Did you know that at the same time many renters navigate a housing market with limited affordable options, new apartment development continues to be held back by World War II-era zoning restrictions? In many localities, regulations introduced in the mid-1940s have choked the multifamily pipeline for decades, creating a “missing middle” that leaves low-income renters in a lurch.
Increasingly, single-family rental (SFR) operators have been relying on build-to-rent (BTR) development to bridge the housing gap, accelerating the momentum of SFR construction through 2024’s halfway point. Both total SFR/BTR housing starts and BTR’s share of all single-family housing starts reached new record highs in the second quarter, setting the stage for another banner year.
The small multifamily outlook continues to brighten as more signs indicate a normalization has already begun. In the second quarter, originations activity and borrowing conditions improved as completions sat at a five-decade high, Arbor’s Small Multifamily Investment Trends Report Q3 2024, developed in partnership with Chandan Economics, shows. While the subsector’s fundamentals are trending up, it still has room for growth when interest rate relief arrives.
While the overall pace of new multifamily permitting per capita in the U.S. slowed recently, it has picked up momentum in pockets of the country, especially the Midwest. In the first two quarters of 2024, Madison, WI, Columbus, OH, and Omaha, NE, were among the major metropolitan markets posting solid permitting gains, another sign of multifamily’s strength in all cycles.
The U.S. multifamily market followed the quick pandemic contraction with a strong recovery, and has now normalized into a more stable cycle. Demand remained strong across the country, with a wide variety of markets among the leaders for rent growth.
Did you know that more U.S. renters now spend over 30% of their income on housing and utilities than at any other time on record? Limited affordable housing options not only increase the rent burdens of low-income tenants but disrupt physical and mental health, underscoring the need for the creation and preservation of more affordable housing units nationwide. Quality affordable housing adds stability to communities and supports healthier environments that can significantly improve well-being.
After skyrocketing through a boom cycle over the past two years, the U.S. multifamily market settled into a cycle of stabilization in the first half of 2024. Rents held steady, occupancy increased, and vacancy rates remained in line with historical averages, while investor sentiment remained positive.
Single-family rental (SFR) CMBS issuance saw a sizeable pickup through the first half of 2024, with $4.2 billion in new issuance, placing it on pace to at least triple last year’s annual total.
Rent concessions are making a comeback in some of the nation’s top apartment markets as new multifamily developments enter their lease-up phase. In slower markets, concessions are part of everyday life for property managers.
Did you know that 88 percent of apartment renters trust online reviews as much as personal recommendations?
The smaller the multifamily property, the larger the increase in the vacancy rate when a current tenant opts to leave rather than renew. Thankfully, owners are not completely at the mercy of the market.
What can apartment asset class tell us about the commuting patterns of their residents? Evidently a lot.
Elite Apartment Coaching’s Chris Urso walks us through one of his first deals, a 40-unit value-add apartment play in Cincinnati, Ohio.
We’ve come a long way from the days of dial-up modems, AOL free trial disks and bulky desktop computers.
Valued at $25.5 billion and responsible for 17 million short-term stays between Memorial Day and Labor Day last summer, Airbnb has proven disruptive in the truest sense of the word for the hospitality industry. Could it do the same to multifamily?
The value-add play is a tried and true method for generating a solid return on your multifamily investment. Here are 13 tips to get the best return on investment.
Elite Apartment Coaching’s Chris Urso walks us through the process of creating a budget for that multifamily value-add play.
You’ve probably heard that you make your money on the buy in real estate. While this holds true for multifamily, you maximize your investment and keep your money when you have a good manager in place.