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

Ivan Kaufman’s Real Estate Blog

Weekly Roundup: Week of July 2, 2018

 

This week’s industry news pieces feature information on millennial living preferences and multifamily performance in secondary metros. First, NMHC states that new construction is heavily skewed toward the high-end of the rent spectrum, except those built under the Low-Income Housing Tax Credit. Then CityLab reports that millennials remain an urban generation. Arbor Chatter explores rent gains in secondary metro markets, concluding that secondary markets are experiencing higher rent growth in the small asset space than large metros. Next, Multifamily Executive asserts that multifamily investment will continue to remain strong, as housing demand outweighs supply. Finally, MultifamilyBiz analyzes the correlation between rent prices, bedroom count and the number of people living in the space.  

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Did We Ever Build Apartments for the Middle Market?

NMHC – June 27, 2018

“Apartments delivered in the last decade or two have rents that are only somewhat more skewed toward the high end than the rents on the existing apartment stock.”

Millennials Are Happiest in Cities

CityLab – June 29, 2018

“When it comes to place, Millennials are different from the generations that came before them. Unlike older Americans, they tend to be happier in larger, more urban environments.”

Small Multifamily Assets Showing Higher Productivity in Secondary Metro Areas

Arbor Chatter – June 27, 2018

“Apartment properties show rent increases across all metro segments; while growing steadily in the largest metros, secondary markets are now experiencing higher rent growth in the small asset space.”

Where Can Investors Find Value as the Market Shifts?

Multifamily Executive – June 22, 2018

“Investors who lock in long-term financing can likely mitigate potential challenges posed by climbing interest rates, and those who invest in Class B and C assets will typically be well-positioned to increase value.”

Rent Prices for Two and Three-Bedroom Homes Rising the Fastest

MultifamilyBiz – June 29, 2018

“New apartment construction tends to focus on studios and one-bedrooms, so the additional supply of smaller units has eased price pressures in that market segment.”

Weekly Roundup: June 8th, 2018

This week’s industry news highlights feature information on apartment building trends, blockchain technology and the continued growth of the Dallas market. First, RealPage states that builders are shifting their focus to building in taller, urbanized, infill locations with higher density. Then, Commercial Property Executive discusses the growing interest in blockchain technology and the impact it could have on simplifying real estate transactions. Arbor Chatter gives a synopsis of the Dallas market’s performance throughout Q1 2018. Next, RealPage names a few of the rent growth leaders in secondary and tertiary markets. Finally, MultiHousing Pro weighs the strong returns and relatively low risk of multifamily, concluding that it is a solid CRE investment.

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Apartment Development Trends Toward Taller, Denser Buildings

RealPage – June 6, 2018

“While these locations are associated with higher upfront costs and strict permitting processes, they offer the sense of sustainable long-term tailwinds, leveraging existing infrastructure and proximate workforce capacity.”

Simplifying CRE Finance Through Blockchain Technology

Commercial Property Executive – June 6, 2018

“Commercial real estate players looking for a smoother transaction process that also opens the investment field to a wider audience are pursuing blockchain and cryptocurrency as potential solutions.”

Dallas Multifamily Market Remains Strong Through Q1 2018

Arbor Chatter – June 4, 2018

“Rent growth and investment activity remained strong, while vacancy rates held at historically low levels despite a high volume of new supply added to the market.”

Secondary and Tertiary Market Leaders Post Strong Rent Growth

RealPage – June 5, 2018

“The range of rent performances among major U.S. apartment markets has narrowed, due in part to smaller increases among top performing metros. Top performing smaller markets, however, are still seeing large increases.”

The Case for Multifamily Investment

Multihousing Pro – May 31, 2018

“New research shows apartment returns best those of other commercial real estate property types over time and across geographies.”

Weekly Roundup: June 15th, 2018

This week’s industry news highlights feature information on small balance lending growth as well as the new amenities that are attracting college students. First, MBA reports that small balance multifamily lending could increase 4 to 6 percent this year due to factors like having a superior risk-adjusted performance outlook. Then, Multifamily Executive states that effective rents are growing and the average sales prices for most property types should trend higher, in line with these increases. Arbor Chatter provides an analysis of the small balance lending market in Q1 2018 with insights from Chandan Economics. Axios reveals some of the elements that are expected to attract millennials in the coming years. Lastly, National Real Estate Investor explores the student housing shift toward amenities that reflect a focus on studying, health and fitness and the ride-sharing economy.

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Small-Balance Lending Could Grow 6% in 2018

Mortgage Bankers Association – June 12, 2018

“The firms’ Small-Balance Multifamily Investment Trends report said sub-$5 million multifamily loan disbursement reached $49.8 billion last year, the highest level since the financial crisis.”

Reis: Investor Interest in Multifamily Remains High

Multifamily Executive – June 11, 2018

“Effective rents rose 0.8% in the first quarter, with positive rent growth expected to continue.”

Q1 2018 Small Balance Multifamily Investment Trends Report

Arbor Chatter

“Buoyed by the favorable economic outlook, a robust labor market and higher inflation, lending in Q1 2018 was $44.5B, improving on Q1 2017. “

Millennials are Moving to the Exurbs in Droves

Axios – June 10, 2018

“For this younger generation, what I see is more clustered developments within the suburbs, and smaller metros, greater reliance on public transportation and perhaps ride-hailing and self-driving cars.”

Focus in Student Housing Amenities Changes from Luxury to Health and Wellness

NREI – June 15, 2018

“Some companies that provide student housing say they have seen a shift away from over-the-top amenities that were popular with off-campus renters a few years back.”