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

Ivan Kaufman’s Real Estate Blog

Weekly Roundup | September 22, 2017

This week’s roundup of the top multifamily reads starts off with a look at construction. NREI delivers insight on the top 10 metros for multifamily permits, and while you can probably guess many of the cities on this list, the order might surprise you. Continuing on the construction trend, new research from Zillow explores how the short-term impact of new supply is defeated by long-term demographic demand. Next, we get a look at the multifamily decisions faced by both the youngest (Gen Z) and oldest renters. Chandan Economics first presents a new look at how building size impacts senior renting trends in an ALEX Chatter post. Then we take a look at Gen-Z, a demographic with members well into their 20s and a birthrate outpacing Millennials. We close off this week’s roundup with a story from Multifamily Executive on how demographics are still favoring demand in urban centers.

photo of apartment

The Top 10 Metros for Multifamily Permits

National Real Estate Investor –  September 20, 2017

“While local governments across the country approved 28,650 multifamily units in July—a 9.4 percent decrease from the year prior—the total amount of permits issued for the metros was 5.3 percent higher than during the previous 12 months.”

National Apartment Market Outlook: Bearish for Now, Bullish for Later

Zillow – September 15, 2017

“Nationally, rents in multifamily structures have stagnated for the past year and will continue to do so as more new units become available in the coming months.”

What Factors Impact Where Seniors Rent?

ALEX Chatter – September 20, 2017

“Our research illustrates that senior rental location preferences are strongly segmented along both age subgroups and by housing costs. Metro market size also plays a large role.”

Move Out of the Way, Millennials: Making Room for Gen-Z in the Rental Market

MultifamilyBiz – September 20, 2017

“Consisting of those born between 1995 and the present, the birthrate of Gen-Z has outpaced Millennials by 3 million, and the first wave of Gen-Z is already well into their 20s.”

Renter Demographics, Trends Point to Continued Demand in Urban Centers

Multifamily Executive – September 17, 2017

“Looking closely at macro level dynamics and demographics, some telling trends are emerging. Here are four that point to rental demand remaining strong.”

Weekly Roundup | September 15, 2017

This week’s collection of top multifamily news stories features a mix of topics all related to optimizing an apartment portfolio in 2018. First, we hear from Jeff Hayward at Fannie Mae, who presents the ‘triple bottom line’ of benefits related to green financing in Multi-Housing News. Next, Business Insider gives us a look at where smart foreign capital is investing in commercial real estate – and it’s not just the gateway cities you are used to. While small cities are attracting global investors, larger cities remain the preferred destination for new construction, according to the National Multifamily Housing Council. Chandan Economics also presents us with an interesting look at how rents in prewar buildings compare to new apartment stock across various MSAs, and the findings might surprise you. We close things off this week with a macro view of multifamily fundamentals from World Property Journal.  

Photo by Brandon Griggs on Unsplash

Photo by Brandon Griggs on Unsplash

Green Financing and the Triple Bottom Line

Multi-Housing News – September 13, 2017

“Fannie Mae is shaking up the multifamily lending space with industry-leading investment in environmental sustainability, says the GSE’s EVP Jeff Hayward.”

 

Smaller American Cities are Attracting Investment Capital from Overseas

Business Insider – September 11, 2017

“Global investors, concerned by a cooling Chinese economy and ongoing concerns related to Brexit and the future of the European Union, are increasingly turning their attention to the U.S. for safety, cash-flow, higher returns and stability.”

 

How Does Location Impact the Value of Older Apartment Properties?

ALEX Chatter – September 15, 2017

“While rents in prewar buildings can compete with newer stock overall, this story varies considerably across metro areas.”

 

Multifamily Industry in U.S. Sees Continued Market Growth in 2017

World Property Journal – September 12, 2017

“A significant majority of the U.S. multifamily industry believes the rental housing market will continue to grow, fueled by increasing demand and a growing population.”

 

The Geography of Apartment Construction

National Multifamily Housing Council – September 15, 2017

“It’s likely that much of the concentration of multifamily permitting activity that’s been concentrated in the top tiers of multifamily markets will continue as people and jobs keep heading toward key central cities.”

Weekly Roundup | September 08, 2017

 

In this week’s collection of multifamily reads, we explore the industry’s take on multifamily housing, learn more about millennial households, understand how building age impacts multifamily rents, long term resident retention tips and more. 

Photo by Daniel von Appen on Unsplash

Photo by Daniel von Appen on Unsplash

Most in Industry Optimistic about Multifamily

Freddie Mac – September 6, 2017

“How do lenders, developers, builders and investors feel about the market and where it’s going? What areas pose the greatest challenges? And where should the market be focused in the future?”

 

5 Facts About Millennial Households

Pew Research Center – September 6, 2017

“Looking at households is important because many economic and spending decisions, such as whether to own or rent a home, tend to revolve around the household rather than the individual adult.”

 

How Does Building Age Impact Multifamily Rents?

ALEX Chatter – September 5, 2017

“When it comes to apartments, general wisdom says that the newer the building, the higher the rent. This holds true until you reach the ‘prewar’ vintage, which can approach new inventory rent rates for smaller properties.”

 

5 Long-Time Resident Retention Tips

Property Management Insider – September 7, 2017

“We spend our money and time on marketing to new residents, even standing on the corner banging our drum, to drive new business. Too often we forget the most important thing—keeping people we’ve got.”

 

Commercial Asset Prices Climb Even as Deals Slow

Scotsman Guide – September 6, 2017

“Commercial asset prices made more gains in July even as deal volume has fallen off, according to three leading indices.”