With improving employment figures, steady rental demand, and ever-increasing... More
Although we usually focus on American markets and economic indicators, it really... More
In 1989, when Mercy Housing Midwest converted the 100-year-old Mason School in... More
Like many multifamily owners, John Manning expected 2004 to be a good year.... More
The Windy City's apartment market hasn't blown completely off investors' radar,... More
Working for Summit Contractors in Jacksonville, Fla., Matt Robinson gets a pretty... More
Not unlike the fabled bird this city is named for, the Phoenix multifamily mar-ket... More
Low interest rates created an unusual paradox for the multifamily industry in 2003. By making homeownership affordable, low rates hammered property owners on the revenue side. But they also lowered the industry's cost of capital, made development more feasible, and contributed to a trend toward soaring property values, as investors sought out buildings to buy. Go figure. More
In 2002, three forces – a national recession, low interest rates for first-time home buyers, and an oversupply of new apartments–came together and created a "perfect storm" that crashed into the multifamily market, negatively impacting operating performance by putting upward pressure on the national vacancy rate. To stem the tide of declining demand, owners re-priced their rental rates through increased concessions and outright rental rate decreases, helping to stabilize the vacancy rate. The decrease demand for apartments is a root cause of the decline in operating fundamentals for the multifamily industry. More
While every market has experienced the effects of economic downturn – the national vacancy rate has almost doubled from its low point in 2000 – those with a heavy reliance on technology, telecom, and travel have been hit the hardest. These industries have had the most severe job losses, which results in higher vacancies, rent concessions as managers compete for the remaining pool of renters, and general market softness. The hardest hit markets include Austin, Texas; Seattle; San Jose, Calif.; Portland, Ore.; Denver; Charlotte, N.C.; Orlando, Fla.; and Tampa, Fla. Meanwhile, conditions in more diversified economies, such as Atlanta, Dallas, and Phoenix have suffered from weak demand and oversupply. More