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As housing affordability continues to be a national concern, several states have introduced zoning legislation that aims to tackle the issue. But a new survey from Redfin indicates that more than half of the nation’s homebuyers and sellers claim to oppose the building of dense housing in their neighborhoods. Read full story
The Fed’s interest rate cut is unlikely to boost commercial real estate values, according to industry sources. Read full story
The Federal Reserve has lowered its benchmark interest rate by a quarter percentage point, the first decrease since the financial crisis. Chairman Jerome Powell’s comment that the action is “not the beginning of a long series of rate cuts” triggered a stock market sell-off and criticism from President Donald Trump. Read full story
Appetite to purchase tax-exempt bonds is at high level, according to finance leaders. Read full story
The preference for real estate investments compared to other asset classes such as stocks is strong right now, says Greg McBride, Bankrate.com chief financial analyst. He notes that the 20% drop in the stock market last year rattled a lot of investors and that stocks haven’t quite shed their stigma from the financial recession ten years ago, especially among Millennials. Read full story
The federal program is expected to fuel the development of small and midscale multifamily assets. Read full story
REITs are increasingly issuing commercial paper because of their cheaper borrowing rates. There is a risk to using short-term debt obligations because lenders could suddenly lose confidence in them in an unexpected event such as a financial crisis. Read full story
Fed Chair Jerome Powell told Congress Wednesday morning that the US economy has not improved in recent weeks, noting “that uncertainties around trade tensions and concerns about the strength of the global economy continues to weigh on the US economic outlook.” The market is interpreting his remarks to mean that the Fed will cut its benchmark short-term interest rate later this month. Read full …
Advocates want Congress to renew the New Markets Tax Credit (NMTC) program before it expires after 2019. Read full story
Treasury, IRS create flexibility to position incentive for success. Read full story
Average cap rates on student housing transactions are now near those paid for apartment buildings. Read full story
Deborah Jenkins has been named executive vice president and head of Freddie Mac’s multifamily business. She also has assumed a role as member of… Read full story
Jim Sullivan, managing director of BTIG, an institutional brokerage firm based in San Francisco, has increased his earnings estimates for Equity… Read full story
When Greystar first bought into a 6,900-bed student housing portfolio in the U.K. in 2013, its investment dollars were bucking what was quickly… Read full story
Tax cuts and a robust economy helped commercial real estate prices rise 6.2% in 2018, putting them nearly 30% above 2007 levels, according to Real Capital Analytics. With the Federal Reserve’s announcement that it would keep rates steady, sales could rise higher, as borrowing costs will remain low, said Sam Chandan, head of New York University’s Schack Institute of Real Estate. Read full story
Chinese individuals and entities sold $854 million more in US commercial real estate than they bought in the fourth quarter, according to Real Capital Analytics. That was the third quarter in a row that Chinese real estate investors were net sellers, and it was the lowest level of commercial real estate investment from the country since 2012. Read full story
The Federal Reserve is considering wrapping up its tactic of allowing trillions of dollars’ worth of mortgage and Treasury securities to mature without reinvesting the proceeds elsewhere. When the process began in October 2017, an official said the runoff could last five years. Read full story
The International Monetary Fund cut global economic growth forecasts for 2019 and 2020, citing eurozone weakness, a possible no-deal Brexit, an escalation of trade tensions and the slowdown of China’s economy. The IMF placed growth at 3.5% in 2019 and 3.6% in 2020, down 0.2 and 0.1 percentage points, respectively, from October’s outlook. Read full story
US stocks posted losses Tuesday after the International Monetary Fund scaled back a global economic forecast for this year and after China reported the slowest pace of economic expansion in 28 years. The S&P 500, the Nasdaq composite and the Dow Jones Industrial Average all closed lower, with chipmakers taking some of the biggest losses. Read full story
Yardi Matrix believes the multifamily cycle will continue its long run after solid performance last year. “Despite the recent volatility in the financial markets, we foresee more of the same in 2019, with strong demand producing rent growth just shy of 3% nationally,” it says in a report. Read full story
Demand for US Treasury bonds and notes last year hit its lowest point in 10 years. Weak auctions and bond losses aren’t linked, but the declining demand could become significant to investors, said Torsten Slok, Deutsche Bank’s chief international economist, who added, “A declining bid-to-cover ratio increases the vulnerability and probability that investors suddenly will begin to think that a falling bid-to-cover ratio is …
Which government agencies are affected and what is the fallout for the commercial real estate sector? Read full story
MBA – December 7 “Rents are up year-over-year in an even greater share of the nation’s largest markets–83 of the 100 largest cities have seen rents increase over the past twelve months.” Read full story
“Favorable economic factors in 2018 and rising interest rates, which can cause delays in home-buying, helped push rental costs upwards at the year’s end.” Read full story
If you’re considering investing in a multifamily venture, or if you’re already in the market, there are challenges and opportunities to watch for in the coming year. From rent trends to supply and cost factors, here’s what to expect in 2019. Read full story
Changing demographics, shifting social values, and evolving development landscapes all continue to drive a surging, nationwide demand for multifamily housing. With empty-nesters looking to downsize, millennials staying single longer, and a general desire for a more convenient and social lifestyle, more and more “renter-by-choice” Americans are forgoing mortgages for lease agreements. Read full story
The Federal Reserve’s latest report on economic conditions, known as the Beige Book, says most of the central bank’s 12 regions achieved satisfactory growth in November but says there is “increased uncertainty” among businesses regarding the influence of US tariff policy. The report highlights rising costs for manufacturers and problems for farmers because of countertariffs imposed by China and others. Read full story
The Federal Reserve still plans to gradually increase interest rates but has left them unchanged at a meeting this week. The central bank says the US economy remains healthy but notes a downturn in growth of business investment. Read full story
Interest rates, costs continue to rise for developers. Read full story
The midterm elections, in which Democrats have taken control of the House and Republicans have increased their majority in the Senate, are unlikely to have any short-term impact on economic programs implemented by the Trump administration, market experts said. The stock market’s reaction to a split Congress has been positive. Read full story
Fannie Mae has made changes to its Connecticut Avenue Securities credit-risk transfer program and now can sell bonds in a real estate mortgage investment conduit, or REMIC, structure as well as give investors recourse to underlying real estate. The REMIC issuance “checks all of those REIT boxes, and we think it’s important over the long-run to have a structure that works for them from …
GSE issues call for ideas as part of $10M, two-year Innovation Challenge. Read full story
As foreign and institutional investors seek portfolio diversification capital is likely to continue flowing into student housing properties. Read full story
GDP growth in the second quarter has been revised upward by the Commerce Department to an annualized 4.2% from an initial estimate of 4.1%, after economists expected no change. Adjusted corporate profit before tax has climbed 7.7% during the past year, the largest 12-month increase in four years. Read full story
The government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, will conclude their single-family rental pilot programs and terminate their participation in the single-family… Read full story
Freddie Mac announced Tuesday its new program to keep rents more affordable by incentivizing investors with favorable loan pricing. Read full story
The national average rent rose by $3 in July 2018 as the market remains on its steady pace, up to an all-time high of $1,409, according to the latest Yardi Matrix Multifamily National… Read full story
“The multifamily market’s current strong performance should continue throughout 2018 and well into 2019, said Freddie Mac Multifamily, McLean, Va.” Read full story
“Half of the top 10 metropolitan markets for commercial and multifamily construction starts showed increased activity during the first six months of this year compared with a year ago.” Read full story
A majority of fund managers expect a recession in the US by early 2020, according to a Bank of America survey. A separate survey of bond-market experts reveals widespread expectations of a yield-curve inversion, a recession signal, within two years. Read full story
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