Contrary to popular perception, more millennials are driving to work. However, older renters lead in the rate of car adoption.
While public transportation usage is highest among apartment renters, recent data show a secular decline, keeping with the overall trend of changing commuter preferences and workplace environments. Driving to Work Lower Among Apartment Renters Reflecting the recent spike in car ownership rates and lower gas prices, driving to work has experienced a resurgence. Conversely, public transportation usage has witnessed alarming declines across major US cities, largely attributed to lower system upgrades. As shown below, commuting by private vehicles (primarily cars) was the dominant mode of transportation for working renters across all asset types. Between asset types, however, private vehicle rates varied from a high of an 87% share in suburban single-family rentals to a 64% share in downtown-oriented large apartment properties in 20161. Car ridership shares in small apartment properties, which are more dispersed along the downtown-suburban continuum, landed in an expected middle ground at 77%. Looking at the broader transportation landscape, as shown below, commuting rates by public transportation (including taxis, less than 1%) varied significantly from a share of only 4% in single-family rentals, to 12% in small Read the full article…
Here’s a quick look at the small balance multifamily finance and investment benchmarks for Q2 2018.
While still below long-term averages, vehicle ownership is increasing across apartment properties.
Millennial students looking for off-campus accommodations in university towns rent more frequently in small apartment buildings, and at higher rates of apartment sharing.
While an overwhelming share of Millennials enrolled in degree programs continue to live with their families, living off-campus in apartment building shares can provide a smoother path toward independent living.
Strong economic growth, rising interest rates, and exceptionally tight labor markets contributed to small balance lending volume reaching an annualized rate of $47.0 billion through the first half of 2018, down 5.8% from last year.
The Southeast Region of the U.S. has continued to see strong rent growth, with nine of the 12 primary markets experiencing rent increases higher than the national average over the 12 months ending in Q2 2018. Vacancy rates across the region have skewed higher recently, driven by the addition of new supply in the markets.
Arbor’s nationwide experience and expertise allow us to customize multifamily financing wherever your portfolio takes you.
CA
Freddie Mac SBL
|
$1-5M
Onatraio,
CA
Fannie Mae DUS
|
$10M+
Pomona,
CA
Fannie Mae DUS
|
$10M+
TN
Fannie Mae Small Loan
|
$1-5M
Ocala,
FL
Fannie Mae Small Loan
|
$1-5M
Dayton,
OH
Freddie Mac SBL
|
$1-5M
Dayton,
OH
Freddie Mac SBL
|
$1-5M
Brooklyn,
NY
Freddie Mac SBL
|
$1-5M
Huntsville,
AL
Freddie Mac SBL
|
$1-5M
