Tag: Apartment building investment

Canadian Multifamily Bubble? Sadly the US can watch from hindsight.

Interesting peek at multifamily in Toronto and Vancouver, worth a read to see how many rationalizations you recognize (or have uttered yourself).  Nice quote: “If builders stopped building today, there’s five years worth of supply that is about to be delivered, relative to what normal population growth is.” Sound familiar? They’re even starting to do NINJA liar’s loans.

Toronto home and condo prices are amazingly high, the average price for a detached home C$543,993; for condos it’s ‘only’ C$343,835. In Vancouver the Continue reading Canadian Multifamily Bubble? Sadly the US can watch from hindsight.

Distressed Commercial RE Continues to Ebb. What about Multifamily?

Distressed commercial real estate is slowly climbing down from the heights it reached in October 2010, of $191.5B. Forthcoming figures by Delta Associates and Real Capital Analytics will show that distressed commercial real estate in the US totaled $166.9B in January 2012, down $4.7B since October 2011… attributed to a mix of circumstances, starting with extend and pretend…

See the whole article here: Globe St.com: Distressed CRE Continues to Ebb

Latest NMHC Multifamily Survey: Tightening Markets, More Sales, Debt and Equity Financing Becoming More Available.

See the report here: NMHC Quarterly Survey of Apartment Market Conditions

Multifamily Marketing; What can you learn from the big players?

“Not all residents want the same thing,” Conway says. “Listening to what our consumers want and wrapping them in a brand is going to help us grow.” AvalonBay hopes to attract younger consumers to its metropolitan “AVA” buildings… designed to be more youthful than other high-end AvalonBay buildings because they’re targeted to Gen Y residents, many of whom live with roommates in smaller, urban-style apartments.

Are your properties targeting specific demographics? Could you attract more tenants by marketing to a specific lifestyle? See the whole MFE article here: AvalonBay Launches Brands for Gen Yers, Suburbanites

Multifamily Buildings to Lead U.S. Construction Gains-

Feb. 13 (Bloomberg) — Construction of multifamily units will lead the U.S. building industry again this year, allowing housing to contribute to growth for the first time in seven years, according to economists Michelle Meyer and Celia Chen.

Work will begin on about 260k apartment buildings and townhouse developments in 2012, up 45% from last year and the most since ’08, according to Meyer, a senior economist at Bank of America Corp. in New York. Chen, an economist at Moody’s projects a record 74% jump to 310k.

Homeownership rates, which have declined to the lowest levels since ’98, may keep dropping as the foreclosure crisis turns more Americans into renters. In addition, household formation will probably accelerate as an improving economy and growing employment embolden more people to stop sharing residences and strike out on their own.

“Given the ongoing shift from owning to renting, there is increasing demand for multifamily construction,” Meyer said in an interview. See the whole Bloomberg piece here: Foreclosures are transitioning people out of ownership

Multifamily Sales Close Out 2011 on the Rise, Lead by Garden Style.

A recent report from New York–based commercial real estate research firm Real Capital Analytics (RCA) reveals that apartment sales figures closed out 2011 on a positive note. The firm’s “2011 Year in Review” report shows that the fourth quarter of 2011 netted $16.6 billion in sales, the highest quarterly volume racked up since 2007. This marks a 16 percent increase from the previous quarter and a 24 percent bump from fourth-quarter apartment sales in 2010. Among the more optimistic data revealed in the report was the rebound of garden-sector sales.

Garden properties ended up 47 percent ahead of the 2010 figures, and it appears that the sales momentum experienced in the fourth quarter will carry over into the first quarter this year. “Given the stable cap rate environment for garden properties, compared to sinking caps in mid-/high-rise, that trend is likely to continue in 2012,” projects Thypin.

See the whole AHF article here: Apartment Sales Close Out 2011 on the Rise

Why it’s good news that more Americans are renting rather than buying homes. Via Slate. Good for #Multifamily

Exec Sum:

The American economy is making a significant shift from buying to renting, and that may ultimately be good news. According to a USA Today analysis of Census data released this weekend, since 2006, the number of households that rent has grown by about 700,000 a year, while the number of households that own has fallen by about 200,000 a year.

[R]enting is better than owning for many Americans. Indeed, dozens of recent studies have shown that, excepting the go-go bubble years, houses tend not to make very good investments at all: A prospective homebuyer would have made more money taking her down payment, parking it in inflation-adjusted Treasury bonds, and renting.

But it is conclusive: Not everyone should own a home. The recession has helped erode the stigma against renting, with about 70 percent of Americans now admitting that it has advantages over buying a house. If people are making unsentimental decisions about whether homeownership is really worth it for them, that is at least one small benefit of the housing bubble bursting.

See the whole article with links to reports and surveys here: The Rent Isn’t Too Damn High