The role of mass transit, rent gains and new development is discussed throughout this week’s collection of industry updates. First, NREI shares that renters are less willing to pay more to live near a subway or rail station since they have a greater selection of transportation options to choose from. Next, Scottsman Guide analyzes the growth in Q1 mortgage banker originations. MBA states that multifamily rents continued their strong seasonal gains in April, and that it’s a good sign that rent growth will remain resilient. NREI comments on the expanding pipeline of new development. Finally, Commercial Property Executive speaks with NYU’s real estate expert, Sam Chandan, on changing federal regulations, the growth of crowdfunding platforms and the future state of capital markets.


Is Proximity to Mass Transit Becoming Less of a Draw for Apartment Renters?

NREI – May 15
“In the few years since companies like Uber and Lyft began to offer their ride sharing and carpooling options to riders in San Francisco, the premium earned by apartments near mass transit has dropped.”

 Commercial Lending Posts Surprise Uptick in Q1

Scotsman Guide – May 17

“The Mortgage Bankers Association released the findings of its first-quarter survey of commercial/multifamily bankers on Thursday, and it showed that commercial mortgage origination volume unexpectedly rose, compared to last year’s first quarter.”

 Apartment Rent Gains Heat Up With Weather

Mortgage Bankers Association – May 11

“On a year-over-year basis, rents are up 2.4 percent through April, approaching the 2.5 percent growth range the market has averaged since early 2017.”

 SFR Investors Are Filling the Pipeline with New Development

NREI – May 14

“Developers built more than 36,000 houses for rent in 2017. That’s 6 percent more than the year before and the largest number of “build-to-rent” houses completed in any year for at least the last 14 years.”

 NYU’s Sam Chandan on the Changing Real Estate Capital Markets

Commercial Property Executive – May 16

“Probably the most significant development over the course of the last several months, which will carry over to 2018 and impact capital markets, is the changing interest rate environment.”