Market Intel

1031 Exchanges Are Driving Transaction Volumes

1031 exchange demand is driving the majority of transaction volumes during the pandemic. While some new opportunistic capital has entered the market, the majority of investment demand for CRE assets is coming from 1031 exchange buyers. The activity has not only helped to prop up transaction volumes but has also helped to stabilize pricing through the pandemic. “Many investors are afraid of COVID-19 and the effects on real estate values, so we are seeing a

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Intel

Multifamily Landlords in Arizona Are Faring Better Than Most

Two Arizona markets are among the top in the nation for multifamily rent growth. Fueled by robust population gains and a moderation in single-family home building over the past decade, healthy demand for apartments has given landlords leverage to lift rents. Among all large U.S. markets (with more than 75,000 apartment units), Tucson had the strongest year-over-year rent growth in the second quarter; Phoenix came in third, following the Inland Empire. Tucson and Phoenix were

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Demand for Single-Family Rental Market Expected to Grow

One trend to watch in the real estate market in the coming years is that demand for single family homes specifically built to rent is expected to grow, according to a recent report. Real Estate Advisors is forecasting that, given current demographics of more householdings hitting the life stage where single-family housing better suits their needs, demand for built-to-rent homes is set to increase. “Given demographic trends RCLCO forecasts much greater demand than the current pace

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Yardi: Multifamily Rents Rose $2 in July; YOY Growth Stays Negative

The national average multifamily rent rose by $2 to $1,460 in July, ending four months of consecutive declines following the start of the COVID-19 pandemic and recession. Year-over-year rent growth remains negative at -0.3%, unchanged from June. Over the top 30 major markets in Yardi Matrix’s database, year-over-year rent growth was negative in 17 markets, led by San Jose at -5% rent growth and San Francisco with -4.1%. (For comparison, rents in San Jose rose

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Intel

These 3 Valley cities rank among rising US housing markets

Three Valley cities cracked a ranking of the top 40 rising housing markets nationwide, according to a study by SmartAsset. The fourth-annual study analyzed historical U.S. Census data for 317 big cities on changes in population, number of housing units, median income and median home value. Cities in California took two of the top three spots in the ranking. Phoenix, Peoria and Mesa all cracked the top 15% of the study for their performance in

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Intel

Commercial Real Estate Shows Resiliency During COVID-19

While much uncertainty remains around the COVID-19 pandemic and its effects on multifamily, commercial real estate professionals are confident in the industry’s ability to withstand and recover by 2021. According to Berkadia’s 2020 Mid-Year Powerhouse Poll, conducted in early July with insights from nearly 150 investment sales brokers and mortgage bankers, 55% of the Berkadia professionals agreed that the current market activity is better than expected compared with their initial thoughts on COVID-19’s impact. In

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Intel

MHC: 79.3% of Apartment Households Paid Rent by Aug. 6

According to the National Multifamily Housing Council’s weekly Rent Payment Tracker, 79.3% of apartment households have made a full or partial rent payment by Aug. 6, based on a survey of 11.4 million professionally managed apartment units across the country. This marks a 1.9 percentage point, or 223,000-household, decrease from the share of households who paid rent through Aug. 6, 2019. Over the same time period last month, 77.4% of renters paid their rent through

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Apartment Survey Finds August Rent Payments Held Up Fairly Well

Apartment rental payments are holding up fairly well—at least for now. The National Multifamily Housing Council reported that 79.3 percent of surveyed households made a full or partial rent payment by August 6. That’s slightly better than last month’s 77.4 percent, and just shy of the August 2019 level of 81.2, according to NMHC’s Rent Payment Tracker. “Over the past few months apartment residents have largely been able to meet their housing obligations,” NMHC Chair

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Intel

How to Bolster Apartment NOI During COVID-19

It’s easy to hit your numbers when times are good. But for multifamily pros navigating the fallout of COVID-19, 2020 has been about finding ways to maximize net operating income (NOI), even when times are tough. “We’re really thinking things through more to make sure we keep our NOI up,” says Tammy Shields, chief operating officer for Atlanta-based Audubon, which manages 5,500 units across 21 properties from the Carolinas to Louisiana. “The message we’ve sent

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Intel

Apartment Renters at High-End Units Extend Payment Streak

The apartment industry appears divided right now between predictions of calamity caused by the coronavirus pandemic because of renters unable to pay and the relatively rosy rent collection numbers by top U.S. building owners. With eviction bans expiring and federal unemployment bonuses burning off, renters are still holding up their end of the bargain, at least at the higher-end buildings tracked by the National Multifamily Housing Council, an industry advocacy group. Tenants at 79.3% of

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