Weekly Roundup : Week of November 12, 2018

This week’s multifamily roundup features insights on the changing performance of cap rates, the uptick of young renters living alone and the top markets for multifamily development. First, Mortgage Bankers Association notes that while cap rates have been declining for almost two decades, market indicators suggest cap rate expansion is on its way. Then, ALN Apartment Data analyzes the performance of conventional multifamily properties versus stabilized-only assets, showing that occupancy levels have remained stable despite new supply. Arbor’s Chatter blog takes a look at the trend of young renters increasingly living independently in small apartment properties due to the asset class’ relative affordability. Next, NREI identifies the top multifamily markets on developers’ minds as they plan to build new apartment units. Finally, Commercial Property Executive explores how Pittsburgh’s successful shift of its economic base to include technology has helped revive the market

Prepare for a New Cap Rate Era

Mortgage Bankers Association – November 13, 2018

“Though cap rates have mostly declined since 2000, market indicators suggest the declining cap rate era is ending and moderate cap rate expansion is likely.”

Stabilized Properties are Holding Their Own

ALN Apartment Data – November 13, 2018

“Thanks to the strong absorption numbers found in both baskets of properties, average occupancy has remained level despite the new supply.”

Small Apartment Properties Experience Uptick in Young Adults Renting Alone

Arbor Chatter – November 14

“As apartments continue to support Millennial demand in a variety of ways, small properties are experiencing an appreciable uptick in young renters living alone across the rental market.”

 Top Markets for Multifamily Development

NREI – November 9

“Developers are planning to build a lot of new apartment units across the country. But they have not yet overwhelmed the supply pipeline in the markets they are most interested in.”

Thriving Tech Sector Revives Pittsburgh

Commercial Property Executive – November 9

“The onetime industrial powerhouse successfully shifted its economic base to education, health care, finance and, more recently, technology. The metro is now home to more than 1,600 technology firms.”