This week’s selection of multifamily news highlights takes a closer look at the growth of green mortgages, millennial renting trends and a summary of major shifts in the CRE market. First, Fannie Mae states that the number of Leadership in Energy and Environmental Design (LEED) certified apartments have multiplied by more than 13 times since the introduction of the Fannie’s first Green Mortgage Loan in 2012. Then, Freddie Mac explores a driving a surge in renting across all generational cohorts. Arbor’s Chatter blog examines the concentration of millennial demand across the U.S., narrowing in on smaller metros. Next, Bloomberg View suggests that Millennials don’t need those new luxury towers and that urban cores may be overbuilt. MBA reports that the 4Q 2017 Commercial/Multifamily DataBook suggests continued stability for the sector.
Green Mortgages Are Gaining Acceptance with Multifamily Developers and Lenders
Fannie Mae – April 4
“The number of LEED apartments being built per year has increased by more than 13 times in just the last nine years, when LEED-certification was first used by the multifamily sector.”
New Research Finds Increasing Preference for Renting
Freddie Mac – April 4
“The spring “Profile of Today’s Renter” finds a total of 67 percent of renters view renting as more affordable than owning a home, including 73 percent of Baby Boomers (aged 53-71).”
Metro-Level Snapshot: Where are Millennials Concentrated in Small Rental Properties?
Arbor Chatter – April 6
“One way to look at the drivers for Millennial demand across US metros is to consider their concentration.”
Those Shiny New Apartments Aren’t What Millennials Need
Bloomberg – April 3
Brookings says that 2012 was the peak of the “back to the city” movement. Urban core population growth is trailing off, and exurban population growth is surging.”
MBA 4Q Commercial/Multifamily DataBook Reports CRE Stability
Mortgage Bankers Association – April 5
“Commercial real estate rents and vacancies held relatively steady during the quarter and interest rates were relatively stable. New construction of CRE assets appears to have largely plateaued.”