Widely Followed Apartment Market Cycle Research Misses Widely

The Strange Tale of the Seattle Apartment Building Investment Cycle and Maybe Yours Too.

Back in 2012 it appeared that Seattle’s movement through the real estate cycle was stalling out. Not the actual market by any stretch of the imagination but instead where it was placed on the apartment market cycle charts in the Cycle Monitor report from Dividend Capital Research. These quarterly reports on the real estate market cycles for the five main Commercial Real Estate (CRE) sectors in more than fifty markets around the US were widely followed but something was wrong.

Seattle apartment occupancy vs. Cycle Monitor Market Position 2005 - 2014
Click on images for full size.

Why this up to date market data is vitally important to your investment success:

You can fix a property but not a market cycle. Knowing where a market is in its cycle is critical for investors seeking to buy low and sell high. If signals are a year or more behind, prime opportunities will be missed to Continue reading Widely Followed Apartment Market Cycle Research Misses Widely

Top 5 Apartmentment Building Investment Markets for Rent Growth, by Asset Class.

In an update to our earlier update on top markets, Axiometrics has put out a report on the top 5 apartment building investment markets for rent growth by asset class.

Top 5 Class A Apartment Building Investment Markets for Rent Growth

San Francisco is rocking in class A and B, and in class C it’s….. San Francisco! Interestingly A and C properties there are showing rent growth of almost twenty percent while class B is just under ten percent. Any thoughts on why A and C are double the class B rent growth in SF? Note that 9.3% in class B still leads the US- Continue reading Top 5 Apartmentment Building Investment Markets for Rent Growth, by Asset Class.

Top 10 US Cities for new apartment building permits.

Coming soon to these big MSAs, lots of new apartments:

  1. New York-Northern New Jersey-Long Island
  2. Dallas-Fort Worth-Arlington
  3. Washington, D.C.-Arlington, Alexandria
  4. Los Angeles, Long Beach-Santa Ana
  5. Houston-Sugar Land-Baytown
  6. Seattle-Tacoma-Bellevue
  7. Austin-Round Rock-San Marcos
  8. San Francisco-Oakland-Fremont
  9. Chicago-Joliet-Naperville
  10. Miami-Fort Lauderdale-Pompano Beach

For details see: MFE Mag online

Will they be able to fill them all? How will older properties in these markets fare? Let us know what you’re seeing-