Alice Stein’s Post

Atlanta has the third-highest number of build-to-rent units under construction out of all cities in the U.S., and the South is claiming a lion’s share of new units: around 41% of total units under construction is in this region of the U.S., followed by the West with 26%. Read more on the housing trend here: https://lnkd.in/ezQNFiEK #atlantarealestate #commercialproperty #buildtorent #atlanta #realestate #housingmarket #development

At APEX - America Property Expo in NYC, Simon Ziff says South Florida is the hottest market in the country. One asset class is particularly hot: Build to rent model, where developers build single family homes or even entire communities of homes, with the intention of renting out every unit to tenants looking to rent long-term. BTR is an asset class that is easily converted to sell unlike the office sector where conversion to another asset class, multifamily, for example, is a very difficult and costly conversion. Other commercial real estate asset classes that Simon finds lucrative are student housing, solar/energy, and shopping centers where a premium is available in the financing. Multifamily is tight, he said. Simon says that 90% of the deals his office receives are summarily turned down because they don’t meet the criteria that Ackman-Ziff has set, such as the client has to have the deal done, must control the deal, have prior experience in that level of financing and must give Ackman-Ziff an exclusive in raising the capital. Plug: Simon is teaching a class at WRES Schack Institute of Real Estate, NYU with Associate Dean Marc Norman where students can share beer or wine after class. There’s a Zoom version of the class but the students have to supply their own beverage.

This may come as a surprise to some but “2024 and 2025 are set to be the busiest years on record for new construction of multifamily homes” according to a paper published by John Burns Research and Consulting. But the influx of these housing options won’t be uniform across all markets. So while this forecasted trend may be a positive development for our industry, we have to be sure to look at where all these new multifamily units are actually going. Because it won’t be everywhere. #MultifamilyHousing #Housing #Trends

Law360 reporter Nathan Hale interviewed Rafael Aregger on the state of the South Florida real estate market.   Looking back to 2023, while most national real estate markets stood still, South Florida kept pushing forward. "It's especially encouraging to see large-scale developers announcing substantial new office development, which is unthinkable in most other parts of the US, given the troubled situation of offices. It demonstrates the strength of the underlying local economy in South Florida, which benefits the performance of all types of real estate," Rafael told Law360.   Rafael expanded on key factors set to impact this important US market in the coming years:   ➡️ Difficult Capital Markets Environment: Construction starts have decreased substantially compared to the last two years and will likely remain very low during the first half of 2024. As interest rates start declining, lower construction and lower financing costs will bring developers back to the table.   ➡️ Demand for Housing Will Remain Elevated: But, due to large amounts of new unit deliveries in a few submarkets — e.g., Wynwood and Edgewater — it's expected that there will be lower rent growth and concessions (temporarily). As the metro absorbs these units, the situation should normalize throughout 2025 with rent growth re-accelerating into 2026.   ➡️ The Future of South Florida is Bright: Miami is transforming into a mixed-use super hub with dynamic and modern office spaces, world-class retail, entertainment, and some of the most attractive housing globally. Developments that are currently being planned and executed will continue to push Miami into becoming one of the world’s leading cities, which will keep attracting businesses and people. For real estate developers like Empira, this backdrop provides the perfect canvas for continued large-scale investment.   We are currently developing two multifamily sites in the Miami Brickell area and believe South Florida will remain one of the premier real estate investment locations in the US, yielding attractive investment opportunities for the next decade and more!   #Empira #USA #NorthAmerica #RealEstate #Investments

Great points Adam Dunn! The sharp decline in Boston and Cambridge highlights the need for adaptable strategies, while the relative resilience of the suburbs points to some emerging opportunities. For developers: Watch for potential interest rate cuts, staying flexible and proactive will be key in navigating these shifts and capitalizing on new growth areas. The evolving landscape is creating a more nuanced market – one where agility will be a major asset. #BostonRealEstate #ApartmentConstruction #HousingMarket #RealEstateTrends #MultifamilyDevelopment

June 2024 has revealed interesting dynamics in the real estate markets across various regions, offering both opportunities and insights for potential homebuyers and investors alike. In Durham Region, we witnessed 877 property sales, with an average price of $956,428. This represents a slight cooling off compared to June 2023, which could signal a more approachable market for some. Active listings have substantially increased by 62% in Durham, reaching 2,181 properties. This surge means more choices for buyers, potentially easing the competitive tension. Hastings Region reported 168 sales at an average of $534,807, marking an 8% price decrease from last year and a 13% increase in listings, indicating a shifting market dynamic.  Kawartha Lakes saw a robust price jump to $751,831 with 88 properties sold, alongside a dramatic 76% rise in active listings — a clear indication of growing market interest. Northumberland County experienced a slight sales uptick with a notable 52% increase in listings, setting average prices at $748,535. Peterborough Region enjoyed a slight improvement in sales to 179 properties and a significant 69% spike in listings, with average prices at $693,397. Prince Edward County remained stable in sales, with a modest price increase and a 56% boom in listings. The real estate landscape is also being shaped by new policies such as the Homeowners Protection Act, designed to enhance transparency and fairness in the buying process. In the spirit of community and giving back, CLAR REALTORS® recently hosted a charity golf event at Royal Ashburn Golf Club, successfully supporting Feed the Need in Durham with 90 pounds of food, translating to 75 meals for those in need. The current market presents unique opportunities and challenges, making it essential for buyers and sellers to stay informed and agile. Understanding these trends is key to whether you are looking to invest, sell, or find your dream home. #RealEstateTrends #DurhamRegion #HastingsRegion #KawarthaLakes #NorthumberlandCounty #PeterboroughRegion #PrinceEdwardCounty #HomeownersProtectionAct #CommunitySupport #RealEstateMarket2024

Nearly all these metros are seeing both strong population and employment growth, indicating an influx of younger households. Affordability remains an issue nearly everywhere, which makes renting more attractive. There are a couple of retiree-favored markets as well on this list. I have seen a growing number of retirees opt to rent for a year or two before they buy, which is probably a wise move, as might be renting for the long haul depending on the market.

📘 Insights from My Reading: Key Considerations for Development Projects 🌆 Recently, I delved into some fascinating insights from a book on real estate development, shedding light on crucial factors to consider when evaluating potential projects: City with Low Barriers to Entry: The book emphasized the importance of selecting cities with minimal regulatory hurdles, enabling smoother project execution and faster ROI. Challenging Development Environments: It highlighted the potential value in tackling projects in environments where development is notoriously difficult. While these projects may pose more challenges, they often offer significant rewards due to limited competition. City of the Future: The book discussed the concept of targeting cities on the brink of major growth, citing examples like Charlotte, NC, Houston, TX, San Antonio, TX. These cities boast growing populations, business-friendly environments, and untapped niches, making them ripe for investment. Market Receptiveness: A key takeaway was the importance of choosing markets that embrace diversity, both in demographics and business culture. Such markets can offer fertile ground for development projects that cater to a wide range of needs and preferences. These insights align closely with our approach at Steinbridge, where we prioritize projects that align with these principles to maximize success and impact. 📰 Relevant Article: https://lnkd.in/epWzcicN This article explores the growing trend of Build-to-Rent (BTR) projects, highlighting their appeal to investors seeking stable returns and tenants craving flexibility and community-oriented living. With insights from industry experts and recent market trends, it provides valuable insights into the evolving landscape of real estate investment. What other insights have you discovered in your real estate reading? Share your thoughts below! #RealEstateDevelopment #UrbanDevelopment #BuildToRent #InvestmentInsights #Steinbridge

Would you like to know how we turn a Single Family Home into a seven-unit, multifamily building? It's actually fairly simple... Here in San Diego we utilize incentives provided by the City to add density in both single family and multifamily zones. The main key is to provide deed restricted affordable units. There is a process that must be worked through with the Housing Commission in which a document is recorded that restricts rents on a unit. The maximum rent is based on locally adjusted values calculated by the Federal Government. This restriction lasts for fifteen years. This is document is then recorded with County Recorder's Office and the Housing Commission allows you to build an additional market rate unit (that is to say, one-for-one). In theory, you can keep adding units as long as you stay within certain restrictions such as density and height limits. This is how we are designing and building seven, eight and ten unit buildings in the metro core of the City. The push is to provide affordable housing and it is working! Feel free to DM if you would like to know more about this process. John Laine Gabriel Craft Michael P. Voulgarakis

Here are the top 15 markets for ongoing construction of build-to-rent single-family housing units, according to John Burns Research and Consulting. Few thoughts: 1) Top BTR construction markets are generally also top apartment construction markets. So if you look at a market like Phoenix (arguably the birthplace of BTR at scale) with nearly 10k BTR units under way, you'd also want to consider the 50k apartment units under way. This is one that still has solid demand tailwinds, but could be a real grind over the next year or two given the sheer volume of supply -- especially in the western suburbs. In most of these markets, BTR construction levels amount to around 10% of apartment construction totals. Phoenix is at the high end at 19%, while Nashville and Denver are lower at 5%. 2) BTR construction is very concentrated in a small number of markets. In fact, these 15 markets are home to nearly two-thirds of all active BTR construction nationally. Compare that to apartments, where the top 15 markets comprise just over half of all construction. At least 95 U.S. metro areas do have at least one BTR project under way, according to JBREC. But in most spots, the number of projects are very few. 3) Generally speaking, BTR is feeling the same supply-induced pains as apartments right now -- so that's compressed rent growth to 1.7%, according to JBREC, a shade higher than multifamily's 0.6%. That plus higher rates and tighter construction financing translate to BTR seeing similar slowdown in starts of late. But longer term, is there any doubt we're still in the early innings of BTR? Little of this product even existed prior to a decade ago, so not much of it is even out there. And it fits a great niche for those who've graduated past the apartment stage of life (more likely to have kids, more likely young adults in their early 40s) but aren't yet ready or willing to buy a home for whatever reason ... yet still enjoy the convenience of living in a managed rental community. #BTR #housing #rentalhousing