Market Trend Insights
- Shiller Destroys The Idea Of Investing In A Home
- Apartments Come Full Circle in North Carolina's Triangle
- The Three Big Factors in MAA's Strong Q4 Results
- What Two Things Lifted Equity Residential's Q4 Results?
- Rental Market Shakeup: Good or Bad for These REITs?
- Commercial, Multifamily Lending to Increase 11 Percent in 2013
- Fannie, Freddie May Face Competition in Multifamily Financing
- Trulia Data Shows Asking Prices Rising, Rent Hikes Easing
- Two Reasons Why Home Properties Hiked Its Dividend
- How Apartments Factor in Milwaukee Suburb Redefining Itself
- Five Hot Safety Tips for Students Living in Off-Campus Apts
- Gov. Signs Bill to Fast-Track Foreclosures on Muiltifamily Housing
- Indiana Battles Over Rental Registration Fees
- Three Reasons to Register Today for the 2013 NAA Student Housing Conference & Exposition
- Education Sessions Announced for the 2013 NAA Green Conference
- Connect with Friends and Family in San Diego at the 2013 NAA Education Conference & Exposition
- Make an Investment in Advocacy at the 2013 NAA Capitol Conference, March 10 - 13
- NAA Education Institute to ‘Train the Trainer’ This Month in Boca Raton, Fla.
- Earn Your IROP from the Comfort of Your Home or Office
- NAAEI Designation Courses Offered Near You!
Shiller Destroys The Idea Of Investing In A Home
Digested From "Robert Shiller Destroys The Idea Of Investing In A Home"
Business Insider (02/07/13) by Sam Ro
Yale economist Robert Shiller appeared on Bloomberg Television last week to discuss the current state of the U.S. housing market. On the program, he described the housing market as a largely speculative one, adding that that is not much reason to believe that home prices will appreciate back to levels seen during the previous cycle. When asked why then even consider buying a home, Shiller remarked, "Housing traditionally is not viewed as a great investment. It takes maintenance, it depreciates, it goes out of style. All of those are problems. And there's technical progress in housing, so new ones are better." He went on to call the notion of investing in a home "a fad" that most likely will not come back or at least not with the same force. "So people might just decide, 'Yeah, I'll diversify my portfolio. I'll live in a rental.' That is a very sensible thing for many people to do," he concluded.
Market Trend Insights
Apartments Come Full Circle in North Carolina's Triangle
Digested From "Apartments Springing up Across Triangle"
Triangle Business Journal (02/10/13) by Amanda Jones Hoyle
North Carolina's Triangle region has seen an explosion in new apartment construction as of late. Real Data reports that more than 9,200 rental units are currently in various stages of planning and development throughout this market, while another 6,300 apartments are proposed to be built. The Charlotte-based market research firm's report for January shows that the Triangle's apartment vacancy rate fell to 5.5 percent from 6.6 percent a year earlier. Meanwhile, the average monthly rental rate for an apartment locally climbed to $868 from $834 year over year. Finally, the average rental rate for a new apartment built in the last 12 months is almost $1,400 per month. Engle Addington, an apartment market analyst with Real Data, concludes, "The outlook remains bright for the Triangle apartment market. As the wave of new supply begins to come on line later this year and throughout 2014, we expect to see a modest pull back in occupancies."
The Three Big Factors in MAA's Strong Q4 Results
Digested From "MAA Reports Strong Q4, Fiscal Year Results"
Memphis Business Journal (02/06/13) by Andy Ashby
MAA posted fourth-quarter net income of $22.3 million, an 18.6 percent increase over the $18.8 million recorded during the same period a year earlier. MAA Chairman and CEO Eric Bolton notes that there are three major reasons why leasing conditions across the portfolio remain strong. He remarks, "MAA's portfolio of high-quality properties diversified across the Sunbelt region, combined with increasing contribution from our development pipeline and an investment grade quality balance sheet, have the company well positioned to capture another record year of funds from operations per share results in 2013." The Memphis-based apartment-only REIT further reported full-year net income of $105.2 million, a sizable increase from the $48.8 million tallied in full-year 2011. As for its funds from operations (FFO), MAA registered a 23.8 percent year-over-year gain to $53.4 million. The REIT reported full-year FFO of $196.3 million in 2012, a 26.2 percent increase compared to $155.5 million last year.
What Two Things Lifted Equity Residential's Q4 Results?
Digested From "Equity Residential 4th-Quarter Profit Surges on Sales, Rental Income"
Fox Business (02/05/13)
Equity Residential confirms that its fourth-quarter profit surged as the nation's biggest apartment developer and manager benefited from two major trends -- increased property sales and gains in rental income. The REIT has registered higher profits in recent quarters, as a lackluster housing market has pushed more and more people to rent. Equity Residential has responded by boosting its investments in the highest-rent markets, while whittling its exposure to weaker markets. Equity Residential was active on the deal front late last year. In November, for instance, it teamed with AvalonBay Communities Inc. to acquire Archstone Enterprise LP from Lehman Brothers Holdings Inc. The deal for the portfolio of apartment communities was valued at around $6.5 billion.
Rental Market Shakeup: Good or Bad for These REITs?
Digested From "Rental Market Shakeup: Good or Bad for These 3 REITs?"
Motley Fool (02/04/13) by Amanda Alix
Fluctuations in the housing market have put pressure on REITs operating in different areas of property investment. Apartment REIT AvalonBay's fourth-quarter earnings took a hit from Superstorm Sandy expenses and the costs of its recent acquisition of Archstone with partner Equity Residential. It will face pressure this year from new units in its market being made available ahead of schedule and the housing market recovery prompting more renters to buy houses. However, experts think the rental market will remain strong through at least 2015, with Reis expecting apartment vacancies to remain low. For its part, AvalonBay is continuing to predict gains in revenue and net operating income. Meanwhile, it remains to be seen how the housing market recovery will impact Silver Bay, a Two Harbors Investment spin-off focused on buying, renovating, and renting foreclosed single-family houses. Although Och-Ziff Capital Management, one of the first Wall Street firms to enter the REO-to-rental arena, announced several months ago that it would sell its portfolio of 300 houses in northern California, experts say some of that decision was based on a desire to profit from the rise in house prices. However, observers think Silver Bay and related REITs likely will sell some of the houses in their portfolios.
Commercial, Multifamily Lending to Increase 11 Percent in 2013
Digested From "Commercial, Multifamily Lending to Increase 11 Percent in 2013"
American Banker (02/05/13) by Brian Browdie
The continued improvement in the commercial real estate market is reflected in a Mortgage Bankers Association (MBA) forecast that commercial and multifamily lending will increase 11 percent from last year, with origination volume reaching $254 billion in 2013. The industry group projects that commercial and multifamily loans outstanding will grow 2 percent on an annual basis to $2.4 trillion. MBA's Jamie Woodwell also notes that Fannie Mae, Freddie Mac, the FHA, and life insurers "continue to have strong appetites" for lending, which the organization expects to be enhanced by rising demand for securities backed by commercial mortgages.
Fannie, Freddie May Face Competition in Multifamily Financing
Digested From "Fannie, Freddie May Face Competition in Multifamily Financing"
Housing Wire (02/04/13) by Kerri Ann Panchuk
Fannie Mae and Freddie Mac continue to rank as the top players in the financing of multifamily housing. However, Jones Lang LaSalle (JLL) research shows that more competition is starting to pop up from national banks, financial firms, life insurance firms, and structured financing vehicles in the form of commercial mortgage-backed securities. Furthermore, much of that financing is being steered directly into new apartment construction. Last year, JLL alone completed almost $1 billion in multifamily financings through Freddie Mac. Faron Thompson of JLL's Freddie Mac Program Plus lending business remarks, "Plentiful capital, ease of execution, and the 'sweet spot' in the 7- and 10-year, fixed-rate, 80 percent LTV financings kept the agencies on top in 2012 -- with Freddie Mac sourcing roughly $29 billion and Fannie Mae topping out around $33 billion." Thompson adds that there probably will not be any major agency reform until at least next year with both Fannie and Freddie in such good standing. "Debt capital is 'all in' to the multifamily financing game," according to the JLL official, "with the pipeline from nearly every lending source expected to grow."
Trulia Data Shows Asking Prices Rising, Rent Hikes Easing
Digested From "Trulia: Asking Prices Rising, Rent Increases Easing"
AGBeat (02/04/13) by Tara Steele
The latest data from Trulia show that asking prices for U.S. homes edged up 0.3 percent quarter-over-quarter last month, "despite the fact that prices typically fall during the wintertime." At the same time, new construction has eased rising rents. Rent gains lagged asking price increases at the national level for the first time since the price recovery began in the spring of 2012. Rents in January increased 4.1 percent year-over-year nationally. Regionally, Trulia researchers note, rent gains cooled the most in San Francisco, rising just 2.4 percent compared to 11.5 percent in July 2012.
Two Reasons Why Home Properties Hiked Its Dividend
Digested From "Home Properties Increases Dividend"
Home Properties has declared a fourth-quarter dividend of $0.70 per share, which will be payable Feb. 26 to shareholders of record as of Feb. 14. Home Properties President and CEO Edward J. Pettinella says the company's board increased the quarterly payout from $0.66 a share based on two reasons -- "strong operating and financial results in 2012 and its expectations for continuing positive performance in 2013." The REIT specializes in owning, operating, and developing apartment communities throughout the Northeast and Mid-Atlantic states. Its portfolio currently consists of 124 communities containing more than 43,400 rental units.
How Apartments Factor in Milwaukee Suburb Redefining Itself
Digested From "Game-Changer: New Downtown Will Reinvent Oak Creek"
BizTimes.com (02/04/13) by Andrew Weiland
Oak Creek, Wis., officials are partnering with a development team to create a new, mixed-use downtown that will serve as a unique commercial and residential destination on the south side of Milwaukee County. "It is rare that a community the age of Oak Creek can completely redefine itself," said Blair Williams, one of the developers working on the project. Wispark, the real estate development division of Wisconsin Energy, acquired the 85-acre site and has been one of the biggest proponents of the change. The development will feature urban-style apartments, suburban-style retail space, and a classic mixed-use Main Street district. City officials have also committed to building a new city hall and library in the mixed-use development, dubbed Drexel Town Square.
Five Hot Safety Tips for Students Living in Off-Campus Apts
Digested From "Officials Stress Safety for Students Living in Off-Campus Housing"
Daily Tar Heel (NC) (02/08/13) by Rachel Butt
University of North Carolina officials are offering five safety tips for their students who live in off-campus apartments. One, be sure to research the crime statistics of potential apartment or housing communities prior to choosing a place to live. After move in, a good rule of thumb is to get to know your neighbors, so that they can look out for you and your property when you are not there. Third, always lock your door and shut your windows. Do not assume that your roommates will do it. Fourth, be sure to not to walk alone at night. Try to always walk in at least pairs or groups. Finally, keep your apartment well lit, and do not leave any valuables outside. Students should also stay safe by following all town ordinances. According to Megan Wooley, housing and neighborhood services planner for Chapel Hill, some students break the law through exceeding the occupancy limit for apartments and houses. She adds, "More student housing is needed to address this over-occupancy problem." In addition to larceny, there have been numerous cases of automobile theft at apartment communities in Chapel Hill and nearby Carrboro.
Gov. Signs Bill to Fast-Track Foreclosures on Muiltifamily Housing
Digested From "Quinn Signs Bill to Fast-Track Foreclosures on Abandoned Buildings"
Chicago Tribune (02/08/13) by Mary Ellen Podmolik
Foreclosures on abandoned residential real estate in Illinois will be accelerated under Senate Bill 16, which Gov. Pat Quinn signed into law on Feb. 8. The expedited foreclosure timetable for vacant single-family homes and multifamily housing with six units or fewer will cut the process down to a range of 90 to 180 days from an average 600 days currently. The cost of handling this housing will be defrayed somewhat by additional foreclosure filing fees to be paid by lenders through 2017. Local governments also will divert some of those funds, estimated at $120 million over the next three years, to housing counseling agencies. According to Quinn, the measure -- which takes effect on June 1 -- "allows us to make major investments to keep families in their homes by preventing foreclosures in the first place."
Indiana Battles Over Rental Registration Fees
Digested From "Officials: Rental Registration Fees Promote Better Housing Conditions"
nwitimes.com (02/11/2013) by Chas Reilly
In Indiana, some area municipalities are closely watching proposed legislation that could ban fees for rental inspections and registration. Hammond, for instance, charges rental registration fees to prevent substandard rental housing in the city. Hammond Mayor Thomas McDermott Jr. states that House Bill 1313, which would not allow collection of those fees starting July 1, would put a strain on those efforts. In Merrillville, meanwhile, town officials charge owners an annual $100 registration fee for each unit they have in the municipality. Town officials say they may reduce the fee to $50 per unit because funds collected from it won't be used to supplement the Police Department. In a statement from Indiana Apartment Association President Lynne Sullivan, she expressed her belief that the proposed action in Merrillville is an attempt to prevent House Bill 1313 from advancing. "Without this legislative threat," she remarked, "there's no doubt Merrillville would not be giving this issue the time of day."
Three Reasons to Register Today for the 2013 NAA Student Housing Conference & Exposition
The 2013 NAA Student Housing Conference & Exposition, from Feb. 25-27 at the ARIA Resort in Las Vegas, is just two short weeks away. Don’t miss your opportunity to move to the head of the class in this quickly growing niche of rental housing industry. Need a reason to attend? How about three?
1. Networking and idea exchange with like-minded professionals. Nearly 1,000 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?
2. With three general and 14 breakout sessions, the level of education at the NAA Student Housing Conference & Exposition is unparalleled and best in class. Specifically crafted with the audience in mind, student-housing professionals will be engaged, entertained and educated, leaving the conference with tactical insight designed to create an edge in their market and increase their revenue streams.
3. Take a break from class and visit with 120 leading-edge suppliers in the niche student-housing marketplace. Demonstrating the latest and greatest in technology, products and services, attendees will be streamlining operations quicker than you can say, “Where do I sign-up?”
Fortunately, registration is just a click away. Visit the Student Housing Conference website and, while you’re booking, don’t forget to bring a group and save! NAA is offering discounts for groups of five or more attendees.
Remember to use the official hashtag #NAAStudentConf to engage, discuss and follow the conference.
Education Sessions Announced for the 2013 NAA Green Conference
Find out first-hand how Green Installation Saves Money and Energy and also How Sustainability Affects Your Bottom Line—these are just a few of the pressing trends and topics that will be discussed at the 2013 NAA Green Conference, held April 15-17, 2013 at the Marriott Baltimore Waterfront Hotel in Baltimore, MD.
Education session content areas also include Utilities, New Construction, Green Amenities, Maintenance, Operations, Retrofits and Building Certifications.
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 at the NAA Green Conference.
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.
Visit the Green Conference website for all hotel and travel information.
The cover story of the February issue of units 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.
Connect with Friends and Family in San Diego at the 2013 NAA Education Conference & Exposition
San Diego, home of the 2013 NAA Education Conference & Exposition, held June 19-22, 2013 is one family-friendly destination. So awesome, in fact, we think you should definitely consider making a trip out of it. Here are four reasons you should consider bringing the whole family along this summer:
1. The Beach! School’s out, and sure, you could slog back to the pool, but did you know that San Diego is next to the Pacific Ocean? That’s right, from San Onofre to Imperial Beach, San Diego boasts 70 miles of beautiful California coastline. And with year-round sunshine and near-perfect temperatures, it’s a destination the whole family can enjoy.
2. Balboa Park. This 1,200-acre park is home to museums, theatres, gardens, and, of course, the world-famous San Diego Zoo. It’s one of the few places in the world to see a Giant Panda.
3. SeaWorld. Shamu was the name of the first killer whale (or Orca, for the pacifists in the crowd) to be brought to SeaWorld San Diego in 1965. Now there are nine killer whales in residence, none of whom are actually named Shamu.
4. Gaslamp Quarter. While not necessarily kid-friendly in the strictest sense of the term (in the evening that is; there’s plenty to occupy the younger friends of the rental housing industry during the day), little ones will most likely be too tired from numbers 1 through 3 of this list to want to accompany you as the hour gets late to this entertainment and nightlife destination.
Now something to get excited about: See the Gaslamp Quarter in style as an attendee of the 2013 NAA Education Conference & Exposition’s Opening Party—NAA Rocks the Block—from 7 p.m. to 10 p.m. Thursday, June 20.
This is sure to be a memorable event—two full blocks of the Gaslamp Quarter will be converted into an NAA-only private block party as the streets, sidewalks, restaurants and shops are closed to the public. Join us, buy extra tickets and bring your family for food, drinks, live music, theme lighting, interactive entertainment and more!
This could be the best vacation of your life—but only if you’re registered for the 2013 NAA Education Conference & Exposition. Visit the conference website for more information and remember to consider group discounts: register five or more attendees and save your organization 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.
Make an Investment in Advocacy at the 2013 NAA Capitol Conference, March 10 - 13
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!
NAA Education Institute to ‘Train the Trainer’ This Month in Boca Raton, Fla.
Corporate staff trainers or training executives should consider participation in NAA Education Institute’s Corporate Advanced Instructors Training (AIT) program. AIT is customized for the needs of trainers and has been expanded to include the issues of performance measurement aligned with corporate cultures and goals, critical relationships between trainer and operations supervisors and a robust exploration of alternative delivery platforms, synchronous and asynchronous methodologies and programming and development. The successful student is an experienced presenter providing learning and development support within the confines of a functioning corporate structure. It will be held Feb. 25-27 in Boca Raton, Fla.
Learn more and register today!
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 firstname.lastname@example.org or 703/518-6141 ext. 121.
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