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Posts Tagged ‘vacancy rate’

Apartment Vacancy Rates are Moving on Up

November 30th, 2015 Comments off

rentals  zimbio creditOn the apartment rental scene, according to multifamilyexecutive, many have posited that there is an insatiable demand for rental units, with millions of Gen Y living at home yearning to break out, they do not want to own, and vacancy rates will continue to fall.

Au contraire, says Ryan Severino, demand has already fallen slightly. From the second quarter of 2013 to the third quarter of 2015 the national vacancy rate has remained at 4.3 percent, indicating a general balance in supply and demand.

During the recovery following the housing bubble, demand was higher than supply for Class A properties. Now, as most developers are building Class A units exclusively, the construction-to-absorption ratio has increased from a miniscule 0.4 in 2011, yearly inching up to 1.2 last year where it has remained, meaning there are more new units being delivered than being absorbed.

Class A vacancy rose 100 basis points (bsp) from 4.6 percent in Q1 2013 to 5.6 today. B/C properties have fallen 110 bps, primarily because no one is building B/C properties. Owners of older buildings are striving to renovate to maintain their B/C status as the new Class A units come up with advanced features.

It’s basically the same amount of work to build either, as MHProNews understands, but Class A units have added features, nicer interiors, more amenities. The higher rent pays for the A rating over time.

As MHProNews knows multifamily construction has been the driver in new residential construction, while new single-family has lagged and see-sawed.

Severino says many Class A developers are convinced there is insatiable demand, while others are certain that while vacancy may rise, their properties are better than “the others.” He says the market is so competitive it’s near impossible to set themselves apart from others regardless of “what a great view their properties boast from the roof-deck fire,” as he reiterates: “Class A vacancy is already on the way up … and vacancy for the overall market is sure to follow.##

(Photo credit: zimbio)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Affordable Modular Homes part of Canadian Plan

September 18th, 2013 Comments off

An affordable housing complex in Regina, Saskatchewan, Canada is set to include modular homes as part of a project to finance 1,000 new entry-level homes over five years. Builders are eligible for loans of 90 percent of construction costs of the homes, including the land, at four percent interest. With a current 1.9 percent vacancy rate in the province (it had been under one percent), community leaders are trying to keep people from leaving. As leaderpost.com informs MHProNews, the target sale price for the homes is at or below the multiple listing service (MLS) average sale price in each of the communities.

(Photo credit: Troy Fleece/leaderpost.com–modular units being assembled in Regina, SA Canada)

Image of Modular Housing Rises in Germany

September 3rd, 2013 Comments off

Modular apartment buildings were often the norm in the communist-era of the former East Germany. With a reputation as dreary and shoddy, hundreds of thousands of the less appealing apartments were demolished by the federal government following the re-unification of East and West Germany when communism ended in November, 1989. Large-panel-system (LPS) construction, called Plattenbau (meaning a building put together from slabs) in German, comprises 55.5 percent of the apartments in the state of Saxony in east central Germany. The vacancy rate had been as high as 20 percent plus, but has dropped to eight percent due to the demolition, which has also contributed to the addition of more greenspace, parking and playgrounds for the remaining units, making them more desireable. Much like in the United States, modular housing has an image problem; but as gulf-times.com informs MHProNews, demand is growing for the apartments among the younger set and new families, especially in larger urban areas where restaurants and taverns are burgeoning nearby.

(Photo credit: Troy Fleece/reginaleader-post)

School Building Manufactured Home Community for Staff

July 9th, 2013 Comments off

The Midland City Council in Midland, Tex. approved a one-year temporary use permit for a 70-unit manufactured home community to house Midland Independent School District’s (ISD) teachers and other employees. Updating a story MHProNews posted June 25, 2013, the council chose to develop ISD owned property instead of leasing sites in Stonegate Mobile Home Park. Energy fields being developed nearby are drawing workers to the area seeking housing, driving up prices and lowering the vacancy rate in town, making it difficult for ISD to attract much needed teachers. As mywesttexas says, 100 to 210 staff members will be housed in the manufactured homes, depending on whether teachers want to have roommates.

(Photo credit: rileytransport–manufactured home on the move)

Housing Shortage has Unintended Consequences

February 22nd, 2013 Comments off

As MHProNews has reported in the Daily Business News for several years now, the oil boom in western North Dakota’s Bakken Region has brought an influx of factory-built housing to the area, including modular man camps, manufactured and modular homes, even some Federal Emergency Management Agency trailers to house employees of Williston State University in Williston. Bloomberg reports employees of one of the energy companies live in modular housing trucked over from the Winter Olympics in Vancouver. The housing vacancy rate and the unemployment rate are both under one percent, leading some major employers to purchase housing for their employees, or risk not having workers who will have been lured away to the higher-paying jobs in the oil fields. A hospital is building a 68-unit apartment building just for its employees; a local bank is charging employees one-third of the market rate for townhomes it bought just to retain staff. Some restaurants are only open certain days because of a staff shortage. With the oil boom expected to last for a while, North Dakota is now the second largest crude producer in the nation behind Texas.

(Photo credit: dl-online/Homark Homes–modular man camps))

Killam Marches on Ottawa

November 13th, 2012 Comments off

CEO Philip Fraser of Killam Properties, who called Ottawa, Canada, the nation’s capital, “one of the strongest cities for long-term investment in Ontario,” says his company is on the prowl for more acquisitions there, reports the OttawaBusinessJaournl. Based in Halifax, Nova Scotia, Killam purchased a 25 percent share in a 146-unit apartment development in Ottawa, partnering with Kuwait Finance House. In Sept. 2012 Killam shelled out $24 million for a 244-unit portfolio of four apartment buildings in Ottawa, where the vacancy rate for multi-units stands at 2.1 percent. As MHProNews knows, Killam is one of the largest owners of manufactured home communities in Canada.

(Photo credit: Killam Properties)

NYC Housing Shortage Likely to Worsen

November 13th, 2012 Comments off

Reporting from New York City, observer says the return to normalcy in parts of the battered city, from the homes that burned to those that washed away, will be many months. Owners of one expensive high rise in lower Manhattan do not know when their units will be habitable, and are releasing tenants from their leases. The vacancy rate is one percent in the city, a little higher in the boroughs. In addition to the 40,000 homeless, there are thousands currently displaced by Hurricane Sandy, including many with limited means in the outlying areas. In addition, those still in their homes sitting in the dark with no heat as the weather gets colder will soon be looking for warmer quarters. “There’s a huge fear that folks are going to be displaced for the medium and long term,” city housing commissioner Mathew M. Wambua told The New York Times. Modular FEMA units will likely supplement apartments, MHProNews has learned, and officials want building owners to help create a clearinghouse of available units. If they accept FEMA vouchers, owners want to be indemnified by the government for damages and legal costs of evicting tenants.

(Photo credit: Country Living–modular in the city)

Full Housing Recovery: Ten Years Away?

September 5th, 2012 1 comment

originationnews says while home values are expected to rise around four percent this year, the increase is driven more by low inventory than by rising demand. The rise in some markets is due to investors buying especially lower-priced homes, and flipping them in six months to a year as prices improve. Dean Baker of the Center for Economic and Policy Research, noting the vacancy rate rising on single-family homes in Phoenix, where prices have increased 14 percent since 2011, says, “That’s consistent with the story of speculation.” Unlike many others in the housing industry, he will not be surprised if prices fall again. He says house prices typically rise with inflation, currently at two percent, which means it will be ten years before prices return to their peak in 2006, especially given all the underwater mortgages. MHProNews has learned that many of the new jobs that have been created recently are lower paying jobs, which may coincide with the fact that many of the homes being sold are lower priced homes.

(Image credit: andyenstallblog)

Rents Rise, Vacancies Drop

July 23rd, 2012 Comments off

MHProNews has learned from NBCBayArea average monthly rent in Oakland, California increased 14.4 percent over the past year, in San Francisco by 12.9 percent, and in San Jose 10.1 percent. As rents get more expensive due to improvements in the job market, and affordable housing budgets are slashed, low-income residents will be forced to find housing farther away, increasing their commute to work. Harvard University’s Joint Center for Housing Studies reports the overall vacancy rate dropping from 10.6 percent in 2009 to 9.5 percent last year, the lowest level since 2002.

(Photo credit: Zimbio)

Freddie Mac Speaks

June 21st, 2012 Comments off

WorldPropertyChannel reports Freddie Mac’s vice president and chief economist, Frank Nothaft, says due to rental demand by people postponing homeownership, rental activity has produced some good numbers in the housing market. The GSE’s U.S. Economic and Housing Market Outlook for June 2012 says for the year ending March 2012, the number of rental housing households increased four percent, some 1.5 million, with nominal rents rising 2-4 percent during that same period. However, average rent on an inflation-adjusted basis was below where it had been 1997-2007; and the vacancy rate has fallen only two percent in the last two years. Meanwhile, as MHProNews has learned from the National Council of Real Estate Investment Fiduciaries index, multifamily property values gained 25 percent in the last two years, but the numbers remain 14%  below their peak before the Great Recession.

(Photo credit: Homes-for-Rent)