Jon's Reading List - Week of September 10, 2021

Posted By: Jon Lowder Blog ,

This week's interesting reads.

Apartment Industry

Apartment Construction Moving to Suburbs, Small Urban Cores (GlobeSt.com, September 8, 2021)
The HBGI shows that multifamily residential construction grew by 14.3 percent in small metro urban cores and 25.5 percent in small metro suburban areas in the second quarter. In contrast, large metro core areas recorded a 0.5 percent decline.

Students Are Going Back to School, and Property Investors Want to House Them (Wall Street Journal, September 8, 2021)
With millions of students heading back to college campuses this month, some of the world’s largest property investors are pumping billions of dollars into buying and developing off-campus housing...
Smaller investors also are getting into the action. In the first half of the year, student housing deal volume was $2.52 billion, up from $1.68 billion in the first half of 2020 and close to the $2.96 billion in deals in the first half of 2019, according to JLL.

Housing Policy

New Plan Signals White House Commitment to Housing (National Apartment Association, September 7, 2021)
President Biden has taken several steps to ensure an increase in the supply of affordable housing, according to a new fact sheet on the Administration’s housing agenda released on September 1, 2021. In the plan, the White House lays out four areas in which immediate action has been taken to drive affordability in housing: boosting the supply of affordable housing, increasing the availability of 2-4 unit properties, increasing homeownership for individuals and working with state and local stakeholders to reduce exclusionary zoning.

New York Poised to Extend Eviction Ban (Wall Street Journal, September 2, 2021)
New York lawmakers passed a bill Wednesday to extend the state’s eviction moratorium until Jan. 15, a move they said would give officials more time to distribute rental assistance funds after the Supreme Court struck down federal protections last month.

Real Estate

Wall Street Can't Get Enough Fixer Upper Houses (Wall Street Journal, September 7, 2021)
Toorak Capital Partners, which has been buying flip loans and pooling them into securities since 2018, in June sold a $339.5 million security, its first deal since before the pandemic. To supplement the scarcer house flips, CEO John Beacham said Toorak has been buying loans that fund renovations of small apartment buildings. There is much less competition for these than houses. Additionally, the firm is bundling longer-term notes to rental-house investors, who have accounted for more than 1 in 5 home sales in some of the country’s hottest markets.

U.S. Homes-Price Growth Rose to Record in June (Wall Street Journal, September 1, 2021)
The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, rose 18.6% in the year that ended in June, up from a 16.8% annual rate the prior month. June marked the highest annual rate of price growth since the index began in 1987.

House Rents Pop Up As Investors Pile In (Wall Street Journal, August 31, 2021)
Asking rents for houses rose nearly 13% for the year to date through July, the highest annual increase in the past five years as tracked by real-estate data company Yardi Matrix, which analyzed professionally managed properties.
The sharp rise partly reflects increasing demand from people who can’t afford to buy homes as well as city-dwellers who moved to the suburbs to rent during the pandemic. Meanwhile, the supply of new houses also continues to trail historical levels relative to population growth, and builders in some places remain constrained by zoning laws and available land.