Market Intel

Intel

Housing Affordability Policy Seen as Crucial Real Estate Issue for Industry

Robert Byron, the chairman of Blue Vista Capital Partners, took an impromptu poll of real estate professionals gathered at Chicago’s McCormick Place convention center on Tuesday to see who works in affordable housing. About half of a packed banquet room’s roughly 300 attendees raised their hands. When Byron asked how many were working toward changing affordable housing policy, only three or four hands remained up. The reaction underscores the state of an issue called crucial

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Intel

More than 20,000 apartment-conversion units are slated to deliver this year. A growing number are in old office buildings.

The Covid-19 pandemic didn’t invent the real estate conversion model. Buildings have been retrofitted into new uses for generations. But it did, apparently, accelerate the popularity of the model, especially conversions into apartments. A recent report by RentCafe and commercial real estate data company Yardi Matrix found more than 20,100 apartment-conversion units are to be finalized in 2021, which is a record. Yardi Matrix found, of all the converted apartments delivering this year and that finished

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Intel

Class B Apartments’ Share of Net New Absorption Increases

Apartment demand has surged since Q2 2020 and currently it’s the Class B apartment sector that has had the more impressive run of late, rising from 30 percent to 37 percent, according to the National Association of Realtors. Class A absorption accounted for 48% of absorption in Q3 2021, however that is down from its 72% mark in Q1 2020, the period just before COVID-19 began to make its mark. Meanwhile, Class C has gone

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Intel

Multifamily Rides High In Q3, While Office May Have Hit Bottom

Multifamily asking and effective rents hit historic highs in the third quarter, while the office sector showed signs that it may finally have hit rock bottom.  Asking and effective rents for multifamily properties nationally registered respective increases of 7.5% and 7.9%, the highest quarterly growth Moody’s Analytics REIS has tracked since the firm started publishing quarterly data in 1999. The increases are also triple the prior record from Q3 2000. Net absorption in the third

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Intel

Single-Family Investor Activity Surges in the Second Quarter

Single-family home investment experienced a summer surge in 2021, making up for the irregular patterns created since the pandemic, CoreLogic reported. In May and June, investors made nearly a quarter of all purchases. Some bounce-back in investor activity was expected as the pandemic dampened, but a rise in the summer months is something that has not been seen in the past 10 years. Large investors (those who retain 100 or more properties) are largely responsible

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Intel

Apartment Rent Payments Slow as Pandemic Wears On

As the pandemic wears on, apartment renters are still showing signs of financial stress when it comes to paying their rent on time, with fewer making those payments this month than even a year ago before the roll out of vaccines. The latest apartment rent payment data from the leading multifamily research and public policy group shows a U.S. housing market in the midst of a shaky economy as the latest federal employment data indicates

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Intel

There is a Severe Shortage of Rental Housing at Every Price Point Now

Apartment vacancies hit another historic low in September, declining to 2.7% for a fourth consecutive month of record-breaking lows.  New lease demand in the year ending in September 2021 also increased by 50.5%, with apartment resident retention surging to 58.%, an all-time high, according to data from RealPage. Lease renewals surged last month, keeping vacancy rates low. “More new renters than ever are knocking on the front door, but fewer existing renters than ever are

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Intel

Phoenix-Area Rents Are Approaching the Most Expensive In The Country

Phoenix’s reputation as an affordable city has been fading for a while now, though it wasn’t until this year that the metro’s rising costs started to make national headlines. Now, according to two recent reports, rents in some greater Phoenix cities have climbed so high that, for the first time, they’re comparable with those in Miami and Oakland. Zumper’s latest national rent report, which is based on the firm’s analysis of current active listings in

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Intel

Is SFR Construction Really Outpacing Multifamily?

If 2020 weren’t odd enough in commercial real estate, it now seems that more single-family homes were under construction than apartment units, reports National Association of Home Builders Chief Economist Robert Dietz. According to Dietz, the last time that happened was in 2013. But before shifting investment priorities and business plans, it’s a must to dig a bit more into exactly what’s going on and understand whether there are long-term implications or only a blip

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Intel

US Multifamily Building Permits Jump More Than 28% This Year

The number of permits issued for multifamily buildings across the United States in August rose to 57,207 units, the highest figure reported since June 2015 and up 20 percent from July. On a year-to-date basis through August, the number of multifamily permits issued nationally climbed to 358,003 this year from the first eight months of 2020. Multifamily permits increased in all four regions of the country in 2021, based on year-to-date figures through August. The

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