This week’s multifamily roundup takes a look at the homeownership rate, metro-specific fundamentals and the industry’s preparation for the LIBOR transition. First, MBA reports that the national homeownership rate declined slightly in the second quarter, as many of the newly formed households this year have chosen to rent. Next, RealPage examines Houston’s apartment market, noting that demand recovered in the second quarter, following several quarters of lagging absorption. Arbor’s Chatter blog offers Part 2 of its new video series, covering the small multifamily market’s performance during this economic expansion. Then, Axios analyzes the affordable housing shortage in Minneapolis, which is largely attributed to the majority of new construction being higher-end product that is out of reach for lower-income residents. Finally, Arbor’s Chatter blog discusses the mortgage industry’s transition from LIBOR to a new adjustable-rate alternative, which is likely to be the Secured Overnight Financing Rate (SOFR).
Homeownership Rate, Homeowner Vacancy Rates See Slight Dip in 2Q
MBA – July 26
“Given this lack of housing inventory, household formation remains constrained, with nearly 1.2 million new households formed over the past year, and the majority of those new households choosing to rent.”
Demand Bounces Back in Houston’s Apartment Market
RealPage – July 24
“Apartment demand logged notable recovery in Houston during 2nd quarter 2019, when the market absorbed roughly 8,200 units.”
Video: The State of the Small Balance Multifamily Market (Part 2)
Arbor Chatter – July 25
“In Part 2 of this new video series from Arbor and Chandan Economics, we focus on the small balance multifamily market’s fundamentals and performance throughout this cycle.”
Minneapolis Grapples With Affordable Housing Shortage
Axios – July 24
“When this city became the first in the country to eliminate single-family zoning last year, the goal was to encourage developers to build denser housing in neighborhoods. But new construction is often unaffordable for lower-income residents.”
Multifamily Industry Prepares for LIBOR Transition
Arbor Chatter – July 23
“With LIBOR set to expire at the end of 2021, multifamily lenders are preparing to transition to an adjustable-rate alternative. Replacing such a widely used benchmark of the financial industry is a significant undertaking.”
