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June 28, 2017
The Hardest Places to Build in America
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Apartment firms face many challenges when bringing new apartments to local communities. Companies often measure efforts in terms of dollars and time, but now, for the first time, there’s an industry index to help put a number on it.

NMHC and NAA recently released the Barriers to Apartment Construction Index, a new tool that scores 50 metro areas by the difficulty to build new apartments.

Taking into consideration local regulations, available land and other factors, the index goes up to 19.5 in the most difficult market to add apartments (Honolulu) and all the way down to -5.9 in the easiest (New Orleans). Any score above the median of 1.8 means that it is harder to add new apartments in a specific metro compared to other metros. (Read Bloomberg’s take on the results here.)

The index is the latest resource coming out of NMHC/NAA’s joint Vision 2030 public relations campaign, which aims to promote strategies and policies that can help the apartment industry build at least 4.6 million new apartments by 2030.  The index rankings, a Vision 2030 report and the complete set of future apartment demand data for the United States, all 50 states and 50 metro areas, are available at www.WeAreApartments.org

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Top News

INVESTMENT

Class B and C Apartments Will Rule in the Year Ahead

Casoro Capital’s Yuen Yung forecasts that Class A’s less-expensive counterparts will be the darlings of investors for the remainder of the year and next. 

RESEARCH

New NMHC/NAA Report Counters Apartment Oversupply Concerns

“We can scrap the talk of the apartment market becoming over-saturated—at least in the long term,” writes Globe Street’s Erika Morphy following a new report showing apartment construction isn’t keeping pace with projected apartment demand. See additional coverage from Los Angeles and Dallas

LAND USE

Oregon May Strip Portland of Its NIMBY Powers

All eyes are on Oregon as a controversial bill delivers a punch to NIMBYism. The bill aims to make it harder for local governments to restrict developments that include affordable housing and supports higher-density development. 

AFFORDABILITY

For Renters, the Housing Crisis Never Ended

The nation may be free of one housing crisis, but it’s still deeply mired in another one. Harvard’s Joint Center for Housing’s State of the Nation’s Housing report for 2017 highlights a rental affordability crisis that shows little sign of abating.   

MARKETING

Model Apartments Where Designers Run Wild

As developers face a glut of newly constructed apartments, some are turning to interior designers and letting them run wild with model units an effort to differentiate their buildings from the rest.

TECHNOLOGY

FCC Broadens Review of Multifamily Broadband Market

The Federal Communications Commission (FCC) began a formal inquiry into the market for broadband in residential and commercial “multiple tenant environments” such as apartments. Exclusive marketing and bulk billing arrangements, revenue sharing and exclusive wiring agreements are likely to be examined.

DEMOGRAPHICS

Where the Future Is Today

The NYT’s creates a Census time machine with an interactive graphic that examines which counties today resemble what America will look like in decades ahead—and which ones most resemble the nation's ethnic composition as it once was.
In Case You Missed It
A hand-selected collection of noteworthy articles on a wide variety of issues of interest to apartment executives.
U.S. Apartment Vacancy Rate Edges Up in Q2

On the Housing Crisis, Don’t Blame Landlords, Blame Legislators

Duties on Lumber Now Enough to Threaten Thousands of U.S. Jobs

The Smart Cities Movement Is Reshaping Commercial Real Estate

Tax Reform Uncertainty and the Low-Income Housing Tax Credit Market

Developers Design Adaptable Parking Space

Millennial Homeownership Rates Dropped in the Past Decade

Prefabrication Takes Aim at Labor Issue

Why Are Millennials Still Renting?

The Three Things Students Want in Housing Today

Opinion: The Apartment Market Is Starting to Crumble

San Diego Mayor Proposes Incentives to Create More Housing Affordability

The Rich Taking Cheaper Apartments, Furthering Affordability Crisis

Pools Remain the Amenity to Trump All Others
Multifamily Market Dashboard

Metros Face Different Supply and Demand Challenges

Fannie Mae’s June Multifamily Market Commentary finds national demand for apartment units still outpaces supply. However, supply and demand levels vary greatly by metro, leaving some metros struggling with shortages and others facing potential short-term oversupply issues.

This disconnect is projected to last 12-24 months in most metro areas. Many markets can expect some volatility, as job growth slows on a national level. Markets with large tech sectors (Austin, Seattle, Denver, etc.) will especially feel this volatility. After this period, however, job growth is projected to pick back up, normalizing supply and demand in most metros. 

 
Upcoming Meetings

September 25 - 27, 2017 at the Tampa Marriott Waterside Hotel & Marina, Tampa, FL

 
2017 NMHC OPTECH Conference & Exposition

October 25-27, 2017 at the Mandalay Bay Resort and Casino, Las Vegas, NV

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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