In Case You Missed It: Week of August 15, 2016
FHFA increases 2016 multifamily caps; Consumer spending expected to bolster economic growth; renting becomes a lifestyle for the long haul; a look back at how NYC’s failed olympic bid; and more in the week’s apartment news roundup.
FHFA Further Adjusts Multifamily Lending Caps for Fannie Mae and Freddie Mac
Federal Housing Finance Agency – August 18, 2016
“The Federal Housing Finance Agency (FHFA) today announced that it has made an additional increase to the 2016 multifamily lending caps for Fannie Mae and Freddie Mac (the Enterprises), raising the caps from $35 billion to $36.5 billion for each Enterprise, effective immediately.”
Consumer Spending Expected to Bolster Economic Growth Outlook for Second Half of 2016
Fannie Mae – August 18, 2016
“Economic growth is expected to rebound in the second half of 2016 after a disappointing second quarter, keeping the full-year growth outlook at 1.8 percent, according to Fannie Mae’s (FNMA/OTC) Economic & Strategic Research Group’s August 2016 Economic and Housing Outlook. However, continued momentum in consumer spending in the third quarter is crucial for driving growth as business investment is struggling.”
Q2 2016 Negative Equity Report: Why Cities and Suburbs are only Sometimes Impacted Similarly
Zillow – August 17, 2016
“When examining the negative equity rate in urban and suburban areas, we found that 13.7 percent of homeowners in urban areas and 11.2 percent of homeowners in suburban communities were underwater at the end of Q2.”
Renting becomes a lifestyle for the long haul
Marketplace – August 17, 2016
“The nation’s homeownership rate – that’s the percentage of homes owned by the people who live in them – is at a 50-year low at about 63 percent. With rising home prices, more Americans like Braddy are choosing to rent and stay put. As a result, apartment owners are reaping the benefits…”
How NYC’s Failed 2012 Olympic Bid Shaped the City
DNAinfo – August 16, 2016
“The Olympic bid was a catalyst for building the number 7 train extension to the West side, for creating thousands of new housing units on the West Side and for transforming the East River waterfront.”
Rent growth matches eight-year high as building boom doesn’t keep up
MarketWatch – August 16, 2016
“July rental growth matched an eight-year high, as an apartment-making boom still hasn’t put a lid on costs. Rents rose 0.3% in July, the Labor Department reported Tuesday. They rose 3.8% in the 12 months ending July, matching the highest level since Jan. 2008.”