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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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Top News

FINANCE

Outlook for Apartment Loans Remains Bright in Wake of Brexit

The United Kingdom’s vote to leave the European Union is the latest shock to the global economy. But bad news like that helps keep interest rates low, attracting investors to apartment properties. 

OPERATIONS

Wanted: Tech-Savvy Apartment Managers to Boost Revenue

Property management has become much more technically demanding, leading many management firms to tap technology to be more effective across a variety of functions including talent management, resident services, asset management and reporting. 

DEVELOPMENT

The Pro-Development YIMBY Movement Is Growing

Music to any apartment developer’s ears: An increasing number of people in cities are eagerly supporting new construction and higher density development, saying, “Yes, in my backyard.”

DEMOGRAPHICS

55+ Renters Will Drive Future Apartment Demand

According to new Freddie Mac research, many people 55+ see renting in their future. In fact, more than 5 million indicate they are likely to rent by 2020. Why? More than half (59 percent) think it makes financial sense for people their age to be renters.

TRENDS

Goodbye, Old-School Amenities

A number of features that were once considered standard in residential buildings are declining in size and importance, or being phased out altogether, in favor of luxuries like private laundry facilities—or wine cellars or tween rooms—in an effort by developers to attract and retain residents.

POLICY

More Public-Private Partnerships Needed to Address Affordability

NMHC’s Doug Bibby makes the case that tackling housing affordability requires cooperation between government and the private sector to reduce the barriers to housing production.

RESOURCES

New Cybersecurity White Paper Available, Webinar Scheduled for July 21

NMHC/NAA just released a new white paper analyzing the cybersecurity challenges facing the apartment industry and outlining best practices for protecting its data. As a follow-up, NMHC/NAA will host a related webinar on July 21 at 12pm EDT. Click here to register.
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.  


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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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