Industry News | Wk of November 12
HOT & RELEVANT TOPICS
Ocasio-Cortez Youngest Woman Ever
Elected to Congress – and Still Can’t
Afford an Apartment in D.C.
At 29, Alexandria Ocasio-Cortez last week became the youngest woman ever elected to Congress. But that doesn’t mean she can afford to live in Washington, D.C., where she’ll be stationed come January as part of New York’s 14th District. The median apartment rent hovers around $2,700 in D.C., and Ocasio-Cortez isn’t blessed with a bevy of disposable income after having served as a bartender prior to being elected. “I have three months without a salary before I’m a member of Congress,” Ocasio-Cortez said. “So, how do I get an apartment? Those little things are very real.” Read Abigail Hess’ article on CNBC.
Rent Control Fight Expected to Continue After Prop 10
The most anticipated election issue in the apartment world was California’s Prop 10, which would have repealed a 23-year-old measure that restricts rent-control provisions. Opposition outspent Prop 10 proponents about three-to-one, and their efforts paid off as the measure was rejected by a 62- to 38-percent margin. While the result is largely considered a positive for the industry and will prevent the dreaded ripple effect, many believe the rent-control fight will continue. Several industry executives believe proponents will try to get the measure back on the ballot in 2020. Read Gail Kalinoski’s article in Multi-Housing News.
Experiences on Demand: The Next Phase of the Amenities Arms Race
As amenity spaces have become the new normal in real estate, some property owners are discovering that coordinating, managing and booking the precise mix of desired amenities is more difficult and costly than expected. On-demand services might be the answer to counter these challenges. As the on-demand phenomenon continues to take hold across the country, apartment communities can keep pace by offering a full suite of amenities within a click. This could create a shift in which apartment operators not only consider what amenities they’re offering, but how to do so in a customizable manner. Read Devin Wirt’s article in Multifamily Executive.
IN THE NEWS
Multifamily Lending On Track To Break Records Again in 2018
Multifamily lending hit an all-time high last year, but things are looking slightly better in 2018. The Mortgage Bankers Association recently reported that multifamily lending is on track to surpass its 2017 total, projecting commercial and multifamily originations to reach $532 billion this year. That will narrowly surpass the $530 billion spent last year. Extrapolated solely to multifamily, the increase is more pronounced ($251 billion last year to a projected $302 billion this year; a 7 percent increase). The MBA projects multifamily lending to rise another 2 percent in 2019. Read Ben Lane’s article in Housingwire.com.
Fannie Mae Plans $145 Million Investment in LIHTC Funds
Fannie Mae re-entered the Low Income Housing Tax Credit market about a year ago, and now the government-sponsored enterprise is continuing its focus on affordable housing in underserved markets by committing $145 million to LIHTC funds. Fannie Mae will invest the capital into three low-income tax credit funds: Cinnaire Fund for Housing, Ohio Equity Fund for Housing and MHEG Fund 50. The three funds are members of the National Association of State and Local Equity Funds and combine to oversee LIHTC housing in 19 states. Read Ben Lane’s story on HousingWire.com.
Rent vs. Own Debate Swings Dramatically Toward Apartments
With housing costs skyrocketing across the country, a Freddie Mac Multifamily study reveals that all generations of renters continue to perceive renting as the more affordable option. But that sentiment continues to increase, as the 78 percent of renters who view renting as the more affordable option represent an 11-percent increase from six months prior. That’s even as 66 percent of renters reported having had difficulty paying rent at some point during the past two years. Remaining steady, 63 percent of renters continue to express their satisfaction with their rental experience. Read the entire article in units magazine.