Consider asset hardening to reduce insurance risk
When I moved from the San Francisco Bay Area to a suburb of Dallas, Texas, I was concerned about what the weather would be like. I knew it would be extremely hot, but having...
Apartment REITs (and some privates) lead new project starts
Confidence has returned to a small segment of the multifamily arena forecasting an end to the supply glut that has stymied both development and acquisitions over the past several years. Apartment REITs...
Multifamily starts lower despite steady permits
Recent reports on new residential construction from the Census Bureau have been up and down in the number of multifamily starts reported. Last month’s report was up and this month’s report was down. This...
Multifamily developer confidence soft despite solid occupancy
Confidence in the market for new multifamily housing reflected mixed results year-over-year in the fourth quarter, according to the Multifamily Market Survey (MMS) released February 13 by the National Association of Home Builders (NAHB)....
Multifamily CMBS special servicing rate eases in January while loan losses surge
Trepp reported that special servicing rate for multifamily commercial mortgage-backed securities (CMBS) loans fell slightly in January, declining by 30 basis points. It had risen for 5 months in a row. The overall CMBS...
Rate of construction materials price rise is higher in January
The producer price index (PPI) report from the Bureau of Labor Statistics (BLS) stated that construction materials prices rose 0.3 percent month-over-month in January on a seasonally adjusted basis. The index of components and...
Blame it on the ground hog!
On February 2, 2025, Punxsutawney Phil, AKA “The Groundhog” suggested that there would be 6 more weeks of winter. Over the past 130 years, Phil has been accurate about 40% of the time, which...
New boss, potential budget cuts for affordable housing
President Trump’s budget cut proposals for housing programs have raised concerns in the affordable housing industry. On the table are proposed reductions to the U.S. Department of Housing and Urban Development (HUD)...
Steady growth in multifamily mortgage originations seen in 2024
A report from the Mortgage Bankers’ Association (MBA) says that multifamily mortgage originations were up 69 percent year-over-year in Q4. Originations of all commercial mortgages as a single asset class rose 84 percent year-over-year. Commercial...
Rent growth turns positive in January
Yardi Matrix reported that the national average asking apartment rent was up $3 in January compared to the revised level of the month before at $1,746 per month. The national average year-over-year asking apartment rent...
Mixed report for residential construction employment growth
The Employment Situation Report from the Bureau of Labor Statistics (BLS) stated that the economy experienced modest overall employment growth in January. While the employment levels for 3 of the 4 multifamily-related job categories...
Wherefore art thou sustainability
So last week, we talked about Caddy Shack. It is a perfect segway into Shakespeare. In Shakespeare’s “Romeo and Juliet” Juliet from her balcony contemplates her love for Romeo despite her family’s feud with his...
HUD gets its first chief with real-world housing experience
On February 5, the U.S. Senate confirmed Scott Turner as secretary of Housing and Urban Development (HUD). Turner takes over the position from Marcia L. Fudge, who announced her retirement last year. Turner...
Number of renter households falls in Q4
The Census Bureau’s quarterly report on home ownership and occupancy for Q4 2024 stated that the rental housing vacancy rate was 6.9 percent. This was unchanged since last quarter’s report despite a slight drop...
Multifamily CMBS delinquency rate edges higher
Trepp reported that the rise in the delinquency rate for multifamily commercial mortgage-backed securities (CMBS) loans continued in January, although more slowly than in recent months. The overall CMBS delinquency rate declined marginally, falling...
