Apartment researchers and industry executives gathered in
Dallas last week for the 2017 NMHC
Research Forum to learn about the latest and greatest tools and
methodologies, emerging data trends and new investment opportunities.
However, given the evolving market dynamics, much of the
discussion was focused on identifying potential challenges to multifamily property operations and value as well as opportunities for
preserving and/or enhancing income
and value. To that
end, there was also a lot of discussion of the potential cost-benefits of
current tax reform efforts, given the strong political push behind them.
John Duca, associate director of research and vice president
at the Federal Reserve Bank of Dallas, offered some insight as he dissected
commercial real estate valuations, identifying to what degree taxes, general
risk premiums, capital requirements and interest rates shape them.
His conclusion was that the “net effect of fiscal and budget
changes depends on how the effect of higher interest rates (if cap rates go up,
prices go down) nets relative to the impact of possibly lower taxes and firmer
economic growth on raising after-tax cash flow (if cap rates go down, prices go
More highlights from the event are below. NMHC thanks all
sponsors, speakers and attendees for their participation in the 2017 NMHC