Ten Days of Buzz: August 17-26, 2013

Ten Days of Buzz - Rental Market News from SeattleRentals.com

“The 7½- story project at 2217 Third Ave. will be done in just seven months. That’s about half the time it would take to construct a building of this size using conventional construction methods.”

Marc Stiles, journalist. Here’s how to build a 7½-story building in 7 months, Puget Sound Business Journal, 8/17/13.

“U.S. developers broke ground on new homes at a faster pace in July. But the rise was all due to apartment construction, which is typically volatile. By contrast, builders began work on fewer single-family homes.”

Christopher Rugaber of the AP. Apartments drive up U.S. homebuilding increase in July, CPA Practice Advisor, 8/19/13.

“When the survey questioned tenants who lived in apartment units without a smoke-free policy, 85 percent of those tenants were in favor of their landlords adopting a smoke-free policy.”

Journalist Sara Rehmer. Smoke-free housing avoids the dangers of secondhand smoke, Billings Gazette, 8/20/13.

“The generative idea is that a plant-rich setting has restorative qualities that are not found in the typical office.”

A new Amazon report. Amazon updates look of proposed spheres, The Seattle P.I., 8/21/13.

“The number of renter households continues to grow, increasing by 1.1 million last year (as well as a net loss of 161,000 homeowners), leading to a second-straight year of double-digit increases in multifamily construction.”

UNITS journalists. Harvard’s State of the Nation’s Housing: What to Know, from the August edition of the NAA’s UNITS magazine, 8/13. Look for our full recap on Harvard’s 2013 State of the Nation’s Housing soon on the blog!

“We really started seeing the shift in the past 10 years with people working from home and doing a lot more traveling. Buildings are being built with a lot more services or amenities.”

Leslie Piper of Realtor.com. Rental apartment amenities go ultraluxury, MarketWatch.com, 8/22/13.

“What we’re starting to see now is that construction costs are starting to really hit apartment builders even though there’s a lot of demand; workers know they can charge more. But it’s such a cyclical business.”

Brendan Coleman of Walker & Dunlop. Multifamily construction pushes housing starts, HousingWire.com, 8/23/13.

“It’s almost a perfect storm, and we haven’t seen any change in weather on the horizon.”

Billy Pettit of Pillar Properties. Soaring rents force lifestyle changes, Seattle Times, 8/24/13.

“The monthly city by city data show the pace of price increases is moderating. With interest rates rising to almost 4.6 percent, home buyers may be discouraged and sharp increases may be dampened.”

David Blitzer of S&P Dow Jones Indices. Home price increases may be moderating in Seattle, nationwide, Puget Sound Business Journal, 8/26/13.

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Ten Days of Buzz: July 21-30, 2013

Ten Days of Buzz - Rental Market News from SeattleRentals.com

 

“Coming out of the recession, investors who were burned in the past were looking for safety. Office real estate was reeling, retail was still trying to get its footing. Multifamily is a very safe investment and returns are very good.”

Jose Cruz of HFF. Commercial real estate’s safe harbor in a storm: Multifamilies, NJ.com, 7/21/13.

Nationally, the overall urban multifamily rental market is 3.2% above any prior cycle peak and still growing. As younger Americans return to the work force, demand for rental housing is expected to continue increasing over the next five years.”

Real Estate invstor Brian Kline. The Real Money is in Multifamily Development, RealtyBizNews.com, 7/22/13.

“Multifamily renovations will become increasingly popular as the market fundamentals remain or improve.”

Paul Daneshrad of StarPoint Properties. Multifamily Market: Making ‘Cents’ of Renovations, GlobeSt.com, 7/23/13.

“As of 2013, there are more mobile devices than people. 98% of renters surveyed used their mobile device at least once a week in their home search.”

Pierre Calzadilla of Trulia Rentals. Understanding the Modern Renter (webinar), Appfolio.com, 7/24/13.

“Missing households are the pent-up demand for housing that we’ve been talking about throughout the recession.”

Jed Kolko, Trulia Chief Economist. ‘Missing households’ represent big source of pent-up demand, Inman News, 7/25/13.

“Vacancy rates continue to edge down and rental rates are moving up, providing no suggestion that supply has begun to outstrip demand.”

Harvard University, in a recent study. Rents not easing despite rise in rates; owners are benefiting, Los Angeles Times, 7/26/13.

“In King County, Wash., the Right Size Parking project visited more than 200 buildings and found one parked car per occupied dwelling, on average. It also found an extra 0.4 empty stalls per occupied housing unit: almost one-third of parking was idle.”

Alan Durning of Sighline Daily. How Unused Parking Adds Up, Grist.org, 7/28/13.

“Pending home sales dropped in June thanks to rising mortgage rates, according to the National Association of Realtors. The organization’s Pending Home Sales Index, which is based on contract signings, dipped 0.4 points to 110.9 in June.”

Kent Hoover, Washington Bureau Chief for the Puget Sound Business Journal. Rising mortgage rates lead to drop in pending home sales, BizJournals.com, 7/29/13.

“This has got to be the single most high-profile IPO in the sector, and everything else that’s priced going forward is going to be priced off of this one. It’s going to be the communicator for the whole industry.”

Jim Wilson of JMP Securities. Single-Family Rental Firm’s IPO to Test Market, the Wall Street Journal, 7/30/13.

Ten Days of Buzz: July 1-10, 2013

Ten Days of Buzz“You may see a slowdown in investment grade for a few weeks until both sellers and buyers accept the new world. I think they will come back together.”

Bill Hughes of Marcus and Millichap Capital. As Interest Rates Rise, Net Lease May Slow Down, National Real Estate Investor, 7/1/13.

“There are just so many new employees moving to the area, and condos and homes are being taken off the market for lease.”

Ashley Hayes of Seattle Rental Group. New apartments in Seattle area don’t halt rise in rents, Seattle Times, 7/1/13.

 “The national level annual effective rent growth slowed to 3.2% in the second quarter of 2013. For comparison, annual effective rent growth in the second quarter of 2012 measured 4.0%.”

Press release from MarketWired. National Rent Growth Slows for Eighth Consecutive Quarter, MarketWatch, 7/2/13.

“Given the low permitting levels in 2008 and 2009, the recent outsized increases in top markets put total permitting in the past five years in line with historical averages.”

From the Joint Center for Housing’s State of the Nation’s Housing 2013. Deep Strength for Apartment Fundamentals, National Real Estate Investor, 7/3/13.

“The recovery in the housing market is a threat, and it receives a lot of attention, but I’d place the top two threats as job growth and multifamily supply. Job growth and apartment rent growth have a very strong correlation over time.”

Dave Bragg of Green Street Advisors. Job Growth, Supply Top Concerns in Apartment Sector, Analyst Says, REIT.com, 7/5/13.

“The philosophy is to take the market information that a good operator would use twice a month to adjust rents and use it on a daily basis. The system is able to move rents quicker to where the market is progressing.”

James Flick of Camden Property Trust. Software plays growing role in calculating apartment rents, Tampa Bay Business Journal, 7/5/13.

“For every generation after World War II until now, population flowed from the city to the suburbs. Today, as the book, The End of the Suburbs: Where the American Dream is Moving demonstrates, the tide that long seemed inexorable has begun to reverse.”

Leigh Gallagher, of Fortune Magazine. The end of the suburbs, CNN Money, 7/8/13.

“My friends think I’m crazy. But if it’s something you’re going to live in for the next three years, you don’t mind spending the money. It’s worth it. It’s about lifestyle,” says Daniel de la Vega

Daniel de la Vega, renter. Investing in Expensive Renovations For Rental Apartments, the Wall Street Journal, 7/10/13.

“Showings on Demand solves a major problem in renting – the time it takes to see an apartment. This matters because …the best apartments rent within hours, and wasting time with the back-and-forth of scheduling a showing can make the difference in landing a can’t-miss apartment.”

Joe Charat, CEO of Naked Apartments. Renters Get Immediate Access to Available Apartment Listings, MarketWatch.com, 7/10/13.

Dupre + Scott Video Highlights: Micro-Housing & Washington Immigrants

Dupre + Scott Weekly Video Update from www.duprescott.comHave you been keeping up with Dupre + Scott’s weekly video updates? They’re a great way to quickly access the latest rental market data–and today, we’ve got the most recent two videos, along with a quick summary of their major points. Enjoy!

July 5th: For today’s apartment dwellers, less is more.

This past Monday’s video covered the trends that Dupre + Scott have been seeing in apartments lately. Among their findings:

  • After getting bigger and bigger throughout the 1970s, 80s, and 90s, apartments are shrinking again. Innovations from the small apartments of the 1950s, such as Pullman kitchens, are being revived and revamped to fit today’s urban lifestyle.
  • While the driving factor of the trend for smaller apartments is no doubt apartment cost and vacancy, the change is made possible in part by the digital revolution we’ve experienced in the past few years–most of us no longer need lots of space for our televisions, music collections, or libraries.
  • Finally, the addition of communal spaces interspersed with micro-apartments has created vibrant neighborhoods that cater to the needs of young renters, replacing the old standard of larger living spaces to recreate in.

June 28th: For Gen Y-ers, it’s Northwest or Bust!

Did you know that 15,000 people moved into Washington State last month alone? Dupre + Scott’s last video in June investigated migration into the Puget Sound region, to find out who’s moving to our lovely state–and where they come from.

  • First of all, migration to our state, which dropped during the 1990s, is now on an upward trend again. In fact, there has been a 20% increase in the number of people moving to the Puget Sound region since 1999.
  • While more people move to Washington from California than from any other place, the numbers of people coming from the state have dropped, by about 10,000 per year. But immigration from Oregon, Texas, Arizona, Florida, and Nevada have more than filled that gap.
  • So who’s coming to Puget Sound? Of the 15,000 people who moved into the state last month, 9,640 of them moved into King, Pierce, Snohomish, Kitsap, or Thurston counties. Those numbers are courtesy of state driver’s license data.

 

Ten Days of Buzz: May 19th-28th, 2013

Ten Days of Buzz“We’ve learned that most real estate agents and investors are looking to buy long term, since income properties are a significant part of their retirement plan.”

Joe Buczkowski of LeaseRunner. LeaseRunner Releases Rental Sector Survey, Press Release 365, 5/19/13.

“Federal rental assistance programs must more directly target help to those who need it most. That is a key conclusion reached by the Bipartisan Policy Center’s Housing Commission in its [new] report.”

Henry Cisneros, writing for the Express News. Federal rental assistance must target the most needy, MySanAntonio.com, 5/20/13.

“We need to partner with the community. It’s a joint effort between all of us. You’re our eyes and ears for keeping the community safe. I think it will pay off dividends down the road.”

Pete Callewaert of the San Diego Sheriff’s Office. Apartments Certified As Crime-Free Multi Housing, Lemon Grove Patch, 5/21/13.

“As there are more properties to bid on due to new supply and fewer bidders in the market as the REITs become less active buyers, that will cause downward pressure on pricing.”

Mark Hickey of Champion. Will Building Boom End the Party for Apt. Investors? CoStar Group, 5/22/13.

“Things have changed people don’t want to wait an hour in traffic any more to get to their jobs, so if you work downtown, you want to live downtown… It’s been extremely exciting to see what is happening right now.”

Douglas Price of K&D Group. Downtown Cleveland Nears 100% Occupancy, WKYC.com, 5/23/13.

“I think this generation of transit will transform Seattle.”

Al Levine of the Seattle Housing Authority. Transit-oriented development gaining speed in Puget Sound area, Puget Sound Business Journal, 5/24/13.

“Americans are going through a transformational period; the unconventional is becoming conventional. The survey uncovered major revelations that suggest housing attitudes are part of the transformation.”

Analyst Peter D. Hart. The big housing question: To buy or to rent?, Times Dispatch, 5/25/13.

“A prospering rental market allows residents like Maria Wells of Florida to rent out her first home; she got married and moved in with her husband. But Wells can’t sell because she is underwater on mortgages, owing more than the current market value. These homeowners are ‘accidental landlords.'”

From the writers at ECreditDaily.com. ‘Underwater’ Mortgages Spur New Wave of Landlords, 5/27/13.

“Markets that people gave up on are now markets that people are going back to,” says Walter Page, director of research for Property and Portfolio Research, a division of the CoStar Group. “In most primary markets the average price per sq.ft. is twice what it is secondary markets.”

Walter Page of the CoStar Group. Secondary Markets Win Multifamily Investors, National Real Estate Investor, 5/28/13.

 

Ten Days of Buzz: May 5-14, 2013

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“The ability to rent a home on a short-term basis not only garners higher return than a long-term rental, but it keeps the home in good shape for when you are prepared to perhaps sell it.”

Jon Gray, VP of HomeAway. Renting Out Your Home: Tips and Strategies, Patch.com, 5/5/13.

“By 2031, South Lake Union will have to absorb some 12,000 households and 22,000 jobs to continue to meet its share of future growth. This rezone will take the pressure off other neighborhoods and will shape South Lake Union for the next hundred years.”

Councilman Richard Conlin. Seattle City Council approves South Lake Union rezone, Puget Sound Business Journal, 5/6/13.

“A doubling of the rate of home-ownership in a US state is followed in the long-run by more than a doubling of the later unemployment rate.”

Economists Andrew Oswald and David Blanchflower, in a new report. Study: Higher levels of homeownership can kill jobs, the Washington Post, 5/7/13.

“Not everyone can claim that their loft apartment used to be a roller rink. This domed space which used to be roller rink, bowling alley, a Hollywood soundstage is turning into a group of 39 apartments called The Citadel. 8 will be centrally located and only naturally lit by skylight.”

Valerie Paschall, writer for Curbed. Photos Released of Windowless Roller Rink Apartments, DC Curbed, 5/8/13.

“So much of this is driven by employment right now.”

Ryan McMaken of the Colorado Division of Housing. Colorado apartment vacancy rate drops for 14th consecutive quarter, BizJournals.com, 5/9/13.

“Green building materials range from traditional materials that are being revalued for their minimal impacts to advanced technologies that are enabling better passive and active building performance. Changes in design and construction…are helping to reduce the impacts from the buildings and materials sectors.”

Eric Bloom of Navigant Research. Green Material Demand to Increase, GlobeSt.com, 5/10/13.

“No community can be strong without quality rental housing. We’re saying that renting is just as important to a community as home ownership is…We’re way behind in the need for rental housing.”

Christine Young Gertz of the Apartment Association of PA. 400K apartments needed nationwide, BizJournals.com, 5/11/13.

“Seattle architecture company Hewitt is drawing up plans for Madison Development Group’s 180-unit project that will significantly alter the block where Bauhaus Coffee and Books and other small businesses operate in some old buildings on East Pine Street.”

Marc Stiles, Real Estate Writer. Development to radically alter Bauhaus block on Capitol Hill, Puget Sound Business Journal, 5/13/13.

“If you convert your residence into a rental, you can probably shelter most or all of the rental income with tax deductions, including depreciation write-offs. With any luck, you can eventually sell the property for a good price.”

Bill Bischoff of Taxwatch. How to convert your home into a rental, Marketwatch.com, 5/14/13.

Ten Days of Buzz: April 22-May 2, 2013

Screen shot 2013-04-16 at 7.20.00 PM“Rental properties can provide monthly cash flow, protect against inflation, and usually appreciate over the long term. Some retirees swear by rental properties instead of the usual stock and bond portfolio because they don’t have to stomach the volatile stock market swings.”

Joe Udo, of the blog Retire by 40. Should You Use Rental Properties to Fund Retirement?, Huffington Post, 4/22/13.

“More than half of Americans (57 percent) now believe that ‘buying has become less appealing,’ while 54 percent believe that ‘renting has become more appealing.’ Almost half of current home owners (45 percent) can see themselves renting at some point in the future. And, the rate increases alongside income and education.”

Richard Florida, reporting on a study by Hart Research Associates. Renting the American Dream, The Atlantic Cities, 4/23/13.

“We’re seeing an uptick in these types of people–usually it’s for buying a five- to ten-unit complex. It’s just a start to get their feet wet.”

Leanne Eicoff of CLD Capital. Individual Investors Eye Apartments, NuWire Investor, 4/24/13.

“We have found that factors such as previous rental history, length of employment and disposable income can be more important than a credit score.”

Kevin Wolfgang, President of Evergreen Apartment Group. More than a Score: Management Companies Must Look Beyond Credit, from the April 2013 edition of UNITS magazine, a publication of the NAA.

“Renting, which connotes mobility, might come to be identified with a high-status lifestyle in the new economy…In the wake of the housing crisis, and amid shifting demographics, it’s plausible that a broad change in thinking is ahead, reducing demand for large suburban homes.”

Robert Shiller of the New York Times. Today’s Dream House May Not Be Tomorrow’s, The Times’ Business Day, 4/27/13.

“The homeownership rate has fallen steadily after reaching a peak of 69.4 percent in 2004. Though some homeowners have become renters after losing their homes in foreclosure, the greater driver is that renting households have been slower to buy a home.”

Elliot Njus of The Oregonian. U.S. homeownership rate falls to lowest level since 1995, OregonLive.com, 4/29/13.

“First quarter commercial and multifamily mortgage origination volumes were nine percent higher than last year’s first quarter level. The overall number masks larger increases in the dollar volume of loans originated for commercial mortgage-backed securities and Fannie Mae and Freddie Mac and a decline in the amount originated for life insurance company portfolios.”

Jamie Woodwell, VP of Commercial Real Estate Research at MBA. Commercial and Multifamily Mortgage Originations Increase by 9% Since Early 2012, LoanSafe.org, 4/30/13.

“I don’t make a ton of money. This was appealing because it was affordable and it gave me access to a downtown market.”

Kris King, micro-apartment renter. Seattle Residents Sick of Tiny Apartments, Business Insider, 5/1/13.

“While rental costs have steadily risen over the last few years, wages for these working families have not fully recovered from the hit they took between 2008 and 2009.”

Janet Viveiros of the Center for Housing Policy. Rent burden rises for working households, Seattle Times, 5/2/13.