This week’s roundup highlights trends to watch in the real estate industry, apartment supply and demand across markets, and an emerging asset class in seniors housing. First, PwC and the Urban Land Institute’s recently released Emerging Trends in Real Estate 2020 report takes a look at the key factors set to impact real estate and the top markets for development and investment in the coming year. Next, RealPage observes that many of the top 150 largest apartment markets have attracted enough apartment demand to meet or exceed the elevated amount of supply over the last decade. Arbor’s Chatter blog notes that active adult communities are becoming an attractive asset class for seniors housing developers and operators looking to appeal to the aging baby boomer cohort. Then, HousingWire reports that all four regions of the U.S. saw apartment occupancy rise in August, and rent growth was at or above 3% for the 12th consecutive month. Finally, Reis provides a capital markets update, noting that apartment cap rates have leveled off over the past two quarters, which is a health sign for the market.

Emerging Trends in Real Estate

PwC – September 19

“Even though we are late in the expansion cycle, volatility in global financial markets, coupled with global geopolitical instability continues to drive investors towards U.S. real estate.”

Apartment Supply Exceeds Demand in Only Three Markets This Cycle

RealPage – September 19

“U.S. apartment demand since 2010 has been robust, topping new supply, which has been significant as well. Most large apartment markets followed that trend, commanding enough demand to essentially meet or exceed elevated supply tallies.”

Active Adult Communities Gain Ground as Baby Boomers Age

Arbor Chatter – September 19

“While many think of ‘seniors housing’ as independent and assisted living, active adult communities are an emerging asset class that is gaining interest among developers and investors.”

Here Are the Metros with the Highest Apartment Occupancy

HousingWire – September 19

“Apartment occupancy nationwide is as high as it’s been in nearly 20 years, with more than 96% of all apartments filled in the 150 largest apartment markets in the country.”

Apartment Capital Market Update, Q2 2019

Reis – September 16

“One might expect that cap rates would have dropped this quarter as interest rates have fallen, but this was only partially the case. Instead, apartment cap rates seem to have normalized after declining in the face of rising interest rates.”