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October 13, 2016
Prices Rise to Some Surprise
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Sustained investor demand for multifamily assets continues to drive apartment pricing north. As a result, cap rates have continued to compress through the year. 

What is remarkable, however, is that this pricing climb has been happening even as income streams are plateauing. Recent rent data shows that rent growth is slowing in cities around the country as new supply hits the market.

For some industry watchers, this imbalance between rising pricing and flat, or potentially shrinking, incomes has the makings of a downturn for the apartment market. 

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TAXES

How Trump and Other Real Estate Developers Pay Little in Taxes

The revelation that Republican presidential candidate Donald Trump carried forward more than $900 million in tax losses has sparked debate over popular business tax provisions, especially like-kind exchanges, carried interest and depreciation. Expect these to be on the chopping block as tax reform heats up. 

MEETINGS

OPTECH Early Bird Registration Ends October 14

Join the senior leaders in marketing, IT, property operations, sustainability, HR and risk for an interdisciplinary forum on what’s next for multifamily. Save $200 when you register by October 14.

PAYROLL

Heres How the New Overtime Labor Law Will Change Housing

A new change to federal overtime rules that more than doubles the white collar exemption salary threshold will take effect Dec. 1. Twenty-one states and several trade groups have sued in response. NMHC/NAA released guidance in July and is hosting a follow-up webinar on Oct. 25 to provide more detail on the new rules. 

HOME SHARING

Airbnb Offers Landlords an Incentive

Airbnb recently announced a new program that allows apartment owners to take a cut of the revenue from Airbnb’s guests in their buildings. (See also MFE, MultifamilyBiz, NREI, RPOA and Serviced Apartment News.) Some report the program is off to a weak start, while others maintain the partnership is an opportunity to not only capture ancillary revenue but also boost property value

MEETINGS

NMHC Student Housing Conference Recap

Demand for student housing—from residents, universities and investors—is driving sector activity. Click for the latest on capital markets, investor trends, operational challenges, new marketing strategies and more.

Like this? Read more on making the grade amid stiff competition, top amenities and the sector outlook

TECHNOLOGY

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Make sure important NMHC communications like Apartment Wire arrive in your inbox by “white listing” our sending information. Not sure how? Click for instructions on white listing at both the desktop and corporate levels. 

RESOURCES

Data Decoding Demystified

The proliferation of rental data in the news and online can make it challenging to sort out real data trends. Here are some tips from NMHC’s research team on how to evaluate the information with a more discerning eye.
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

Will Housing Affordability Spur Home Buying?

In many markets, homeownership is purportedly more affordable than renting, implying this is a good time to buy a home. But given that the homeownership rate continues to slide and new single-family construction activity remains low, there’s question as to whether this assumption holds true. 

In the most recent Research Notes, NMHC’s research team analyzed the National Association of Realtors’ Affordability Index and found that the correlation between affordability and homes sales is rather weak. In fact, for the past 10 years, affordability and home sales seem to be inversely correlated.

Together with analysis of three other affordability indicators—the total  cost of homeownership, the house price-to-rent ratio and the premium to buy—the cost of buying versus renting is, by historical standards, reasonably balanced. This suggests that, in the near-term, it is unlikely that there will be a rapid rise in homeowners because renters are not necessarily finding better housing deals through homeownership. 


Upcoming Meetings
2016 NMHC Emerging Leaders Speaker Series Atlanta

November 8, 2016 Whiskey Blue in Atlanta, GA 

2016 NMHC OPTECH Conference & Exposition

November 14-16, 2016 at the Hilton Anatole, Dallas, TX 
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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