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April 19, 2017
Vacancies Hold Steady
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Strong demand for apartments has kept pace with the new apartment supply coming to market, according to a recent article in National Real Estate Investor. Vacancies continue to hover around 4.0 percent, which is below long-time averages.

Market watchers anticipate that the rate could reach 4.3 percent by the end of the year as new supply comes online this spring and summer, although pullbacks in construction lending are likely to mitigate supply issues longer term. However, the biggest risk to occupancies remains job growth. 

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MEETINGS

New Speakers in the Line-up for the May Board Meeting in NYC (May 16-18)

NMHC’s most exclusive event of the year, the spring meeting, offers Executive Committee and BOD members the chance to meet with some of the nation’s most provocative thinkers and powerful leaders. This year’s speaker roster includes Robert Gates, former U.S. Secretary of Defense, Jon Meacham, presidential historian and best-selling author and Sallie Krawcheck, CEO and cofounder of Ellevest.

AWARDS

NMHC Named 2017 ENERGY STAR Partner of the Year

NMHC recently earned a 2017 ENERGY STAR Partner of the Year award in the category of Energy Efficiency Program Delivery for sponsoring programs that support our members’ efforts to build and operate energy efficient multifamily properties. This is the first time that a trade association exclusively representing the multifamily sector has received the award.

POLICY

Showdown Looms as Rent Control Battle Rages in California

The resurgent interest in rent control is not surprising given the painfully steep increases in rents occurring in California, especially metro areas affected by high-tech job growth. But the new debate occurring in Santa Rosa shows the crisis is moving out from those urban centers, beyond the suburbs and into areas formerly known for reasonably priced housing. 

DESIGN

Developers Plan for Life Beyond Car Ownership

AvalonBay and other real estate developers are preparing for the takeover of ride sharing and self-driving cars, designing parking spaces that can transform into useable spaces such as apartments, restaurants and stores.

MARKET

Top Five Multifamily Trends to Watch

“While the overall market fundamentals look solid over this next stretch, there are a few trends emerging that could spark some significant changes in how we think about financing, designing and building apartment communities,” writes NMHC’s Rick Haughey in the 2017 PCBC Trends Report.

AMENITIES

Developers Offer Artists Free Rent to Up Cool Quotient

Artists are often some of the first priced out of up-and-coming communities. Some developers are responding with artist-in-residence programs that offer artists cheap, or even free, rent. The idea is to seed their buildings with the kinds of creative people who make places cool—and turn their presence in the buildings into an amenity. (paywall)

DEMAND

Immigrant Households to Drive Success of Real Estate Market

Immigrants are set to drive demand for a variety of housing types, according to a new ULI report. However, policy changes could affect that demand. In the meantime, some housing lawyers in California report an uptick in landlords capitalizing on immigrant tenants’ fears of deportation

FAIR HOUSING

New White Paper on Disparate Impact Now Available

NMHC/NAA released a new white paper that provides an in-depth review of the latest HUD actions on disparate impact that are relevant to apartment owners, operators, developers and managers throughout the country.

In Case You Missed It
A hand-selected collection of noteworthy articles on a wide variety of issues of interest to apartment executives.

Housing Trends Will Keep U.S. Interest Rates Suppressed

Apartment Market Slumps in 1Q as Supply Surges (paywall)

Garden Style Apartment Communities Outperform the Market

Multifamily Construction Loans Are Harder to Find

More Renters Expect to Keep on Renting

How Diversity Can Strengthen Relationships with Residents

Research Challenges Misperceptions About Multifamily Energy Usage

Teachers, Police Priced Out of America’s Big Metro Areas (paywall)

Bills Would Strengthen Building Codes to Prevent Fires

Builders Bet Tiny Apartments Will Lure Renters (paywall)

Housing Analysts Warn of New Supply Impacts on Apartment REITs

Young Americans Are Killing Marriage

Why American Millennials May Never Live Alone

Five Pitfalls Plaguing Multifamily Deals—And How to Push Past Them

Millennials Are “Vacation” Movers

New Co-Living Apartments Bring Sophistication, Privacy to Group Housing

Multifamily Market Dashboard

Tax Reform and Other Highlights from Research Forum

Apartment researchers and industry executives recently gathered in Dallas for the 2017 NMHC Research Forum to learn about the latest and greatest tools and methodologies, emerging data trends and new investment opportunities.

Given some strong political push, there was also a lot of discussion of the potential cost-benefits of current tax reform efforts. Using the framework of the so-called House blueprint, researchers approached the topic in two distinct ways: first, by asking how the nation’s apartment residents would fare under the reformed system and, second, how the industry stands to gain or lose should the blueprint go into effect.

While the results are more of a mixed bag for apartment firms, analysis showed apartment residents would largely fare better under the proposed framework, netting income gains. However, households with children are likely to gain less than other household types mostly because their deductions for dependents and child-care credits would decline. Similarly, the analysis showed varying effects for different income brackets such that the renter households with higher incomes had larger average net gains.

Click the headline to catch up on all the takeaways from Research Forum, including discussions of capital flows, concessions and new investment strategies. 

 


Upcoming Meetings
2017 NMHC Spring Board of Directors Meeting
May 16-18, 2017 at the Conrad New York, NY

2017 NMHC Emerging Leaders Speaker Series New York
May 16, 2017 at the Google Office New York, NY
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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