This week’s multifamily roundup takes a look at trends in vacancy rates, Class A apartments, and top amenities. First, Reuters reports that fewer U.S. metros saw their vacancy rate increase in the first quarter, while the national average only rose marginally from a year earlier. Next, RealPage observes that rent growth in Class A properties has begun to rebound after a few years of lagging behind Class B and C assets. Arbor’s Chatter blog analyzes renters’ living arrangements in small and large multifamily properties, with smaller buildings attracting more non-family households. Then, Curbed discusses the growing popularity among luxury developers of including high-end amenities at their projects, and what the impact has been on the market. Finally, Barron’s notes that while there are signs of a potential recession ahead, the commercial real estate industry should fare well due to its healthy fundamentals.

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U.S. Apartment Vacancy Rate Flat at 4.8 Percent in First Quarter: Reis

Reuters – March 28

“Far fewer metros saw a vacancy rate increase in the quarter: 15, down from 40 last quarter. Most of the increases were due to high construction that exceeded net absorption.”

Class A Makes a Comeback Nationwide

RealPage – March 26

“In early 2016, rent growth in the Class A stock fell below the increases in the nation’s Class B and C counterparts, and remained there until recently, when the expensive product line managed to pull itself out of the bottom rank.”

 Small Asset Multifamily Grows Share of Non-Family Households

Arbor Chatter – March 26

“Smaller multifamily properties have grown their share of non-family households. On the other hand, large properties are appealing most to married couples. The share of renters living with roommates continues to rise across all apartment property types.”

In the Apartment Amenity Arms Race, Service and Technology Win Out

Curbed – March 26

“Luxury apartments aren’t new. But today’s developers have elevated to an art form the practice of including amenities that pander to millennial lifestyle trends.”

A Recession May Be Coming, but Not for Commercial Real Estate Investors

Barron’s – March 25

“A detailed reading of the historical record indicates three types of excess that have preceded every recession and commercial real estate downturn: overbuilding, overheating, and over-indebtedness.”

 

By | 2019-04-12T05:29:49+00:00 March 28th, 2019|Architecture, Blog, NYC, Real Estate|0 Comments

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