Market Intel

Intel

Inflation Means Different Things to Developers, Investors, Tenants

Not that we needed it, but last week we received another indicator that inflation was on the rise when the Bureau of Economic Analysis reported that the personal consumption expenditures price index rose 6.6% over the 12 months ending in March and up from a 6.3% annual inflation rate in February. Inflation, in short, shows little sign of peaking as some economists had thought would happen by this time.  The question for the CRE industry

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Intel

Multifamily Investors See Tougher Financing Conditions

Apartment market conditions continued to tighten and financing became more costly, according to the National Multifamily Housing Council’s quarterly survey of apartment market conditions for April. “Demand for apartments continues to exceed supply, resulting in the fifth straight quarter of tightened markets,” said chief economist Mark Obrinsky. “Yet, even as rent growth and occupancy remain elevated, developers are struggling to build more housing due to the increasing cost of materials, a lack of available labor,

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Intel

In Hot Housing Market, Multifamily in Demand More Than Ever

The country’s booming housing demand is impacting the single-family and multifamily markets and their investors like never before. In such a highly competitive environment, multifamily investors are turning to new markets, investment strategies, and financing solutions to meet return requirements. Geri Borger Urgo, head of production at NewPoint Real Estate Capital, shares her perspectives on how these forces are changing the way investors and lenders are conducting business. MFE: We’ve seen the median price of

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Intel

Rising Interest Rates Aren’t Stopping Apartment Investors from Cutting Deals

The Fed plans to continue to raise interest rates to help stem inflation and that’s changing the math for apartment investors looking to make deals, but so far it’s not leading to any drop in interest in the multifamily sector.   Other factors—most importantly, rising rents—are offsetting the interest rate risk and keeping property prices at lofty levels. And instead of fleeing the market, leveraged investors are sharpening their pencils. Some are turning to fixed-rate financing to

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Intel

81% of Arizona Landlords Want Federal Protection from Surprise Regulations

Home ownership is a dream many Americans pursue with great desire, vigor and of course, a tight budget above all. Some have even taken the next step by buying additional properties – or several – which means the potential costs involved in maintenance are multiplied too. Any landlord will have learned that unforeseen costs are just part of the business of owning property, however, sometimes this is a lesson learned a little too late…   A

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Intel

Multifamily Lending Expected to Fall Short of 2021’s Record Volumes

Amid higher interest rates and economic uncertainty, the Mortgage Bankers Association (MBA) has issued an updated forecast that anticipates total commercial and multifamily mortgage borrowing and lending to hold steady this year at a projected $895 billion, roughly in line with 2021’s $891 billion. “The economic and interest rate outlook has shifted since MBA’s last updated commercial real estate finance forecast in February,” said Jamie Woodwell, vice president for commercial real estate research. “The rapid

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Intel

New Building Codes Spur Creativity Among Multifamily Developers

Since its founding in 2003, construction and development services firm CNY Group has delivered more than 2.2 million square feet of completed construction across 754 projects, including 122 historical projects, 17,400 residential units and 14,600 hotel rooms. Notable projects in New York include the conversion of the historic Woolworth Building’s top 30 floors into 32 luxury residences, and 21 East 12—a 24-story new building featuring luxury residences in Greenwich Village. Recently, CNY Group provided construction management services

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Intel

Cap Rates Likely To Keep Compressing in 2022 Despite Higher Interest Rates

Rising interest rates are likely to put some upward pressure on cap rates in 2022. However, the rise will be modest compared to the increase in the benchmark 91-day Treasury that has already increased by 1.3 percentage points as of the end of April from one year ago (2.7% as of April 26). This is because other factors are creating upward pressure on commercial real estate prices. The apartment market is likely to benefit from

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Intel

U.S. Faces Shortage of 7 Million Affordable and Available Rental Homes

The nation has a shortage of 7 million rental homes that are affordable and available to extremely low-income renters whose household incomes are at or below the poverty guideline or 30% of their area median income, reports the National Low Income Housing Coalition (NLIHC). Among states, the supply of affordable and available rental homes ranges from only 18 for every 100 extremely low-income renter households in Nevada to 61 in West Virginia. Among the 50

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Intel

Arizona Boasts 8 of the 10 Most Recovered Cities from Pandemic

The economy gained 431,000 jobs in March, and the national unemployment rate is now 3.6%, which is 76% below the peak of 14.7% during the height of the COVID-19 pandemic. To provide more context at the city level, WalletHub today released its report on the Cities Whose Unemployment Rates Are Bouncing Back Most, as a follow-up to our report on the States Whose Unemployment Claims Are Recovering the Quickest. The good news for Arizona is that the

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