Research

The growth of e-commerce has impacted many aspects of the real estate industry, and multifamily is no exception. As apartment renters increasingly shop online, property managers are grappling with the best strategy for dealing with an influx of package deliveries to their communities.

Small asset multifamily continues to support a broad range of Millennial workers, while those in Science, Technology, Engineering, Arts/Design and Math (STEAM) occupations are renting at a faster clip.

Young adult apartment renters earn as much as their older neighbors, with those living alone earning significantly higher income than the market average in downtown locations.

Small apartment properties present strong value at both ends of the property age spectrum, with the most recent and prewar properties outperforming market averages across unit size.

While small and large apartment buildings are specialized in terms of unit mix, inventory additions over time have been skewed toward larger units across both asset classes.

Compared to other rental properties, average rents in small asset multifamily vary less by property age, while rents for prewar buildings are going toe-to-toe with newer construction.

Real estate investors take many factors into consideration when looking to enter a new market or acquire a new asset, and environmental, social and governance (ESG) elements, including climate risk, are gaining importance in their investment decisions, panelists noted at the 2018 ULI Fall Meeting in Boston.

Slow and steady growth coupled by cautious optimism seemed to be the overall sentiment shared by real estate economists and industry experts at the 2018 ULI Fall Meeting in Boston, where panelists revealed their forecast for the U.S. economy and real estate market heading into 2019, as well as the annual ULI-PwC Emerging Trends in Real Estate Report, which discusses major trends to watch over the next several years. The overall outlook for the U.S. economy was positive, according to a forecast of 45 economists and analysts surveyed by ULI in September 2018, with expectations for continued, moderate growth despite a sea change in macroeconomic policy, including rising interest rates, tax reform, and more restrictive immigration. Fundamentals are expected to remain strong through 2020, with a slight moderation in some areas. Highlights include: • GDP growth: The survey forecasts GDP growth to end this year at 3.0%, before it slows to 2.5% in 2019 and 1.7% range in 2020. • Unemployment rate: The current record-low rate of 3.8% is expected to bump up slightly to 4.0% by 2020. • Transaction Read the full article…

Technology is proving to be a major disruptor across sectors and real estate is no exception. Ride hailing and driverless vehicles were two top-of-mind disruptors at the 2018 ULI Fall Meeting in Boston, with industry panelists noting that these technological developments are fundamentally changing the way we build and manage our assets, and changing renter preferences from valuing public transit to putting a premium on walkability.

Contrary to popular perception, more millennials are driving to work. However, older renters lead in the rate of car adoption.