of the Future

Bisnow – Nov. 14, 2017

“Tight finances and lifestyle preferences that challenge current stock could have developers and property owners scrambling if they do not keep up with millennials shifting preferences.”

Suburbs: Turn Rail Station Parking Lots into Affordable Communities

Fast Company – Nov. 14, 2017


“Building complete communities on the sprawling asphalt lots around regional transit hubs does the dual work of creating more affordability and accessibility, and de-incentivizing private car usage.”

Freddie Mac: Multifamily Affordability Problem Expands

ALEX Chatter – Nov. 13

“New research from Freddie Mac quantifies what many renters already know to be true — finding an affordable apartment is harder than it used to be.”