APARTMENT MARKET STATISTICS: October 2011
Industry statistics are featured in the October 2011 issue of Multi-Housing News.
‘Foong on Finance’ with Keat Foong: Fears of a Double Dip
Nouriel Roubini, “Dr. Doom” who predicted the 2008 crash, is reported to have now tweeted that the next dip will be “uglier than ugly … off the scale bad.” Would the apartment sector, which just saw a strong turnaround in occupancies beginning last year, have to say goodbye to its good fortunes? So soon? Someone commented in a blog that investors know economics, and hence it was not surprising that the stock market plunged, not rose, immediately after President Obama signed the bill that would cut federal spending by $2.4 trillion. There seems to be the notion that the federal…
Trophy Transactions Reflect a Healthy Investment Market
The largest multifamily transactions being completed today, from trophy to distressed, show an investment market that is running in high gear.
‘Foong on Finance’ with Keat Foong: Apartments Will Yield 11.4% this Year, Say Investment Managers
The Pension Real Estate Association (PREA) surveyed some of their member firms in May regarding their forecasts for the U.S. commercial real estate markets. Respondents predict apartment investments will register a total investment return of 11.4 percent this year. Total apartment investment return (on the NCREIF Property index) is expected to fall in subsequent years, though, to 9.3 percent and 9.2 percent in 2011 and 2012, respectively. The apartment investment returns prediction for this year breaks down to 5.5 percent in income returns, and 5.9 percent in appreciation returns. Sixteen firms participated in the survey this quarter, with the firms…
Durban Amendment’s Impact on Resident Debit Payments
A rule that would make it cheaper for residents to use debit cards to pay rent is now under threat.
Ancillary Income’s Contribution to the Bottom Line
Whether from new or old sources, ancillary income can add significantly to a property management company’s revenue.
“On the Ground” with Eric Brown: What Will You Do with Your Followers and Fans?
Once you build your following, it becomes an asset that needs ongoing tending; otherwise it dissipates.
‘Foong on Finance’: CMBS Standards Loosen in the CRE World
At CRE Finance Council’s June convention held in New York last week, some financiers were saying that CMBS standards are already slipping, very quickly. More lenders are entering the CMBS space, seemingly bullish about the prospects for a robust volume of lending. That drive for business, however, creates fierce competition among these players. “Unfortunately,” the “race to the bottom” is already upon the market, said one speaker. The players are “nearly repeating the mistakes of the past.” Pricing is being being squeezed again, until the pull backs in the last week. When one lender offers interest-only financing, others feel obliged to follow….
‘Gimme Shelter’ with Daniel Gehman: A Volt from the Blue
A trial run with the Chevy Volt leaves this HOV-oriented consumer considering its benefits against the competition.
‘Foong on Finance’: High Unemployment Levels Depress Housing Market
What recovery? The housing market has, if anything, made fresh turns downwards recently. The homeownership rate has dropped to 66.4 percent, the level in 1998. It seems recovery in the housing market has not come in at least the first half of this year. Meanwhile, a new report from the Joint Center for Housing Studies of Harvard University confirms that new home sales continue near record lows, and existing home sales remain depressed. Vacancies and foreclosures continue to push down housing prices, says the Joint Center. Contrary to assertions about a structural change in people’s desires to own homes, perhaps many…