All of the top 50 metropolitan areas in the U.S. registered unemployment rate improvements during the 12 months ending in August 2022. Los Angeles led the country with the largest decline in its unemployment rate, shaving off 3.7 percentage points from one year ago. Riverside (-3.3%), Detroit (-3.2%), San Diego (-3.1%), and Sacramento (-2.8%) all followed closely behind with sizable declines.
The increased frequency of major hurricanes brings into question whether robust in-migration patterns will hold in the face of growing climate risks. While there is a growing concern that the increase in extreme weather events could dampen housing demand in at-risk or effected areas, history displays a different pattern.
Arbor’s Affordable Housing Trends Report Fall 2022, developed in partnership with Chandan Economics, examines the affordable housing market’s growth trajectory in a challenging economic climate. It examines key programs, including the Low-Income Housing Tax Credit (LIHTC) and the Housing Choice Voucher (HCV), likely to influence the market’s performance in the coming year.
Affordability Poses New Challenges to Low-Income Housing Market Arbor’s Affordable Housing Trends Report Fall 2022, developed in partnership with Chandan Economics, examines the affordable housing market’s growth trajectory in a challenging economic climate. Key Findings: Rising construction costs have slowed new Affordable construction as financing gaps for Low-Income Housing Tax Credit (LIHTC) developers have widened. A sizeable expansion of the Housing Choice Voucher (HCV) program was removed from the Inflation Reduction Act of 2022, though the White House continues to call for increased funding in its annual budget resolutions. Nearly 90% of developers reported they will avoid markets with mandatory affordability requirements as local rent control measures are under consideration in five states. Complete the form to instantly access the full report!
In this video, Sam Chandan, Founder of Chandan Economics, provides a top-level overview of Arbor’s latest report, Top Opportunities in Large Multifamily Investment 2022. He explains how this report measured and ranked U.S. markets’ strengths and weaknesses in a turbulent economic environment.
Single-family rental starts reached an all-time high in 2022. But with homebuilding prices climbing this year, curbing construction costs has become increasingly important. By utilizing strategies, such as market site selection and smaller property buildouts, SFR developers have identified efficiencies to better manage construction costs.
In an otherwise uneven economic environment, multifamily real estate and other investment classes adept at absorbing inflationary pressures have outperformed the rest. Within the surging multifamily sector, certain markets shined brightly this year. The 2022 Arbor Realty Trust Large Multifamily Opportunity Matrix highlights the top 50 U.S. metros for investment.
The Federal Housing Administration (FHA) announced on September 7 that it had increased the frequency of allowable surplus cash distributions with most FHA-insured multifamily mortgages. Distributions can now be taken as often as once per month, updated from two times per accounting year historically.
Single-family rentals (SFR) are anything but a passive investment. Much more goes into net operating income (NOI) or, more accurately, detracts from it than just gross rents. Investors must also consider rehab, taxes, concessions, vacancies, and a myriad of other expenses. And like any other investment, higher returns are generally associated with higher investment risk.
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.