Archive for June, 2014

Axiometrics – Nationwide Apartment Occupancy Rate at 95 Percent

Axiometrics just released new numbers for 1Q14 and they indicate that the nationwide apartment market is still very healthy:

 National apartment occupancy reached 95% for the first time in at least six years in May 2014, according to research from Axiometrics, the leader in apartment data and research.

Additionally, effective rent growth for the year to date ending in May was 3.7%, the highest growth since the trough of the recession. With both improving occupancy and rent growth despite increasing unit deliveries, the apartment market is performing at a very high level.

“Axiometrics began tracking apartment data on a monthly basis in April 2008, and this is the first time since then that occupancy has been 95%,” said Stephanie McCleskey, Axiometrics’ Director of Research in a press release. “We tracked quarterly before that, and the second quarter of 2001 was the last time the market was at 95% for a quarter. It’s a pleasant surprise because it’s coming at a time when new supply is flooding the market.”

According to Axiometrics’ recently released May 2014 Market Trends Report, May saw a 20 basis-point (bps) increase in occupancy from the 94.8% recorded in April 2014, also the previous monthly high. Occupancy was 94.8% in August and September 2013.

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June 30, 2014 at 2:06 pm Leave a comment

ForRent Survey Reveals 42% of Renters Are Millennials

ForRent.com recently published 2014 Multifamily Trends for the first quarter of ’14 and in it they had this interesting nugget of information:

ForRent.com and Homes.com renter survey revealed that although there was an increase in home rental interest, apartment rentals were most popular. Of 2,200 consumers surveyed, 45% of renters were single and 22% were married with no children. Similar to baby boomers, millennials, or those born from 1981-1996, prioritized convenience, location, and safety over amenities. Millennials made up approximately 42% of the Q1 2014 renter demographic.

June 27, 2014 at 1:23 pm Leave a comment

Congratulations to HAWS’ Katrina Redmon

Wilmington’s gain is PTAA’s loss: please join us in congratulating Katrina Redmon, currently the Vice President/Chief Development Officer for the Housing Authority of Winston-Salem and the 2012 Diamond Award winner in the Corporate Professional category, for her exciting new opportunity to serve as the CEO of the Wilmington Housing Authority. Katrina has been a valuable contributor to PTAA and we will certainly miss her.

June 27, 2014 at 1:05 pm Leave a comment

Piedmont Triad Apartment Market Projected to Have 9th Highest Vacancy Growth

Here’s a happy way to end the day (insert sarcasm here): According to this piece at Multifamily Executive the apartment market in the Piedmont Triad is expected to experience the 9th highest rate of vacancy growth in the country – .8% – from 1Q14 to 4Q15:

Many prognosticators think the great run in the apartment market is coming to an end. After performing incredibly well for the past four years,the tide is starting to turn against the marketplace.

Sweeping changes over the next two years are going to cause fundamentals in the market to weaken for the first time since 2009. Significantincreases in construction activity, for example, are going to send a torrent of properties into the market over the next seven quarters. Of course, these changes won’t be uniform across the United States. So it’s critical to understand which markets are going to see the most challenges…

Many of the markets that are projected to see the largest vacancy increases over that interval are among the fastest-growing markets in the country as measured by metrics such as employment growth, population growth, and household formation rate…

Here’s a little more cheerful news:

It’s unlikely rent growth will turn negative in any market before the end of 2015, but growth could be muted, particularly in submarkets with a lot of new construction and fervid competition.

Still, it could be worse, like in Charlotte where the vacancy rate is expected to grow by 1.3% from 1Q14 to 4Q15, the highest rate in the nation.

 

June 26, 2014 at 10:29 pm Leave a comment

Home Sales Lagging, Tight Credit May Be the Culprit

An article in the Wall Street Journal that explores the (still) lagging home sales market has a nugget of data that won’t surprise many apartment managers:

But price hasn’t been the only thing holding back the housing market. The Federal Reserve’s senior loan officer survey shows that as the economy has recovered, banks have been far slower to relax lending standards for mortgages than for other types of loans. In recent quarters they have actually tightened a bit.

Applying hard lessons learned during the bust, households may also be engaging in some self regulation, demanding higher down payments of themselves and more assurances that they will have the wherewithal to make payments…

It is cheering that the price and supply problems that have been holding back housing are showing signs of improvement. True recovery, though, rests on employment improving to the point that banks are more willing to extend mortgages to households and households are more willing to take them. There is hope that with the recent pickup in the job market, that time is no longer over the horizon. But it hasn’t come yet.

Until that time comes apartment managers will continue to see strong demand for their products.

June 26, 2014 at 12:01 pm Leave a comment

18 Acre Mixed Use Development in Adams Farm Could Include Apartments

According to a story in the Triad Business Journal a mixed use development in Adams Farm might include apartments:

Tribek Properties of Charlotte is in the preliminary stages of planning a multi-user, mixed-use development on a 17.6-acre tract at High Point and Mackay roads at the site of a former Fortress Wood Products plant.

The site at 1 Metals Drive is near Guilford Technical Community College and sits behind a stretch of High Point Road that’s currently being widened near the Adams Farm community…

Bortz said Tribek was just starting to talk with potential tenants and could envision multiple uses for the property: apartments, a grocery store, a discount retailer, an office building, an institutional or medical facility.

“A lot of it just depends on who has interest in that market,” he said.

 

June 25, 2014 at 7:34 pm Leave a comment

Blue Ridge Companies’ Couch Talks Retail

PTAA member Blue Ridge Companies’ CEO David Couch had a quick Q&A with the Triad Business Journal about some of its development activities:

Blue Ridge has historically been among the largest property management firms in the Triad. Does your recent work with several retail projects signal a shift in your overall vision for the company? We’ve always had a retail presence, but over the years it seemed like our energy was directed about 80 percent multifamily and 20 percent retail. Right now, I would say that might be 60/40. The Palladium in High Point is one of our retail developments; we developed Oak Ridge Commons and several others in the Triad and surrounding areas. We look at where the opportunity is.

Read the whole thing here.

June 25, 2014 at 7:23 pm Leave a comment

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