WEEKLY
Mortgage Rate (30-Year Fixed): 6.60% (as of 10/6)
MONTHLY
Existing Home Sales: -0.4% (August 2022)
New Residential Sales: +28.8% (August 2022)
Median Sales Price for New Houses Sold: $436,800 (August 2022)
Construction Spending: –0.7% MoM (August 2022)
New Residential Housing Starts: 1.52 million (August 2022)
New Residential Housing Completion: 1.34 million (August 2022)
QUARTERLY
Homeownership Rate: +65.4% (2Q22)
Rental Vacancy Rate: +4.5% (2Q22)
Sources: NAR, BLS, Federal Reserve Bank, MBA
Note: Rates listed are estimates and may not reflect actual rates depending on term, sponsor location, and other factors involved.
10. Las Vegas multifamily market accelerated in 2Q22
Northmarq reports that the Las Vegas multifamily market will continue to have a robust performance following the accelerated pace of new apartment deliveries in 2Q22. Asking rents climbed 2.9%, hitting $1,501 per month. The median sales price, on the other hand, is already at $241,700, higher by 19% YoY. Finally, local vacancy remains low at 2.8% in 2Q22.
9. NAR: multifamily demand remains strong
The National Association of Realtors (NAR) reported that the country’s multifamily housing demand remains relatively strong despite the rise in mortgage rates and home prices. The group pointed out that rent growth will remain strong since many potential homebuyers are currently forced out of the housing market due to affordability issues. It also added that Sun Belt areas have experienced an even faster rent growth during the quarter.
8. Memphis multifamily market teeming with new projects
A number of architecture firms in Memphis are expressing their positive outlook for the multifamily market due to the existing high demand for mixed use projects in the city. According to Juan Self, founding principal of Self + Tucker Architects, there has been a very high pent-up demand in the area, especially in Downtown and Midtown markets. The Downtown Memphis Commission (DMC) reports a 95% occupancy rate for apartments.
7. Median rent in Austin rose 86.3% YoY
Axios Austin reports that the median rent in Austin increased 86.3% YoY in August, with its median rent at $2,930. New York still leads the country in terms of median rent with $3,021 per month, although rent growth was only at 19.7%. Other double-digit rent growth values were recorded in Denver (45.7% at $2,550 per month) and Tampa, FL (44.1% at $2,520 per month).
6. Phoenix remains a more affordable alternative to other CA cities
A recent study by CoStar’s Multifamily Analytics revealed that Phoenix has sustained its reputation for being a less expensive option for renters compared to other cities in California such as Los Angeles, San Francisco and San Jose. Migrating to Phoenix from Los Angeles makes rent cheaper by $6,000 on average, according to the study. The growth in jobs, better quality of life statistics and higher household incomes have been instrumental in the steady population growth in the area.
5. Dallas registers one of the highest rent growth values
Yardi Systems announced that Dallas recorded a 12% YoY rent growth in September for its multifamily market. Although net apartment leasing has fallen, the group still expects rents to rise by another 10.8% in 2023 unlike in the rest of the North Texas apartment market that is showing signs of cooling.
4. Office-to-apartment conversions continue steady growth
New redevelopments that convert old office towers into high-end apartments continue to add to the total number of conversion projects across the country. The most recent announcements came from Brookfield Properties’ Downtown Dallas redevelopment with 700 apartment units in the pipeline. American Real Estate Partners, on the other hand, will convert an old Alexandria, Virginia office building into a 200-apartment project with retail and office spaces. New office spaces can command up to 20% premiums compared to older buildings, according to Marcus & Millichap.
3. Chicago multifamily market improved in 2Q22
Stronger fundamentals were observed to support Chicago’s multifamily property market with vacancy tightening to a five-year low at 4.8% in 2Q22, according to Northmarq. Rent growth further accelerated by 3.5%, pushing the average asking rent to $1,748 per month. Median sales price also recovered to $160,800 YTD.
2. Nine metros sustain YoY rent growth above 10% in September
Yardi Matrix’s September report on the multifamily market identified nine metros that have maintained YoY growth above 10%. All of these are in the Sun Belt areas, led by Miami with 14.3%. The list also includes Orlando, Nashville, Dallas, Tampa, Indianapolis, Orange County, Raleigh and Charlotte. Miami also led YoY rent growth in terms of lifestyle asset class.
1. Multifamily rent growth still at 6.6%
Yardi Martrix’s September multifamily housing survey revealed that despite the moderating rent growth in multifamily, it stood at 6.6% while average occupancy rate held at 95.9% across the country. The average asking rent was $1,718 per month. Despite overall absorption now nearing “normal” levels, according to the group, it still maintains a favorable outlook for the national market.
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