This week’s industry news pieces feature information on millennial living preferences and multifamily performance in secondary metros. First, NMHC states that new construction is heavily skewed toward the high-end of the rent spectrum, except those built under the Low-Income Housing Tax Credit. Then CityLab reports that millennials remain an urban generation. Arbor Chatter explores rent gains in secondary metro markets, concluding that secondary markets are experiencing higher rent growth in the small asset space than large metros. Next, Multifamily Executive asserts that multifamily investment will continue to remain strong, as housing demand outweighs supply. Finally, MultifamilyBiz analyzes the correlation between rent prices, bedroom count and the number of people living in the space.  

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Did We Ever Build Apartments for the Middle Market?

NMHC – June 27, 2018

“Apartments delivered in the last decade or two have rents that are only somewhat more skewed toward the high end than the rents on the existing apartment stock.”

Millennials Are Happiest in Cities

CityLab – June 29, 2018

“When it comes to place, Millennials are different from the generations that came before them. Unlike older Americans, they tend to be happier in larger, more urban environments.”

Small Multifamily Assets Showing Higher Productivity in Secondary Metro Areas

Arbor Chatter – June 27, 2018

“Apartment properties show rent increases across all metro segments; while growing steadily in the largest metros, secondary markets are now experiencing higher rent growth in the small asset space.”

Where Can Investors Find Value as the Market Shifts?

Multifamily Executive – June 22, 2018

“Investors who lock in long-term financing can likely mitigate potential challenges posed by climbing interest rates, and those who invest in Class B and C assets will typically be well-positioned to increase value.”

Rent Prices for Two and Three-Bedroom Homes Rising the Fastest

MultifamilyBiz – June 29, 2018

“New apartment construction tends to focus on studios and one-bedrooms, so the additional supply of smaller units has eased price pressures in that market segment.”