WEEKLY
Mortgage Rate (30-Year Fixed): 6.49% (as of 12/01)
MONTHLY
Existing Home Sales: -5.9% (October 2022)
New Residential Sales: +7.5% (October 2022)
Median Sales Price for New Houses Sold: $493,000 (October 2022)
Construction Spending: 10.9% YoY (September 2022)
New Residential Housing Starts: 1.425 million (October 2022)
New Residential Housing Completion: 1.339 million (October 2022)
QUARTERLY
Homeownership Rate: +66.0% (3Q22)
Rental Vacancy Rate: +6.0% (3Q22)
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. Airbnb working with multifamily landlords to boost listings
Airbnb announced this week that it will act as a listing platform for several developers and multifamily owners and management companies across 175 buildings in the country. Many of these have been banned previously for short-term rentals but will now be allowed to sublease for a set number of days every year. Owners will receive a cut from Airbnb’s revenue of about 20%.
9. San Antonio is top fastest growing renter city
A study by RentCafe revealed that San Antonio, TX had a +237.7% change in renter population in 2020 compared to a decade ago. This makes the metro the top-trending neighborhood across the country. This was followed by Miami (+173.3%) , Minneapolis (+162.3%), Columbus (+157.3%) and Chicago (+151.2%). New York ranked 18th in the list with a +81.6% renter growth.
8. Apartment rents in NY rebounds
RealPage reports that the New York metro area had a 3.0% increase in apartment rents while the occupancy rate reached 98.1% in 3Q22. Analysts are expecting that the city will match last year’s 19,000 new apartment building permits, or even exceed the level by the end of the year. The busiest submarkets include Brooklyn, Queens and South Westchester County.
7. Multifamily construction spending remain steady
The value of new private construction of multifamily residential buildings in October reached $102.6 billion on a seasonally adjusted, annualized basis, according to the Census Bureau, which is up $569 million from September. The value of multifamily housing construction put in place in October 2022 was recorded at 1.6% higher than the level the previous year.
6. Young renters prefer energy-efficient rental units
Grubb Properties’ State of the Young American Renter Survey polled 1,000 renters between the ages of 22 and 35 found that 82% of these young renters prefer energy-efficient and environmentally friendly buildings when making a decision on where to rent. On the other hand, 64% also prioritize proximity to public transportation in their criteria, and 75% find that living close to stores, restaurants and entertainment areas are likewise important. The shortage of rental facilities has made apartment accessibility difficult for young renters, according to the company.
5. The Goldstar Group secures $84M to develop 350-unit multifamily buildings
The Goldstar Group has secured a $83.7-million loan to finance the construction and stabilization of Residences at East Church in Frederick, MD. A total of five, four-story multifamily buildings totaling 350 units will be constructed on the 14.81-acre lot. East Church capitalizes on the strong presence of bioscience companies and needs more housing options for professionals working in the sector.
4. Salt Lake City multifamily continues to thrive
Salt Lake City multifamily market had increased investment activity in August as rates rose 14.5%. On a three-month basis, rents hiked by 0.7% to an average of $1,614, while national figures only improved by 0.6% to $1,718. In the first eight months of the year, investors spent a combined $745 million on multifamily assets across Salt Lake City, higher than the $488 million they invested in the metro in 2021 through August.
3. Post Brothers will develop more multifamily projects with new loans
Post Brothers has secured a pair of loans worth a total of $72.3 million to help with the development of its market-rate multifamily project, The Darien, located in Philadelphia’s Poplar neighborhood. The company has already broken ground on the luxury residential building, The Darien, which will have its 212 units spread across five stories. It will stand next to the firm’s recently completed project, The Poplar. The latter is a converted warehouse that showcases 285 units of luxury multifamily community.
2. Richmond-Tidewater’s multifamily sector posting strong gains
Sales activity in the Richmond-Tidewater multifamily market remained stronger through the 12 months ending in August with more than $3.1 billion in multifamily assets traded. Rents also increased 0.7% in the same period, which puts the average monthly rent at $1,469. The average occupancy rate reached 96.5%, which is 60 basis points higher than the national average.
1. Residential construction employment, specifically, grew by 3,900 in November
The improvement in job numbers comes from demand for remodeling and multifamily construction that contributed to a 3,900 job gain for residential construction, according to National Association of Home Builders Chief Economist Robert Dietz in an interview with the Washington Examiner. The post-pandemic demand for home improvements has fueled many homeowners and developers to undertake projects.
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