If you have trouble reading this email, please go to the online version.
October 2, 2015
Venture Capital and Rising Rents
Sponsored by

Last year, venture capitalists invested nearly $49 billion in the U.S. While these capital injections fuel local economic activity and job growth, they also contribute to higher rents, according to a new study from real estate start-up Zumper.

In fact, the analysis concluded that for every $1 billion in venture capital injected into a local economy, one-bedroom rents increase $69 per month and two-bedroom rents grow $99 per month.

However, this relationship is even more pronounced in cities such as Boston, New York and San Francisco, whose vibrant tech scenes are drawing loads of venture capital. For example, the study estimates that roughly 33 percent of the rent for a one-bedroom apartment in San Francisco is attributable to the economic activity from venture capital investment.

“When you take a city like San Francisco, which has a fairly small population, and you inject $15 billion into it, that’s going to have a major effect on creating jobs and on population influx,” said Devin O’Brien, head of strategic marketing at Zumper, in an article in the San Francisco Chronicle. “If supply can’t keep up with demand, then rents are going to increase.”


Read More
SHARE: Twitter Facebook LinkedIn Email
Top News

TRENDS

Student Housing Providers Beef Up Perks

Big student-housing providers are joining forces with corporate marketers to ramp up the services they provide to the nation’s 20 million college students. By aligning themselves with brands that their residents know and love, student housing firms hope to gain a competitive edge.

MEETINGS

NMHC Fall Board Meeting Recap

NMHC’s Board of Directors and Advisory Committee members recently gathered in Washington, D.C., for the annual fall meeting. True to form, the meeting had a heavy focus on the legislative and regulatory issues facing the apartment industry.

AFFORDABILITY

The Rent Crisis Is About to Get a Lot Worse

The number of U.S. households that spend at least half their income on rent could increase as much as 25 percent to 14.8 million over the next decade, according to a study by Harvard University’s Joint Center for Housing Studies and Enterprise Community Partners. This makes for a bleak future for many renters.

OPINION

Single-Family Rentals Are a Strong Investment

More than 20 major single-family rental deals, valued at more than $13 billion have come to market over the past two years, including the much-anticipated first multi-borrower transactions. But is the market the real deal? Frank Nothaft, chief economist for CoreLogic and former chief economist at Freddie Mac, says yes. Plus hurdles emerge for Invitation Homes’ IPO and two big single-family investors make plans to merge, betting on rising rents.

ENERGY

California Becomes First State to Open Up Whole-Building Energy Use Data

California advanced whole-building energy usage benchmarking by recently passing a law that opens up building energy use data, giving owners and operators of apartment buildings, office buildings and malls easy access to energy benchmarking statistics.

MARKET

Fundamentals, Demographic Trends Favor Multifamily

All indicators show that U.S. multifamily investors, from REITs to private equity funds, are poised to continue to benefit from the fundamentals in this asset class, as well as the general shift away from homeownership.
In Case You Missed It
A hand-selected collection of noteworthy articles on a wide variety of issues of interest to apartment executives.
Multifamily Mortgage Debt Reaches $1T in Q2

Demand Grows for Inclusionary Housing Development

Kansas City Fed Research Shows Boomers, Millennials Driving Multifamily

Sprawl Costs the U.S. $1 Trillion Annually

Real Estate Crowdfunding Platform Fundrise Expands Overseas

Answer to Affordable Housing? Single-Family Rentals

Five Examples of How Housing Background Checks Reveal Systemic Discrimination

Two Sides of Denver’s Real Estate Boom

Safety of Off-Campus Apartments Remains a Concern in Boston

TruAmerica Multifamily Grows Portfolio with 1,829-Unit Purchase

California Looks to Grow Rooftop Solar at Affordable Multifamily Communities

Real Estate Visionary and Suburban Town Center Pioneer Robert E. Simon Jr. Dies at 101

Multifamily Market Dashboard

Cities' Housing Stock Compositions Vary Wildly

The Washington Post's Emily Badger and Chris Ingraham dissect the occupied housing stock in ten major metropolitan areas. New York remains the nation’s high-rise haven while Baltimore and Philadelphia reign when it comes to rowhomes. And traditional detached single-family homes still dominate in places like Detroit and Kansas City, Mo.

However, more than just providing a breakdown of the physical character of each city, the analysis also suggests new opportunities to bring more diverse housing types to growing urban populations. Higher density doesn’t have to mean Manhattan-style mega-rises.


Upcoming Meetings

THIS MONTH

2015 NMHC Emerging Leaders Speaker Series — Atlanta, GA

October 15, 2015 Whiskey Blue in Atlanta, GA

NEXT MONTH

2015 NMHC OPTECH Conference & Expo — San Diego, CA

November 17 - 19 Hilton San Diego Bayfront in San Diego, CA
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.
Tools
Print-Friendly Version RSS Search Back Issues
Contact Us
1850 M Street, NW, Suite 540,
Washington, D.C. 20036-5803
202 974 2300 Office
news@nmhc.org
Connect
Facebook
Twitter
LinkedIn
Manage My Email / Unsubscribe
Please add ‘news@nmhc.org’ to your email address book or Safe Sender List. If you are still having problems receiving our communications, see our White List page for more details.