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March 14, 2018
Why Apartments Outperform
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Any way you slice it, the apartment market delivers strong returns. That is the main takeaway from the new research paper, “Explaining High Apartment Returns,” from Dr. Mark J. Eppli of Marquette University and Dr. Charles C. Tu of the University of San Diego.

The study examines a wide range of property and financial market characteristics and finds that apartment returns largely outperform other asset classes over time, geography and various market conditions. As highlighted in a new WSJ article, most of the return is from income generated and not capital appreciation

This is the first body of work coming out of the NMHC Research Foundation, formed in 2016 to focus exclusively on filling gaps in multifamily research and analysis. 

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Top News


Industry Groups Say Tariffs on Aluminum and Steel Will Hurt

“Policies that increase the cost of development stand in the way of meeting urgent housing demand as well as imperil the economic and employment gains achieved through tax reform,” says NMHC’s Cindy Chetti.


Rent Control Takes Center Stage Again

NMHC’s Doug Bibby sees a new era of combatting rent control policies ahead as battles over the deleterious policy are brewing coast to coast. The debate is hitting a fever pitch in California, as momentum builds for more radical action and policymakers find themselves with limited tools to respond to extreme housing conditions in the short term.


Foreign Investors Pile into U.S. Student Housing

As the commercial real-estate market enters the late innings of a bull market, foreign capital floods the student housing market in hopes of better returns. Foreign capital accounted for 42 percent of student-housing transactions so far this year; this is double the share from just two years ago.(paywall)


What Does the Apartment of the Future Look Like?

NMHC’s Disruption report and apartment-of-the-future project continue to get media traction. Check out the latest coverage from Inman, which focuses on the eight ways multifamily design is set to change in the future. (paywall)


Multifamily REITs Focus on Garden-Style Apartment Communities

Apartment REITs have significantly slowed down their acquisition and development activity, especially compared to earlier in this cycle. But when REITs do buy new buildings or start construction, many target garden apartment properties


California's Love of Cars Is Fueling Its Housing Crisis

With California’s strict parking requirements adding between $52,000 and $70,000 to the cost of a new apartment, it’s no wonder the state has a housing affordability problem. “Removing parking requirements would be one of the simplest ways to ease California’s housing crisis,” writes Bloomberg’s Virginia Postrel.


Why Your Next Real-Estate Deal Might Involve a Robot

It’s the brave new world of real estate by robot. A new crop of companies is introducing technology they say will reshape how property is rented and sold. (paywall)
In Case You Missed It
A hand-selected collection of noteworthy articles on a wide variety of issues of interest to apartment executives.
To Fund Affordable Housing, Oregon Cities Turn to Construction Excise Tax 

Ben Carson on His Vexing Reign at HUD: Brain Surgery Was Easier Than This

More Apartment Managers Offer Free Rent to Lure Tenants

New Housing Shortage Report Shows How California Cities and Counties Stack Up 

A-Rod and JLo Boost Program That Teaches Inner City Kids About Real Estate

Opinion: American Infrastructure Must Include Housing

California Homeowners Receive 15 Times More Subsidies a Year Than Renters, Report Finds 

Is Peak Construction Over in Seattle? 

Proposed Denver Development Includes Hotel-Apartment Combo 

Seattle Pushes for Apartments Without Onsite Parking
Multifamily Market Dashboard

Anti-Developer Sentiment a Major Factor in NIMBYism

A new study from researchers at the University of California, Los Angeles digs into the nature of not-in-my-backyard (NIMBY) opposition to proposed new developments, showing that anti-developer sentiment is a lead contributor to neighborhood opposition.

In the study, respondents were questioned about common anti-development arguments, i.e., the effect of a new apartment community on traffic congestion, neighborhood character and strained local services. However, researchers also introduced the idea that people might oppose development because of a distaste for developers in general.

Results show that opposition increases by almost 20 percentage points when respondents are presented the argument that a developer stands to make a large profit from the deal.

Upcoming Meetings
2018 NMHC Emerging Leaders Speaker Series Miami, April 4 in Miami, FL

2018 NMHC Research Forum, April 17-18 in Chicago

2018 NMHC Spring Board of Directors Meeting, May 9-11 in 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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