References
NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require the member's nar.realtor login.
The Basics
Lenders on the Defense May Impact Multifamily Market (GlobeSt.com, Oct. 27, 2022)
“According to Douglas Schwartz, managing director at JP Morgan Asset Management, lenders are bracing themselves “to handle the disruptions they know are coming,” and that’s being reflected in less debt capital being available. “In office, there certainly will be a lot of broken capital structures,” Schwartz said. “It’s too early to tell if that plays out in multifamily… That will be a major determinant of whether we have a huge problem next year or ride it through.”
What is a Multi-Family Home? (Bankrate, Jun. 3, 2022)
“A multi-family home is a single building that’s divided to accommodate more than one family living separately. They can range from a duplex, which has two dwellings within a single building, to homes or small apartment buildings with up to four individual units. (Buildings with more than four units are typically considered commercial properties.)”
U.S. Real Estate Market Outlook 2022 – Multifamily (CBRE, Dec. 8, 2021)
“The growing economy is boosting household formation, which had been artificially suppressed by the pandemic. New households are catalyzing demand for rentals, which is expected to match the pace of new deliveries in 2022. We forecast multifamily occupancy levels to remain above 95% for the foreseeable future and nearly 7% growth in net effective rents next year.”
Multifamily Trends
The Trend is Clear: Multifamily Construction on the Rise (National Association of REALTORS®, Oct. 26, 2022)
“Data shows that multifamily construction is on the rise at the local level, especially in larger metro areas where single-family home construction is slowing. For instance, in Atlanta, GA metro area, the number of permits issued for five or more units has tripled during January and August of 2022 compared to the same period a year ago. In contrast, single-family permits dropped by 15 percentage points. Respectively, permits issued for multifamily units in the Baltimore, MD metro area have also tripled, while single-family permits decreased by 40% during January and August 2022 compared to a year ago.”
Multifamily Proposal Activity Stays Hot, Single-Family Flattens (GlobeSt.com, Oct. 25, 2022)
“David Burstein, PE, director and senior consultant at PSMJ, an A/E/C industry consulting and publishing firm said he’s seeing a divergence in the A/E housing markets. “The home ownership markets – new single-family homes, condos and subdivisions – are feeling the effects of higher interest rates and tighter lending policies,” Burstein said. “The rental markets aren’t feeling the same pinch, at least not yet.”
Multifamily Influencers (GlobeSt.com, Oct. 7, 2022)
“Up until a few months ago, it appeared that multifamily had entered a golden age. Rents were rising, deals were closing and forecasters saw little difficulty in the medium term. To be sure, the asset class is still a strong one but with the rise in the cost of debt, the threat of a possible recession and asset pricing that has become muddled, some uncertainty has been injected into the landscape. For that reason, we give our kudos to the men, women, teams and companies that are navigating this environment.”
Investing in Multifamily Property
Multifamily Real Estate and Diversification: Taking a Long-Term Approach to Investing (Forbes, Oct. 20, 2022)
“Diversification has the ability to improve returns and mitigate risk through stabilizing results. Each asset class has characteristics that will react differently to the different environments that occur over time. Through exposure to different assets, investors are able to reduce asset-class risk while navigating through business cycles.”
Why Multifamily Investing May Be Your Best Investment Bet During the Recession (Forbes, Jun. 30, 2022)
“Multifamily properties offer multiple rental units to rent out [and thus] can also generate several multiples’ worth of additional income in the end. Likewise, having the ability to rent out several units versus a single unit also provides real estate investors with multiple opportunities to reduce vacancy rate, allay their expenses and offset general risk.” With reliable and ongoing income—such as regular cash flow, appreciation, mortgage pay down, and annual tax advantages—this investment is notably less risky.”
What to Consider Before Multifamily Investing (Bungalow, Feb. 1, 2022)
Like every investment, multifamily properties have pros and cons. An obvious pro of investing in a multifamily building is the possibility for rental income, but with renters come extra responsibilities. Multifamily is not quite on the same scale as commercial investing, so it’s a nice middle ground, thought the up-front cost is certainly higher than a single unit.
Property Management
What is a Property Manager? (The Balance, Sep.13, 2022)
“Property managers are hired to handle the operations, maintenance, and administration of property rentals for an owner. Their work, among many other tasks, includes marketing rentals and finding renters, ensuring rental rates are competitive while covering taxes and overhead, collecting rent, and complying with rental laws.”
Why Multifamily Property Management is Ripe for Disruption (GlobeSt.com, Feb. 14, 2022)
“Management companies today typically don’t have relationships with renters – the property does, which consists of a 12-month lease at a single property,” he says. “With the legacy property-centric leasing and operations system, operators have to acquire that same customer every time 12 months is up, and that’s both wildly inefficient and simply not intuitive to the rental journey of today’s multifamily consumer or to the realities of modern multifamily operators.”
Useful Websites
Appfolio (Property Manager) — Sells property management software, and shares perspectives and best practices to help manage your property management business
Marketing and Leasing: Multifamily Properties (NAR.realtor) — NAR’s education matrix
Multifamily Housing (United States Department of Housing and Urban Development)
Multi-Housing News — Provides current news and statistics about the multi-housing industry
National Apartment Association — A trade association for the apartment housing industry
National Association of Residential Property Managers® — A trade association for residential property managers
National Multi Housing Council — Provides a forum for insight, advocacy and action for members and the community
Property Manager — Sells property management software, and shares perspectives and best practices to help manage your property management business
Multifamily Biz — Provides current news about sales, construction and the multifamily industry
Books, eBooks & Other Resources
eBooks.realtor.org
The following eBooks and digital audiobooks are available to NAR members:
The Complete Guide to Buying and Selling Apartment Buildings (eBook)
Complete Landlord and Property Managers Legal Survival Kit (eBook)
Multifamily Housing (eBook)
The Multifamily Millionaire Volume II (eBook)
Opportunities in Property Management Careers (eBook)
Rich Dad's Advisors®: The ABC's of Property Management (eBook)
Streetwise Landlording & Property Management (Audiobook, eBook)
What Every Landlord Needs to Know: Time and Money-Saving Solutions to Your Most Annoying Problems (eBook)
Books, Videos, Research Reports & More
As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.
Field Guide for Practical Apartment Management (Chicago, IL: Institute of Real Estate Management, 2015) HD1394 .F48 2015
The CompleteLandlord.com Ultimate Real Estate Investing Handbook (Hoboken, NJ: Wiley, 2009) HD 1382.5 L49
Buy It, Rent It, Profit! : Make Money as a Landlord in Any Real Estate Market (New York, NY: Simon & Schuster, 2009) HD 1394 C39
The Complete Guide to Buying and Selling Apartment Buildings (New York, NY: John Wiley & Sons, 2005) HD 1377 B46
Practical Apartment Management (Chicago, IL: Institute of Real Estate Management, 2005) HD 1394 In7pr Ed. 5
The New No-Nonsense Landlord: Building Wealth with Rental Properties (New York, NY: McGraw-Hill, 2003) HD 1394 J76
Have an idea for a real estate topic? Send us your suggestions.
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