This week’s industry updates consist of value-add strategies, the rising interest in class B properties and what the slowing apartment boom means for rent projections. MBA begins by highlighting key takeaways with a video with Jamie Woodwell, Vice President of Commercial/Multifamily Research and Economics, on the multifamily market outlook. Then NREI explores how value-add strategies have grown in demand, but aren’t generating the same rent growth that they once promised. Next, Arbor’s Chatter blog states that while incomes are rising, affordability still needs to be improved given the fact that no renter group is spending less than a third of their income on housing. Multifamily Executive explores some of the perks of investing in Class B properties. Finally, MarketWatch asserts that as the market continues to absorb new development well, rents will continue to rise.

apartment-building- photo

MBANow: MBA Vice President Jamie Woodwell on 2018 Commercial/Multifamily Outlook
Mortgage Bankers Association – April 19
“We had solid property fundamentals; we had increasing property values; we had low interest rates; and we had ample supply of capital.”

Competition Intensifies for Value-Add Assets
NREI – April 17
“As yields get lower and lower, traditional buyers of core assets are more and more looking elsewhere.”

With Rising Incomes, Renter Cost Burden Shows Slight Improvement for Now

Arbor Chatter – April 20
“While rental housing costs remain high, the accelerated improvements in the U.S. economy have resulted in incomes that are beginning to grow slightly faster than rents.”

Positioning Class B as a Lucrative Value Alternative
Multifamily Executive – April 17
“With rents flattening in Class A core markets, many investors are looking elsewhere for assets other than new construction.”

That Apartment Building Boom Is Slowing — So Rent Is About To Accelerate
MarketWatch – April 11
“The pipeline of new projects appears to have peaked and the rental market has been able to absorb this decade-high pace of new supply without a significant increase in vacancy rates.”