This week’s roundup takes a look at apartment construction, mortgage originations and opportunity zones. First, NAHB analyzes U.S. metro areas with increasing or decreasing levels of building activity, noting that core counties of smaller metro areas were popular regions for new multifamily supply in the second quarter. Next, Commercial Property Executive reports that multifamily mortgage originations were robust in the first half of 2019, according to the Mortgage Bankers Association’s quarterly survey. Arbor’s Chatter blog observes that single-family rental construction has increased significantly over the last decade, growing its share of single-family home construction totals. Then, Multi-Housing News identifies five metros to watch this year due to strong demand for apartments in those areas. Finally, RealPage lists the markets with the most opportunity zones, which are primarily the country’s largest population centers.
Multifamily Regional Market Shares Show Variation from First Quarter
NAHB – September 5
“Consistent with expectations of apartment construction moving from high land-cost areas to low land-cost areas, the data from the second quarter of 2019 show a shift in the shares of new permit issuances from large metro areas to smaller metro areas, small towns, and rural areas.”
Mortgage Originations Trending Upward
CPE – September 4
“Despite predications for a more tempered lending environment this year, second-quarter originations rose above the same period last year and the momentum is building.”
Single-Family Rental Construction Gaining Steam and Market Share
Arbor Chatter – September 3
“SFRs have emerged as a significant source of construction demand during this cycle. Since the last recession, the number of construction starts is up by more than 55%.”
Up-and-Coming Cities for New Apartments in 2019
MHN – September 3
“Despite concerns about an economic slowdown, multifamily development shows no sign of decelerating.”
Which Apartment Markets Have the Most Opportunity Zones?
RealPage – September 3
“Opportunity zones are defined using Census tracts – a geographic designation that is itself used for population estimates – it’s not surprising that the markets with the most zones are some of the nation’s largest population centers.”