Weekly Roundup Intro: Week of May 13, 2019

This week’s multifamily roundup highlights the affordable housing crisis, income growth among renters and homeowners, and origination volumes in first-quarter 2019. First, Mortgage Bankers Association (MBA) shares insights from the firm’s Commercial/Multifamily Servicing & Technology Conference, including a discussion of the economy’s performance and its impact on the commercial real estate industry. Next, Curbed breaks down the factors contributing to the nation’s affordable housing crisis, including demographic shifts and unfavorable housing policy decisions. Arbor’s Chatter blog takes a look at income differences between renters and homeowners, with the former seeing faster income growth. Then, Mortgage Media features an interview with MBA’s Jamie Woodwell, who explains why housing demand should remain strong over the next decade. Finally, MBA reports that commercial and multifamily originations had another strong quarter to start 2019, continuing the momentum seen last year.

Woodwell: Is CRE ‘Winter’ Coming?

MBA – May 17

“In the multifamily sector, we’re running fast in terms of both demand and supply for apartments. The younger generation is filling the shoes of their parents, supporting good demand for multifamily properties.”

The Affordable Housing Crisis, Explained

Curbed – May 16

“The National Low Income Housing Coalition found that a renter working 40 hours a week and earning minimum wage can afford a two-bedroom apartment (i.e., not be cost-burdened) in exactly zero counties nationwide. In other words, it isn’t possible.”

Pace of Income Growth Faster for Renters than Homeowners

Arbor Chatter – May 16

“While significant income differences remain between owner and renter households, growth in income is the fastest among apartment renters. This bodes well for short-term multifamily operating fundamentals.”

Commercial Multifamily Real Estate: Less Headwind, Strong Economy at Our Tail

Mortgage Media – May 15

“I think what you’re seeing there is that the single-family and multi-family markets are both getting a little bit of a boost from that household formation that we’re seeing. And the demographic trends on that continue to be favorable.”

1st Quarter Commercial/Multifamily Originations Up 12 Percent

MBA – May 14

“The momentum seen in 2018’s record year of borrowing and lending continued in the first quarter of this year. Low interest rates and strong property values continue to make commercial real estate an attractive market for borrowers.”