“We are not saying vacancies will not go up…but there are a lot of ingredients in the apartment development recipe that suggest developers are building a reasonable number of units, [including] the shift toward more rental housing compared to condos and single-family and the surge of 20-somethings.”
Dupre + Scott, publishers of Apartment Advisor. Apartment development is like soup, DupreScott.com, 1/25/13.
“Average rent in the area is 74 percent of the cost to own, commercial real estate information company CoStar Group says. That’s up from a historical level of 55 percent.”
Aubrey Cohen of the Seattle Post-Intelligencer. Buying a home a better deal than usual, but still costs more, SeattlePI.com, 1/28/13.
“Renter household formation remains at the strongest level in decades. Roughly 1.32 million new renter households were formed in the past year (including owner conversions), while the number of owner-occupied households declined by 175,000.”
Raymond James Financial, from a report recently quoted on CNBC.com. Guess Who’s Driving the Demand for Rental Apartments?, CNBC’s Reality Check, 1/29/13.
“The pace of improvement in the apartment industry is moderating, but the expansion remains solid. New construction…is still playing catch-up with the increase in demand for apartment residences.”
Mark Obrinsky of the NMHC. Apartment Market Picks Up in January, LoanSafe.org, 1/30/13.
“A couple of years ago, there was very little to do if you’re a single-family homebuilder, and a lot to do in apartments. Since the skill sets are pretty similar, it’s sort of a natural shift.”
Jerry Johnson, a real estate economist out of Portland. Homebuilders, facing new challenges in single-family homes, look to apartments. OregonLive.com, 1/31/13.
“The economy added 157,000 jobs in January… and construction jobs are growing at a faster pace than the overall market: While payrolls growth in general has been 1.5% since last January, construction jobs are up 1.8%.”
Neil Shah of the Wall Street Journal. Is Housing Recovery Finally Generating Jobs?, WSJ Blogs, 2/1/13.
“Multifamily permits [in 2012] jumped 94%, almost entirely due to substantial activity in the apartment development arena.”
Gardner Economics, in their Seattle Metropolitan Area Economy and Real Estate Market Report. MasterBuildersInfo.com, 2/2/13.
“2012 was a strong year for the commercial and multifamily mortgage markets, and 2013 is shaping up to continue the growth. Our forecast anticipates Fannie Mae, Freddie Mac and FHA, as well as life insurance companies, will all continue to have strong appetites for making loans; the total market will continue to expand.”
Jamie Woodwell of the Mortgage Bankers Association. MBA Forecasts $254 Billion of Commercial/Multifamily Mortgage Originations in 2013, Up 11% From 2012, Realestaterama.com, 2/3/13.
“After several years of meager deliveries, the sector is finally starting to respond to demand in the marketplace. We’ve got a long way to go before we cross that ‘bubble’ threshold—this pipeline is in no danger of bursting.”
Jubeen Vaghefi of Jones Lang LaSalle. Apartment Market Not Saturated, NuWire Investor, 2/4/13.
“Mortgage giant Freddie Mac has released its top producing multifamily mortgage lenders of 2012. The top five list includes Bethesda-based Walker & Dunlop LLC, which transacted $2.3 billion in sales through Freddie Mac last year.”
Bryant Ruiz Switzky of BizJournals.com. Freddie mac names top multifamily lenders of 2012, WBJ Biz Beat, 2/5/13.