This week’s collection of multifamily must-reads center around unlocking multifamily value. We start off with an in-depth look into how ‘rentership’ has changed over the past 10 years from Pew Research. With 36.6% of U.S. households calling a rental unit home, the rentership rate is currently at a 50-year high. This is a national phenomenon across all market sizes, and as National Real Estate Investors points out, multifamily properties in smaller markets are also delivering big yields. This week’s list from MPF Research provides a look into the top secondary markets for rent growth in 2Q 2017. Market participants looking for additional income can consider a value-add strategy, and Property Management Insider has a look at some of the most cost-effective improvements. We’ll round things off with a look into how Los Angeles has overtaken New York as the top investment market during the first half of 2017.

Photo by Chris Barbalis on Unsplash

Photo by Chris Barbalis on Unsplash

More U.S. households are renting than at any point in 50 years

via Pew Research Center – July 19, 2017

“The current renting level exceeds the recent high of 36.2% set in 1986 and 1988 and approaches the rate of 37.0% in 1965.”


Multifamily Assets in Smaller Markets Can Deliver Big Yields

via National Real Estate Investor – July 18, 2017

“In rural and tertiary markets, apartment investors can avoid much of the competition they face in busier markets. There is little risk that a developer will build new apartments that overwhelm the market.”


Top Secondary Markets for Rent Growth in 2Q

via MPF Research – July 19, 2017

“Reno and Colorado Springs were by far the top performers among secondary markets, registering annual rent growth of 11.5% and 10.9%, respectively.”


How Apartment Renovations Can Improve ROI

via Property Management Insider – July 18, 2017

“Done right, a modest upgrade of a 20- or 30-year-old multifamily community can offer renters a lower price point than new construction. At the same time, the investment is lower and turnaround time to market much quicker.”


Los Angeles Overtakes Manhattan as Largest US Investment Market

via Real Capital Analytics – July 20, 2017

“Los Angeles pushed aside Manhattan to become the largest commercial real estate investment market in the first half of 2017, as capital migrated from higher-priced markets.”