Blog
“Capital Insights” with Jack Kern
This is the first entry in what I hope will become a regular feature here in the markets section of Multi-Housing News Online. I’m going to be writing about Markets & Metrics, a special area near and dear to my professional heart. With the absolute proliferation of data and news releases coming out of lots of sources and the frequent misunderstandings that occur, I’m hoping to begin a dialogue with you, our readers and help point out some interesting facts, debunk some fictions and offer you some concise analysis. I hope you’ll come back often and contribute too! The success…
Eye on the Economy with Adam Perrotta
The nation’s economic picture has continued to look troubled as of late, with relief in oil prices being undercut by continued sharp downturns in employment and housing, as well as growing inflation. The sluggish job market did see a slight uptick last week, as the number of workers filing for unemployment benefits fell slightly from a six-year high. According to the Department of Labor, 450,000 American workers filed initial unemployment claims during the week ending August 9th—down from 455,000 new claims during the previous week, and the first week-to-week drop in claims since early July. The gains in employment, however,…
In a Tight Market, Creative Marketing is Crucial
This week, MHN reported that New York-based residential firm Metro Loft Management will be waiving security deposits for renters with strong credit histories at its 20 Exchange Place building. Condo and co-op sales have been strong in New York in the past year, despite a national housing slump. The average condo price increased 36 percent from a year ago to $1,663,533, according to Halstead Property’s second quarter Manhattan sales report. In some markets, strong home sales can weaken the rental market. That’s not the case in New York, however. Yes, selling prices have remained fairly high through the housing slump….
55+ Americans in Mexico: One Model Doesn’t Fit All
My mother has been living in Guadalajara, Mexico’s second largest city, for nine years. Family visits have provided an interesting glimpse into the 55+ expat demographic. The Guadalajara area, including the lake-side towns of Chapala and Ajijic, have sizable and well-established American and Canadian communities. Other parts of Mexico are just as popular with retirees and new areas in Baja California and beyond are being discovered all the time—offering developers new opportunities to capture a growing market. But besides knowing how to form partnerships with local players, developers also need to understand to whom they’re appealing. Just as Mexico offers…
No More Multifamily Fears About New Housing Law
Last week, the president signed a housing bill that gave the Treasury Department the authority to safeguard Fannie Mae and Freddie Mac and offered foreclosure prevention help for hundreds of thousands of homeowners. Passed just a week ago by the House and sent to the president over the weekend by the Senate, the bill had been in the works for a long time. Many members of the single-family industry hoped the new law, which includes a $7,500 buyer tax credit, would spur home sales. But some multifamily industry members had expressed concern about parts of the bill–the tax credit in…
Could Multifamily Property Sales Be a Sign of Hope for the Overall Market?
On Thursday, the National Association of Realtors reported overall existing-home sales–including single-family, townhomes, condominiums and co-ops–declined 2.6 percent. However, as MHN wrote, not all real estate sectors showed a decline. Single-family sales fell 3.2 percent. But condominium and co-op sales increased 1.7 percent. Yes, condo and co-op sales are still below last year’s level. But the fact that they rose at all–as sales of other property types continued to decline–is good news. As the single-family market continues to navigate through rocky waters, multifamily units are still moving for a number of reasons. Lower prices are making condos an even bigger…
Green Building Grows In California—And The Multifamily Market
Last week, California became the first U.S. state to issue a mandatory green building code that will require energy efficiency and less water consumption. Regulations for single-family, multifamily and commercial structures are also part of the new code. It was a big move for the golden state, and a popular one–the California Building Standards Commission voted unanimously for the green building code, which was designed to reduce greenhouse gas emissions. As MHN reported Monday, the new code will improve water usage in both commercial and residential plumbing fixtures and aim for a 50 percent landscape water conservation reduction. Builders will…
Knock, Knock … It’s the U.S. Government
This week, the U.S. government said it would step in to help bolster Fannie Mae and Freddie Mac. Despite the fact they each have access to a $2 billion line of credit from the government, the two mortgage companies are, for the most part, private firms. On Sunday, Treasury Secretary Henry Paulson suggested increasing that line of credit significantly. The Fed also said it would let the agencies borrow money at a special rate. Déjà vu Rescue This isn’t the first time the government has stepped in to assist a company this year. Four months ago, the government–with no official…
Green Building: Good For the Environment, Good for Sales
Green building has grown exponentially in the past few years. Since 2003, the number of cities with green building programs has increased 418 percent, according to the American Institute of Architects. And green building is about to grow even more: The green home market is forecast to increase from $2 billion to possibly $20 billion over the next five years, according to a recent report that was co-sponsored by the National Association of Home Builders. Across the U.S., the frenzy is growing in states such as: North Carolina: Between June 2007 and January 2008, the number of certified and completed…
Builders Struggle to Work With Higher Energy Costs
Higher gas costs are driving up prices for a number of things–airfare, pharmaceuticals, even golf balls–and they’re taking a toll on builders, too. Soaring energy prices have raised construction material prices for both commercial and residential builders, the Dallas Morning News said Friday. In fact, construction costs are rising at more than twice the level of overall consumer prices, according to the Associated General Contractors of America–and costs for some building materials, like steel, concrete and roofing materials, have increased even faster. The higher energy costs translate into higher production prices for building materials, Federal Reserve Bank of Dallas economist…