Ivan Kaufman’s Real Estate Blog
In this week’s collection of multifamily reads, we get a closer look at how renters make decisions. First, we examine the results from Village Green’s recent resident survey. Unsurprisingly, the national apartment manager found that cost and location are the two greatest factors influencing a decision to lease. In third place was a ‘community environment’, which 49% of respondents said was the most important element impacting a leasing decision.
Technology is starting to play an important role in deciding where to lease — and it’s not just about internet speed. Bisnow shares an update on how smart home technology is making its way into multifamily. It starts with best-in-class Wi-Fi and ends with automated thermostats, lighting and coffee makers that learn your morning routine. Smart apartments are also expected to make their way into the seniors housing sector. Technology can aide seniors looking to age-in-place — a growing component of the small apartment market — and notify relatives or caretakers if something is amiss in a daily routine.
This week’s collection of articles ends with an examination of cap rate trends — a factor high up on the list of the market fundamentals investors use when weighing investment decisions.
via National Real Estate Investor – Sept. 1, 2017
“Three factors—rent, location and community environment—make up the top drivers of apartment leasing decisions among renters of every age and across geographic markets.”
via Multifamily Executive – August 29, 2017
“The homey look and feel of the community was the top response for millennials (62%), Gen Xers (66%), and baby boomers (61%).”
via Bisnow – August 27, 2017
“Often, the demand for new technology is driven by its ability to simplify tasks and make things easier. That is also true for smart apartments, which can help make residents’ lives easier and apartment access and control simpler.”
via ALEX Chatter – August 28, 2017
“Seniors are not a monolithic renter group, but rather have varying needs from early retirement to skilled care services. Small property operators must prepare for this generational demand as more seniors are choosing to rent.”
via Reis – August 28, 2017
“We see that the cap rates in most regions have changed very little except for the Southwest that has historically shown the most volatility.”
This week’s collection of top multifamily reads is all about demand. Demographic and economic factors are keeping the long-term outlook for apartment properties positive, with 4.6 million new units needed between now and 2030 to keep pace with demand and obsolescence, according to NMHC/NAA. MPF Research brings us a look at where many of those units will rise with the latest list of the 10 metro areas with the highest construction-to-inventory ratios. While many of those markets are familiar faces, Multifamily Executive brings us some insight into some overlooked urban locations where develops might want to take a look. A conversation about multifamily is not complete without addressing affordable housing – which at 1.7% vacancy – is the tightest apartment sector.
via National Real Estate Investor – August 24, 2017
“Developers will need to build 4.6 million new rental apartments between now and the end of 2030 just to keep up with
demand and the loss of older apartments to obsolescence, according to NMHC/NAA.”
via MPF Research – August 21, 2017
“Apartment completions in the U.S. are expected to peak in early 2018 – but there are still several metros with aggressive development pipelines.”
via Multifamily Executive – August 23, 2017
“Thriving but less-saturated cities are often overlooked despite their lucrative investment options. When rents eventually plateau in the coastal markets, secondary markets like these could become the goldmines of the industry.”
via Reis – August 23, 2017
“National vacancies for Affordable Housing remained tight at 1.7% in the second quarter, with national asking rent growth rising by a strong 1.0%.”
via MultifamilyBiz.com – August 21, 2017
“With modern burdens such as large student loans and a stagnant job market, younger generations of renters do not seem to be rushing towards home ownership anytime soon.”
We start off with a look at demand and growth within the youngest and oldest renter cohorts in this week’s collection of the top multifamily reads. First, Axiometrics walks us through the relationship between student enrollment and student housing demand. Next, National Real Estate Investor reveals survey results from its fourth annual Seniors Housing Market Study, which shows a positive outlook for seniors housing across the board. We also get a closer look at a property subset – the garden-style community – which has seen the greatest NOI increase among multifamily asset types in 2016. Two stories examining macro economic and demographic trends round off this week’s stories – one from Fannie Mae and another from the National Multifamily Housing Council.
via Axiometrics – August 10, 2017
“Enrollment growth is the main driver of student housing demand, as we mentioned a few weeks ago. The impact and volatility of growth varies by type and size of university, along with other fundamentals.”
via NREI – August 16, 2017
“Exclusive survey results from the fourth annual NREI / NIC Seniors Housing Market Study indicate a more positive outlook across the board on questions related to improving fundamentals, access to capital and transaction pipeline.”
via Multifamily Executive – August 11, 2017
“The net operating income (NOI) for garden-style apartment buildings rose by 5.3% to $7.13 per square foot nationwide in 2016, the highest percentage increase in NOI across all apartment types.”
Fannie Mae – August 17, 2017
“Consumer spending growth might not moderate as much as we have accounted for in our forecast. A build-up in inventory also should be positive for growth this quarter and nonresidential investment in structures will likely continue to improve as oil prices stabilize.”
via National Multifamily Housing Council – August 15, 2017
“Smaller properties (those with fewer than 50 units) comprise a sizeable portion of the overall apartment stock, but new construction tends to be of larger properties.”