WEEKLY
Mortgage Rate (30-Year Fixed): 6.09% (as of 2/2)
MONTHLY
Existing Home Sales: -1.5% (December 2022)
New Residential Sales: +2.3% (December 2022)
Median Sales Price for New Houses Sold: $442,100 (December 2022)
Construction Spending: +7.7% YoY (December 2022)
New Residential Housing Starts: 1.382 million (December 2022)
New Residential Housing Completion: 1.411 million (December 2022)
QUARTERLY
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.
10. Real estate firm to snap up thousands of Daly City apartments
San Francisco-based Carmel Partners paid $675.2 million for 70 parcels of land in Daly City where approximately 3,000 apartments are located. According to public information at the San Mateo County Recorder’s Office, the company will further expand its coverage in the Bay Area despite the economic challenges. The group also assumed three loans worth $249.8 million cumulatively and took another from Wells Fargo worth $348.5 million.
9. Houston multifamily market recorded more than 13,000 deliveries in 4Q22
Houston’s rental market is teeming with multifamily properties with the delivery of 13,740 units through October 2022 and another 29,000 in the pipeline. Half of the units under construction already broke ground last year. Total investments estimated by Yardi Matrix puts the volume to a $9 billion increase in the first two quarters. Unit prices inched 10.2% to $155,438 in October.
8. Construction firm CEO: multifamily building to intensify
The slowdown in housing construction in the next two years will accelerate the demand for multifamily properties, according to Matt Sayre, vice president of construction for multifamily and senior living at Ryan Cos. “The current headwinds the multifamily sector is experiencing are just speedbumps on a long road, not a cliff. Demand and demographics aren’t changing any time soon, and that presents an abundance of opportunities,” he told MHN in an interview.
7. San Jose multifamily market on a strong pace
San Jose’s multifamily market continues its strong showing with rent growth on a trailing three-month basis through October, where it was recorded at 0.3%. This is 10 basis points higher than the U.S. rate—to $3,124. In addition, multifamily occupancy rates rose 100 basis points to pre-pandemic levels of 96.0%, according to Yardi Matrix. It also registered 8,908 units in the pipeline and an additional 48,800 in the planning and permitting stages.
6. Chicago class A apartment community purchased
Multifamily real estate investment and property management firm JVM Realty Corp. announced its acquisition of the 149-unit Class A apartment community Courthouse Square. The property is situated 25 miles west of Chicago in suburban Wheaton, IL. Although the company decided not to disclose the acquisition price, the company is confident of its purchase, with CEO Jay Madary citing, “apartment communities of this caliber are in high demand given the strong employment fundamentals and high barriers to entry for home ownership.”
5. Shreveport, LA multifamily acquired for $28 million
Multifamily real estate investment firm Clear Investment Group has purchased a multifamily portfolio in Shreveport, LA for $28 million. The 549-unit property is the first closed transaction under the company’s Clear Opportunities Fund I LLC. According to CEO Amy Rubenstein, “A deal of this size allows us to efficiently place significant capital in a strong metro area to achieve major upside.”
4. Yardi Matrix: office buildings dominate residential conversions
Doug Ressler, manager of business intelligence at Yardi Matrix, believes that old office buildings in downtown locations dominate much of residential conversions because more workers now prefer to work from home. Ressler said that these structures were abandoned at the height of the pandemic, and in-office returns have been slower since then. “Not all buildings are equally threatened by the work-from-home revolution. Larger office buildings in abandoned central business districts are better suited to conversion than the often-smaller office complexes distributed around the suburbs,” he told MHN in an interview.
3. Phoenix multifamily market more promising than others
According to John Kobierowski, CEO of ABI Multifamily, the Phoenix multifamily market is expected to generate increased investment activity and positive returns to investors despite the lower volume forecasted in 4Q22. He cites the employment market growth, slowdown in single-family home construction and surging local population as the main triggers for the increase in multifamily demand.
2. US real estate now more attractive to foreign buyers
“U.S. real estate actually has a better cap rate than most countries. For instance, the average single-family home in Israel costs five times what a similar home here would cost. So investing in a rental property in countries like that and making them cash-flow positive doesn’t work for them,” according to Chad Gallagher, the co-founder of Home 365. He observed the increased interest from investors from Brazil and Argentina, owing to the very high inflation in these countries.
1. Miami is the the top metro for most multifamily units delivered
Yardi Matrix put Miami in top position after its multifamily market recorded 39,889 units in the pipeline, as of November 2022, which accounts for 36% of Florida’s multifamily pipeline and more than 4% of all units under construction. Early this year, the metro started building 3,164 units. Also making the list are Orlando with 25,330 units under construction, Tampa (17,522), Jacksonville (10,291) and Southwest Florida Coast (8,811).
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