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July 13, 2016
Developers Press Pause
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Despite the apartment market’s strong second quarter rebound, where a surge in demand pushed occupancies back to a post-recession peak, many apartment developers in key markets are starting to slow their rolls.

Rent growth is tapering in some markets, lenders are getting choosier and many fast-growing urban markets have a lot of inventory in the pipeline. Fitch Ratings recently released a report concluding that the risk of Class A overbuilding is rising in some submarkets.

Developers, in turn, are proceeding with more caution, being more selective about their opportunities and even putting a hold on some new projects.

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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

Apartment Sales Are Up, Who's Buying?

Apartment sales are climbing, surpassing the levels that occurred during the mid-2000s real estate boom. Investors today view apartments as a stable investment, particularly given the demand for units that has been present over the past few years. Moreover, economists and housing experts project that apartment demand will continue to grow as both younger and older age groups seeing renting as a smart decision.

There are many kinds of multifamily buyers. However, private investors make up more than half of the buyer pool, according to data from Real Capital Analytics. Private investors are professionally  managed large and small apartment companies and individual investors.

Institutional investors are the next largest buyer group, accounting for a quarter of all multifamily buyers. Many institutional investors consider multifamily a preferred asset class when seeking to deploy capital into the U.S. commercial real estate market for several reasons: 1) the strong underlying demand for rental housing; 2) its durability of income; 3) efficiency of cash flow; and 4) liquidity and access to capital.  

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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