Market Reports

San Antonio Adjusts to New Supply

by Channing Hamilton November 27, 2023

The apartment market in San Antonio today is a mixed bag. Like most Sun Belt metros, supply exceeds demand in Alamo City. While property managers are struggling to lease up their communities, investors are sitting on the sidelines until interest rates stabilize and the market starts absorbing units developed during the post-COVID building boom. On the plus side, population growth, a metric apartment investors prize because it feeds renter demand, is solid in San Antonio. In May, the U.S. Census Bureau ranked San Antonio the third fastest-growing city in the …

November 27, 2023

Metronome at MidCity in Huntsville, Alabama

Alabama Development Finance Investment Sales Market Reports Southeast

Alabama: A Tale of Two Markets

by Channing Hamilton November 20, 2023

As secondary markets, the Huntsville, Birmingham and the Gulf Coast areas can’t lay claim to the dramatic population growth and major corporate relocations that have driven apartment demand in many neighboring Sun Belt cities. That, however, has not prevented some developers from rushing into Huntsville. As a result, that market, like many others, is adjusting to what is arguably too much new supply. Meanwhile, Birmingham is growing at a more measured pace. Those who invest in Alabama multifamily say the state may be close to attracting institutional investors’ attention because …

November 20, 2023

Development Finance Illinois Investment Sales Leasing & Marketing Market Reports Midwest

Chicago’s Apartment Managers Adjust to New Realities

by Channing Hamilton November 13, 2023

With the official end of the health emergency in May, it would be natural to assume that multifamily assets are operating in a much-improved environment versus three years ago, when policy responses to the pandemic locked down the economy, curtailed new applications, restricted tours and halted evictions. That’s especially true because once shutdowns loosened, robust renter demand for apartments drove double-digit rent increases in late 2021 and early 2022. But it could be argued that multifamily property managers face as tough an operating environment today as they did in 2020 …

November 13, 2023

Arizona Development Finance Investment Sales Market Reports Western

Is Phoenix Overbuilt Or Underbuilt?

by Channing Hamilton November 6, 2023

There is one U.S. county that has largely outpaced all the rest before, during and after COVID-19. It’s Maricopa County, which includes the Phoenix metropolitan statistical area (MSA). The county was home to about 4.2 million residents in 2012. Today, that number stands at more than 5 million, per the U.S. Census Bureau. Prior to COVID-19, much of that migration was tied to job growth, notes Christian Garner, president and CEO of Avanti Residential. “Phoenix over the past 10 years has greatly diversified through industries like education, medical and technology,” …

November 6, 2023

Development Finance Investment Sales Market Reports Texas

Houston Landlords Fend Off Economic Challenges

by Channing Hamilton October 30, 2023

Houston apartment owners are still navigating through stormy weather, not just because hurricane season has kicked off. A surge in new supply, strains on net operating income (NOI) and capital markets pressures are testing the mettle of Houston developers and investors. “Without a doubt, the big story is all the challenges hitting from every direction: a very tight lending market, stubbornly high construction costs, interest rates and insurance costs,” says Dennis (D.J.) Blanchard, vice president of development and legal affairs with Sueba USA Corp. “Firms have to be well-positioned to …

October 30, 2023

Development Finance Florida Investment Sales Leasing & Marketing Market Reports Southeast

Development Wave in Jacksonville Reaches Crescendo

by Channing Hamilton October 23, 2023

The City of Jacksonville’s pro-development plans have apartment developers feeling confident amid soft market conditions challenging many cities today. Downtown Jacksonville is a 3.9-square-mile area that straddles about six miles of the St. Johns River. It’s made up of eight districts or neighborhoods along the river’s north and south banks. The Downtown Investment Authority (DIA) has identified these eight districts as sites for future development for residential, hotel, retail and office projects. Within these districts, developers are expected in 2024 to complete 31 multifamily projects, which include 8,402 units, according …

October 23, 2023

Development Finance Investment Sales Market Reports Northeast Pennsylvania

Philadelphia’s Development Fever Starts to Break

by Channing Hamilton October 5, 2023

New residential towers and half-built high-rises crowd the Philadelphia skyline. Developers are building more apartments here than at any other time since real estate research firms started keeping track. It’s a big change for Philadelphia, which is not known for building booms, particularly within the city limits. Leading developers say they would break ground on even more apartments if they could, even as the number of vacant units creeps higher. However, hesitant banks and high interest rates have halted many development plans for now. High construction costs and the loss …

October 5, 2023

The Berkley Riverfront sites in Kansas City

Affordable Housing Development Finance Investment Sales Kansas Market Reports Midwest

Buyers Retreat, Development Peaks in Kansas City

by Channing Hamilton September 20, 2023

While investment sales activity has slowed in the Kansas City apartment market due to the spike in interest rates, development is continuing at a brisk pace. RealPage reports that 8,582 units were under construction in metro Kansas City as of the second quarter. This number is on par with the second quarter of 2022 when 8,422 units were under construction, and significantly higher than the second quarter of 2021 (6,889 units) and the second quarter of 2020 (7,354 units). Total deliveries in 2023 are expected to rank as the second …

September 20, 2023

Affordable Housing Development Finance Investment Sales Market Reports Nevada Western

Resilience of Las Vegas Market Is Tested

by Channing Hamilton August 28, 2023

Sometimes Las Vegas’ reputation precedes it — and that can be a good or bad attribute. “Everyone remembers 2008,” says Taylor Sims, executive director of the Multifamily Advisory Group at Cushman & Wakefield. Home prices in Las Vegas plunged by 60 percent during the Great Recession, nearly twice the national rate, according to news affiliate KTNV. The University of Nevada, Las Vegas (UNLV) notes the unemployment rate peaked at 14.5 percent in October 2010. Like Sims, Michael Albanese, a multifamily specialist at NAI Vegas, knows the rest of the world …

August 28, 2023

Albion Music Row in Nashville, Tennessee

Development Investment Sales Leasing & Marketing Market Reports Southeast Tennessee

Renters Gain Upper Hand in Nashville

by Channing Hamilton August 14, 2023

In downtown Nashville, supply is overtaking demand, leaving renters in a position of power. Developers brought 8,175 units to the market in 2022, up 40 percent from 2021’s deliveries, according to Northmarq. But only about half of the units delivered last year — 4,200 — were absorbed. Owners, however, have a surprisingly glass-half-full perspective about excess supply and rising vacancies. Not only do they say this market condition is temporary. They also believe it provides an opportunity in disguise. It’s a chance to fine-tune the customer service side of the …

August 14, 2023

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