Red Capital Group Shares Mid-Year Multifamily Review & Outlook Report

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Red Capital Group, LLC, has posted on its website its Research Team's most recent multifamily housing industry report titled "Multifamily Housing Industry 2011 Mid-Year Review and Second Half Outlook Report."

Daniel J. Hogan, Director of Research, Red Capital Group, LLC

Columbus, Ohio—Red Capital Group, LLC, has posted on its website its Research Team’s most recent multifamily housing industry report titled “Multifamily Housing Industry 2011 Mid-Year Review and Second Half Outlook Report.”

The report, researched and written by Daniel J. Hogan and Joseph M. Mandeville, both of RED’s in-house Research Team, introduces a fully integrated occupancy, rent and cap rate forecasting model. The report provides a full set of 2011 to 2013 annual payroll projections and annual five-year rent growth and occupancy rate forecasts for 46 metropolitan markets across the country (the “RED 46”), as well as five-year total return and risk-adjusted return estimates and probability distributions of total return for each market.

Additionally, the study looks at some key questions confronting the multifamily industry, such as the relative impact of accelerating inflation on asset performance and returns in different metropolitan markets.

In addition, the report contains a summary of the performance of metro markets during the first half of 2011, including:

  • Apartment demand and occupancy trends
  • Apartment rent trends
  • Metro area economic conditions
  • Macro-economic outlook

Key points of the report include:

  • Abundant employment growth among Americans aged 20- to 29-years in the period May 2010 to May 2011 triggered the strongest apartment demand observed in a generation.
  • Export-driven manufacturing revivals fueled stronger than expected hiring in corners of the Heartland, such as Nashville, Pittsburgh, Columbus, Louisville and Saint Louis.
  • High-tech hubs (Seattle, San Jose) and Texas metro areas (Dallas, Fort Worth, Houston, Austin) posted the strongest job growth in the spring, while Milwaukee surprised many by leading the nation in year-over-year job growth.
  • With the exceptions of Seattle, San Jose, San Diego and Portland, Western Region economies continued to struggle with negative or flat results in the second quarter.

Red Capital Group, LLC has closed many FHA Multifamily and Healthcare loans during HUD FY-2010 and remaining active as a top Fannie Mae DUS® lender for both multifamily and seniors. Red Mortgage Capital, LLC’s nationwide agency platform includes Fannie Mae DUS, Freddie Mac Seller/Servicer for Seniors, and FHA MAP and FHA LEAN lending for multifamily, seniors housing and health care properties. RED’s Research Team supports the firm’s underwriting and lending functions, and provides intelligence and perspective.

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