Market Intel

Intel

Short-Term Rental Demand On the Rise

Demand for US short-term rentals accelerated in October, reaching the highest growth rate since the onset of the global pandemic, according to Jamie Lane, VP of Research, AirDNA, which tracks data in the sector. As concerns about COVID-19 eased, demand in October shot up by 12.2% compared with October 2019 and 35.8% higher than in October 2020. This was a significant gain from the 4.3% increase in September and a drop of 1.5% in August.

Read More »
Intel

Why a Lending Bounty Awaits Multifamily Borrowers

After two years of extraordinary liquidity, multifamily lending is on track for a record-breaking year that will give multifamily investors and sponsors a full menu of competitive options. “A lot of the uncertainty that was there in 2020 around the multifamily market, a lot of that fog, has lifted,” Woodwell said. “So lenders and investors are feeling pretty confident about their ability to understand a property, understand its current operations and where it will be

Read More »
Intel

What Does Zillow’s iBuying Failure Mean for SFR Investors?

One of the notable trends of the past decade has been the rise of institutional single-family rental (SFR) operators, who have been buying up portfolios of single-family homes at discounted prices or, more recently, building new subdivisions from scratch, and renting them to middle-income Americans who can’t afford to buy. Over the past few years, these institutional buyers have been joined by a number of tech platforms that entered the home-flipping sphere on a massive

Read More »
Intel

2022 Outlook: Residential to Remain Strong, COVID-Impacted Asset Classes to Bounce Back

The calendar year is rapidly drawing to a close, and society is moving closer to pre-pandemic normalcy. As 2022 approaches, we expect a combination of more-of-the-same trendlines punctuated with a few new developments that will reshape the residential and commercial real estate landscapes in 2022. Asset-Specific Predictions Due to a combination of scarcity, demand and historically low interest rates, betting on the strength of residential real estate, both single- and multifamily alike, seems like a

Read More »
Intel

The Future of Multifamily: Here’s What Renters Want in 2022

The multifamily sector is changing rapidly. At this point in the pandemic, tenants are looking for different features, amenities, and rental spaces than they were just a few years ago. Considering roughly 45% of tenants rent multifamily units, understanding what tenants want is key to competing and growing in this competitive space. Geography and your local market can play into which amenities are considered most important, but there are broad overarching experiences that most renters

Read More »
Intel

BTR Has Outperformed Multifamily for the Last Five Years

It’s not just the pandemic. The build-to-rent market has been growing rapidly for the last several years. In fact, going back to 2017, BTR properties have outperformed multifamily, according to Dennis McGill, director of Zelman & Associates, who spoke on the fundamentals of the BTR market during Beyond the Basics of Build to Rent, a webinar hosted by Walker & Dunlop. From 2017 to 2019 the blended rent growth of BTR properties averaged 4.1% from

Read More »
Intel

Property Sellers in Best Position in 15 Years on Pricing

Property sellers are in the best position in 15 years to get close to their desired asking price, according to the latest monthly CoStar commercial repeat-sale indices. The sale-price-to-asking-price ratio in October narrowed by 2.3 percentage points to 94.6%, the tightest this figure has been since 2006. Driving the dynamic is demand for income-producing commercial real estate, particularly in markets outside major cities, while buyers are staying away from underperforming properties. “Sellers are achieving close

Read More »
Intel

Multifamily Borrowing Up in the Third Quarter

Commercial and multifamily borrowing saw a 119% increase in the third quarter compared with a year ago and a quarter-over-quarter increase of 19%, according to the Mortgage Bankers Association (MBA). For multifamily properties specifically, the MBA’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations found that they experienced a 105% increase in lending volumes year over year in the third quarter. In addition, multifamily properties had a 31% increase quarter over quarter. “Overall commercial real estate

Read More »
Intel

Commercial Real Estate Lending Climbs Above Pre-Pandemic Levels

Commercial real estate lending activity surged in the third quarter and is likely to rise through the end of the year, reflecting a healthy rebound of property investing that declined at the outset of the COVID-19 health crisis. In fact, lending hasn’t been higher at any point since the turn of the century, according to data from the Mortgage Bankers Association. Industrial, office, retail and multifamily mortgage loan originations were up 19% from the second

Read More »
Intel

Construction Costs Are Taking a Toll on Real Estate Investors

Developers have weathered the rising costs of construction materials and labor for a while, but now are feeling the pinch as contractors are increasingly passing on the higher costs. The costs of construction materials, including lumber and steel, have been volatile, with some steep spikes along the way during the past two years. Rising prices spread like wildfire, as the pandemic shut down factories and snarled deliveries for a long list of items. But many

Read More »

STAY REAL ESTATE INTELLIGENT