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

Ivan Kaufman’s Real Estate Blog

Weekly Roundup Intro: Week of June 3, 2019

This week’s multifamily roundup offers insights on opportunity zone legislation, Cincinnati’s apartment market and strategies to retain renters. First, CityLab explains why some industry participants believe building more high-end apartments could actually be a potential solution to the affordable housing crisis. Next, Real Capital Analytics analyzes how policies relating to opportunity zones are impacting capital flows into low-income areas, with some signs indicating the program is making a difference. Arbor’s Chatter blog spotlights Cincinnati, noting that its apartment sector is booming, bolstered by record investment activity and rent growth. Then, PMI lists several strategies property managers can implement to achieve higher resident retention, including offering technologies and services. Finally, Zumper releases its June national rent report, reporting that most metros experienced flat monthly growth rates, indicating the national market is stabilizing.

How Luxury Units Turn Into Affordable Housing

CityLab – June 5

“For every 100 luxury units built in wealthier neighborhoods, as many as 48 households in moderate-income neighborhoods are able to move into housing that better suits their needs, vacating an existing unit in the process.”

US Opportunity Zone Legislation Is Moving Capital

Real Capital Analytics – June 4

“For every low-income census tract that was selected for the opportunity zone designation, another three or so were left behind.”

Market Spotlight: Cincinnati is Booming as Economic Expansion Continues

Arbor Chatter – June 6

“As the tail of this economic expansion extends further, real estate investors continue to search for yield by investing outside of primary markets. Cincinnati has been a beneficiary of that trend, and the market is booming.”

Romancing the Renter: Proven Strategies for Higher Retention

PMI – June 6

“The way to their hearts – and their rent – is to offer technologies and services that make their lives simpler while providing ancillary revenue to the property.”

Zumper National Rent Report: June 2019

Zumper – June 3

“It seems the market is stabilizing since the days of many cities experiencing consecutive, 10%+ year over year growth rates in 2018. However, since hot moving season has just begun, rents could still shoot up in the coming months.”

Weekly Roundup Intro: Week of May 27, 2019

This week’s multifamily roundup takes a look at housing construction starts, rent growth and rental affordability. First, MultifamilyBiz reports that new apartment construction picked up in April, but was still down significantly from the monthly average in 2018. Next, MBA reports that multifamily rents continue to increase at a slow pace, but it remains to be seen if rent growth will pick up as prime leasing season is just starting. Arbor’s Chatter blog observes that while rental affordability has improved slightly, household cost burden remains a nationwide issue. Then, NREI highlights why young people aren’t occupying as many apartment units as investors and industry players had expected. Finally, Redfin observes that while Millennials in coastal cities are facing affordability issues, they are able to move into homeownership or rentership in cities with lower costs of living, such as Salt Lake City and Detroit.

Multifamily Housing Construction Starts Advanced Five-Percent in April

MultifamilyBiz – May 29

“Multifamily housing in April advanced 5% after a 9% decline in March, but April’s level of activity was still down 18% from the average monthly pace during 2018.”

Multifamily Rents Growing–Slowly

MBA – May 28

“On the metro level, the Southwest is booming. Phoenix caught up to Las Vegas in April for the highest growth rate at 7.3 percent.”

Rental Affordability Improves, But Remains a National Concern

Arbor Chatter – May 28

“Across apartment buildings, the most recent U.S. Census Bureau data showed that households living in small multifamily, on average, spent about 39.2% of their income on rent.”

 Younger Apartment Tenants Struggle to Keep Up with Rising Rents

NREI – May 28

“Many younger millennials continue to opt for renting vs. owning, but they aren’t filling as many apartment units as investors and economists had hoped.” 

Millennials are Thriving—Personally and Professionally—in These Five Cities

Redfin – May 24

“In many coastal metros, millennials have a hard time saving up enough money to own a home or start a business. But inland, where homes and costs of living are more affordable, millennials are able to lay down roots, start businesses, and as a result they are transforming places like Oklahoma City, Salt Lake City, and Detroit into hip havens for their generation.”

Weekly Roundup Intro: Week of May 20, 2019

This week’s multifamily roundup offers insights on the sector’s performance in the first quarter, southeastern cities’ apartment demand and millennial housing preferences. First, Arbor’s Chatter blog provides a snapshot of the U.S. apartment market’s fundamentals to start 2019, which include continued rent growth and low vacancy. Next, NREI notes that the Southeast of the U.S. is seeing rising demand for multifamily, largely driven by strong job growth in the metros. HousingWire reports that while industry players are banking on Millennials to reinvigorate the homebuying market, the segment may not pursue homeownership, citing an article from The Wall Street Journal. Then, Reis takes a look at the top- and bottom-performing markets in the first quarter, with Phoenix taking the top spot. Finally, RealPage spotlights Salt Lake City, UT, pointing out that despite strong apartment occupancy, the city is finding it challenging to retain residents, particularly young renters.

U.S. Multifamily Market Snapshot — Q1 2019

Arbor Chatter – May 21

“The first quarter of 2019 marked the 37th consecutive quarter of rent growth for the U.S. multifamily market. Vacancy remained at historic lows, amid high levels of development activity.”

Southeastern Cities Experience Strong Job Growth, Seeing a Rising Demand for New Apartments

NREI – May 21

“In Charlotte, the number of jobs in the metro area grew by 167,000 over the five years that ended in 2018. But the number of housing units, of all kinds, grew by just 93,000.”

WSJ: That Wave of Millennial Homebuyers May Never Come Crashing

HousingWire – May 21

“While many have said this massive group will reinvigorate the housing market, this has yet to happen, the WSJ points out, adding that perhaps the action has been delayed because the recession hit just as many Millennials were entering the workforce.”

Apartment Top & Bottom Markets, Q1 2019

Reis – May 21

“The aggregate YoY effective revenue growth for the nation came in at 4.1 percent this quarter, a little lower than last quarter’s 4.4 percent.”

Occupancy High, Retention Low in Salt Lake City

RealPage – May 21

“While apartment occupancy is solid in Salt Lake City, it’s tough to hang on to individual renter households in this young, on-the-move market, resulting in one of the lowest resident retention rates in the country.”