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July 30, 2015
Multifamily Investor Strategies Shift
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The overall apartment market has continued its tear, with strong demand fueling occupancies and driving new construction. While new construction has been mostly turning out Class A apartments in highly urban areas, more moderate rent growth at these properties has some investors shifting strategies in search of stronger returns.

The ’burbs are hot, as mostly-suburban Class B assets outperformed other classes in terms of effective annual rent growth in 1Q 2015. However, less competition and higher cap rates are creating new investment opportunities in secondary and tertiary markets as well.

This was a major theme of a recent panel discussion with Joshua Grossman of LEM, Matt Pestronk of Post Brothers and Jeff Adler of Yardi Matrix, where the group discussed how unprecedented capital flows are shifting multifamily investment strategies. Watch the video here

photo credit: tanuha2001 / Shutterstock.com

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FAIR HOUSING

Disparate Impact Webinar Scheduled for Today at 4pm EDT

In a 5-4 decision, the U.S. Supreme Court decided to uphold disparate impact liability under the Fair Housing Act. NMHC/NAA will be hosting a webinar today at 4:00pm-5:15pm EDT. Nixon Peabody LLP’s Harry Kelly and Ballard Spahr LLP’s Mike Skojec will be on hand to explain the High Court’s decision.

TRENDS

Airbnb's Growth Spurs Concern over Effect on Rents

Several cities are considering proposals to regulate vacation rental website Airbnb, citing concerns the online company is contributing to rising housing costs in high-demand cities. Some apartment firms have already started cracking down. However, Planetizen blogger Michael Lewen argues the fear is overblown, because airbnb units are such a small percentage of the market—even when vacancies are factored in.

BIBBY BLOG

Bibby's Book Club

For the past 18 months, NMHC President Doug Bibby has been part of a team working to produce the industry’s first essential multifamily textbook. Not only is the new book a catalyst for more colleges and universities to develop curricula specific to our dynamic industry, but it can be a great tool for educating existing employees.

STUDENT HOUSING

Compete in the First-Ever NMHC Student Housing DealTank

Participants will get a live platform at the annual NMHC Student Housing Conference to pitch your deal and get objective feedback from a panel of industry experts who might be able to help you facilitate and execute the project. Free conference admission to all presenters. Deadline to submit is Aug. 14.

LAND USE

Seattle's Plan to Create More Affordable Housing Units

Seattle mayor and city council came up with a plan to tackle the city’s affordable housing shortfall. Among the recommendations are requirements for developers to produce more affordable housing or pay fees, as well as zoning changes to increase density, especially in single-family neighborhoods. This up-zoning is generating some of the strongest community reactions. Some also argue rent control should also be included in the plan.

TECHNOLOGY

What If Furniture Had Super Powers?

The trend toward smaller units in major metro downtowns is stimulating interest in architectural robotics—that is, using technology to literally transform spaces to make them more livable within a smaller footprint. A group at MIT has been hard at work on the idea, as well as Yo! Home, which recent designed this tiny apartment full of hidden surprises.
In Case You Missed It
A hand-selected collection of noteworthy articles on a wide variety of issues of interest to apartment executives.
Why Rent Control Hurts Renters

Micro Units Cropping Up in Unlikely Markets

New Financing Strategy to Transform Public Housing in Knoxville

Why Rising Rents Won’t Inflate Fear at Fed (paywall)

Boomers Competing With Millennials for U.S. Urban Rental Housing

New Payment Tech Helps Renters Use Debt to Cover Housing Costs (subscription required)

Cities Where Americans Are Most Likely to Spend More Than Half of Their Paychecks on Rent

Is Micro Housing the Future for Boston?

Home Depot Bets on Multifamily Growth, Buys Interline

Mapping America’s Renters

Why the Apartment Market Is Good for Five More Years

Modular Grows as Conventional Building Costs Rise

Rents Aren’t the Only Thing Americans Are Paying More For
Multifamily Market Dashboard

Single-Family Rentals Have Little Effect on Apartment Demand

Consumer demand for rental apartments remained strong, according to the latest National Multifamily Housing Council (NMHC) Quarterly Survey of Apartment Market Conditions. However, when asked about single-family rentals in the market, only 15 percent of respondents indicated that their apartment homes directly competed with single-family rentals.

In his analysis, NMHC SVP of Research and Chief Economist Mark Obrinsky said, “Interestingly, most apartment properties see little competition from single-family rental homes, mainly because apartments tend to serve different demographic groups. Other survey respondents noted that single-family rentals are generally located in different neighborhoods than most apartments.”

Upcoming Meetings

SEPTEMBER

2015 NMHC Fall Board of Directors and Advisory Committee Meeting

September 15–17, 2015 The Fairmont Hotel in Washington, DC

2015 NMHC Emerging Leaders Speaker Series — Washington, D.C.

September 16, 2015 Provision 14 in Washington, DC

2015 NMHC Student Housing Conference & Exposition

September 28–30, 2015 The Arizona Biltmore in Phoenix, AZ

OCTOBER

2015 NMHC Emerging Leaders Speaker Series — Denver, CO

October 15, 2015 The The Platform at Union Station in Denver, CO
About Apartment Wire
A must-read for top apartment industry professionals, Apartment Wire is a timely review of emerging trends in apartment finance, development, management and technology and more, featuring both exclusive content from NMHC's staff of experts and provocative articles from across the web.
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