Renting an apartment hasn’t been this popular in nearly 20 years, as the rate at which people are renting apartments hasn’t been this high since 2000.
According to new data from RealPage, apartment occupancy was the highest in August that it has been at any point since the tech boom in 2000. August also marked the seventh consecutive month that apartment occupancy has risen.
The 150 largest apartment markets in the country averaged an occupancy of 96.3% in the month of August. In July, it was 96.2%.
All four regions of the country saw a rise in its occupancy, with 97.1% occupancy in the Northeast; 96.6% in the West; 96.5% in the Midwest and 95.7% in the South.
Of the 50 largest markets in the U.S., eight of them saw a weaker occupancy rate in August than in July, while only three saw occupancy below 95%. Conversely, nine saw greater than 97% occupancy in August.
While some of the features sought after by renters are consistent across age groups, millennial tenants are leading the way with demand for more creative, community-building amenities at multifamily communities. The largest generation in the U.S., millennials are pushing multifamily owners and property managers to step up their offerings, or get left behind by the competition. By understanding what the younger renter demographic really wants, multifamily developers, investors, and builders can stay ahead of the curve and improve tenant attraction and retention.
Here are some of the key components Cityview has identified as priorities for millennial tenants:
1. Creative amenities: Fitness centers, resort-style pools, and clubhouses have become standard at luxury multifamily developments, so developers and property managers need to take amenities one step further to truly stand out. Unique offerings such as speakeasies and virtual reality rooms appeal to younger renters and foster resident interaction. Rock-climbing walls, roof decks with Airstreams, and rooftop dog parks create a fun atmosphere that caters to the younger demographic’s always-on lifestyle. As we’ve learned with some of the community spaces in our developments, “Instagrammable” locations have the added benefit of providing free promotion for your apartment community, which ultimately helps attract more renters.
The U.S. trade war with China is casting a cloud of uncertainty over the U.S and global economies, but it is having a positive impact on industrial real estate on both sides of the U.S./Mexico border.
According to ATISA Industrial, a Tijuana-based industrial real estate developer, some U.S. manufacturers operating out of China are seeking relief from tariffs in Mexico, as the cost of labor and other operational expenses are similar to China, and transportation costs considerably less than moving products from China to U.S. markets. Additionally, in Mexico, which has its own patent system and respects that of other nations, there is threat around intellectual property theft, notes John Galaxidas, managing principal at the San Diego-based brokerage firm Synergy Real Estate Group.
For example, China-based Fuling Global Inc., which makes plasticware for restaurants, recently opened a new facility in Monterrey, Mexico and Texas-based Taskmaster Components, which produces tires and wheel assembly parts in China, has plans to build a factory in Mexico.
For many cities, the housing storyline remains unchanged: Demand for multifamily housing is far outpacing our industry’s ability to create supply.
The number of renter households grew from 35.7 million in 2000 to 43.8 million in 2016. During that period, the number of affordable apartments for low- and middle-income renters fell short of meeting demand by 1.2 million units. It will get worse if we can’t work with cities to do something about it. Research from Hoyt Advisory Services found the U.S. needs an average of 328,000 new apartment units annually to meet rising multifamily demand.
While affordability challenges are complex, local, regional, and state policymakers have alternatives to what we know are ineffective policies. Here are five things our industry needs to encourage cities to do to bring more affordable multifamily inventory to market.
(Bloomberg)—Foreign investment in U.S. commercial real estate plunged in the first half of 2019 as signs of a global economic slowdown made buyers more cautious.
Deals totaled $16.9 billion, down from a record $32.7 billion in the same period last year, according to a report by CBRE Group Inc. Much of the decline was in spending on large mergers and acquisitions, which tumbled 83%, the brokerage said. Individual asset and portfolio sales fell 26%.
The current slowing economy and uncertainty over where U.S. interest rates were headed have caused many overseas investors to hesitate on deals, according to Spencer Levy, chairman of Americas research for CBRE. That may change as buyers get more clarity.
Self-storage REITs are ready to swoop in on an enticing source of acquisitions.
As the self-storage industry continues to contend with a glut of supply in many major markets, some developers are nervous. Why? Because they’re wrestling with slower than anticipated lease-ups at new self-storage facilities.
“The pro formas for these developers aren’t necessarily meeting expectations. That’s a nationwide phenomenon now,” says Marc Boorstein, principal with Chicago-based MJ Partners, a commercial real estate firm whose specialties include self-storage.
For at least some of the five major publicly-traded self-storage REITs, this translates into possible opportunities to buy newly-constructed properties at bargain prices at a time when the REITs have been curtailing their in-house development activity.
(Bloomberg)—The Trump Administration’s plan to release Fannie Mae and Freddie Mac from their government shackles laid out a vision that could eventually lead to hedge fund managers minting riches on their investments in the mortgage giants.
But the Treasury Department’s proposal left much to be ironed out, signaling there might not be a windfall unless President Donald Trump wins re-election in 2020. That sentiment was palpable on Wall Street Friday with Fannie and Freddie suffering their biggest one-day drops since January.
Treasury officials themselves acknowledged that their recommendations could take years to implement — a timetable that would extend beyond Trump’s first term. And the report, released late Thursday, left it to a politically divided Congress to handle some of the most sweeping changes.
More than anything today, residents want to have rich experiences in the places they live. But they don’t want to break the bank to do it.
While luxury living has been featured in apartment communities for years, as the costs of land, entitlements and overall building materials continue to rise, developers are increasingly forced to make choices in the design and feel of their communities to stay on budget. At the same time, residents are pushing back against higher rents, even as they demand the same level of luxury today.
But by choosing from products like Peerless Faucet’s new design-oriented collections, multifamily designers and developers can create rich living experiences for their residents, without spending a fortune.
Let’s get to it!
Not every search engine is as sophisticated as Google. The question is: How can you make the most of it? Craigslist is an online, classified ad website with various sections devoted to Housing, Jobs, Second-Hand Items, Roommates, Dating, and more. The website is completely free to use and is available to anyone willing to work within the company’s stated guidelines.
The national average for cost of rent rose $3 in July from the prior month to $1,469 according to Yardi Matrix. That’s a gain of 3.4% from a year earlier, the real estate data firm said.
Yardi Matrix ranked the top five markets for multifamily rent growth, based on the percent change in rent growth.
These metros have two things in common: a solid job market and steady population growth.
No. 1 is Pensacola, Florida, with a whopping 9.1% change in rent from July 2018 to July 2019. According to Yardi Matrix, this metro has a healthy job sector, contributing to positive population growth. Developers are forecasted to complete more than 2,000 units this year. Rent increased to a record of $1,178 this July.
Wilmington, North Carolina came in No. 2, another metro with a strong job market and population growth. This metro climbed three spots, as it was ranked No. 5 in the first quarter report. Rent prices went up 8.1%.