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

Ivan Kaufman’s Real Estate Blog

Weekly Roundup Intro: Week of May 13, 2019

This week’s multifamily roundup highlights the affordable housing crisis, income growth among renters and homeowners, and origination volumes in first-quarter 2019. First, Mortgage Bankers Association (MBA) shares insights from the firm’s Commercial/Multifamily Servicing & Technology Conference, including a discussion of the economy’s performance and its impact on the commercial real estate industry. Next, Curbed breaks down the factors contributing to the nation’s affordable housing crisis, including demographic shifts and unfavorable housing policy decisions. Arbor’s Chatter blog takes a look at income differences between renters and homeowners, with the former seeing faster income growth. Then, Mortgage Media features an interview with MBA’s Jamie Woodwell, who explains why housing demand should remain strong over the next decade. Finally, MBA reports that commercial and multifamily originations had another strong quarter to start 2019, continuing the momentum seen last year.

Woodwell: Is CRE ‘Winter’ Coming?

MBA – May 17

“In the multifamily sector, we’re running fast in terms of both demand and supply for apartments. The younger generation is filling the shoes of their parents, supporting good demand for multifamily properties.”

The Affordable Housing Crisis, Explained

Curbed – May 16

“The National Low Income Housing Coalition found that a renter working 40 hours a week and earning minimum wage can afford a two-bedroom apartment (i.e., not be cost-burdened) in exactly zero counties nationwide. In other words, it isn’t possible.”

Pace of Income Growth Faster for Renters than Homeowners

Arbor Chatter – May 16

“While significant income differences remain between owner and renter households, growth in income is the fastest among apartment renters. This bodes well for short-term multifamily operating fundamentals.”

Commercial Multifamily Real Estate: Less Headwind, Strong Economy at Our Tail

Mortgage Media – May 15

“I think what you’re seeing there is that the single-family and multi-family markets are both getting a little bit of a boost from that household formation that we’re seeing. And the demographic trends on that continue to be favorable.”

1st Quarter Commercial/Multifamily Originations Up 12 Percent

MBA – May 14

“The momentum seen in 2018’s record year of borrowing and lending continued in the first quarter of this year. Low interest rates and strong property values continue to make commercial real estate an attractive market for borrowers.”

Weekly Roundup Intro: Week of May 6, 2019

This week’s multifamily roundup takes a look at housing affordability, the top metros attracting Millennials and how to implement value-add strategies. First, Mortgage Bankers Association reveals that multifamily is this year’s most favored investment opportunity, according to a recent survey from Deloitte and Situs RERC. Next, Brookings analyzes the factors causing affordability challenges for middle-income families, including commuting and access to homeownership. Arbor’s Chatter blog examines the cities seeing the most in-migration of Millennials that are moving from other states. Then, NREI discusses the strategies investors looking to reposition their properties should implement in order to keep apartments affordable, including modestly increasing rents while making necessary repairs. Finally, Redfin observes the cities with the highest net inflow and outflow, according to more than 1 million user searches.

Multifamily Most Favored Property Type

MBA – May 10

“Just over one-third of respondents said they believe multifamily assets would offer the most favorable investment opportunity in 2019.”

Cost, Crowding, or Commuting? Housing Stress on the Middle Class

Brookings – May 7

“While housing affordability has long been a problem for low-income families, middle-income families are increasingly facing affordability challenges, especially in urban areas with strong labor markets.”

Top Markets Attracting Millennial Renters from Other States

Arbor Chatter – May 7

“The top metros attracting Millennial renters from other states are typically medium-sized with relatively fast-growing economies.”

How to Implement Value-Add Strategies at Apartment Buildings Without Making Them Too Expensive

NREI – May 7

“When value-add investors renovate an older apartment building, they should plan to charge rents that are considerably lower than the cost to live in a brand-new building.”

Redfin Migration Report: Phoenix is the Top Destination

Redfin – May 6

“Net inflow for Phoenix hit 7,949—the highest net inflow on record not only for Phoenix, but for any metro area to date since Redfin began reporting net migration data in early 2017.”

Weekly Roundup Intro: Week of April 29, 2019

This week’s multifamily roundup offers insights on the sector’s performance, mortgage originations, and small balance investment trends. First, RealPage reports that despite a slow winter, apartment absorption annually remains strong due to a healthy prime leasing season in 2018. Next, Real Estate Weekly reveals that more than half of the top multifamily and commercial companies expect mortgage originations to increase in 2019, according to the MBA’s 2019 outlook survey. Arbor’s Chatter blog releases its Q1 2019 Small Balance Multifamily Investment Trends Report, featuring exclusive insights on the small multifamily market. Then, PMI recommends several tips to attract renters, including enhancing social media efforts and brand awareness. Finally, HousingWire explains the recent boost in rent growth, which hit 3.7% in March.

Despite Seasonal Slowdown, U.S. Apartment Market Held Strong in Early 2019

RealPage – May 1

“Demand in these cold weather months was light, even compared to the normal seasonal pattern, but annual absorption remains strong thanks to the robust prime leasing season that ended in September.”

Multifamily Mortgages Set for Another Strong Year

Real Estate Weekly – May 1

“More than half of the top commercial/multifamily firms (55%) expect originations to increase in 2019, with one-in-eight (13%) expecting an overall increase of 5% or more across the entire market.”

Q1 2019 Small Balance Multifamily Investment Trends Report

Arbor Chatter – April 30

“Whether a period of economic weakness is years away or just around the corner, the small balance multifamily sector is projected to remain healthy in 2019.”

How to Boost Buzz and Attract More Renters

PMI – May 1

“Effectively bringing together and leveraging a property’s brand, while simultaneously generating positive brand awareness in conjunction with lead generation and nurturing efforts, only helps generate high-quality leads more consistently.”

What’s Behind the Recent Surge in Rental Growth?

HousingWire – April 30, 2019

“Is the recent surge in rental growth an indicator of tightening rental markets?”