WEEKLY
Mortgage Rate (30-Year Fixed): 6.33% (as of 12/08)
MONTHLY
Existing Home Sales: -7.5% (October 2022)
New Residential Sales: +7.5% (October 2022)
Median Sales Price for New Houses Sold: $493,000 (October 2022)
Construction Spending: +9.2% YoY (October 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.
A survey from ApartmentData.com reveals that 20 multifamily developments were launched in North Austin in 2022, making it the top submarket in the Austin metro. As of December, there are 26 developments currently in the pipeline and another 25 still in the proposal phase. This was followed by South Austin with 13 developments. The metro has encouraged the growth of multifamily projects after allowing residential construction on commercially zoned areas and fast-tracking the permitting process for duplexes and fourplexes.
9. Austin constructs high-rise multifamily tower — tallest building in Texas
Wilson Capital will set a record for developing the tallest skyscraper in Texas when the 80-story Wilson Tower is completed on a 0.8-acre site that was previously the location of the Avenue Lofts building at 410 East 5th Street. The building, which stands 1,035 feet, will comprise 450 residential units from studios to penthouses, and four floors of commercial areas.
8. Richmond 3Q22 multifamily market sales activity accelerated
Richmond recorded an increase in investment activity when multifamily sales velocity rose 12% in 3Q22, compared to the previous quarter, according to Northmarq. YoY transaction volume has more than doubled already. Median sales price also hiked to $178,900 per unit, up by 12% YoY. Construction activity has also remained robust with more than 6,600 units currently in the pipeline.
7. Cornell University adds multifamily student housing
Cornell University’s North Campus Residential Expansion (NCRE) project has been recently completed, offering 1,200 beds for freshmen and 800 beds for sophomore students. The 776,00-sqft extension includes a 1,000-seat dining hall, a 5,200-sqft fitness center, and transparent ground floor. The university designed the structure in accordance with its carbon neutrality goals by 2035.
6. San Diego affordable multifamily housing purchased by equity fund company
Preservation Equity Fund Advisors has purchased a 91-unit affordable housing community for veterans, Alcove East Village in San Diego for $20 million, according to Yardi Matrix. The project caters to tenants earning 30%, 65% and 80% of the area’s median income. The five-story building came online in 2019 and is composed of studios ranging between 242 and 286 sqft. PEF Advisors also recently acquired a 144-unit stabilized Section 8 property, an affordable housing community in San Diego.
5. Austin to enforce policies against unlicensed short-term rentals
The city has observed a rise in unlicensed short-term rentals due to lack of enforcement of current rules. Currently, Austin only allows up to 25% of units at multifamily apartments in a commercial zoning district to be licensed short-term rentals. Licenses must also be renewed every year. However, part of the reason behind the rise in unlicensed operations is due to the eight-to-10-week processing time for short-term rental applications because of “staffing challenges,” according to the Austin code website.
4. Emerald Empire sets one of the highest multifamily real estate deals in Chicago
The New York-based company purchased the local portfolio of Pangea Properties for more than $600 million, recording one of the largest multifamily real estate transactions in the Chicago metro. Pangea is unloading its Chicago properties that include about 7,500 units across more than 400 buildings, according to The Real Deal.
3. Hotel conversion to multifamily property planned in St. Louis
New York-based Churchwick Partners has asked the city of Maryland Heights in St. Louis, MO that its 106-room Sonesta ES Hotel is best converted into an apartment development after intense competition from other hotels has driven the Sonesta’s vacancies higher. The group plans to transform the hotel’s rooms into multifamily units if it gets approval from the city next year. However, it has yet to disclose any costs in the proposed project.
2. Albuquerque, NM also joins the hotel conversion trend
The city plans to convert hotels and motels into permanent housing for at least 1,000 unhoused and lower-income individuals by 2025 using a portion of its $20 million funding, according to plans revealed last week. This is in line with the city’s goal of adding at least 5,000 housing units to total supply apart from the private housing market’s contribution. City officials are also planning to use $5 million for a housing conversion fund to convert at least 10 commercial or office buildings into multifamily housing projects.
1. Multifamily development growth continues to flourish
The 3Q22 National Association of Home Builders (NAHB) Home Building Geography survey reported that multifamily construction remains strong all over the country despite economic headwinds. In large metro, highly urbanized areas, multifamily construction accounted for 38.4% of total multifamily projects, posting 0.8% YoY growth, while the suburban areas accounted for 27.6% with a 22.3% YoY growth. Those in small metros, on the other hand, recorded a 22.9% share, with 8.8% YoY growth.
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