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

Ivan Kaufman’s Real Estate Blog

Weekly Roundup: September 24, 2018

This week’s multifamily roundup features insights on accelerating multifamily rent growth, vehicle ownership trends among renters, and Millennial and Baby Boomer migration patterns. First, Mortgage Bankers Association notes that the apartment market remains strong, with tight occupancy rates and rent growth of 2.9% in the third quarter. Then, Urban Land Magazine reveals it’s forecast on the U.S. economy and commercial real estate market, noting expectations have improved from its prior survey. Arbor’s Chatter blog takes a look at why vehicle ownership has increased among renters in the current cycle. Next, Harvard JCHS reports that the increase in western migration is largely attributable to Millennials and Baby Boomers, with notable variations among western states. Finally, Real Capital Analytics examines apartment price growth heading into the end of the year.


Apartment Market Sees Accelerating Rent Growth, Tightening Occupancy

Mortgage Bankers Association – September 28, 2018

“The bump up from 2.5 percent annual rent growth in the second quarter reversed the pattern of slowing apartment price increases recorded since late 2015.”

Real Estate Economists Remain Positive on U.S. Economy and CRE Industry

Urban Land Magazine – September 24, 2018

“Overall, expectations have improved since the prior forecast in March 2018, and the strong second-quarter gross domestic product (GDP) growth rate of 4.2 percent was fresh in forecasters’ minds as they weighed in on future years.”

Has Vehicle Ownership Increased Among Renters in the Post-Crisis Financing Environment?

Arbor Chatter – September 24, 2018

“While the more downtown-adjacent multifamily properties have lower car ownership rates, apartment renters have indeed been ready participants in the recent car sales boom.”

 Not just the Sunbelt: Millennials and Baby Boomers Increasingly Head West

Harvard JCHS – September 18, 2018

“Data from the IRS show that between 2012 and 2016, 26-34 year olds flocked to the West, especially to Washington, Oregon, and Colorado, and, to a lesser extent, Montana, Idaho, and Nevada.”

US Price Growth Picks Up in August, Report Shows

Real Capital Analytics – September 27, 2018

“Apartment price growth continues to outpace other types, rising 1.2% in August from a month earlier and 12.3% from a year ago.”

Weekly Roundup: September 17, 2018

This week’s multifamily roundup features insights on the multifamily market’s resiliency, development opportunities in small markets, and the top trending zip codes among Millennials. First, Reis provides a second-quarter 2018 update on the multifamily capital markets, noting apartment cap rates are still declining. Then, Mortgage Bankers Association notes that a strong economy and continued apartment demand contributed to multifamily rents rising $2 in August. Arbor’s Chatter blog compares how the housing decisions of Millennial students in university towns compare to those in other gateway markets. Next, RealPage takes a look at three small metros that present attractive opportunities for development. Finally, RENTCafé examines the 30 biggest U.S. cities that have seen the highest increases in millennial population over the last five years.


Apartment Capital Market Update, Q2 2018

Reis – September 14, 2018

“The declining trend in apartment cap rates is a familiar, yet still unexpected story, given that the Fed has raised its overnight borrowing rate by 25 basis points in each of the last three quarters and in six of the last seven quarters.”

Resilient Multifamily Market Sees Rising Occupancies, Rents

Mortgage Bankers Association – September 19, 2018

“Buoyed by a strong economy and continued healthy demand, the average U.S. apartment rent rose $2 in August to $1,412, up 3.1 percent year-over-year, reported Yardi Matrix.”

Small Apartment Buildings Play Larger Role in Off-Campus Housing in University Towns

Arbor Chatter – September 17, 2018

“Millennial students looking for off-campus accommodations in university towns rent more frequently in small apartment buildings, and at higher rates of apartment sharing.”

Though Eyes are on Big Metros, Some Small Markets Present Development Opportunities

AnalyticsRP – September 12, 2018

“Here’s a look at three small markets that RealPage analysts discussed as having attractive opportunities for development in the latest RealPage Asset Optimization webcast.”

Top Trending Millennial Zip Codes Are Big City Urban Cores

RENTCafeApts – September 12, 2018

“The expectation is that this generation that values experiences more than material possessions prefers vibrant, walkable city neighborhoods where things are happening.”

Weekly Roundup: September 10, 2018

This week’s multifamily roundup features insights on how developers can attract Gen Z renters, the role of apartments in Millennial students’ housing decisions, and why the small-balance multifamily market is showing signs of resilience. First, HousingWire discusses a new Yardi report showing that multifamily rents are still rising nationwide, despite a continuing wave of new supply. Then, Multifamily Executive explores strategies that multifamily developers should consider to prepare for the up-and-coming Gen Z renters. Arbor’s Chatter blog takes a look at why small multifamily assets are critical to Millennial students examining their housing options. Next, CNBC explains why investors are becoming more confident in the single-family rental sector. Finally, Mortgage Bankers Association notes that valuations on properties securing small-balance multifamily loans have shown clear resilience, despite rising interest rates.


Yardi: Multifamily Rent Growth Shows No Signs of Tiring

HousingWire – September 12, 2018

“Rents are still on their way up nationwide. The industry just posted the seventh consecutive month with an all-time high average rent.”

How to Attract Gen Z Renters

Multifamily Executive – September 10, 2018

“As the country’s largest generation, millennials currently dominate the rental market. But the cohort behind them will soon begin to make up a significant portion of those looking for an apartment.”

For Millennial Students, Small Apartment Shares Provide First Step to Independent Living

Arbor Chatter – September 12, 2018

“While an overwhelming share of Millennials enrolled in degree programs continue to live with their families, living off-campus in apartment building shares can provide a smoother path toward independent living.”

Investors Finally Embrace Big Single-Family Rental Companies a Decade after the Financial Crisis

CNBC – September 11, 2018

“The single-family rental market is very healthy right now. The demand versus supply balance and the operating outlook for revenue growth over these coming years is more favorable versus most property types.”

Small-Balance Market Shows Resilience

Mortgage Bankers Association – September 10, 2018

“As the macroeconomic and real estate cycles lengthen, the [small-balance] multifamily sector is generally expected to outperform other property types, both in terms of liquidity and the stability of operating fundamentals.”