multifamily Archives - Viewpoints - Coldwell Banker Commercial

Apr 9, 2024

2024’s Top College Towns for Students & Investors

RentCafe recently published insights highlighting the best college towns in the U.S. in terms of great education, high quality of life, and affordability.

Mar 19, 2024

Student Housing Trends & Shifts in 2024

In the United States alone, the student housing investment market has surged past the $10 billion mark and is projected to surpass $14 billion by 2027.

Feb 20, 2024

Navigating the New Norm: Exploring the Surging Trend of Multigenerational Living

Defying the longstanding tradition of "flying the nest," a staggering 68% of young Gen Z adults are opting for the comforts of familial homes over independent living.

Feb 6, 2024

Multifamily Outlook for 2024: What to Expect

As we step into 2024, the real estate landscape is poised for a variety of challenges and opportunities. In this post, we break down highlights from Yardi Matrix’s Multifamily National Report for 2024

Jan 23, 2024

Rental Resurgence: Midwest Dominates Multifamily Competition as Miami Claims Top Spot in 2023 Market Dynamics

While a majority of the U.S. experienced a softening in rental competitiveness, the Midwest defied the trend. Miami secured the title of the nation's hottest rental market in 2023. The city's thriving tech scene continues to attract global innovators and entrepreneurs, intensifying the competition for rental apartments.

Dec 19, 2023

Top Zip Codes Powering the New Apartment Surge

The U.S. is currently undergoing a significant resurgence in new apartment construction, evident in the increased presence of cranes adorning the skylines of major cities.

Dec 5, 2023

Multifamily Remains the Most Attractive Asset Class Despite Challenges

Despite several challenges, including high interest rates, credit availability, and the state of the economy, multifamily properties continue to shine as the most attractive asset class in the real estate market.

Nov 21, 2023

Office to Home: Exploring the Adaptive Reuse Housing Trend

More than 10,000 residential units were created nationwide through conversions last year, and tens of thousands more are expected to come online in the coming years, according to Yardi Matrix.

Nov 14, 2023

September Rental Activity Report: Cities in Demand

Examining RentCafe's market insight report reveals renter online activity to identify top in-demand cities for apartments.

Sep 19, 2023

Challenges in the Affordable Housing Space: What to Know

The U.S. is facing a potential loss of nearly 200,000 affordable housing units in the next five years as government protections expire for hundreds of rental properties, allowing landlords to set their own rents, highlighted by The Wall Street Journal. The main program used by the federal government to encourage developers to build affordable housing is a 30-year tax credit. However, specific agreements that assisted low-income renters are set to end, giving landlords the option to charge market rates for their units instead of continuing with the government program. Due to a period of high rent growth, many landlords are expected to raise rents significantly. Between early 2021 and the summer of 2022, asking rents for market-rate units increased by 25%, according to Apartment List, a rentals website. By 2027, up to 188,000 low-cost rental apartments funded by the government tax credit could convert to market rate, as reported by Moody's Analytics. Certain cities, such as Dallas, Chicago, and Houston, are at risk of losing a significant portion of their affordable housing. During the pandemic, a considerable number of affordable housing units vanished, with a decline of 400,000 apartments and rental homes for families in poverty between 2019 and 2021, according to the National Low Income Housing Coalition, which analyzed U.S. census data. Some of this loss was attributed to the expiration of tax credits, as mentioned by Moody's Analytics.Without longer affordability agreements or new subsidies, approximately 100,000 units of tax-credit housing could expire annually by 2033, according to Peter Lawrence, director of public policy and government. Rent increases following expiration can be substantial, as affordable housing rents are typically 38% below market rates on average, but after expiration, they rise to about the same level as market-rate properties of comparable quality and location, according to a study by Freddie Mac.This situation has left some long-term renters in difficult situations. The Wall Street Journal article shares the story of an 85-year-old renter in California who lives on a monthly income of $1,000 and has experienced minimal rent increases for nearly three decades. However, in 2021, the landlord opted out of the federal tax credit program, causing the rent to more than double, going up to as much as $1,300. Landlords have been major supporters of the tax credit program, and many have built large businesses by operating affordable housing. But without new subsidies or incentives, building owners will likely take advantage of the recent hot market and raise rents to meet the rising costs of maintenance, insurance, and property taxes. The solutions to this looming challenge will require cities and government agencies to work with landlords and developers to encourage investment into affordable housing projects, while simultaneously creating the incentives to do so. It is a complex situation that won’t easily be solved but without collaboration to address the need, it is clear that fewer options will be available. That doesn’t bode well for the future of many who are in desperate need and could end up without a safe and secure place to live.