Apartment Wire - August 25, 2016 (Plain Text Version)

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Design for the On-Demand Economy

The digital economy is expanding rapidly, as a new generation of tech company is putting an ever-growing array of goods and services at the tap of customers’ fingertips. In fact, nearly three-quarters of Americans have used a shared, collaborative or on-demand online service.

This shift in consumer behavior is changing the way the multifamily industry thinks about apartments, from on-site services to the actual communities themselves. For example, the rise in popularity of ride-hailing services like Uber and Lyft is prompting some apartment communities to create amenitized waiting areas and separate drop off/pick up areas.

But technology moves fast, so today’s apartment firms are challenged to figure out how to best plan for the next big thing. For some, that means figuring out how to accommodate drone deliveries now that regulators have green lighted several companies to make them. One transportation expert imagines how apartment communities might evolve to that end.

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MAA Buys Post Properties to Form $17B REIT

Mid-America Apartment Communities agreed to buy Post Properties for about $3.9 billion. The merged company will count roughly 105,000 units in its portfolio. MAA currently ranks No. 9 on the top apartment owner and manager lists. Check out some post-deal analysis here and here.

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NMHC Is Moving

In anticipation of moving into our new location next week, NMHC’s phones will be down beginning Friday, Aug. 26. We expect service to be running again on Monday, Aug. 29. Should there be any delay, we will post updates at www.nmhc.org.  [return to top]


The Housing Non-Crisis

The Census Bureau kicked off a mini-panic when it recently reported that homeownership hit a 51-year low. But this doesn’t mean we’re on the eve of destruction. The homeownership rate is a largely meaningless statistic that has more to do with politics than economics. (paywall)
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More Women Move Up the CRE Ladder, But Pay and Ambition Gaps Remain

More women in real estate are occupying senior-level positions and feeling satisfied with their careers, but a gap remains in the income levels and job aspirations between men and women in the industry, according to a recent study by the Commercial Real Estate Women (CREW) Network. [return to top]


Google Looks at Wireless to Deliver High-Speed Internet

Google’s high-speed web plans hit snags as initial rollouts prove costly, forcing the company to rethink how to deliver connections in metro areas. Now the company is hoping to use wireless technology to connect homes, rather than cables, in about a dozen new metro areas.
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NMHC Launches New Non-Profit to Fill Industry Data Void

A new foundation dedicated to apartment industry research has raised over $2.25 million in cash commitments from NMHC members to address critical voids in apartment data and raise the industry’s standard of performance.  [return to top]


Demand for Student Housing Assets Increases

Strong fundamentals continue to drive interest in the student housing sector and strong deal flow. As of August, investors bought $5.7 billion in student housing properties in 2016, up from $3.7 billion over the same period in 2015. [return to top]


Almost a Third of Young Adults Now Still Live at Home

For the first time in more than 130 years, adults ages 18 to 34 were slightly more likely to be living in their parents’ home than they were to be living with a spouse or partner in their own household. This shift is leaving its mark on housing demand, but that might not be a bad thing, according to this WaPo opinion piece. [return to top]

Multifamily Market Dashboard

Banks, GSEs Continue to Dominate the Mortgage Market

In the latest edition of Market Trends, NMHC’s research team examines a slew of market metrics, including lending trends. While net multifamily mortgage credit extended eased to $19.4 billion in 1Q 2016 from the previous quarter’s all-time high, the lending environment remains active. During the past 12 months combined (TTM), mortgage debt outstanding (MDO) grew $103.6 billion to a total of $1.1 trillion, an increase topped only by 4Q 2015 TTM growth of $105.0 billion.

Banks and the GSEs extended a net $19.8 billion in mortgage credit, while life insurance companies, Ginnie Mae and other lenders provided a net $5.3 billion. The combined subtotal was offset by a record decline of $5.7 billion in CMBS mortgage debt outstanding. The depository institution share of all mortgage debt outstanding now sits at a record high of 35.0 percent, while the 5.1 percent CMBS share is the lowest in almost 20 years.

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