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

Ivan Kaufman’s Real Estate Blog

Weekly Roundup Intro: Week of January 1, 2019

This week’s multifamily roundup highlights the factors driving rental demand, trends in small asset inventory and how rents performed in all 50 states. First, Mortgage Bankers Association reports that renter household growth has outpaced that of owner households, rising by nearly 10 million over the past decade. Next, Bloomberg notes that companies are finding value in developing built-to-rent homes in order to meet growing demand for leasing over owning. Arbor’s Chatter blog takes a look at rental inventory growth across U.S. metros, observing that smaller cities are seeing greater increases in small apartment building supply. Then, HousingWire breaks down how rents performed on a state-by-state basis, according to new data from Abodo. Finally, Multifamily Executive discusses the promising outlook for the apartment sector, which saw transaction activity increase 14.7% year-to-date in the third quarter of 2018.

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Demographics, Socioeconomics Driving Multifamily Housing Demand

Mortgage Bankers Association – January 4, 2019

“New renter households increased by nearly 10 million over the past 10 years, significantly outpacing the owner segment, which reported minimal growth.”

Homebuilders See a Bright Spot in the Gloom—And It’s Rentals

Bloomberg – January 4, 2019

“Companies that build rental houses are emerging as a bright spot, raising new capital to accelerate growth on a bet that it’s easier to lease homes than sell them.”

Small Asset Multifamily Activity Shifts Toward Smaller Metros

Arbor Chatter – January 2

“Rental inventory growth for year-end 2017 showed a clear contrast between the largest and smallest U.S. metros, with the latter displaying a greater increase in small asset multifamily inventory.”

Here’s What Rents Did in all 50 States in 2018

HousingWire – January 2, 2019

“As we’ve now officially crossed over to 2019, we can take a full look back at what happened in the multifamily industry in the year that just passed.”

2018’s Record Deal Volume Suggests Positive Trajectory for 2019

Multifamily Executive – January 2, 2019

“If 2018’s good fortune is any indication, the new year looks bright for apartment developers and investors hoping to capitalize on multifamily assets in 2019.”

 

Weekly Roundup Intro: Week of December 3, 2018

This week’s multifamily roundup features insights on this sector’s future outlook, the cities with the smallest average apartment size, and the market’s preparation for slower leasing activity in the fourth quarter. First, Kiplinger identifies three primary impacts the multifamily market will face heading into next year, including volatile financial markets and development risks. Then, Real Capital Analytics examines the most active Opportunity Zones for developers and investors. RENTCafé reports how Seattle has replaced New York as the metro with the smallest average size for a new apartment. Next, RealPage notes that despite a better-than-expected prime leasing season this year, the fourth quarter of 2018 will likely follow a normal pattern of weakness in leasing activity. Finally, NREI takes a look at why investors are turning to value-add multifamily opportunities in Los Angeles in their quest for yield.

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2019 Real Estate Report: How Does the Multifamily Market Look?

Kiplinger – December 5, 2018

“Three primary impacts will move the multifamily market in 2019, including pressure from volatile financial markets, a growing housing supply and emerging development risks.”

U.S. Opportunity Zones: A Baseline

Real Capital Analytics – December 4, 2018

“In the U.S., the newly-designated ‘opportunity zones’ account for 10% of the investable universe and have averaged $50 billion in annual acquisition volume in recent years.”

As Apartments Are Shrinking, Seattle Tops New York with the Smallest Rentals in the U.S.

RENTCafé – November 30, 2018

“The average size of a new apartment completed in 2018 in the U.S. is 941 square feet (sqft), 52 sqft less than the size of an apartment built ten years ago.”

After Strong Summer, Apartment Market Preps for Seasonal Slowdown

RealPage – December 3, 2018

“While the prime leasing season was more robust than usual this year, there’s no reason to believe 4th quarter will veer from its normal pattern of weakness in 2018.”

Value-Add Multifamily Properties Outside Los Angeles Downtown Attract Investors

NREI – December 4, 2018

“Investors are expected to buy more than $10 billion in multifamily properties in Los Angeles this year.”

 

Weekly Roundup: Week of November 19, 2018

This week’s multifamily roundup features insights on the keys to success in multifamily, millennial renters’ income profiles, and the impact of increasing labor costs on apartment developers. First, , NREI reports on the technologies that are likely to have the greatest impact on commercial real estate, including blockchain and the Internet of Things. Then, PMI reveals the top strategies to attract new residents and retain current tenants, while achieving high revenues. Arbor’s Chatter blog compares the income of millennial renters to their older neighbors, noting that young renters living alone often have higher incomes that the market average in downtown locations. Next, Real Capital Analytics observes that while apartment price growth still outpaces other property types, the speed of this growth has slowed since earlier this year. Finally, Trepp analyzes the impact of increasing labor costs on multifamily development, which has resulted from a shortage of qualified workers to meet the current demand.

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Which Emerging Technologies Are Likely to Have the Greatest Impact on the Commercial Real Estate Industry?

NREI – November 16, 2018

“From blockchain to the Internet of Things, technology might make commercial real estate investment and development easier.”

 The Keys to Operational and Revenue Success in Multifamily

PMI – November 20

“Some old-school fundamentals blended with the techy new trend of mining data can hold the key to if they attract new residents and retain the ones they have while achieving the highest possible revenue.”

Millennial Renter Income Profiles Mirror Market Averages

Arbor Chatter – November 20

“Young adult apartment renters earn as much as their older neighbors, with those living alone earning significantly higher income than the market average in downtown locations.”

 US Annual Price Growth Slows to 6.4% in October

Real Capital Analytics – November 21

“Apartment price growth still outpaces all other types at 9.6% year-over-year, though this pace has been easing since earlier in the year.”

Increasing Labor Costs Squeezing Multifamily Development Pipeline

Trepp – November 16

“Although low unemployment and increasing wage growth are indicators of a healthy and growing economy, apartment developers are getting pinched as the strong demand for workers continues to outpace supply.”