Market Trend Insights
NAA/NMHC Team for Historic Study on Apartments' Economic Impact
Digested From "Apartment Industry, Residents Contribute $1.1 Trillion to the Economy"
NAA News Release (02/13/2013)
According to a report from the National Apartment Association (NAA) and the National Multi Housing Council, the apartment housing market added $1.1 trillion to the U.S. economy in 2011. The research further noted that apartments support approximately 25.4 million jobs and apartment residents spent $421.5 million for goods and services during that year. In 2011, the study added, the apartment sector spent $14.8 billion on the construction of 130,000 units and another $67.9 billion to operate and improve the country's existing stock of 19.3 million apartments. NAA Chair Alexandra Jackiw comments, "For the first time, we're able to quantify the tremendous economic impact of apartment residents across the country, in addition to the powerful contributions from apartment construction and operations. It truly shows a comprehensive view of the industry’s critical role not just in housing, but to the economy at large." Stephen S. Fuller of George Mason University's Center for Regional Analysis conducted the study.
Market Trend Insights
NAA/NMHC: Apartments Contribute $1.1 Trillion to Economy
Digested From "Study: Apartment Industry, Residents Contributed $1.1T to Economy"
Citybizlist Washington, D.C. (02/12/13)
According to a report from the National Apartment Association and the National Multi Housing Council, the apartment housing market added $1.1 trillion to the U.S. economy in 2011. The research further noted that apartments support approximately 25.4 million jobs and apartment residents spend more than $420 million for goods and services, including apartment furnishings and moving costs. In 2011, the study added, the apartment sector spent $14.8 billion on the construction of 130,000 units and another $67.9 billion to operate and improve the country's existing stock of 19.3 million apartments. Dr. Stephen S. Fuller of George Mason University's Center for Regional Analysis, conducted the study.
Demand Fueling Nearly $300M in Boston Apartment Building
Digested From "Apartment Demand Fueling $300M in Multifamily Construction, Study Says"
Boston Business Journal (02/18/13) by Thomas Grillo
A new survey, conducted by the National Apartment Association and the National Multi Housing Council, shows that strong job growth in Greater Boston fueled $288 million in new apartment construction for the downtown corridor and the city's suburbs. Titled "The Trillion Dollar Apartment Industry," the study found that high demand is creating a especially big number of opportunities near suburban public transit stops. Nationwide, the apartment industry spent upwards of $14.8 billion on construction in 2011 -- a year with one of the lowest multifamily housing completions on record, just 130,000 new units.
In Boston, Apartment Living Is Big Business
Digested From "In Boston, Apartment Living is a Billion Dollar Business"
BostonInno.com (02/13/13) by Alex E. Weaver
A new research report, released in conjunction with the National Multi Housing Council and the National Apartment Association, shows that apartment construction and operations contributed a staggering $3.3 billion to the Boston area's economy in 2011. The sector also supported approximately 24,000 local jobs. The study was based on research by economist Stephen S. Fuller of George Mason University's Center for Regional Analysis. According to Greg Vasil, CEO of the Greater Boston Real Estate Board, "The apartment industry doesn't just provide homes, but creates thousands of good paying, local jobs that stay right here within Massachusetts. The eye-opening report shows just how important apartments and our residents are to Massachusetts -- contributing $28 billion to the state economy." It should also be noted that the high demand for apartments in Boston and its suburbs has spawned a multifamily housing construction boom to the point where thousands of new rental units are expected over the next few years.
Washington State's Apartment Industry Provides Big Boost
Digested From "A By-the-Numbers Look at Washington State's Apartment Industry"
Puget Sound Business Journal (02/13/13) by Marc Stiles
According to a new national report by the National Apartment Association and the National Multi Housing Council, the apartment industry spent $507.4 million on new apartment construction in the greater Seattle area during 2011, creating a total economic contribution of $1.1 billion that supported approximately 8,800 local jobs. Throughout Washington state, apartment construction contributed $1.5 billion to the economy and supported around 11,000 jobs. The findings are based on research by Stephen S. Fuller, an economist at the Center for Regional Analysis at George Mason University.
Apartment Industry Makes Major Difference in Denver Area
Digested From "Apartment Industry: A $2.1 Billion Economic Engine"
Inside Real Estate News (02/13/13)
The Denver-area apartment industry contributed $2.1 billion to the metro-area economy in 2011, according to a national report released this past week by the National Apartment Assocation and the National Multi Housing Council. The research also showed that apartment construction and operations in Metro Denver supported 16,000 local jobs that year. The report is based on research by Dr. Stephen S. Fuller, an economist at George Mason University's Center for Regional Analysis. He found that, within the Denver metropolitan area, the apartment sector spent $204 million on new apartment construction in 2011. Furthermore, the apartment industry spent $736 million operating the local market's 231,000 apartments. Looking at the entire state, apartment construction contributed $753 million to Colorado's economy supporting 5,800 jobs in 2011.
Apartment Industry Powers $2.1 Billion Economic Engine in Denver
Digested From "Apartment Industry a $2.1 Billion Economic Engine"
Colorado Real Estate Journal (02/12/13)
The Denver-area apartment industry contributed $2.1 billion to the metro-area economy in 2011, according to a national report released this past week by the National Multi Housing Council and the National Apartment Assocation. The research showed that apartment construction and operations in metro Denver also supported 16,000 local jobs that year. Statewide, apartments and their residents contributed $19.4 billion to Colorado's economy and supported roughly 473,000 jobs. The study was conducted by economist Stephen S. Fuller of George Mason University's Center for Regional Analysis, covering the economic contribution of apartment construction, operations, and resident spending on a national level. It has provided data on a dozen metro areas.
Dallas Apt Boom Adds Almost $6 Billion in Annual Economic Impact
Digested From "Dallas-Area Apartment Boom Adds Almost $6 Billion in Annual Economic Impact"
Dallas Morning News (Texas) (02/12/13) by Steve Brown
In 2011, apartment construction and operations contributed $5.9 billion to the Dallas-area economy, notes a new study by the National Multi Housing Council and the National Apartment Association. Additionally, the research shows that the apartment sector supported around 50,000 local jobs. Gerry Henigsman, executive director of the Apartment Association of Greater Dallas, remarks, "The apartment industry doesn’t just provide homes, but creates thousands of good paying, local jobs that stay right here within Dallas. The eye-opening report shows just how important apartments and our residents are to Texas." Out of the 12 U.S. metro areas studied, only in New York City and in Los Angeles did apartments make a substantially bigger contribution to the local economy than in the Dallas metro area.
Apartments a Big Star in the Lone Star State
Digested From "Report Finds Area Apartment Industry Has Nearly $6 Million Economic Impact"
Fort Worth Star-Telegram (02/12/13) by Sandra Baker
A new study the National Multi Housing Council (NMHC) and the National Apartment Association has determined that apartment construction and operations contributed $5.9 billion to the metro Dallas economy in 2011 as well as supported approximately 50,000 jobs. Looking at Texas as a whole, the apartment industry contributed roughly $93 million to the state's economy. NMHC Chairman Thomas Bozzuto states, "Even in one of the worst economic climates we've ever seen, the multifamily industry and its 35 million residents contributed more than $1 trillion to the [U.S.] economy. With up to seven million new renter households forming this decade, the dollars and jobs we add to the economy will only grow in magnitude."
BAM! Brookfield Makes Major Apartment Buy in the South
Digested From "Brookfield Agrees to Buy 19 Apartment Communities for $414 Million"
Dow Jones Newswires (02/11/13) by Saabrina Chaudhuri
Brookfield Asset Management (BAM) has agreed to purchase 19 apartment communities for $414 million from Babcock & Brown Residential, as the alternative-asset manager aims to expand its multifamily housing portfolio. With 4,892 units in three states -- North Carolina, South Carolina, and Virginia -- the company said the strong economic and population growth throughout those markets will likely yield superior occupancy rates and rental increases. Brookfield said it plans to channel an additional $30 million towards upgrading and repositioning assets to increase rents and return on investment. The average occupancy of the portfolio is 92 percent. The transaction brings BAM's multifamily portfolio to approximately 20,000 units in the U.S.
China's Largest Developer to Conquer U.S. Apartments?
Digested From "China Vanke Buys 70 Percent of Tishman Speyer US Project"
Taipei Times (02/18/13)
China Vanke Co., the largest developer listed on Chinese exchanges, confirms that it has entered a property venture in San Francisco -- its first foray into the U.S. real-estate market. Specifically, Vanke purchased 70 percent of 201 Folsom Street, a mainly high-end residential project owned by Tishman Speyer Properties LP. The project will comprise just under 700 residential units. More and more Chinese developers are venturing overseas, chasing wealthy locals who are eager for apartments as the government restrains the market at home.
Whole Lotta Shakin' Goin' on With San Fran Retrofit Proposal
Digested From "San Francisco Earthquake Retrofit Proposal Could Put Renters At Risk"
Huffington Post (02/14/13) by Aaron Sankin
A proposal to seismically retrofit approximately 3,000 buildings in San Francisco has come under fire due to fears that it could cause a wave of rent increases and potentially problematic temporary evictions. Under the proposed rules, introduced earlier this month by San Francisco Mayor Ed Lee, owners of "soft-story" buildings would be required to make seismic improvements to ensure earthquake safety. "We've been talking for years and years about doing something, and our voluntary retrofit program doesn't seem to work for everyone because the work is not getting done," said Supervisor Scott Weiner, who signed on as a co-sponsor of the legislation. "We know that in a major earthquake, soft-story buildings are very likely to be badly damaged if not destroyed." If approved, the measure would apply to buildings built before 1978, that are three or more stories tall, and have at least five housing units. But with costs of more than $100,000 per retrofit, housing advocates are concerned that apartment owners and managers will be able to pass the costs to residents and use it as a pretext to evict long-term residents with affordable rents. Such opponents will be working to increase resident protections in the plan.
Eight Tips to Avoid Making BBB Apartment Complaints
Digested From "Common Cents with BBB - Apartment Complaints"
The Better Business Bureau (BBB) has long advised consumers to be aware of their rights and responsibilities before signing an apartment lease. Nationwide, the agency received more than 8,000 complaints about apartments last year. Most involved allegations of incorrect billing, difficulty getting security deposits back, or shoddy repair work. BBB officials offer eight tips for residents who wish to avoid letting matters get so bad that they have to report an owner or manager. One, check out the apartment with BBB first at bbb.org. This will show the community's BBB rating, as well as any history of complaints. Step two, don't rely on websites completely. Be sure to visit each apartment community in person before putting down a deposit. Take the time to tour all amenities to be sure they meet your needs -- i.e. swimming pool, fitness facility, parking, and so forth. Websites often use pictures taken only from the best locations on the property or of promotional units. The third tip is for the resident to always kmeep a signed copy of the lease in case you need to refer back to it. Four, it is wise to invest in a renters' insurance policy in the event one's belongings are either damaged or stolen. Tip five, always read the lease thoroughly to determine such things as what normal maintenance residents are responsible for and what fees are assessed if rent is late. Six, it is a good idea to document an apartment's condition on move-in. To this end, owners and managers should provide a move-in checklist. Tip seven is always ask for repairs in writing. Finally, residents should never stop paying rent as part of a strategy to force an owner/manager to make repairs. Not only could the resident face eviction, the nonpayment may affect his/her credit report.
Thieves Clean Out Yuba City Apartment Washers and Dryers
Digested From "Washer And Dryer Thieves Continue To Clean Out Yuba City Apartment Complexes"
CBS Sacramento (02/14/2013) by Nick Janes
In Yuba City, Calif., apartment owners and managers have reported serial thefts of coin-operated washers and dryers. The machines have been disappearing at a rate of roughly two per week since the beginning of this year. Now Yuba City authorities are seeking the public's help in finding the thieves. Police spokeswoman Shawna Pavey states, "They're not just taking the coin boxes, they're taking the whole washer or dryer. Where they're getting rid of them is something we'd like to know." She adds that each theft has occurred during evening and early morning hours. Only one has been recovered thus far -- a machine that seemingly tumbled off the crooks' getaway vehicle. Yuba City police are not sure why the thieves are targeting laundry machines. Pavey concluded, "We're investigating the strong possibility that the same individuals are involved in all of them. It's pretty brazen to load up a whole machine and leave."
Tight Squeeze for Portland's New Apartment Parking Plan
Digested From "Editorial: Portland's New Proposed Parking Standards for Apartments? They're Minimum, all Right"
The Oregonian (02/15/13)
The Portland City Council recently asked its planning bureau to draft minimum parking space requirements for new, large apartment communities. The Oregonian editorial staff argues that the planning bureau took the word "minimum" to heart. The proposed standards offer few new protections for neighborhoods and businesses that are harmed by the city's ideologically driven approach, the editorial claims. In some parts of the city, new apartment communities are required to provide one parking space for every unit. But in high-traffic corridors and other places zoned for a mix of housing and retail, the city does not have a minimum parking standard. "This means the city will cheerfully approve an 80-unit apartment complex without a single parking space, despite research indicating that new tenants will bring at least 40 cars with them and overwhelm the surrounding public streets," the article reads. In response to the concerns, the planning bureau has proposed new minimum standards requiring one parking space for every four units. However, the rules only apply to facilities with more than 40 apartments.
Charlotte Wants You to Build Affordable Apartments
Digested From "Charlotte Offers New Incentive to Build Affordable Housing"
WFAE 90.7 FM (Charlotte) (02/18/13) by Julie Rose
Charlotte officials believe the city has a shortage of housing that's affordable to families making less than $54,000 a year. To this end, city council members this week are expected to approve a new zoning ordinance aimed at changing that. It should be noted that this new ordinance only applies to more affluent regions of Charlotte -- chiefly south Charlotte and the outer city limits -- where the median home value is more than $153,000 and zoning already allows for a higher-density development. City Housing Services Manager Pamela Wideman states, "The idea is to allow this to be an incentives where there is not a lot of affordable today." She adds that the plan is to entice companies that build only market-rate apartments to get involved in offering affordable units. Developers who agree to charge lower rents on a handful of new apartments will be permitted to build a slightly larger development than would typically be allowed.
The Battle for NYC's Affordable Apartments Is On
Digested From "Quinn's Affordable Housing Plan Revisits Tax Caps Once Rejected by Bloomberg"
The New York Times (02/14/13) P. A22; by Michael Barbaro; Charles V. Bagli
New York City Council Speaker Christine Quinn has proposed a housing plan that resembles a proposed tax break for property owners that Mayor Michael Bloomberg rejected two years ago. Her plan, announced during the Feb. 11 State of the City speech, would impose a 30-year cap on real estate taxes for property owners who renew participation in a program that sets aside 20 percent of apartments for below-market rents. With numerous property managers threatening to leave the program, known as 80-20 or 421a, Quinn said a new tax cap would encourage them to continue charging lower rents, rather than turn units into market-rate apartments or for-sale condominiums. Quinn's aides said caps on real estate taxes at a higher rate than previously proposed would preserve the city's dwindling supply of affordable apartments over the long term.
It's Not Too Late: The 2013 NAA Student Housing Conference & Exposition is Next Week
The 2013 NAA Student Housing Conference & Exposition, from Feb. 25-27 at the ARIA Resort in Las Vegas, is set to kick off on Monday. Don’t miss your opportunity to move to the head of the class in this quickly growing niche of the rental housing industry.
Join other star pupils for two days chock-full of education and networking opportunities, from three general and 14 breakout sessions led by recognized experts in the student housing business, to reception and time spent interacting with 120 leading-edge service partners on the trade show floor.
Nearly 900 fellow student-housing professionals will be meeting, greeting and exchanging ideas on the issues you encounter every day. Are you sure you want to be absent?
Fortunately, registration is just a click away. Visit the conference website and, remember to use the official hashtag #NAAStudentConf to engage, discuss and follow the conference.
2013 NAA Green Conference Education Sessions Identify Strategies for Conserving Money, Energy and the Environment
Don’t expect to hear recycled ideas (though you will likely hear recycling ideas) at the 2013 NAA Green Conference, April 15-17, 2013, at the Marriott Baltimore Waterfront Hotel in Baltimore, Md.
Join forward-thinking industry colleagues and learn ways to improve your community’s energy efficiency and bottom-line performance through a leading-edge lineup of education topics and panel presentations.
From new construction, utilities, green amenities and building certifications to maintenance, operations and retrofits, the NAA Green Conference promises to offer the latest intelligence and insight into the most pressing trends and topics driving sustainability in the multifamily industry. Visit the Green Conference website for session descriptions and speakers.
Come learn from acclaimed green-industry expert Andrew Winston, a best-selling author of “Green to Gold” and “Green Recovery,” who will serve as the event’s keynote speaker. Find out how your business can profit from environmental thinking as Winston guides you about what works—and what doesn’t—when companies go green.
Save $200 off the onsite registration rate before March 1.
And, while we’re on the subject of sustainability, be sure to check out the cover story of the February issue of units, which features a community in Boston that, following a green roof installation, has been able to raise rents and overall property value. Check out a sneak preview today!
Why is this important? Because it’s just one example of the type of practical, ready–to-be-applied education set to be featured at the 2013 NAA Green Conference in Baltimore, April 15-17.
World-Class Thought Leaders Scheduled to Inspire at the 2013 NAA Education Conference & Exposition
Question: What do the first African-American female pilot in the United States Military, a New York Times bestselling business author and body language expert have in common?
Answer: All three are innovative thought leaders scheduled to inspire attendees at the 2013 NAA Education Conference & Exposition, June 19-22, in San Diego, Calif.
Vernice Armour, former Captain in the United States Marine Corps, author of the 2011 book “Zero to Breathrough: The 7-Step, Battle-Tested Method for Accomplishing Goals that Matter,” will speak from 9 a.m. to 10 a.m., Thursday, June 20, and will help attendees understand how passion and leadership help individuals and organizations through her unique insight and life strategy. Read more about Armour and her session.
Chuck Martin, digital pioneer in the interactive marketplace for more than a decade, whose organization, The Mobile Future Institute, is a U.S.-based think tank focused on business strategies and marketing tactics for a world gone mobile will provide key insights into business implications of a mobile, on-demand world. Join him from 10:45 a.m. to noon on Thursday, June 20, to hear about the true scope of mobile on a nationwide basis; the latest mobile trends in shopping behavior; where mobile has been and where it is going, as well as mobile innovations that are just around the corner. Read more about Martin and his session.
Janine Driver is the New York Times bestselling author of “ You Say More Than You Think” and media expert for NBC's TODAY Show, 20/20, CNN, and the Dr. Oz Show, as well as founder, president, and lead instructor for the Body Language Institute (BLI). Drive will share her expertise on an elite certification program that offers award-winning advanced communications training that help executives, sales people, and other professionals build executive presence, explode their selling skills, and create and deliver business presentations that win new business during two sessions: 9:45 a.m. to 11:15 a.m.? and 4:00 p.m. to 5:30 p.m. on Friday, June 21. Visit the conference webpage to learn more about this exciting speaker and her session.
This could be the most inspiring event of your life—but only if you’re registered for the 2013 NAA Education Conference & Exposition. Visit the 2013 NAA Education Conference & Exposition website for more information and remember to consider group discounts: register five or more attendees and save your organization up to $400!
Invest in Advocacy at the 2013 NAA Capitol Conference
Give the apartment industry a stronger voice by investing your time at the 2013 NAA Capitol Conference. With the theme, “Make an Investment in Advocacy,” the event will feature concentrated advocacy and legislative sessions leading up to Lobby Day on March 13. The Capitol Conference is the apartment industry’s only national event focused on educating our members on critical federal legislative and regulatory issues impacting your businesses and the industry at large.
Due to a high increase in demand, the Omni has sold out of rooms for Tuesday night, March 12. We encourage you to make reservations at the Omni Shoreham for all other dates needed and to make a reservation for Tuesday night at an alternate hotel. We recommend the Marriott Wardman Park or the Churchill Hotel. Please note that NAA cannot guarantee rates at either of these properties. Register now!
The New NAA Website is Coming Soon
NAA’s new website will be launching this spring, and while you’ll immediately notice the new look, the changes are more than skin deep. The new site will also feature a new navigation, improved search functionality and a mobile view that’s compatible for any mobile device. The NAA Community Site, will also be a part of the new NAA website, rebranded as NAA Connect, so you can interact with NAA members from the same site you get your NAA news and information.
More information on the new website (including a top five list) can be found online, and you can also follow the hashtag #ANewNAAhq on Twitter for updates
Earn Your IROP from the Comfort of Your Home or Office
Target Audience: Independent Rental Owners or anyone who manages their own personally-held rental properties.
Series Description: Prepare to earn the Independent Rental Owner Professional (IROP) Designation entirely online. Webinar content is based on the Independent Rental Owner Professional Course which covers the following:
• Media relations
• Personal safety
• Emergency response and disaster planning
• Human resource management
• Physical versus economic occupancy
• Alternative income opportunities
• Scheduling move-ins/outs
• Lease terminations (military and domestic violence situations)
• Key control
• Resident and neighbor relations
When: This Webinar series will begin on Tuesday April 2, 2013 and will run every Tuesday through April 23. All Webinars will be held from 1 p.m. to 4 p.m. ET and includes time for Q&A.
Cost: $349 for members or $499 for non-members. Module prices are or $99 for members or $125 for non-members.
NAAEI Designation Courses Offered Near You!
Roanoke Valley Apartment Association
South Dakota Multi-Housing Association
Greater Charlotte Apartment Association
Austin Apartment Association
January – February, 2013
Apartment and Office Building Association of Metropolitan Washington
February – March, 2013
South Dakota Multi-Housing Association
February – March, 2013
Rental Housing Association of Boston
April – May, 2013
Roanoke Valley Apartment Association
Apartment and Office Building Association of Metropolitan Washington
To find more courses in your area, click here.
For more information about any of the classes listed, please contact Kimberly McCrossen at email@example.com or 703/518-6141 ext. 121.
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