Apartment Wire - May 3, 2018 (Plain Text Version)
Rent Control's Negative Effects
Many jurisdictions consider rent control policies that artificially cap rents an effective tool to improve housing affordability. However, new research shows that rent control laws may do just the opposite.
In fact, such policies can contribute to higher rents, worsen housing affordability, cost taxpayers millions of dollars and amplify economic inequality, according to a new in-depth review of academic research on the issue by Dr. Lisa Sturtevant.
Strong underlying rental demand and positive industry performance metrics drove the 2018 NMHC 50—the industry’s authoritative ranking of the nation’s largest apartment owners, manager, developers, builders and syndicators. [return to top]
Competitive capital markets and high property prices are leading multifamily investors to smaller properties and smaller markets in search of better yields and opportunities for appreciation. “Fewer trophy assets are now trading,” says CoStar’s Lee Everett. “More investors are moving toward workforce housing. [return to top]
California advocates say they’ve garnered enough signatures to put a rent control initiative on the ballot in November. If passed, it would reverse a decades-old policy that bans rent caps and could pave the way for broader rent restrictions. While California is pioneering the movement, similar battles are brewing in Colorado, Illinois, Massachusetts, Oregon, Rhode Island and Washington. [return to top]
Apartment investors, especially those focusing on value-add opportunities, are taking advantage of low-interest loans through Fannie Mae and Freddie Mac's green financing programs. More than a quarter of the multifamily loans financed by the GSEs last year qualified. “The focus by the GSEs has certainly created more interest from people,” says NMHC's Dave Borsos. [return to top]
The General Data Protection Regulation (GDPR) is a new European Union data privacy and protection regime designed to give EU consumers around the globe more control over their personal data. This framework requires businesses, including apartment firms, to inform consumers about the data being collected and obtain consent, among other provisions. [return to top]
There is a lot being written about blockchain, bitcoin and related technologies, and, for many real estate professionals, this is part of a brave, new, confusing world of technology. Despite its potentially revolutionary implications, many industry professionals still don’t understand what the blockchain is. This article can help. [return to top]
Multifamily Market Dashboard
A hot topic of discussion among apartment researchers and industry executives during the 2018 NMHC Research Forum was the baby boomer renter and the growing opportunity for age-targeted apartment communities. Serving this constituency requires a different look at unit design, amenities and even property leasing and operations. However, if these risks are properly managed, the market commands significant rent premiums, longer tenures and higher returns on cost.
But the boomer renter was just one of the many topics covered at Research Forum. Discussions also focused on new housing tools and methodologies, emerging multifamily data trends and new investment analysis. Click here to access the full recap, including top takeaways, presentations and photos. [return to top]
NMHC’s Career Center has undergone nearly two years of system upgrades of improvements to provide members more support and a better recruiting experience. The redesign includes more data security, a high-speed, user-friendly responsive design and a more powerful search software. [return to top]