Market Intel

Here Are the Markets Where Multifamily Investors Are Buying

Multifamily investment continues to be attractive, even through the pandemic. However, with mass job loss across the country and severe economic dislocation, multifamily market fundamentals have shifted, and along with them, the best and worst apartment markets have changed as well. A new report from Moody’s Analytics REIS ranks the top five markets for multifamily investment and the bottom five markets.  The top five markets on the list include Lexington, Knoxville, Phoenix, Nashville and Minneapolis.

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Intel

More California Property Investors Eye Arizona in Pandemic for Lower Costs and Taxes

In recent years, Scottsdale, Arizona-based commercial real estate broker Ari Spiro estimates that roughly one-third of his calls have been from California property investors interested in buying Arizona offices, shopping centers, warehouses and apartments. But that interest has spiked in the pandemic. In the past several months the number of inquiries has climbed more than 50%, especially since Arizona began reopening businesses closed to curb the coronavirus even as large portions of the Golden State’s

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Rental Apartments Starts Gobbling More Market Share From Condos

Rental units accounted for 96% of multifamily construction starts during the second quarter, further taking market share from condos, according to a new report. The National Association of Home Builders analyzed quarterly data from the Census Bureau, which noted 76,000 rental multifamily starts and 3,000 condo starts. “Condo construction has been weak since the end of the Great Recession,” said the report, written by Robert Dietz. For comparison, starts of apartments have been about 90%

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90% of Apartment Households Paid Rent by August 20 Says NMHC

In their rent payment tracker, The National Multifamily Housing Council (NMHC) found that 90% of apartment households in the U.S. made either a full or partial rent payment by August 20. NMHC surveyed 11.4 million units of professionally managed apartment units across the country. The results from August are down 2.1% compared to July where 91.3% paid rent by July 20. Although August was down from July, it is up .8% from April, which saw

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Intel

Freddie, Fannie Keep Capital Flowing to Multifamily Borrowers

Freddie Mac and Fannie Mae are on track to lend nearly as many dollars to apartment properties in 2020 as they did in 2019. They have even loosened rules created in the early months of the COVID-19 crisis that required new multifamily borrowers keep enough reserves on hand to ensure they could make loan payments for as long as 18 months. “These guys are going to do everything they can to backstop the market,” says

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Intel

Home Price Index Hits New High in June; Phoenix Growth Still off the Charts

Once again, Phoenix is No. 1 in the nation in home price growth, with year-over-year price increases of 9% in June, according to the latest S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index. Phoenix price growth far outdistances the next two major metros: Seattle, with 6.5% year-over-year growth, and Tampa, Florida, at 5.9% price growth. Phoenix’s growth is now more than twice the year-over-year national increase, at 4.3%. Peter O’Neil, research director for NorthMarq,

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Intel

Here’s why Arizona’s economy will bounce back faster than nation

While sectors of Arizona’s economy have suffered financial losses during the pandemic, the state is faring better than much of the nation, according to a leading economist. If Arizonans can stay masked, socially distanced and sanitized, it has a good chance for full recovery as soon as mid 2021, said the state’s heavyweight economic forecaster, George Hammond, a research professor and the director of the Economic and Business Research Center at the Eller College of

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Intel

The Future of Amenities Must Provide Meaningful Experiences for Renters

Since COVID-19 arrived in the U.S., the pandemic has shifted the economy and our way of life. Many of these changes are visible, as Zoom calls replace conference rooms, bedrooms become workspaces, and living rooms morph into gyms. While the pandemic impacts extend far beyond the confines of multifamily communities, the vast majority of this sector has pivoted as adeptly as any other industry. These changes are especially true when it comes to amenities, which

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Road to Recovery? Confidentiality Agreements for Industrial, Multifamily Properties Bounces Back

Multifamily and industrial real estate is bouncing back from the COVID-19 crisis and the uptick in confidential agreements proves it, according to a new report from real estate company CBRE. Signed confidentiality agreements at the end of July were down only 17% compared to July 2019, according to the CBRE, which noted July’s figures were a significant improvement from the dismal 74% decrease in confidentiality agreements signed in April and May. Notably, confidentiality agreements signed

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Intel

How Are Apartment Renters Still Making Rent? Here Are Some Explanations.

It’s been one of the ongoing head-scratchers of the pandemic: How are apartment rent collections holding up so well despite all the unemployment and predictions of doom? After all, it’s hard to imagine a scenario designed more effectively to crush rent collection. As tens of millions of Americans lost their jobs, warnings about mass rental defaults began almost immediately this spring. But the $600-per-week enhanced federal unemployment benefits kicked in, and that relief was credited

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