U.S. unemployment rate falls to 50-year low of 3.5%
The U.S. unemployment rate fell to a 50-year low of 3.5% in September as the economy added 136,000 jobs, slowing from August’s upwardly revised 168,000 gain, according to the Bureau of Labor Statistics.
Foreign Investors Ramp Up Multifamily Acquisitions
Foreign investors continue to spend money on apartment properties in the U.S., even while they may be slowing down on purchases of assets in other sectors. In the second quarter, cross-border investors became net sellers of U.S. commercial real estate overall for the first time in seven years, according to Jim Costello, senior vice president with research firm Real Capital Analytics (RCA).
The top 3 markets all saw dips in rent prices last month as New York City fell from its 3 year high and San Francisco continued its downward trend. The rankings for the top 10 saw some movement in the middle and bottom, as Washington D.C moved up to become 6th, pushing Los Angeles down to 7th, and San Diego and Anaheim move into the top cities, both tied as 10th. Oakland also had a large 5.2% monthly one bedroom rental growth rate but remained firmly as 4th.
Apartment supply exceeds demand in only 3 U.S. markets
The nation's 150 major apartment markets have seen approximately 2 million new apartments built since 2010, but there's a problem. The number of renters in those cities have increased by about 2.5 million in that same time period. And with renting an apartment becoming more popular than it has in 20 years, that leads to many markets were demand exceeds supply.
Americans are trying to get Denmark's negative-interest mortgages
Two weeks ago Jyske Bank, Denmark’s third-largest bank, shocked the world by offering mortgages with a negative interest rate. Put simply, the bank would effectively pay customers to borrow money. It’s a bit more complicated than that, however, as borrowers have to pay fees that offset the savings.
Which cities are the best real estate markets and which are the worst? If you're a real estate agent, real estate investor, homeowner, homebuyer, or considering moving, you'll likely want to know the answer to that question.
This decade, more than 2 million new multifamily units have been added across the US. In terms of raw numbers, this volume hasn’t been seen since the 2.4 million new units introduced in the 1980’s. However, if we consider annual new units as a percent of existing capacity, the annual average of 2% for this decade falls well short of the 5% average from the 1980’s.
Homeowners in these markets are seeing their property values decline
In the next year, 5% of U.S. markets are predicted to depreciate, with Louisiana holding on to its title as the state with the most depreciating markets, claiming four of the 10 spots on the bottom market list.
Fed cuts rate by a quarter point, cities ‘Global Developments,’ ‘Muted Inflation’
The Federal Reserve lowered its benchmark rate by a quarter point Wednesday as an insurance policy not against what’s wrong with the economy now, but what could go wrong in the future. It was the first rate cut by the central bank in more than a decade.
San Francisco one bedroom rent hit another peak, up $20 to $3,720, as summer moving demand starts to drive up prices in this city. New York City one bedroom rent, on the other hand, took a slight dip after hitting its 3 year peak in our last rent report.
Apartment rental demand soars as more millennials believe it’s cheaper than owning a home
In the D.C. suburb of Chevy Chase, Maryland, a massive apartment rental and condominium complex is going up, and apparently it can’t happen fast enough. Demand for rental apartments in and near cities across America is soaring, just when most thought it wouldn’t be. The expectation was that rental demand would fall as millennials aged into their homebuying years.
Strong job growth is back: Payrolls jump in June well above expectations
Payroll growth rebounded sharply in June as the U.S. economy added 224,000 jobs, the best gain since January and running contrary to worries that both the employment picture and overall growth picture were beginning to weaken. The unemployment rate edged up to 3.7% as labor force participation rose, according to the Labor Department.
REITs and developers following in the footsteps of Sam Zell’s Equity LifeStyle Properties are eager to acquire mobile home parks for their reliable income and development possibilities — but mom-and-pop owners rarely want to part with their holdings.
When It Comes to the Nation's Top Markets for Apartment Construction, No One Messes With Texas
Texas residents will tell you it gets hot temperature wise, but apartment construction activity across the Lone Star State may generating even more heat, thanks to its blistering job growth and competitive cost of living. Particularly, the Dallas-Fort Worth metroplex has been the consistent leader in terms of overall apartment construction volume in the United States.
The numbers: The University of Michigan’s consumer sentiment index in May climbed to a reading of 102.4, a 15-year high, from April’s reading of 97.2. Economists polled by MarketWatch expected a reading of 97.1.
Slowdown in U.S. Housing Market Is Helping Landlords Raise Rents
(Bloomberg)—The U.S. housing slowdown is turning out to be a gift to apartment landlords. After all, those people who aren’t buying still need somewhere to live.
Data from Zillow released Thursday shows that home-price appreciation continued to slow in April from a year earlier, driven in part by softening West Coast metros like San Jose and Seattle. The company also reported the first nationwide monthly price dip in more than seven years -- albeit just 0.1%. At the same time, rent growth accelerated, climbing by 2.6% on an annual basis, after a lull in 2018.
As Southeastern Cities Experience Strong Job Growth, They Are Also Seeing a Rising Demand for New Apartments
“The Southeast’s major metros have posted terrific apartment sector performance during this cycle,” says Greg Willett, chief economist for RealPage Inc., a provider of property management software and services based in Richardson, Texas. “Investment returns have rivaled the results generated in traditionally favored gateway markets, without the volatility sometimes seen in this part of the country during the past.”
A recent report from the National Association of Realtors reveals that Millennial homeownership migration is primarily motivated by market affordability and strong job prospects. The report analyzed the employment gains, population trends, income levels and housing conditions of 100 of the largest metropolitan statistical areas in the nation.
U.S. economy rebounds, exceeding market expectations
Gross Domestic Product reversed its course in in the first quarter of 2019, according to the advanced estimate from the Bureau of Economic Analysis.Real GDP increased at an annual rate of 3.2% in the first quarter, compared with a gain of 2.2% in the prior three months, according to the advanced estimate. It was the first acceleration of growth since mid-2018.
U.S. home-sale prices experience first annual decrease in 7 years
In March, the nation’s home-sale prices remained virtually stagnant, inching backward only 0.1% from 2018 levels, according to new data from Redfin.This means U.S. home-sale prices reached a median of $295,000 in March, marking the first year-over-year price decrease on record since February 2012.
U.S. Multifamily has not historically been a common investment vehicle for global commercial real estate investors, largely due to the differences in how residential real estate is conducted around the world.
Multifamily real estate just had its best year since 2000
By just about any way you look at it, 2018 was the best year for multifamily real estate this century: Renters paid more for housing than they ever have before, Freddie Mac and Fannie Mae both had banner years, commercial and multifamily debt hit an all-time high, all while delinquencies remained at historic lows.
Value-Add Properties Still Have Plenty of Upside to Offer Multifamily Investors
"There is a vast amount of capital in the multifamily space targeting value-add apartment properties,” says Rick Hurd, chief investment officer for Waterton, a real estate investment and property management firm.