This week’s roundup covers apartment supply in 2020, commercial real estate’s performance over the decade and recent rent control regulations. First, City Observatory examines the relationship between a neighborhood’s level of walkability and the value of its housing, noting that many markets command a walkability premium. Next, RealPage reports that 371,100 new apartments are scheduled to be completed by the end of 2020, driven by several cities expecting to double or triple their inventory. Arbor’s Chatter blog observes why many of the metros experiencing the greatest year-over-year rent growth are still seeing rent levels below the national average. Then, Real Capital Analytics looks back at the robust level of commercial real estate investment activity over the last decade. Finally, NMHC reviews the rent control policies that took effect in 2019 and what’s anticipated for the year ahead.
Walkable Places Are Growing in Value Almost Everywhere
City Observatory – January 16
“We haven’t been building new walkable neighborhoods in large enough numbers to meet demand; nor have we been adding housing in the walkable neighborhoods we already have fast enough to house all those who would like to live in them.”
New Apartment Supply to Surge in 2020
RealPage – January 15
“This run-up in supply will grow the total number of new apartments completed in this decade-old cycle by 17%, which represents a 50% increase from 2019’s new supply total.”
Small Multifamily, Small Cities Are Riding the Same Rising Tide
Arbor Chatter – January 14
“Small multifamily rents have been growing faster in metro areas with rent levels below the national average. This phenomenon has, by and large, also been true for the large multifamily asset class.”
A Fantastic Decade for US Commercial Real Estate
Real Capital Analytics – January 16
“The headline national RCA CPPI climbed a cumulative 103% from the close of the previous decade and investor interest in the sector continues at a high level.”
Rent Control: A 2019 Recap and a 2020 Look Forward
NMHC – January 15
“Housing affordability is clearly top-of-mind for many lawmakers, but the fact remains that too many view rent control as a source of immediate relief while they work out longer term solutions that address the supply shortage.”
