This week’s multifamily roundup features insights on the top secondary metros for CRE investment, the role of small multifamily in workforce rental demand, and mortgage origination volume in 2018. First, the National Association of Home Builders notes that the market share of rental multifamily construction starts remained elevated in the second quarter of 2018. Then, Trepp identifies the top 20 secondary metros where commercial real estate activity is increasing. Arbor’s Chatter blog reports that small apartment buildings are vital to workforce rental demand in the top metros, while single-family rentals dominate the next 30 metros. Next, Mortgage Bankers Association provides an update on commercial and multifamily originations going into the latter half of 2018. Finally, USA Today explores an emerging trend among renters over the age of 50.

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Multifamily Built-for-Rent Share Remains Elevated

National Association of Home Builders – August 24, 2018

“The market share of rental multifamily construction starts remained elevated at 93% during the second quarter of 2018. In contrast, the historical low share of 47% was set during the third quarter of 2005.”

The Top 20 Secondary Metro Areas for CRE Investment

Trepp – August 22, 2018

“The average cap rates for secondary MSAs are higher on average than both top-tier and major MSAs, meaning there is opportunity for potential investors to reap higher returns.”

Small Apartment Properties Form Core of Workforce Rental Demand in the Top Metros

Arbor Chatter – August 22, 2018

“Small apartment buildings comprise the largest share of workforce housing demand within the top 20 metros, while single-family rentals dominate the next 30.”

Commercial/Multifamily Originations Up in Second Quarter, on Pace with Year Ago

Mortgage Bankers Association – August 21, 2018

“Investor demand for multifamily properties and hotels are helping push originations higher, even as loan demand for retail properties is down.”

More Renters Over Age 50 Turning to ‘Golden Girls’ Trend

USA Today – August 19, 2018

“During the next two decades, the number of renters 65 and older is expected to increase by 80 percent, to 11.5 million.”

By | 2018-09-21T07:06:06+00:00 August 20th, 2018|Architecture, Blog, NYC, Real Estate|0 Comments

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