HOT & RELEVANT TOPICS
Why Nontraditional Data Points are More Effective
The same overused data points simply aren’t making an impact for CRE investors and asset managers anymore. As such, they are seeking alternative metrics to help fuel advanced insights and explore opportunities in submarkets that might have been overlooked. The hyper-localized insight derived from granular, nontraditional data points helps pinpoint nuances of a particular submarket and assists in fostering data-driven decisions. An example is data pertaining to specific rent-growth drivers, such as income and employment growth, and how those factors impact a particular submarket.
Can Operators Demand Residents Be Vaccinated?
Apartment owners and operators now must require employees to be vaccinated if they have more than 100 team members. It gets a bit trickier when the conversation shifts to residents. A potential test case is playing out in Florida, where an operator of a 1,200-resident community has lost several to COVID-19 and is now requiring vaccinations to live at the property. Predictably, it has been met with some resistance, as some residents have contracted attorneys to challenge the mandate. On a national basis, the National Multifamily Housing Council has had discussions on the topic but does not yet have an official industry-wide position on resident vaccination requirements.
Self-Guided Tours Evolving for Single-Family Rentals
While self-guided tours have been a primary objective in multifamily for the past 18 months, many forget that SGTs actually originated in the single-family space. And although single-family is the pioneer of SGTs and has had more time to refine them, some in the industry are continuing the quest to further elevate the prospect experience. From quick-scan QR codes to smart home entry, SGTs continue to evolve on the tech side—but operators can also create a differentiated brand experience in their offerings. As an additional benefit, operations teams can remain centralized rather than rushing from property to property.
IN THE NEWS
Expect Higher Wood Prices Through 2022
Rental housing rates are on the rise, but how long can the increase last? The rise is due, in part, to the costs of both building From the financial performance of the properties themselves to the ongoing change in renter preferences, a wide array of The stratospheric rise of lumber prices tapered significantly, giving hope to multifamily developers that the worst had passed. But they started to rise again in October, a trend projected to continue at least until midway through next year, according to investment management organization Domain Timber Advisors. While housing demand is a primary factor why prices might ascend from $400 to $650 per thousand board feet, the wavering health of the Canadian forest also matters. As such, some Canadian companies have relocated their production facilities to the U.S., incurring new training and relocation costs.
Student Housing Holds Strong During Pandemic
While student housing wasn’t immune to the same 2020 hit that plagued virtually every other industry, the sector has several pandemic-resistant traits that allowed it to bounce back quickly. The resiliency of student housing enabled it to outperform traditional rental housing during the past year-plus, according to a recent study from Pierce Education Properties. The study indicated that student housing occupancy was down only 3% in May 2021 despite that nearly two-thirds of universities offered remote or hybrid learning options. And a strong incoming freshman class for 2021-22 is boosting occupancy back toward normal.
Industry Leaders Remain Proactive After Eviction Moratorium Ends
It was far from a mass exodus of delinquent renters when the longstanding eviction moratorium concluded in late summer. In fact, multifamily leaders are continuing to devise solutions and work with residents as much as they can before evicting. A recent survey by the National Multifamily Housing Council discovered that 100% of respondents offered their residents eviction mitigation programs. Some, including San Francisco-based Veritas Investments, have self-imposed an eviction moratorium until the conclusion of 2021. “We don’t want to evict unless it’s absolutely necessary,” said Jeff Jerden, COO of Veritas investments.