Streit Lending

The pace of multifamily development has cooled, reports RealPage, with building approvals down last month across all U.S. regions compared to September 2023 —most sharply in the West (down 26.7%) and the South (down 12.1%). While starts surged in the Northeast (up 183%), they posted declines elsewhere, signaling potential shifts within the multifamily market as regional dynamics continue to evolve. https://hubs.la/Q02WxFnq0

Coastal cities are driving single-family rental (SFR) growth, while the Sun Belt appears to be losing steam. CoreLogic data reveals that SFR rents rose 2.4% on a year-over-year basis through August, with Seattle, New York, and Washington D.C. leading the charge. But Sun Belt stalwarts like Austin and Phoenix didn’t perform as well, reflecting broader shifts in market demand and rental dynamics. Could this deceleration reflect new patterns in where people want to live and work? https://hubs.la/Q02VyNL80 #RealEstate #SFR #CoastalMarkets #RentalTrends #HousingMarket

The Fed’s recent rate cut is sparking fresh optimism across the multifamily and commercial real estate sectors, despite a dip in transaction volumes. Deals are still moving forward, driven by a surge of interest from private and institutional investors. Leading the charge are fund managers, high-net-worth individuals, and public REITs, often backed by foreign capital. With deep pockets and access to competitive financing, these major players are eyeing large-scale acquisitions, signaling a resurgence of activity and renewed confidence in the apartment market’s potential. https://hubs.la/Q02TwjN60 #CRE #RealEstateInvesting #MultifamilyMarkets #InterestRates #PassiveIncome

New energy regulations linked to HUD and USDA financing are causing a significant disruption for many apartment developers. According to the NAHB, over half of multifamily builders are contemplating slowing down or pausing new projects, while 44% are considering raising rents to cover the steep rise in reg-compliant construction costs. With many apartment developments unprepared to comply with the updated energy codes, a larger question emerges: Are we witnessing an unofficial nationwide mandate for new standards without assessing whether local markets are equipped to adapt? https://hubs.la/Q02SqtCJ0

Momentum in the multifamily market is trending up, with cap rates hitting 5.8% at the end of July—the highest since 2014—and sale prices stabilizing thanks to lower debt costs. Many buyers have been waiting out financing hurdles, but with these positive changes, the backlog could start to clear. Is the market gearing up for a strong rebound? https://hubs.la/Q02RKkPk0

Curious where young professionals are moving? A new report highlights five mid-sized metros drawing an influx of residents with better jobs, higher wages, and affordable housing. For example, Austin’s median household income (MHI) is $85.4K, while new arrivals come from areas averaging just $69.9K. The trend is similar in cities like Des Moines, where new residents bring a median age of 34.8, younger than the city’s current average. This shift is driving multifamily market growth as these metros offer greater economic stability and quality of life. https://hubs.la/Q02R4JLd0 #CRETrends #MultifamilyMarket #EconomicMigration #YoungProfessionals #AffordableHousing #MidSizedMetros

While Wednesday’s interest rate cut offers a glimmer of hope, multifamily borrowers might still face challenges with long-term rates and a flat yield curve. Industry experts suggest that more rate cuts are crucial to jumpstart transaction activity and development, but don’t expect a return to the days of “easy money.” With the upcoming presidential election adding uncertainty, market confidence may rely more on political shifts than just a single rate change. https://hubs.la/Q02QsPjS0 #RealEstateTrends #InterestRates #MultifamilyInvesting #MarketInsights #EconomicUpdate #DevelopmentNews #CRE #Election2024 #FinanceTips

While the recent Yardi Matrix August 2024 multifamily housing report may show a cool-down in overall rent growth, gateway cities in the East and Midwest are bucking the trend. New York City, Kansas City, and DC are leading the way with strong year-over-year gains through August, while cities like Austin and Phoenix posted rent declines. National multifamily occupancy held steady at 94.7% for the fourth month in a row, too, despite posting a slight year-over-year drop. https://hubs.la/Q02Py7hc0

How about some good multifamily news from the Mortgage Bankers Association? During Q2 2024, delinquency rates for #multifamily loans dropped, and overall commercial property loan delinquencies saw a slight dip too. This steady decline suggests that the multifamily market is holding strong despite economic headwinds. For more about these Q2 trends, and what they mean for investors, dive into the MBA's full report here: https://hubs.la/Q02NDQNt0 #RealEstateMarket #CommercialLoans #MultifamilyInvesting

Optimism is rising in the #multifamily sector as industry leaders and notable publications expect to see further stabilization in asset pricing as we move into the latter half of this year. These expectations seem to be fueled by the recent uptick in trade velocity during Q2, indicative of a positive trending market. For more insight, check out LightBox's #CRE Market Snapshot: https://hubs.la/Q02KK4_V0