This week’s roundup offers insights on mortgage delinquencies, single-family rental (SFR) affordability and wage growth versus rent growth. First, MBA reports that commercial and multifamily delinquency rates are near record lows due to a strong economy and robust capital. Next, RealPage notes that Class C apartment product has been the national leader for occupancy since 2016 and experienced a two-decade high rate in mid-2019. Arbor’s Chatter blog takes a look at the SFR market’s affordability, which has improved over the course of this cycle due to factors such as a balanced supply pipeline. Then, Scotsman Guide examines how significant apartment demand has contributed to rent growth exceeding wage growth over the last seven years. Finally, Zillow identifies why young adults are taking longer to live independently, with reasons including lower marriage rates and rising income inequality.
Commercial and Multifamily Mortgage Delinquencies Remain Low in Q2 2019
MBA – September 23
“The strong economy, low interest rates, and liquid finance markets are all contributing to delinquency rates that are at or near record lows for commercial and multifamily mortgage loans.”
Class C Occupancy Rules in All but a Handful of Apartment Markets
RealPage – September 23
“Nationwide, Class C stock has reigned as the national leader for occupancy since the end of 2016. This lower tier was 96.5% occupied in mid-2019, a two-decade high rate.”
SFR’s Rising Affordability Counters National Crisis
Arbor Chatter – September 24
“Single-family rental residents have enjoyed a rise in rental affordability during this cycle, with rents as a share of household income declining.”
Wage Growth Trails Rent Growth, but a Shift Is Occurring
Scotsman Guide – September 24
“The main reason why rent growth has exceeded wage growth during this most recent expansion is because demand for apartments has been much stronger in the wake of the housing bust.”
People Start Living Alone Later – and Rising College Attendance Is not the Cause
Zillow – September 23
“Not surprisingly, it takes longer for young adults in more expensive places to live on their own. More than half of adults living outside of metropolitan areas have their own place by age 25, whereas their counterparts inside metro areas wait two more years, until age 27.”
