Posts filed under ‘Benchmarks’

Forsyth County Housing Still Considered Affordable

A recent RealtyTrac report finds that housing in Forsyth County is still affordable. From the Winston-Salem Journal:

RealtyTrac, a national real-estate research company, said average homeowners in Forsyth needed to put 22.9 percent of their monthly household wages toward their mortgage during the first quarter. The data is available only by county.

The affordability range was based on a wage of $883 a week for an $111,994 house with a 3 percent mortgage interest rate. Historically, the average homeowner spent 25.6 percent of household wages for the mortgage.

RealtyTrac has maintained a “buy” recommendation for the Forsyth housing market, based on a $1,059 monthly rent-to-own payment requiring nearly 30 percent of the average household income.

Here are numbers for other urban counties in the state:

For Guilford County, the RealtyTrac report determined 24.2 percent of weekly wages was required to buy a $144,500 home, the median sales price in the market.

For Mecklenburg County, the report determined 25.5 percent of weekly wages was required for a $208,000 home, the median sales price in the market.

For Mecklenburg County, the report determined 25.5 percent of weekly wages was required for a $208,000 home, the median sales price in the market.

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July 6, 2016 at 7:01 pm Leave a comment

Rent Increases Cool Off

From The Wall Street Journal:

Increases in apartment rents slowed this spring, typically the period when landlords drive the hardest bargains, suggesting the once-booming market is beginning to cool.

Rents increased by 4% in the second quarter over the same time last year, according to real-estate researcher Reis Inc. That was less than the 5% year-over-year growth in the fourth quarter of last year, which marked the biggest jump in rents since the dot-com boom in the early 2000s.

Another research firm, Axiometrics Inc., showed an even sharper slowdown in year-over-year rent growth, to 3.7% in the second quarter from 5.1% in the same period last year.

But, rents are still rising faster than historical averages:

While overall rent growth is cooling and some developers are struggling to get the rents they anticipated, the market remains historically strong. Rents are still rising well above the long-term average of about 3% a year…

More than 127,000 new apartments were filled in the second quarter, easily exceeding the 67,550 units that were built during the period, according to MPF.

July 6, 2016 at 6:13 pm Leave a comment

NAA Statement on “How Housing Matters” Study

Following is a statement from Doug Culkin, CAE, President and CEO of the National Apartment Association, on the MacArthur Foundation’s 2016 “How Housing Matters” survey:

“With four of five Americans believing housing affordability continues to be a problem, this study underscores the need for political leadership and results‐driven policies to meet the demand for apartment housing.

America’s affordability problem is growing. The supply of rental apartments can’t meet the demand – between 300,000 to 400,000 apartments must be built annually to keep pace, but only an average of 208,000 were built between 2011 and 2015.

Compounding this challenge is stagnancy in incomes. Median rental household income is almost unchanged from 35 years ago on an inflation‐adjusted basis.

Finally, costly and cumbersome regulations at all levels of government create barriers to the development of new rental housing and ultimately drive rents above what many families can afford.

We commend the MacArthur Foundation for reinforcing that Americans want lawmakers to act now to address our nation’s housing affordability challenges.

Lawmakers must recognize that the most viable solution requires a strong partnership between government and the private sector. The National Apartment Association continues to work to enable our members to provide apartment homes that meet the needs of all Americans.”

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The National Apartment Association (NAA), America’s leading voice for the apartment housing industry, provides its members with the best range of strategic, educational, operational, networking and advocacy resources they need to learn, to lead and to succeed. As a federation of nearly 170 state and local affiliates, NAA encompasses over 72,000 members representing more than 8.4 million apartment homes globally. NAA’s purpose is to enable every single one of its members to fulfill his or her professional goals with great competence, speed and the highest standards of ethics. To learn more, visit http://www.naahq.org.

June 27, 2016 at 1:00 pm Leave a comment

Rents Leveling Off, Especially in Major Metro Markets

According to an article in the Wall Street Journal rents are beginning to level off nationwide:

After a five-year boom in which rents have jumped by about 20% nationwide, some of the nation’s biggest cities—New York, San Francisco, Seattle and Boston among them—are beginning to see slower increases. Annual rent growth for high-end urban apartments peaked at nearly 8% at the end of 2011 and has since slowed to just over 3%, according to MPF Research, which tracks the apartment market.

The downdraft is likely to become more pronounced as many of these cities see increases in the number of new apartments being delivered in 2016 and 2017. In 25 of the largest U.S. cities, multifamily permits in urban areas were up 39% in 2015 compared with a year earlier, according to a study by housing-research firm Zelman & Associates.

However, things are still good for the apartment industry:

Economists say the overall apartment market remains solid. Rents are continuing to rise quickly for more moderately priced apartments in the suburbs, tempering the urban slowdown.

You can read the full article here (Requires subscription to WSJ).

June 24, 2016 at 1:59 pm Leave a comment

Highlights from Just Released Real Data Report for Triad Apartment Market

Real Data just released their April, 2016 report from their March surveys for the Piedmont Triad and here are the highlights:

  • Average rents are up 2.1% since Mar, 2015
  • Vacancy rate is 7.5%, up from 6.7% in Sep, 2015
  • Demand has weakened in last 6 months, with only 355 units absorbed out of 929 completed over that time
  • Development pipeline includes 3,040 units under construction and another 3,220 proposed
  • Alamance is most active development sub-market with 630 units under construction
  • Average rents are: 1 BR-$673, 2BR-$760, 3BR-$973
  • Real Data projects vacancy to grow to 8% over next year, and rents to rise 2-3% as well.
  • Sub-market with highest overall rent: Guilford Central (Downtown Greensboro)
  • Sub-market with highest rent per SF: Forsyth Central (Downtown Winston-Salem)

For detailed reports, sub-market specific data, direct comps and more you can purchase a copy of the report from Real Data at www.aptindex.com.

April 20, 2016 at 3:35 pm 1 comment

Survey Shows Triad Rents Up, Still Lag Other NC Metro Areas

ApartmentList released results of a survey they conducted recently and it shows that rents for Triad apartment are up year-over-year, but the Triad still trails other NC metro areas in rent rates. The Greensboro News & Record picked up the story:

 

Despite the growth in prices compared with last year, however, Greensboro offers some of the most affordable apartments in the state.

The median rent for a two-bedroom apartment in Greensboro is $800, making it seventh in the state compared with Asheville’s median rent of $1,210.

Median rent for a one-bedroom apartment in Greensboro is $690, according to the survey.

In High Point, median rent for a two-bedroom apartment is $820 and $680 for a one-bedroom.

And in Winston-Salem, the median for a two-bedroom apartment is $750. No information was reported for a one-bedroom apartment.

March 3, 2016 at 10:06 pm 1 comment

Building Boom: Investors Still Bullish on Apartments

From the Wall Street Journal:

After six years of rising apartment rents in U.S. cities, investors from all corners of the real-estate industry are piling into new projects in a bet the boom still has a long way to run.

Over the next three years, developers are expected to build almost 1 million apartments in the U.S., more than the nearly 900,000 constructed over the previous three, according to researcher Axiometrics Inc.

In 2014, multifamily rental construction reached 328,000 units, its highest in nearly 30 years, according to an analysis of U.S. Census data by Jed Kolko, a senior fellow at the Terner Center for Housing Innovation at the University of California, Berkeley.

The main lure for investors: rising rents. Average rents nationwide rose 4.6% in 2015, the biggest gain since before the recession, according to real-estate researcher Reis Inc. Rents have increased by more than 20% since the beginning of 2010. Most economists expect 2016 to be another strong year. The average monthly U.S. apartment rent now stands at nearly $1,180, up from about $1,125 a year ago, according to Reis.

Yep, rents are up across the US, but the Triad is still affordable by comparison. According to Real Data’s latest report, average rent in the Triad was $760 in Sep, 2015 which was up from $728 a year earlier. Same could be said for comparing development in the Triad to the rest of the country: the Triad is definitely seeing some apartments built, but not at the same rate as many of the major metro areas.

January 12, 2016 at 8:02 pm 1 comment

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