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Apartment Rents Rise, Supply Improves

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Apartment Rents Rise, Supply Improves
Digested From "Tenants Feel Pinch of Rising Rents"
Wall Street Journal (12/26/12) by Conor Dougherty

Nationwide, effective monthly rent averaged $1,044 in October -- up 3.7 percent from the previous year, according to Reis Inc. Federal Reserve data shows that those who rent spent 24.1 percent of their disposable income in the third quarter on financial obligations like rent and debt. One factor causing rents to rise is the lack of supply. However, multifamily housing construction is picking up to meet demand, which has grown after several years of foreclosures and population growth. Spending in the sector has increased to an annualized $23.8 billion in October from $15.6 billion the year prior. Apartment vacancies rose slightly in October to 4.7 percent from 4.6 percent -- the first time they have risen since the close of 2009, according to Reis.
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Industry News

Fiscal Fears Prove Apts and Commercial RE Is Safe Haven
Digested From "Fiscal Fears Prove CRE Is Safe Haven"
GlobeSt.com (12/29/12) by John Salustri

Real Capital Analytics (RCA) is forecasting that 2013 will be the first year in more than a decade when multifamily housing will replace office space as the top investment sector. Analysts say this comes as little surprise considering the "bulletproof stability" of the apartment sector and the office market's entrenched status as "poster child" for the Great Recession. Multifamily recorded approximately $75 billion in sales volume this past year. The RCA report states: "While apartments and CBD office have greatly outpaced the other property types in their recovery, the evidence at year-end indicates that 2013 will be the year the rest of the property types start to catch up. The same holds true for geographic markets as even the hardest hit secondary and tertiary markets have recently started to rebound while transaction activity and price appreciation in many, but not all, major markets has moderated." As a result, the new year may be characterized by broader improvements across the property investment markets. Sandy Paul, national research director for Delta Associates, concludes that commercial real estate is looking more and more like a safe bet. He states, "Investors are looking to place capital in assets that are income-producing and have the benefit of tangible value. . . . Domestic commercial real estate benefits from its traditional status as a safe haven during periods of uncertainty."
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Too Many Apartments in the Albany Region? Experts Say No
Digested From "Too Many Apartments in the Albany Region? Experts Say No"
Business Review (Albany) (12/28/12) by Michael DeMasi

Many have begun to wonder if the influx of numerous new apartment communities in the Albany, N.Y., region are leaving the area open to a potential real estate bubble bust. But experts in the market say the number of apartments being built, renovated or modernized will not lead the bubble to burst. Rents in the city have risen consistently over the past six years, with the average asking monthly rent hitting $1,248 this past spring in Albany, Rensselaer, Saratoga and Schenectady counties, according to Sunrise Management & Consulting. However, Sunrise noted that there has been "some weakness" in the three- to four-bedroom apartment area as potential residents weigh the costs versus purchasing a home. Still, many experts believe that given the population growth and increasing numbers of high-tech jobs in the region, growth will continue in the apartment sector for some time.
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Renting an Apartment in Ann Arbor to Get Pricier in 2013
Digested From "Renting an Apartment in Ann Arbor? Prepare for Rental Rate Increases in 2013"
Ann Arbor News (MI) (12/27/12) by Lizzy Alfs

In Michigan, the Ann Arbor apartment market will likely see monthly rent payment increase in 2013 due to an improving economy and a tighter rental market. According to the National Association of Realtors, apartment rates in the U.S. will likely increase by 4.6 percent in 2013 versus 4.1 percent in 2012. Apartment owners and managers in Ann Arbor say increased enrollment at the University of Michigan and company expansions in the area are pushing the market along. Also at play is that for the past three to four years, many apartment communities experienced declining or stagnant rents when the housing bubble burst. This past year and looking ahead to 2013, apartment owners are finding it possible to hike rates in the 4 percent to 7 percent range to as much as 15 percent or higher.
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Serious Delinquencies Fall for Fannie's Multifamily Portfolio
Digested From "Fannie Mae Single-Family Serious Delinquency Rates Continue to Decline"
Housing Wire (12/28/12) by Christina Mlynski

Serious delinquencies on single-family, conventional mortgages held by Fannie Mae slipped to 3.3 percent last month from 3.35 percent in October, according to the government-sponsored enterprise. For its multifamily portfolio, the serious delinquency rate fell three basis points to 0.25 percent in November.
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Distressed Bets Paying Off
Digested From "Distressed Bets Paying Off"
Wall Street Journal (12/26/12) P. C7; by Nick Timiraos

As more investors search for ways to wager on a housing recovery, single-family rental homes are closing out the year among the hottest real estate assets. Home prices have risen in 2012 due to increased demand and a shrinking supply of houses for sale. CoreLogic reports that prices had climbed 6 percent from a year earlier in October. Investors, meanwhile, have been snatching up homes and holding them off the market. Over the last year and a half, large players have begun buying up thousands of houses and developing the infrastructure necessary to manage a network of scattered rental homes. American Residential began purchasing properties in Phoenix and expanded to such markets as Las Vegas, Southern California, Georgia, and Florida. Others such as Colony Capital LLC and Blackstone Group LP also are looking to put together a rental business in multiple markets. American Residential raised $224 million in a private stock offering this past May. It has since formed a private REIT with plans to file for an initial public offering early next year.
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Apartment Rents Rise, Vacancies Fall in St. Louis
Digested From "Apartment Rents Rise, Vacancies Fall in St. Louis"
St. Louis Post-Dispatch (12/25/12) by Jim Gallagher

New Reis Inc. data shows that St. Louis-area apartment owners are hiking their rents. According to the firm, apartment rents will finish 2012 up 4 percent -- almost double the rise in other consumer prices. Meanwhile, Reis is forecasting a 4.4 percent rise for 2013 in the St. Louis metro area. Researchers reason that monthly rents are up because vacancies are down, and owners and mangers are finding it easier to fill their units. The area vacancy rate is currently 5.8 percent, according to Reis, the lowest in a decade. Ryan Severino, senior economist at Reis, remarks, "It's come a long way in a short period of time." Experts add that the improving local and national economy and a growing population of young adults are also boosting rental demand. Meanwhile, tighter lending standards continue to keep potential home buyers from making the leap to ownership. Looking ahead, the lower vacancies and higher rents may spark a revival in apartment construction, which has been dormant since the recession. Builders finished only 152 apartments in 2012. But 1,044 are currently in the planning state. Matt Bukhshtaber, vice president at CBRE multi-housing investment sales group, notes, "Developers are starting to look for solid sites."
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Blue Rock Grabs $66M Multifamily Portfolio in Florida
Digested From "Blue Rock Grabs $66M M-F Portfolio in Florida"
Commercial Property Executive (12/28/12) by Gail Kalinoski

Blue Rock Partners recently boosted its multifamily housing holdings with the acquisition of a three-community portfolio made up of 1,218 rental units in Florida for $66 million. The purchases included the 712-unit Plantation Key Apartments and the adjacent 270-unit Providence Park Apartments in Brandon, Fla. The communities will undergo a rebranding to be called Park at Siena. Additionally, the partners purchased the 236-unit Martin's Landing Apartments in Lakeland, Fla., which will be renamed Park at Verona. According to Blue Rock Partners principal and owner Randy X. Ferreira, the fund plans to spend approximately $9 million on improvements at the three facilities. He also said he expects the company to take on more acquisitions in the near future. "Blue Rock's accelerated investments in the Tampa Bay and Orlando markets underscore our confidence in the region," he said. The acquisition brings Blue Rock's total apartment holdings in the Sunshine State to more than 6,000 units.
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Franklin (Tenn.) Apartment Boom Continues
Digested From "Franklin Apartment Boom Continues"
Tennessean (12/26/12) by Kevin Walters

Franklin, Tenn.'s apartment boom could be growing with another new development proposed for the Royal Oaks and the Mack Hatcher Parkway. Developers have unveiled plans for the five-building Rachel Springs apartment community, which will deliver 288 rental units when completed. The project's announcement comes at the end of a year that saw a dramatic uptick in new and proposed apartment communities in the city, where apartment construction has been practically nonexistent for years. New apartment developments range from the 218-unit Bell Historic Franklin to The Grove at Gateway Village apartments. In nearby Cool Springs, meanwhile, Crescent Resources is in the midst of developing two new apartment communities that would add nearly 700 apartments when finished, while Spectrum Properties|Emery is hoping to add 350 apartments as part of their Franklin Park mixed-use development.
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Sunrise Management Boosts NoCal Apartment Portfolio
Digested From "Management Company Boosts NorCal Portfolio of Apartments"
Sacramento Business Journal (12/26/12) by Sanford Nax

Sunrise Management has more than doubled its Northern California presence with the recent addition of several Sacramento-area apartment communities to its portfolio. They include Cypress Greens, Greenback Terrace, and Spring Creeks apartments, all in Citrus Heights, along with Amber Park and Fountain Grove apartments in Sacramento. Together, they total more than 600 rental units. They join other Sacramento-area communities to bring Sunrise's total regional multifamily housing portfolio to more than 1,200 apartments and nearly 11,000 in the western United States.
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Units Are Getting Smaller, But Not Everywhere
Digested From "Units Are Getting Smaller, But Not Everywhere"
Multifamily Executive (12/12) by Derek Mearns

Not all cities are jumping on the micro unit apartment trend, with Washington, D.C., actually increasing the size of its rental units, says Axiometrics. Seattle, on the other hand, has seen apartment size drop to 759 square feet or less from more than 950 square feet. About 18 apartment communities are in the lease-up phase in the urban core of the city, and 11 of them have an average square footage of 759 or less. The average size of new rental units on a national basis is now 982 square feet, and Dallas, Denver, and Houston have seen a noticeable decline in size.
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Apartment Operator Gets $56M in Refinancing
Digested From "Apartment Operator Gets $56M in Refinancing"
San Diego Business Journal (12/19/12)

Earlier in December, apartment investor and operator Universe Holdings Development Co. obtained refinancing totaling more than $56 million on nine Southern California apartment communities. The 10-year, fixed-rate loans were obtained through Freddie Mac, according to a Holliday Fenoglio Fowler LP which arranged the financing. All nine properties are situated in Los Angeles and San Diego counties, including two in the suburb of La Mesa. The refinanced portfolio contains 536 rental units, with an average occupancy of 98 percent. Since its 1994 founding, Los Angeles-based Universe Holdings has acquired apartment communities containing 4,500 rental units across Southern California.
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Legislative/Legal News

Refi Program Expansion Involving Fannie and Freddie Eyed
Digested From "Refi Program Expansion Eyed"
Wall Street Journal (12/26/12) P. A2; by Nick Timiraos

The Obama administration wants to expand its mortgage refinance programs to include borrowers whose loans are not insured by the government and who owe more than their homes are worth. The move would benefit borrowers whose loans are held by private lenders or investors and provide a boost to the economy. One proposal calls for transferring billions of dollars of these mortgages to Fannie Mae and Freddie Mac, which would require congressional authorization to temporarily alter their charters. The mortgage giants would be allowed to charge higher rates to borrowers in order to compensate for the risk of guaranteeing refinanced loans that are underwater and more likely to result in default. Industry officials say banks would need to be given immunity from having to buy back any loans they refinance that subsequently default, and that such a shield would boost the risk for Fannie Mae and Freddie Mac. The Federal Housing Finance Agency also would need to back the plan. The administration is discussing a second proposal as well that would reduce rates for underwater borrowers through loan workouts.
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Firefighters Remind Those Who Rent to Buy Insurance
Digested From "Firefighters Reminding Renters to Buy Insurance"
KNDO (Wash.) (12/26/12) by Adam Beck

A rash of recent home fires in the Yakima, Wash., area has prompted officials to remind people about having the right insurance in the event of a fire, especially when renting a home or apartment. Renter's insurance covers all of the items a resident brings into a home, including clothing and furniture. Fire crews say many renters believe they are covered by the property owner's insurance, when in reality such coverage only covers the actual structure and not its contents. Fire fighters say renter's insurance can cost as little as $20 a month, which is much less expensive than the cost of replacing lost belongings.
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NAA Announcements

Sun and Surf of San Diego One Click Away—Register Today for the 2013 Education Conference & Exposition

Sun and Surf of San Diego One Click Away—Register Today for the 2013 Education Conference & Exposition

Don't miss out on the opportunity for inspiration, innovation and connection (and maybe a couple minutes to work on your tan) as more than 6,200 multifamily professionals convene in San Diego June 20-22 for the 2013 NAA Education Conference & Exposition.

From world-famous speakers like Virgin Group founder Sir Richard Branson, acclaimed artist, author and entrepreneur Erik Wahl and co-founder and Chief Executive Optimist of Life is good® Bert Jacobs, to the latest and greatest from multifamily supplier partners, if career enhancement is what you seek, then this is the one event you can’t afford to miss.

Don’t delay—registration for the 2013 NAA Education Conference & Exposition is open and the largest discounts go to those who register early. Visit the conference website by Feb. 1 and save up to $400.

Make sure to book your housing as soon as you register—rooms are going fast. Visit the Education Conference website for information and reservations for all official NAA Education Conference hotels.
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Friday, January 4 is the Early Registration Deadline for the 2013 NAA Student Housing Conference & Exposition

Plan to be at the head of the class from Feb. 25 to 27 as NAA convenes the 2013 Student Housing Conference & Exposition in Las Vegas at the ARIA Resort.

Michael Wood, Senior Vice President at TRU, one of the world’s leading research firms specializing in teens and twenty-somethings, will headline the keynote session “Youth Truths The Millennial State of Mind.”

Wood's presentation is but one of many learning opportunities during two days full of education and networking, from general and breakout sessions to reception and time spent interacting with exhibitors on the trade show floor.

The deadline for early registration is Jan. 4. Visit the conference website for registration, schedule and the latest announcements. Breathe easy—no admissions essay required!

And don’t forget to use the official hashtag #NAAStudentConf to engage, discuss and follow the exciting news from this conference.
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Green For Your Community, Green For Your Bottom Line

Green is the buzzword in the real estate industry today and NAA is at the forefront of this issue. The ever-growing market of sustainable, environmentally friendly and recycled building products, along with the greater availability of educational opportunities for developers, owners, operators and residents has quickly accelerated green building’s acceptance in the marketplace. Don’t miss the chance to register for the latest in NAA’s series of educational events: the 2013 NAA Green Conference, April 15-17, in Baltimore.

Join forward-thinking industry colleagues and learn ways to improve your community’s energy efficiency and bottom-line performance through a cutting-edge lineup of education topics and panel presentations.

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 Feb. 15 by registering here. Today’s early-bird rate is $595 for NAA Members ($695 for non-members). Cost increases by $100 after Feb. 15 and by $200 after April 5.

Visit the here for all hotel and travel information.
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2012 NAA Survey of Income & Expenses Data Now Available

The 2012 NAA Survey of Income & Expenses is now available. The survey includes an executive summary, detailed data, reports and charts about rental communities. A total of 4,645 properties containing 1,159,874 units are represented in this year’s report. Data was reported for 4,114 market rent properties containing 1,087,228 units and 531 subsidized properties containing 72,646 units. The executive summary appeared in the Aug. issue of units magazine. To order, please visit the NAA Store.
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2013 NAAEI “Get Reel” Career Challenge

Looking for a free trip to the 2013 NAA Education Conference & Exposition in San Diego, CA? Enter the 2013 NAAEI “Get Reel” Career Challenge. Submit a 30-second YouTube video about a day in your life as an apartment career professional. Click here for more information.
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2013 PARAGON Awards

The Call for Entries for the 2013 PARAGON Awards is now open! If you would like to nominate an individual, an affiliated association or a community that represents our industry's models of excellence, please visit the PARAGON Awards Overview page. Entries must be received by Monday, March 18, 2013. Winners will receive their PARAGON award during the NAA Awards Celebration breakfast with Bert Jacobs during the 2013 NAA Education Conference & Exposition, Saturday, June 22, in San Diego. They will also be featured in the September 2013 issue of units Magazine, NAA’s monthly publication that reports on the apartment industry.
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Find an NAAEI Designation Course Near You!


Roanoke Valley Apartment Association
January, 2013

South Dakota Multi-Housing Association
March, 2013

Greater Charlotte Apartment Association
April, 2013

CAM Online


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
January, 2013


Apartment and Office Building Association of Metropolitan Washington
April 2013

NALP Online

To find more courses in your area, click here.

For more information about any of the classes listed, please contact Kimberly McCrossen at kimberlymccrossen@naahq.org or 703/518-6141 ext. 121.
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January 2, 2013

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A Career with Growth & Opportunity

Career Growth and Opportunity  

Learn about the perks and benefits of working in residential property management and some of the reasons the industry provides career growth, stability and endless opportunities.