Student Housing Jul07

Student Housing

Already well known in the industry for its dependable, up-to-date and prescient market data, Yardi Matrix will take those skills to school as it begins reporting on the student housing sector. The new research area from Yardi Matrix comes at a particularly opportune time, as student housing owners and investors are navigating an uncertain environment caused by the COVID-19 pandemic. With many colleges and universities still making final decisions about what campus life and enrollment will look like in fall 2020, housing providers are anxious to see how this unprecedented situation will impact revenue streams and investment health. Quarterly Matrix reports focused on the student housing market will be available beginning this summer. Market coverage will include over 2,000 universities and colleges nationwide, including the top 200 investment grade universities across all major collegiate conferences. Reports will also include shadow markets, meaning campus-proximate housing that often is rented by college students, though it may not be categorized as traditional student housing. “We’re looking forward to offering the same comprehensive and future-thinking reporting that we do for the rest of the real estate industry to the student housing sector,” said Jeff Adler, vice president of Yardi Matrix. “We’ve done a deep dive into student housing fundamentals and look forward to sharing our insight with all who are interested.” To that end, the Yardi Matrix team will host a July 15 webinar focused entirely on the student housing market. Attendees can expect to gain insight on the short and long-term impact of COVID-19, best and worst-case scenarios, key indicators for operators and potential areas of opportunity. You can secure your spot in the online session by signing up here. Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property...

Long Term Impacts Jul06

Long Term Impacts

With the U.S. economy in a recession, unemployment numbers sky high and COVID-19 cases surging in the south and west, multifamily owners and operators face challenging times ahead. And things may get worse before they get better, according to a new special report from Yardi Matrix. The report is based on a study of 107 major metros, with data reflecting April and May 2020 asset performance. Over that period, multifamily asking rents dropped .4% nationally, and twice as many markets saw rents decline as opposed to increase. Renters are looking for less expensive units, with the biggest impacts in the sector felt by Class A+ properties. Rents for “luxury lifestyle” properties dropped by -1.2% over the last two months, compared to a decline of .5% for “renter by necessity” properties. “Multifamily’s nearly decade long run of healthy performance increases came to an abrupt and unexpected end this year,” said Jeff Adler, vice president of Yardi Matrix. “Job losses have been particularly high among apartment renters, and simply collecting rents and maintaining occupancy is a new area of focus for owners and managers.” Multifamily had a long run of strong performance – asking rents grew by 26% nationally between January 2015 and 1Q20. But going forward, the future looks cloudy at best. “The shape of the recovery remains unclear. More importantly, the pandemic is spurring changes in working conditions and social trends that will impact housing demand for years to come,” states the report. What’s ahead will be determined by a complicated combination of economic factors, public health metrics and renters’ feelings about the future. If renters decide to eschew urban apartments for a more distanced standard of life in the suburbs or smaller cities, multifamily could be in for a prolonged pain period. Gain...

Rents Drop, Prompting Concern Jun18

Rents Drop, Prompting Concern

When you think about a 0.3 percent drop in anything it hardly seems like a big deal. It’s just 3 pennies on every 10 dollars. If you are an apartment operator and that reflects the national average on rents for May compared to April, some would figure it’s something not too difficult to make up. But what if it isn’t? The three-tenths of a percent is the drop for one month, and 12x that comes to 3.6 percent annually. Quickly, that could become serious. During what would typically be the middle of prime leasing season, rents declined nationally by 0.3% on a month-over-month basis, reports Jeff Adler, vice president of Yardi Matrix. He describes that drop in rents as startling. “Is it a harbinger of things to come? A warning sign?” Adler says. “When rents being offered to new residents drop like that month-over-month, year-over-year you have to ask yourself.” Adler says current national multifamily occupancy rates are mostly steady (a good thing). And there’s no deterioration in demand as measured by apartment search activity, which is also positive. “But this is peak leasing season,” he adds. “Falling like this would be at a rather significant clip. If we see it again next month, then demand will not have stabilized. And data show this is happening to high-end apartment communities.” The steepest declines in rents on a MoM basis were seen in major gateway markets that were among the first to impose strict lockdowns. Smaller markets are not immune and have seen substantial MoM rent declines as well. For this “general rolldown” in rents, Yardi Matrix has observed year-over-year rent decreases of -0.6 percent to -1 percent in major metropolitan areas across the country, including San Jose, Houston, Orlando, Denver, Los Angeles, San Francisco and Chicago. Unprecedented Swiftness Many long-standing observers and employees of the multifamily industry can point to real estate’s cycles, and to the Great Depression, back around 2008-09, when rent declines were similar. “But the swiftness of what we’re seeing now is unprecedented,” Adler says. “Back then, job formations were slowing and you could almost read between the lines to know something bad was coming up. There were signals. This time, it’s sudden. This time it’s being caused by a health issue. We are counting on a vaccine or treatment to COVID-19 to turn the tide.” Job creation, of course, is helpful. Job losses, however, equate to income losses and ability to pay the rent, and inability for owners to stabilize (if not raise) rents. “For the sake of the industry, let’s hope that six months down the road things are different,” Adler says. “Wouldn’t it be great to go back to how it was in February, or even in 2019?” Some can speculate that the “busy season” for leasing could move to fall this year. Look at These Numbers Yardi Matrix also reports that national average rents decreased $5 to $1,460. Kansas City (0.4 percent), San Antonio and Baltimore (both 0.1 percent) were the only markets to show increases from April to May; 23 markets remain negative on a month-over-month basis. the last two months overall, rents have declined by $13. “If rents continue this rapid downward trend, we could be looking at alarming numbers by the end of the summer,” Adler says. The markets with the most severe MoM declines include Houston and San Jose (both -0.9 percent) and Nashville, Orange County and Seattle (all -0.8 percent). Houston tends to be among the most volatile markets in a normal month, and given the rapid decline in oil prices the road to recovery in Houston could be extended. San Jose, Orange County and Seattle were among the first markets to impose stringent lockdowns. Seattle only entered Phase 1 of reopening on June 5. Social Unrest Could Affect Urban Rents Apartment operators also must consider the social unrest that is going on in many urban centers....

Durable Employment May28

Durable Employment

Each week’s news seems to bring a new wave of devastation for the U.S. employment market, as unemployment claims continue to climb due to the COVID-19 pandemic. The national unemployment toll was 36.5 million jobs lost when this was written – by the time you read it, that figure will likely be higher. Yardi Matrix® dove into the unemployment data to find out which sectors and geographic regions are hardest hit, which will hold up and where the unemployed may want to look for their next opportunity. Unlike past recessions, job losses have not been spread across the economy. Layoffs and furloughs have been concentrated in segments most affected by shelter-in-place orders: retail, leisure, travel and entertainment, and jobs in which social distancing is difficult. Between February and April, leisure and hospitality jobs contracted by a jaw-dropping 48.1%, or 8.1 million workers. Other hard-hit segments include other services (-21.9%), a category that includes personal services and repairs, retail trade (-13.7%) and construction (-12.7%). The number of lost jobs has been higher among hourly, service-based workers than for career workers who more easily can work from home. On a proportional basis, job categories that shed the fewest jobs over the last three months are financial activities (-2.8%), government (-4.3%) and wholesale trade (-6.2%). Another segment that lost relatively few jobs was professional and technical services (-5.3%), which includes computer systems design services (-3.8%). “This report provides in-depth insight to the most durable employment sectors, both professionally and geographically,” said Jeff Adler, vice president of Yardi Matrix.  Find the full Durable Employment Sectors report from Yardi...

Self Storage Outlook May23

Self Storage Outlook

Self storage is still considered among the most stable real estate sectors during rocky economic times, but it is not immune from the COVID-19 crisis, attendees of the May 19 SSA Webinar presented by Yardi Matrix experts learned. “Under the best of circumstances, and short of a medical solution, recovery is going to be partial and slow,” said Jeff Adler, vice president of Yardi Matrix, at the start of the presentation. Adler and Chris Nebenzahl, institutional research manager for Matrix, presented the current outlook for self storage as it navigates changing tides. If you missed it, find the presentation materials and a recording of the session. While the industry looked strong in March, things shifted in April. National street rates for 10×10 non climate controlled (CC) units fell 2.6 percent, and rates for 10×10 CC units fell 6 percent. That was the largest decline in more than three years.   The impact was nearly universal, as street rates for non-CC units fell in 97 percent of the major markets tracked by Yardi Matrix, and CC units saw declines in every market tracked. Only Raleigh-Durham and Portland, Ore. saw non-CC street rates drop less than in previous months, and Phoenix stayed completely flat (see slide at left). Nationwide, Yardi Matrix tracks a total of 2,209 self storage properties in various stages of development, comprising 593 under construction, 1,172 planned and 444 prospective properties. Matrix also maintains operational profiles for 25,914 operating self storage businesses, bringing the total data set to 28,123. The COVID-19 crisis has yet to slow self storage development, however, as properties under construction or in the planning stages account for 9 percent of the market in April, a 20-basis-point increase over March. That’s expected to change in the coming months. “We expect...

Varying Impacts May13

Varying Impacts

Yardi Matrix continued its series of comprehensive market impact webinars on May 13 with an in-depth look at the state of the commercial real estate industry, presented by Jeff Adler, vice president of Matrix, and Rob Teel, senior vice president of global solutions at Yardi. Both provided data and insight into the crucial question Adler introduced at the start of the session: How do we move forward, past the lockdown and into the recovery phase? “Despite the herculean efforts by the federal government to keep businesses afloat, there is still more pain to come,” Adler said. And for each sector of commercial real estate, the road ahead will look different. Optimistic outlook for industrial Across all real estate sectors, industrial and multifamily are holding up best during the COVID-19 pandemic. “They were also the two best performing sectors before this hit,” Adler noted. April rent collections for industrial averaged around 86-87 percent, so the sector is not entirely immune to nonpayment, but looks good compared to retail. Dependence on e-commerce for home-delivered supplies and other purchases has helped industrial stay stable. In some smaller markets ideal for last-mile delivery siting, industrial rents are even edging up. There’s also newfound demand for cold storage due to changes in the grocery market. Office holding up, but changes expected All things considered, “office is in pretty good shape,” said Adler. “Though coworking is hurt pretty bad.” April collections of office rents were in the 85 percent range, and are expected to stay high for buildings with large, well-capitalized tenants. Office may see significant changes as states return to work, however. Concern looms for office hubs like New York City, where dependence on public transit and crowded elevator rides in skyscrapers are both hard to reconcile with ongoing social distancing requirements. “There is going to be a rethinking of the footprint. How much physical space and face to face contact do you need to keep (corporate) culture together?” Adler asked. Teel noted that there has been a spike in interest in serviced, suburban office space from firms who want to return workers to the office but in a less congested setting. And coworking is likely not dead, but will have to return either long-term or with major changes to accommodate social distancing needs. A rough road for retail “This is where the carnage is,” Adler summarized bleakly. “And for retail, the snapback is not likely to happen anytime soon.” April rents were paid by around 45 percent of retailers, and May is expected to be far worse. Major retailers like J.Crew and Neiman-Marcus have already declared bankruptcy, although in some cases the pandemic merely sped up a predetermined outcome. Brick and mortar stores were already struggling with online competition well before the pandemic. “We are social animals, we will gather again, it will just take a bit of time for it to happen. And there will be pain in the sectors that depend on the gathering of people,” Adler said. Grocery-anchored retail continues to outperform, but is still taking a hit due to closed secondary tenants. For more in-depth information on the state of the commercial real estate market, view the latest Yardi Matrix report. Yardi observes latest CRE technology trends Teel delivered an overview of the tech requirements that commercial owners and managers are now finding to be essential in today’s changed world. Accounts receivable tracking for deferrals and concessions is crucial, as is accurate documentation and tracking of tenant status. Yardi will soon introduce a new CRE tool, LeaseManager, to help with that. But perhaps the biggest tech shift will be a paperless push. It will help CRE improve contactless business practices like vendor invoicing and electronic payment fulfillment. “This is one area that’s overdue for disruption and change and it’s happening now,” Teel said. He estimated that physical checks still make up 90 percent of the payments that Yardi clients...

Multifamily Outlook May11

Multifamily Outlook

Yardi Matrix continued its series of comprehensive market impact webinars on May 6 with an in-depth look at the state of the multifamily industry, presented by Jeff Adler, vice president of Matrix. “We are just beginning to see some of the ripple effects (on multifamily), and now the discussion has shifted to how we recover and move forward,” stated Adler at the outset of the session. Nearly 1100 real estate professionals tuned in for the 90-minute session. A similar presentation with a focus on the commercial real estate sector is set for Wednesday, May 13. You can register here. Attendees report that the Matrix webinars are invaluable for keeping a finger on the pulse of the rapid changes that continue to impact the industry. Here are some of the key takeaways from the multifamily impact webinar. Listen to the full presentation to see data points and comprehensive slides. So far, the multifamily industry is holding up well. April rent collections were excellent, only off a few single digit points from prior months, said Adler. It’s expected that trend will continue at least until August. Leasing season has resumed and many properties with availability are seeing more interest than expected, according to anecdotal reports from industry contacts. Data from Yardi’s RENTCafé online leasing service shows a marked uptick in views of online apartment listings over the last month. The economic recovery is expected to be partial and slower in some states than others. This will impact all industries, and multifamily will likely continue to see household consolidation as renters move in with friends or family members to try to keep costs down. For new leases, concessions offered by owners and managers will be an important indicator of market performance trends going forward. Population trends will...

Commercial Outlook Apr06

Commercial Outlook

Last week, Yardi Matrix hosted three webinars that provided insight on how the COVID-19 pandemic is impacting the self storage, multifamily and commercial real estate markets. Let’s look at the insight on the commercial market, which is extensive. This post will cover the office market – a follow-up on industrial and retail can be found here. National overview For most sectors of commercial real estate, the next four to eight weeks will be tough. Due to state public health mandates, up to a quarter of the country’s economy has shut down, which will result in double digit GDP drops. The travel, hospitality, and restaurant industries have been the hardest hit, affecting about 30 million people. The United States Department of Labor reported 6.6 million new jobless claims in March. While outlook for Q2 and Q3 is not encouraging for all sectors, a few sectors are functioning if not thriving. Agriculture, industrial, distribution, and construction are among the sectors that are stable or growing during the pandemic. For sectors that are suffering, analysts forecast a dip in economic performance rather than a long-term decline. How much and how broad of a dip is still up for debate. The peak and denouement of the pandemic are uncertain, and business impacts will follow. In response, Congress has passed a $2T CARES Act stimulus package to offset economic decline and aggregate demand. The Federal Reserve rolled out several initiatives for small businesses totaling $350 billion. Large business can take advantage of nearly direct access to federal resources for capital. Efforts to stave off business bankruptcies are accompanied by consumer aid efforts. Though consumer spending is being redirected, it is only moderately reduced. The big question on everyone’s mind: can businesses stay open and recall workers when this is...

Bracing for a Downturn Apr04

Bracing for a Downturn

(April 2, 2020) – At face value, the rental data released today by Yardi Matrix for March 2020 looks solid, with rent growth averaging 2.9 percent year over year and up $6 from the month before. But those healthy numbers don’t reflect the ongoing national crisis due to the COVID-19 pandemic. With the U.S. now leading the world in active cases of the virus, nationwide non-essential business shutdowns and accelerating unemployment numbers, drastic changes are likely in store for the months to come. “As unemployment claims eclipse records and government stimulus reaches unseen heights, the question arises: Who will be able to pay rent in the coming months?” wonders the latest National Multifamily Report from Yardi Matrix. The new report reflects data collected in the second and third weeks of March. Yardi experts hosted a 90-minute webinar this week focused on the anticipated impacts of COVID-19 on the multifamily housing market. Demand for apartments has already dropped by double digits and lease-ups are likely to be intensely impacted by the crisis. “We are seeing the rapid adoption of technology tools to run (multifamily) operations from a distance,” said Jeff Adler, vice president of Yardi Matrix. You can view the full webinar recording and presentation materials online. Adler, along with several other Yardi multifamily market experts, spoke about the forthcoming challenges for the U.S. economy as a whole and multifamily specifically. They also answered dozens of audience questions. The next few months are likely to be rocky, they cautioned. “Demand for apartments has fallen at least 30 percent over the last 2 to 3 weeks, but so have move outs,” Adler said. Multifamily vacancy rates are likely to remain stable in the coming months, especially since so many protective measures have been put in place for renters by federal, state and local governments. The National Multi Housing Council (NMHC) is recommending suspension of evictions for residents affected by COVID-19, as well as a 90-day pause on rent increases. NMHC, in partnership with leading apartment data providers like Yardi, will also analyze weekly metrics assessing the overall effect of the COVID-19 pandemic on the U.S. multifamily industry. More on that here. To get out ahead of the situation, Adler recommended that owners and managers be proactive about reaching out to residents (using safe social distancing practices, of course).  As many as 1 in 9 Americans indicated in a major survey that they may not be able to pay a mortgage or rent in April due to unemployment or other loss of income associated with the pandemic. “Get on top of this now to keep people in their apartments. Work out a payment plan if you have to,” Adler suggested. There are many options to consider for various situations but be sure to act before rent is due at the end of April to prevent unexpected surprises. You can find many more best practices for dealing with this unprecedented situation and all of the webinar slides on the Yardi Matrix webinar resources page. And access additional upcoming webinars and more on Yardi’s COVID-19 support resources...

Self Storage Outlook Apr01

Self Storage Outlook

The Yardi Matrix research team delivered an insightful presentation on the state of the national self storage market on March 31, with one of the primary themes being the impact that the COVID-19 pandemic may have on the industry. Though the ultimate result of this unprecedented situation will roll out in the coming months across all real estate sectors, early indicators suggest that self storage investments may be equipped to weather the storm, the Matrix team reported. Miss the presentation? No problem, you can find the recording here. Jeff Adler, vice president, Yardi Matrix, delivered the hour-long market summary for a record number of Matrix webinar attendees. “From my perspective, consumer demand for self storage is stable or growing at this point in time,” Adler shared. Residential consumers who wanted to move out of storage to save money would have already done so, he commented. The greater industry risk, Adler noted, is from small retail businesses that may use self storage facilities for inventory storage/warehouses, since brick and mortar retail is extensively affected by nationwide non-essential business shutdowns. The coming weeks and months will reveal just how vulnerable such tenants might be. A key factor to watch when assessing the health of the market is business bankruptcies, shared Adler. If states and metros can bounce back quickly and rehire workers, impact will be lessened. But prolonged shutdowns could lead to greater distress and increased impact for the self storage market. From an investment perspective, major REITs have essentially halted their purchases in the self storage market for the time being, shared Jack Kern, director of institutional research for Yardi Matrix. “Nobody is moving forward (with planned transactions),” said Kern in response to a question asked on the webinar. “This may be an opportunity for...

Uncertainty Ahead Mar31

Uncertainty Ahead

February was the last month of the record long economic recovery before U.S. office workers were largely asked to work from home, which will likely have long term implications for the national office market, Yardi Matrix reports in this month’s National Office Report. The rapid growth of COVID-19 has made it clear the economy has quickly shifted into contraction mode as the nation reacts to an unprecedented pandemic. “This is a rapidly changing situation with no clear timeframe or conclusion, and as of now it’s unclear how long the shelter-in-place orders, social distancing and moratoriums on public gatherings will last or how deep the economic contraction may become,” states the report. Market experts also suspect that the mandatory work from home restrictions may have long term implications for offices, perhaps changing how feasible and desirable workers view remote work, while potentially having more challenging implications for the coworking industry. Office transactions will likely come to a halt for the time being despite record low interest rates and widening cap rate spreads. For the most part, the office market didn’t enter this situation overbuilt or with loans that are overleveraged. This should help activity resume once the crisis subsides. “Owners may be hesitant to lease space to coworking firms that are themselves dependent on short-term leases. Further, remote workers that had utilized cowork­ing space may find themselves making the home office a permanent one over the next couple of months,” states the report. Yardi Matrix will offer a two upcoming webinars next week on the impact of COVID-19 on the U.S. real estate market. Join the webinar with multifamily focused insight on Wed., April 1 at 10:30am PST. Join the webinar with a commercial real estate focus on Thurs., April 2 at 12:30pm...

Utilizing Market Data...

Multifamily property performance has been stellar throughout most of the country. There are, however, distinct regional differences in fundamental measures. Savvy investors examine macro and micro economic trends before making investment decisions. Focus areas include rent growth, occupancy trends, supply growth and transaction activity. By understanding those multifamily trends, property managers can optimize property performance and occupancy to satisfy investors. The IMN Property Manager & Operations Forum – Southwest dove into the nuances of real estate data and how it impacts investors’ decisions. On the panel, “Multifamily Investment Trends & Their Impact on Property Managers,” industry experts identified best practices that can help property managers navigate data to their benefit. Chris Nebenzahl, director of institutional research, Yardi Matrix, was one of the experts on the panel. He explored the benefits of monthly national and metro trends reports, such as the reports Yardi Matrix provides for multifamily. Robust reporting provides insights into the industry that can help property managers make informed decisions. Definitely mess with Texas Texas markets, especially the Dallas-Fort Worth metroplex, are very strong places to invest. Supported by job growth and ample land, these markets are ripe with potential. There is a lot of capital in play throughout the state, even in smaller markets. The rise of popularity has made finding deals increasingly difficult. “The value-add trade is far less lucrative and easy to find than it was earlier in the cycle,” says Nebenzahl. “Yields are compressing making the value add harder to accomplish.” He adds that since valuations are high, the next decade will be focused on operational efficiencies, “Hold periods will likely extend out, and high equity multiples will be less likely. As a result, cash flow, managing expenses and driving revenue as much as possible will be essential for...

Multifamily and COVID-19 Mar17

Multifamily and COVID-19

It seems no industry is immune from the impact of the COVID-19 virus, and that includes multifamily real estate. The global spread of the COVID-19 virus has brought a technical end to the 11-year bull market in equities, forced a European travel ban and sent Treasury rates to historic lows. According to the latest multifamily report from Yardi Matrix, the industry may feel the effects of COVID-19 as it spreads across the nation, although the rental housing industry remains well capitalized and strong enough to weather a modest slowdown. “Owners and operators may face short-term rent collection issues if there is a tightening in the employment market, and value-add projects will likely slow,” states the special report from Yardi Matrix. “However, most real estate investors are poised to sustain their operations and may see an investment opportunity as the market shocks continue.” Travel, hotel, restaurant and trade industries will likely be hurt the worst, as business and leisure travel draw nearly to a halt. “It seems inevitable that the U.S. economy will experience a technical recession,” states the report. “Business travel has all but stopped and personal travel has slowed considerably, leading the airline industry to be one of the hardest-hit sectors. Restaurants and tourism will also feel significant pain as trips are canceled and social distancing increases.” While the data has yet to reflect the impacts of COVID-19 (February employment growth was very strong, jobless claims did not increase, and rent growth continued its steady increase), the coming weeks and months are likely to show employment cuts and a slowdown in trade with widespread impacts. Learn more by downloading the full Yardi Matrix special multifamily report at yardimatrix.com Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real...

Multifamily Trends Mar16

Multifamily Trends

Multifamily housing performance has been strong across the U.S. during the current economic cycle, but there are notable regional differences in market health, investor demand and economic growth, says the latest Yardi Matrix regional multifamily report. The report analyzes rent growth, occupancy, supply growth and transaction volume in 130 metros between 2016 and 2019. The strongest performances were delivered by metros in the Southeast, Southwest and Western U.S., while the Northeast and Midwest were slightly behind. Key takeaways from the report: The Southeast, Southwest and Southeast have outperformed in rent growth, employment and transaction volume The West and Southwest have led in rent growth for most of the economic cycle Led by the Northeast, occupancy rates at the end of 2019 were nearly 95 percent in every region except the Southwest The Northeast ($2,066) and West ($1,824) have the highest rents in the nation New investment is highest in the Southeast and West, which accounted for 60 percent of multifamily transaction activity last year “Robust demand to add multi-family properties to portfolios pushed deal flow to an all-time high of $119.5 billion in 2019,” notes the report. Nearly 300,000 multifamily units were delivered last year nationwide. Find all the regional performance insights and learn what’s happening in your region in the Yardi Matrix regional multifamily report.  ...

Southern Heat Feb24

Southern Heat

Yardi Matrix national multifamily report reveals that the southeastern markets continue to demonstrate strength. Not surprisingly, affordability and job opportunities attract renters to the region. Yet as with most of the nation, major metropolitan areas have become less affordable—and therefore less feasible—to most renters. A few surprising suburbs spark renters’ interest instead. Old news, new spin Most people who are priced-out of major markets make their way into the more affordable suburbs. On Seattle-based real estate brokerage Redfin, for example, the most year-over-year pageview increases occurred on cities just outside of major metros. Such suburbs might not offer the trendiest features, but affordability is a major motivator. Renters like to have money left over to enjoy after paying the rent! None of that news is new, exactly. The trend has been gaining traction since the end of 2012. What may be more surprising, however, is that more than half of the nation’s hottest suburbs are in the southeast rather than the go-to coastal cities. Sizzling southern markets Though national data is sending mixed messages on growth, the southeast has performed consistently well. The average U.S. rent declined by $1 in the first month of 2020, ending January at $1,463. This marks the third consecutive month of declining rents. In contrast, year-over-year growth has hovered around 3.0%. More than half of the top 30 markets posted year-over-year rent growth above the national average and, in a rare occurrence, zero major markets reported negative year-over-year rent growth. Just outside of these successful markets, suburbs are thriving, especially in the southeast. Per Redfin year-over-year pageview reports, the following 10 suburbs have experienced the highest interest: Willowsford, Ashburn, VA (Washington, D.C. metro) Bal Harbour, Fort Lauderdale, FL Wildwood, Charlotte, NC West Arvada, CO (Denver metro) Waverly Hills, Arlington,...

Multifamily Market Feb15

Multifamily Market

The U.S. multifamily market’s consistent performance over the past several years should continue into 2020, according to a new market analysis from Yardi Matrix. That outcome assumes the absence of major shocks to the macro economy or the capital markets such as trade war escalations or slowing growth in Asia and Europe. But for now, prospects remain bright, thanks to steady economic growth in most markets, a healthy job market, low interest rates and an oil glut that has suppressed inflation. “Even if employment were to cool and the economy to face a mild recession, we expect the housing market, and multifamily specifically, to ride through the downturn with relatively little impact,” the report says. Other concerns loom over the market. For example, despite the decade-long economic expansion, homebuilders haven’t kept up with demand, producing a significant housing shortage in many metros. That imbalance and steady rent growth prompted rent control measures in high-cost California, New York and Oregon in 2019. Industry watchers are wary of additional state and municipal legislation intended to promote affordability that could end up dampening development and driving investment to markets with higher growth potential. Yardi Matrix is ready to share insight into factors shaping the U.S. multifamily market including potential military conflicts in the Middle East; the growth of technology and manufacturing in places like Phoenix, Atlanta, Denver, Seattle and Austin, Texas; millennials’ and boomers’ lifestyle preferences; construction labor shortages; the Fed’s actions; and more. Download the new market analysis for winter...

New Office Insight Jan22

New Office Insight

Here are some highlights of the most recent U.S. office property report from Yardi Matrix: Office-using employment increased 1.6% year-over-year in November 2019. The average asking rate increased 2.3% year-over-year that month while the vacancy rate fell 10 basis points to 13.6%. Growth in demand for office space as measured by office-using employment is heavily concentrated in a handful of metros. The top 20 markets tracked by Yardi Matrix accounted for 64% of office-using employment growth from October 2018 to October 2019 but only about 42% of total employment growth. Transactions through November totaled $82.2 billion, on pace to match or exceed the $93 million recorded in 2018. Sixty-seven million square feet of space was delivered year to date through November and another 156 million square feet remains under construction. Learn more about key trends in national supply, demand and sales—along with the factors driving listing rate increases in Brooklyn, N.Y.; and why the office market economies in Nashville, Tenn., and Orlando, Fla., are riding high—in the Yardi Matrix national office report for December...