Weekly Roundup Intro: Week of November 26, 2018

This week’s multifamily roundup features insights on investor appetite for New York’s Opportunity Zones, Millennial renters’ occupation profiles and the top markets for commercial real estate investment potential. First, NAHB notes that the average unit size for newly constructed multifamily is below the average during the pre-recession years, due to an increase in built-for-rent units as opposed to for-sale units in the years after the recession. Then, Bisnow takes a look at which of New York’s Opportunity Zones are seeing an increase in property prices and attracting the most investor. Arbor’s Chatter blog observes that new Millennial renters, especially those in small apartment buildings, are more likely to be in science- and technology-related jobs. Next, Trepp ranks the top 15 metros that are the most active for commercial real estate investment activity. Finally, Multi-Housing News reports on the top sources of foreign capital in the U.S. multifamily market, as well as where U.S.-based investors are finding opportunity in overseas markets.

Multifamily Construction Remains a Built-for-Rent Market

NAHB: Eye On Housing – November 30, 2018

“The market share of rental multifamily construction starts ticked up to 95% during the third quarter of 2018. In contrast, the historical low share of 47% was set during the third quarter of 2005, during the condo building boom.”

Property Values, Investment Appetite Surge in New York’s Many Opportunity Zones

Bisnow – November 29, 2018

“As the commercial real estate industry continues to sort through the details of the new Opportunity Zone program, developers and investors are working to figure out the impact on real estate values in the zones and to sift hype from reality.”

New Millennial Renters More Likely to be in STEAM Occupations

Arbor Chatter – November 30

“Small apartment buildings continue to support a broad range of Millennial workers, while those in Science, Technology, Engineering, Arts/Design and Math (STEAM) occupations are renting at a faster clip.”

Ranking the 15 Largest MSAs for CRE Investment Potential

Trepp – November 27, 2018

“Trepp has ranked the 15 largest MSAs to provide insight into the highest performing CRE regions across the US, as well as to pinpoint possible vulnerabilities.”

Multifamily Investment’s Globetrotters

Multi-Housing News – November 28, 2018

“Capital is flowing toward multifamily assets across the U.S. border in both directions as both domestic and foreign buyers assess new opportunities in one another’s markets.”