Market Intel

Apartment Tenants Are Transitioning to Short-Term Leases

partment tenants with pending renewals are beginning to opting for short-term or month-to-month leases rather than long-term leases, according to the latest survey from the National Apartment Association, which found that nearly 35% of landlords said that some portion of tenants renewing leases signing short-term lease structures. The previous monthly report—this latest survey was conducted from July 20 through July 24—did not address short-term lease structure, however, the data notes that tenants’ preference for short-term

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Intel

Rents are Falling Near College Areas As Millions of Students Stay Home

Student housing landlords are feeling the pinch of the pandemic as college students are reluctant to move back to campuses across the country and many universities are delaying the start of in-person classes. College dorm food is getting replaced with mom’s cooking as 2 million more young Americans lived with parents and grandparents in August than a year earlier, an 11% gain, according to a report from residential data provider Zillow. Campus closings and rising

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Intel

Renters Are Hungry for Balconies During Pandemic

Amy Erixon, the president of global investment management at Avison Young, didn’t have to go too far out on a ledge to figure out the coronavirus might be driving demand for balconies. “The things that you would not rent without or are essential and you must have really reflect the reality of a COVID period where you spend a lot more hours in your unit than previously,” Erixon said. In a new preferences survey of

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Intel

Big apartment sales picking back up in Valley after pandemic panic

Big apartment deals are finally picking back up in metro Phoenix after drying up during the early months of the coronavirus pandemic, experts say. Closings of large transactions were few and far between in late spring and early summer, according to Vizzda LLC’s real estate database, but more of those larger sales are starting to happen now. For example, Los Angeles-based Tides Equities LLC is in escrow to buy 2,400 apartment units totaling $400 million,

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Intel

Apartment Developers Scout Adaptive Reuse Possibilities

It’s too soon for most developers to sign a contract to buy a failed hotel—but apartment developers are watching and waiting for prices to drop to buy other property types damaged by the economic crisis to redevelop into multifamily buildings. Even before the crisis, apartment developers were eager to buy well-located properties like old office towers and empty malls that they could transform into apartments. The chaos of the pandemic caused most of these developers

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Intel

Apartment Owners Are Getting Slower and Lower Rent Payments

Apartment rent collections during the coronavirus pandemic are unfolding as a deterioration rather than a collapse that some industry executives expect to keep worsening in coming months. The National Multifamily Housing Council said Wednesday 86.2% of renters made a payment this month through Sept. 13. That’s an increase as expected from the 76.4% that paid up by Sept. 1. But it’s down from the 86.9% that paid by Aug. 13, a sign that the rate

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Multifamily Lease Pricing Down As Properties Opt for Shorter-Term Incentives

Pricing for new apartment leases was down 5% in August from the prior year and lease renewals for under 12 months were on the rise, according to a monthly report on Covid-19’s impact on multifamily housing from MRI Software. The August drop in new lease pricing continues a trend from July, with properties using shorter-term pricing incentives for leases of less than a year. This shows “good expiration management practices” to protect summer 2021 leases

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Cracks Emerge in Multifamily Sector Under COVID-19 Pressure

A recent analysis by a pair of Moody’s experts highlights what could be the first sign of pandemic-induced stress on the multifamily sector. While the sector continues to hold up better than retail and lodging, the uptick in delinquency for this group is raising concern. That’s the take on the multifamily landscape in the note titled: “CMBS Newsflash: Emerging Cracks in Multifamily and a CDC Eviction Moratorium” written by David Salz and Thomas P LaSalvia.

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For Long-Term Apartment Investors, This Market Presents Opportunity

Long-term apartment investors are finding opportunity in the current market. With cheap debt and some assets trading at a discount, real estate investors that typically employ a long-term-hold strategy are well positioned to acquire properties in the current market. This segment of investors has driven investment activity through the pandemic, despite uncertainty. “The owners that are buying deals and don’t plan to sell for a long time, they are in a great situation. There is

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Intel

NMHC Rent Payment Tracker Finds 76.4 Percent of Apartment Households Paid Rent as of September 6

The National Multifamily Housing Council (NMHC)’s Rent Payment Tracker found 76.4 percent of apartment households made a full or partial rent payment by September 6 in its survey of 11.4 million units of professionally managed apartment units across the country. This is a 4.8-percentage point, or 552,796-household decrease from the share who paid rent through September 6, 2019 and compares to 79.3 percent that had paid by August 6, 2020. These data encompass a wide

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