Mortgage Rate (30-Year Fixed): 6.50% (as of 2/23)
Existing Home Sales: -0.7% (January 2023)
New Residential Sales: +7.2% (January 2023)
Median Sales Price for New Houses Sold: $427,500 (January 2023)
Construction Spending: +7.7% YoY (December 2022)
New Residential Housing Starts: 1.339 million (January 2023)
New Residential Housing Completion: 1.406 million (January 2023)
Homeownership Rate: +65.9% (4Q22)
Rental Vacancy Rate: +5.8% (4Q22)
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.
Pennsylvania-based real estate investment firm Merion Realty Partners has announced its acquisition of Halstead Milford, a 246-unit multifamily community in Milford, CT. The three-story residential community features several amenities such as a coworking space, clubhouse and pool. “There was significant interest in the offering due to its Milford location in coastal New Haven County and the opportunity to enhance value by upgrading apartments to contemporary resident tastes,” said Jeff Dunne of CBRE, who represented the seller.
9. Colorado towns would be first in line to purchase multifamily properties
Under House Bill 23-1190 that would grant Colorado’s local governments to acquire multifamily properties, towns can receive priority for the purchase before private bidders as long as the former commits to use them for affordable housing for at least half a century. The bill applies to any development with five or more units in urban areas, or three or more units in rural-resort areas. Once the local government receives notice from a seller, it has only two weeks to preserve their right of first refusal to use it for affordable housing. They then would have 90 days to make an offer and another 180 days to close the deal. The bill is set to be considered in the House Transportation, Housing and Local Government Committee on February 28th.
8. Nashville multifamily occupancy remains solid
According to Yardi Matrix, Nashville multifamily occupancy in October was sustained, hitting 95.5%. Property developers delivered 6,356 units last year through November, most of which are located in upscale properties. Another 20,212 units were in the pipeline. Investment activity reached $3.9 billion in transaction volume for the year, which set a new record. The price per unit was up 17% YoY, reaching $238,757 compared to the national average of $215,443.
7. Philadelphia-based multifamily developer proposes multifamily community in Orange County
Jefferson Apartment Group announced that it has already submitted a preliminary application to Orange County for a proposed 278-unit community located at the intersection of Lake Marie Way and Turkey Lake Road in Dr. Phillips. The company wants to build three four-story apartment buildings based on its conceptual plan. Currently, the property has entitlements for commercial usage so the switch to multifamily use would require a land-use change.
6. Marcus & Millichap announces the sale of Joliet, IL multifamily
Marcus & Millichap has arranged the sale of a 12-unit multifamily property located at 1604 Richmond Circle in Joliet, IL. The company claims that it is the highest per-unit price for similar Joliet multifamily properties in recent history, although no official figures were released. It was built in 1973 and has undergone several renovations since then. It features off-street parking spaces and an on-site laundry area.
5. Santa Clara, CA multifamily project construction begins
USA Properties has commenced the construction of the $81.2 million Mainline North. The affordable eight-story multifamily project in Santa Clara, CA features 151 studio, one-, two- and three-bedroom apartments with energy-efficient appliances. Completion is scheduled for early 2025. It will be marketed to households that earn up to 30% of the area median income. The project is part of a public-private partnership.
4. Victoria, TX multifamily community now sold
3CM Multifamily has reported the successful sale of Elevation on Airline, a 56-unit multifamily community at 903 Linwood Drive in Victoria, Texas. Formerly known as Encore Apartments, it comprises 14 buildings which will see significant upgrades over the coming months. Northmarq brokered the transaction on behalf of the seller. The property sits near the University of Houston-Victoria and Victoria College.
3. South Florida multifamily market remains strong
The multifamily market in South Florida remained resilient last year despite the country’s development slowdown. Its second-highest year for multifamily sales was recorded in 2022 with just under $9 billion in transactions for a total of 631 sold properties, according to Cushman & Wakefield. Pricing in the region’s three counties registered record average per-unit sales with Palm Beach hitting $385,215 per sq unit, followed by Miami-Dade at $350,874, and Broward at $312,369.
2. Newly-built multifamily community in the Capitol Hill trades for $105M
Modera Broadway, a 228-unit multifamily community in Capitol Hill, Seattle, was traded for $105 million by Mill Creek Residential LLC to Broadway Owner, LLC. The latter took a $57 million loan from Citibank. Aside from studio, one- and two-bedroom units, the newly built LEED Silver-certified multifamily also features 16,000 sq ft of retail space and parking garage.
1. Dallas is top market for multifamily deliveries in 2022
Multihousing News has ranked Dallas as the top market for multifamily deliveries in 2022 with a total of 23,137 units delivered. This represents 2.7% of the inventory. Construction starts were also the highest with 27,736 units, second only to Austin’s 32,863 units. Houston followed with 18,450 units delivered, which make up 2.6% of the inventory. Rounding out the top five are Austin, Miami and Seattle. Interestingly, Miami ranked second in terms of total construction starts with 22,630 units.
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