Rents in the United States have been rising faster than incomes for several years, demanding a larger share of household budgets. In fact, nearly one-third of American renter households contribute 50 percent or more of income towards rent. Are Small Asset Rentals Less ‘Severe’ on Renter Budgets? Following the definition used by the Harvard Joint Center for Housing Studies (JCHS) in their recently released 2016 annual … Continue reading How Big is the Rent Affordability Problem?
As we enter the fall buying season, it’s useful to look at pricing in major multifamily markets through the first half of the year. Not only in the priciest markets, but also in markets that may represent higher yield opportunities. Using transaction data compiled by Real Capital Analytics, we calculated the average sale price in the top 50 markets in the U.S. — specifically, the weighted average … Continue reading A Look at the Most and Least Expensive Multifamily Investment Markets
In this closer look at Millennial renters, we find they are well-represented in small, low-amenity properties. Developers and investors typically think of Millennial renters as determined to live in large, high-rise properties in urban cores. This new generation of renters prioritizes walkability and access to both in-building and local amenities. While this characterization may be true of many young renters, a closer look at the … Continue reading Millennial Renters are Essential to Small Property Apartment Demand
Education is arguably the strongest predictor of present and future levels of American workers’ income. As a result, there is a correlation between education attainment and the size of a building a renter is likely to call home. It should come as no surprise that individuals with advanced degrees are typically employed in better paying jobs that require higher skills. As noted in our post on the … Continue reading How Does Education Attainment Impact Where People Rent?
Married households and families are well-represented in small property apartments. Reflecting that skew to larger households, smaller properties account for a relatively smaller share of single renters when compared to large buildings. How Many Single Renters in Small and Large Properties? https://docs.google.com/spreadsheets/d/1xprlKBpox0GqVOfRgqeMq-QPTPBkJWmC15Gi_fGGsxk/pubchart?oid=1951124936&format=interactive As shown in the chart above, about 45 percent of all units in small properties are rented by individuals living alone, split equally … Continue reading Not the Bachelor Pad: Age and Income Profiles of Single Renters in Small Apartment Properties
Rent concessions are making a comeback in some of the nation’s top apartment markets as new multifamily developments enter their lease-up phase. In slower markets, concessions are part of everyday life for property managers. This data-driven article explores the types of rent concessions, the pros and cons of the discounts, the relationship between concessions and other market fundamentals, and when you’ll have to offer concessions to remain competitive. What … Continue reading Rent Concessions: What Multifamily Investors Need to Know
Listen as host Sam Chandan speaks with Arbor’s own Ivan Kaufman and Freddie Mac’s Steve Johnson about the growing success and financial benefits of the multifamily small balance loan market and how investors can take advantage. Hear from the small loan market’s leading experts as they provide exclusive insight on this highly impactful market sector. Listen to full show here. Continue reading The State of Multifamily Lending in 2017
As we closeout 2016, it is important for multifamily investors to look towards 2017 and the overall housing market forecast. This post examines how multifamily development fits into the overall residential construction market. While all signs are pointing to a strong year for apartment deliveries in 2017, the pipeline is heavily weighted towards highly amenitized properties in the urban core. This presents an opportunity to … Continue reading Q3 2016: Multifamily Construction on the Rise
Ivan Kaufman, Chairman & CEO of Arbor, sits down with Adam Kaufman, Managing Director of ArborCrowd, for a discussion on where the multifamily market stands, and where it is headed. Continue reading Where Do We Stand in the Multifamily Cycle?