A new survey by the National Apartment Association (NAA) shows the top seven challenges facing rental housing property managers today, with the No. 1 challenge – not unlike many other businesses – being recruitment, staffing, and human resources issues.
Property management professionals were asked to select the topics that are most challenging right now, and 74 percent answered with issues surrounding hiring and staff.
That’s not surprising, said Paula Munger, assistant vice president of industry research and analysis for the NAA.
“If you were on another planet and dropped in right now and missed the pandemic, you would look at this report and say, ‘Wow, something weird must have happened last year,’ because you can really see the effects of the pandemic in a lot of the responses and in a lot of their issues. Every industry right now, every single one, is having issues with the labor market. So, you know about the great resignation. There’s near-record amount of jobs available. People are quitting, they’re feeling empowered to do other things,” she said.
Munger said the data shows that in big companies with more than 20,000 units, more than 80 percent cited human resources as their top challenge. She said it’s a mind-boggling number “that really blew me away.”
The share of homes selling within one or two weeks is on the rise during a time of year that typically sees the market slow down. A third of pending sales were under contract within a week, up 2.2 points from a month earlier. During the same period in 2019, this measure fell 0.4 points. The hot market is largely fueled by the ongoing crisis-level supply shortage. Over the past six weeks, active listings of homes for sale have dropped 5.9%, compared to a decline of just 1.6% over the same period in 2019.
“During the pandemic, a lot of my sellers were trying to get out of Seattle and take their equity to a lower priced market,” said Redfin listing agent David Palmer. “Most sellers who are on the market now are very motivated to move: landlords with vacant homes, families who already upgraded and need to sell their previous homes, couples splitting up. As homebuying demand declines into the fall, I’m only encouraging people who have urgency to sell now. Otherwise, I’m advising them to wait until the new year.”
Homebuilder confidence continued to rise in October despite increasing affordability issues due to rising material prices and ongoing shortages, according to the latest National Association of Home Builders (NAHB) and Wells Fargo Housing Market Index (HMI) report released on Monday.
The report is based on a monthly survey of NAHB members, in which respondents are asked to rate market conditions for the sale of new homes at the present time and in the next six months as well as the traffic of prospective buyers of new homes. Scores for each component of the survey are then used to calculate an index where any number over 50 indicates that more homebuilders view conditions as good than poor.
Sentiment among homebuilders for newly build single-family homes rose four points in October to 80, the index’s highest reading since July 2021. Confidence among homebuilders began to steady in September, as the index rose one point after a three-month decline. While this October reading is positive, it is still 10 points lower than the index’s all-time high set in November 2020.
NAHB attributes this increase to strong consumer demand for homes. As housing inventory remains low and buyers are continuing to face strong competition with one-third of homes going under contract within a week, many are becoming discouraged and have started looking for alternative options.
The average homebuyer’s monthly mortgage payment rose $50 over the last six weeks as sellers’ median asking price increased 12% year over year to a new record-high and mortgage rates surpassed 3%. Despite rapidly declining affordability, many homes are still selling very quickly—nearly half find a buyer within 2 weeks. Although homes are still selling for about 1% above asking price on average, the share of listings with price drops is increasing, suggesting that price increases may be easing just slightly.
“Mortgage rates and asking prices are both on the rise, which translates to higher housing costs,” said Redfin Chief Economist Daryl Fairweather. “For now, mortgage rates are still hovering near 3% and demand remains strong. However, we are likely to see rates tick up into the winter months, and that could slow demand just like it did in late 2018. As that happens, sellers will have a harder time getting buyers to bite on their sky-high asking prices.”
Unless otherwise noted, the data in this report covers the four-week period ending October 3. Redfin’s housing market data goes back through 2012. Except where indicated otherwise, the housing market is generally experiencing seasonal cooling trends, similar to what was seen during this same period in 2019.
WASHINGTON, D.C. (October 11, 2021) – The Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 27 basis points from 2.89% of servicers’ portfolio volume in the prior week to 2.62% as of October 3, 2021. According to MBA’s estimate, 1.3 million homeowners are in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased 17 basis points to 1.21%. Ginnie Mae loans in forbearance decreased 41 basis points to 2.94%, and the forbearance share for portfolio loans and private-label securities (PLS) declined 35 basis points to 6.42%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 37 basis points relative to the prior week to 2.82%, and the percentage of loans in forbearance for depository servicers decreased 24 basis points to 2.69%.
“Many borrowers reached the expiration of their forbearance term as we entered October. The pace of exits climbed to the fastest pace in over a year, and the share of loans in forbearance declined at the fastest rate since last October, dropping by 27 basis points. The decline was the largest for Ginnie Mae and portfolio/PLS loans,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “Payment performance has remained steady for those who have exited forbearance into a workout since 2020, with more than 85% of those borrowers current as of October. It also continues to be striking that so many homeowners in forbearance have continued to make their payments. Almost 16 percent of borrowers in forbearance as of October 3rd were current.”
Multifamily asking rents surged again in September as rents rose $16 to an all-time high of $1,558 and are up a record 11.4 percent year-over-year, according to the latest Yardi Matrix national multifamily report.
The U.S. apartment market continues to set record growth rates and one panelist at a recent National Multifamily Housing Council (NMHC) event said “In 40 years, I’ve never seen rent increases like we’ve seen these last few months. Never.”
However, there was caution in the report about rates continuing to rise at the year-over-year pace.
The rise of ride-hailing, autonomous vehicles, and micro-mobility devices such as electric scooters are set to lower rates of car ownership among younger generations.
This, alongside increasing electric vehicle ownership, has building owners and architects thinking about parking garages and how they will need to adapt.
“The forecast demand for electric vehicles is increasing,” says Mike Bammel, Managing Director and National Practice Lead, Renewable Energy, JLL. “Existing properties may not have capacity or capabilities to handle it.”
Read on for four ways garages around the world are already starting to change.
Parking garages are being built for a future where people drive less, which means designing structures that can support the possibility to be turned into something else, like retail space or a theater.
For instance, a garage in AvalonBay Communities Inc.’s 475-unit multifamily complex in Los Angeles’s Arts District will have higher-than-average ceilings; flat floors, unlike the slanted foundation you find in most parking garages; and elevators and staircases are in the middle of the structure, not on the perimeter. The project is due to be completed in 2022.
Are you asking yourself how to get out of a lease during COVID-19? After all, in this uncertain time of the coronavirus pandemic, many renters, eager to change their living situations, may consider breaking their lease. Some may be interested in moving from their city apartments and to less populated areas, while others may find themselves suddenly unemployed and forced to look for cheaper housing options.
But can you legally break a rental lease because of COVID-19?
Generally, it can be difficult and expensive to break a lease for an apartment. Tenants are typically responsible for paying the rent until their lease is up—so if you’re three months into a one-year lease, you’d still have to pay rent for the remaining nine months.
And the same laws still hold right now: If you end a lease early, even in the era of COVID-19, you’re still responsible for your rent until the end date in your contract.
“It’s bad news for tenants these days,” says Craig Blackmon, a real estate lawyer based in Seattle. “Generally speaking, the pandemic does not relieve a tenant from having to pay rent, even if the tenant feels compelled to move out.”
Academic institutions announced plans to bring students back for on-campus learning this year, further bolstering demand for both on- and off-campus housing. The average college student is aged between 18 and 23 years—and part of the Gen Z cohort, the only true digital native generation.
According to a survey of more than 10,000 Gen Z renters conducted by RentCafé, Instagram, Facebook, YouTube, and TikTok are the top social media channels most often used by this age group. “Gen Z wants short video content,” said Esther Bonardi, vice president of marketing and REACH at Yardi. “Some 40 percent of these renters like videos that span over 15 seconds or less, while 30 percent will watch up to a minute… but no more.”
What’s more, Gen Zers values integrity and transparency—they want a personal connection with content, such as seeing friends and familiar places tagged. Brynna Nugent, marketing strategist, social media & reputation management at BH Management Services, believes the goal is to show an authentic glimpse into community life, with property operators acting as a trusted resource to the community with guided content.
With that in mind, we put together a list of marketing tactics catered directly to the student renters you are looking to attract to your community.