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June 9, 2016
Tech Targets Apartments
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“Welcome to the land technology forgot.” So begins a recent article on a popular tech news site that digs into the reasons tech has largely ignored the rapidly expanding apartment sector—and, conversely, why the multifamily business has long been resistant to technological change.

“Owing partly to an old guard of landlords and owners, and partly to the relationship-driven nature of the business, the kinds of cloud-based apps and innovations that have transformed other sectors have failed to make inroads into one of the biggest,” writes the author.

But a flurry of new developments—including a sizable influx of investment capital into real-estate technology, specifically—suggests that “change may finally be on the horizon.”

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RESOURCES

Learn About Criminal Background Checks and Fair Housing Compliance on June 23

NMHC/NAA are hosting a webinar on June 23 at 2pm EDT with Michael W. Skojec, a partner at Ballard Spahr, to discuss HUD’s recent fair housing guidance on criminal background screening. The new policy extends protections for individuals with criminal histories. 
 

BALANCE SHEET

New Overtime Rule Affects Multifamily Firms

The Labor Department recently raised the salary threshold for employees to be eligible for overtime pay. Effective Dec. 1, 2016, employees earning up to $47,476 are eligible for overtime pay benefits. In response, NMHC/NAA have joined a coalition in backing new legislation that would block the Administration’s overtime rule.

FINANCE

Bank Risk Rising in Urban Apartment Markets

Banks should be wary of "froth" in apartment markets in New York, Boston, San Francisco and Washington, D.C., warned Comptroller of the Currency Thomas Curry recently. "The actual loan terms and covenants are weakening," he said.

TRENDS

San Francisco Start Up Lets Renters Bid for Apartments

With the promise of saving prospective renters hours of searching and as much as $400 in rental application fees, Rentberry is launching an online platform where renters can compete for an apartment in an eBay-style auction. 

MARKET

The Surging Market for Rentals

The rate of growth in higher-income renter households outpaced that of other income groups from 2005-2015. In fact, the number of renters earning $50,000 or more annually increased by 3.3 million;  roughly half of that growth came from renters earning $100,000+. Here’s a look at four communities targeting these higher-income renters.  
In Case You Missed It
A hand-selected collection of noteworthy articles on a wide variety of issues of interest to apartment executives.
Multifamily Market Dashboard

Financing for All Economic Cycles

NMHC’s Doug Bibby and Bob DeWitt recently participated in the Urban Institute’s Housing Finance Reform Incubator, contributing an essay that called attention to the GSEs’ ability to keep liquidity in the multifamily market throughout the economy’s ebbs and flows.

There’s a historical pattern of private capital pulling back or exiting the market entirely when the economy slows and then reentering the market after these periods of disruption. This was the case during the 1997–98 Russian financial crisis, the post-9/11 recession of 2001, and again in 2008.

In fact, between 2008 and 2010, the GSEs supplied $123 billion in mortgage capital to the apartment industry, making up 59 percent of the total multifamily mortgage production. As private capital reentered the market, the GSEs’ share dropped to 36 percent by the end of 2015. Without that critical backstop, thousands of otherwise performing multifamily mortgages would have gone into default, creating severe market disruption. 


Upcoming Meetings
2016 NMHC Emerging Leaders Speaker Series Newport Beach

 August 3, 2016 Newport Beach, CA

2016 NMHC Student Housing Conference & Exposition

September 28-30, 2016 New Orleans Marriot in New Orleans, LA
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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