Industry News | Wk of March 12
HOT & RELEVANT TOPICS
Three Apartment Markets Are Best Positioned to Handle Amazon HQ2
The city that lands Amazon’s second headquarters will experience an immediate spike in apartment demand, but some cities are more equipped to handle that demand than others. Based on a formula factoring vacant units and units under construction, Atlanta (specifically Sandy Springs and Roswell) was rated the top fit, followed by Dallas (Plano, Irving) and Washington, D.C. (Arlington, Alexandria). Some markets, such as Toronto, Raleigh and Pittsburgh, would suffer from a drastic housing shortage upon absorbing HQ2. Read Greg Willett’s article in units Magazine.
Does Airbnb Intensify Affordability Issues?
Conventional wisdom seems to suggest that the affordability crisis has been exacerbated by the rising prominence of Airbnb. No empirical research had been devoted to that assertion, however, so UCLA associate professor of economics Edward Kung decided to delve in. As it turns out, affordability issues involve much more than Airbnb and other home-sharing platforms. Although increases in Airbnb listings lead to an increase in average rental rates, it is nominal. For each 10 percent increase in Airbnb listings, apartment rents rise only .04 percent. Read Kelsi Maree Borland’s article on Globe St.
Exterior Design Trends on the Rise
With ever-changing renter preferences, multifamily developers are constantly reevaluating exterior designs – especially in southern California and other markets where outdoor living and entertainment are year-round. Each apartment community needs to be unique and have its own distinct style and personality to separate itself from the pack. Location, color palettes and outdoor amenities are some of the most significant factors developers consider when executing an exterior design plan. Gray is a color that seems to match nearly any design theme, but could soon wane in popularity due to its prominent use. Read Jules Escalona’s article on Multi-Housing News.
IN THE NEWS
More Apartment Operators Offer Free Rent to Lure Residents
Property managers nationwide are combating the rising number of vacant apartments by offering concessions. To close the deal on prospects signing a lease, property managers at new communities are offering months of free rent to compete with new construction. Concessions of free rent have increased between 2015 and 2017 and are notably common in the cities and towns where developers have built thousands of new apartments in recent years, like Las Vegas, San Antonio, New York and Houston. Read Bendix Anderson’s article in National Real Estate Investor.
Adopt Onsite Tech Wisely: Avoiding Pitfalls
Apartment operators make a common mistake when implementing new technology according to UDR senior vice president Scott Wesson. They implement tech that simultaneously aims to improve operations and enhance the resident experience. Wesson contends that it’s too difficult to get each of them right, and it’s more advisable to concentrate on one or the other and go in full force. Marcie Williams, president of Riverdale KW Residential, says USB ports should be in every home and that any new development should proactively consider drone-landing zones. Read Les Shaver’s article in units Magazine.
The Nation’s Most Gentrified Neighborhoods
Online ILS firm RENTCafé measured thousands of ZIP codes across the country to identify which neighborhoods have undergone the most extensive gentrification between 2006 and 2016. Utilizing data on changes in median home values, median household income and resident education, RENTCafé discovered that cities like Manhattan, Los Angeles, Washington D.C. and Houston have experienced the most significant gentrification. Of note, Manhattan had three of the top 10 zip codes on the list. Read Mary Salmonsen’s article on Multifamily Executive.