Industry Trends

RICS is pleased to announce the annual World Built Environment Forum (WBEF) Summit to debate this year’s theme, The Future of Investment in Real Assets, with a focus on how to harness new technology to mobilize the private capital investment needed to meet the growing global demand for new infrastructure, new real estate and the renewal of existing assets—while considering sustainability and the public good. Now in its fourth year, the Summit is the flagship event of RICS. More than 500 delegates drawn from the highest levels of industry, government and policymaking will debate how to make informed and responsible investments in a changing technological and geopolitical landscape.

The National Apartment Association (NAA) and the National Multifamily Housing Council (NMHC) today released the apartment housing industry’s policy priorities for 2019-2020.

It’s no secret that a growing number of families across the income spectrum are struggling to find housing they can afford. As a country, we need comprehensive, proactive policy solutions that can help to mitigate this housing affordability crisis. As such, NAA/NMHC have made this the lodestar of our advocacy efforts in 2019-2020.

“We’ve identified the issue of housing affordability as a top priority for 2019 because it is wide-reaching and impacts communities around the country,” said NAA President and CEO Robert Pinnegar, CAE. 

“There is a growing concern at all levels of government about how to best deal with housing affordability issues,” said Doug Bibby, NMHC President. “It’s incumbent upon us as an industry to do our utmost to work with lawmakers to find holistic policy solutions that provide the housing our nation needs.”

One critical driver of the housing affordability crisis is the cost of local, state and federal regulations. Recent research has found that such regulations account for an average of 32.1 percent of rental housing development costs – driving up the price tag to create adequate housing options for all incomes. In 2019 and 2020, NAA/NMHC will advocate for a reduction of unnecessary, harmful barriers to the development of more housing and preservation of existing apartments.

In addition to the cost of regulation, there are many other policies and programs that impact affordability. Getting housing finance reform right is a critical component of addressing housing affordability. In addition, the Section 8 Housing Choice Voucher Program is an important tool designed to assist families in need of affordable housing. We are working on proposals that will enhance the Section 8 federal housing program and incentivize additional private sector participation. 

In addition to housing affordability and regulatory reform, NAA/NMHC will also focus on other critical federal legislative and regulatory issues. These include the ongoing implementation of the 2017 tax law, clarification of fair housing rules, rent payments in credit scoring, data security standards, federal flood insurance reauthorization, construction and development incentives, accessibility litigation and music licensing reforms. 

The full NAA/NMHC 2019 Apartment Industry Policy Priorities document can be found at NAA and NMHC.

MIAMI - Berkadia’s 2019 South Florida Multifamily Market Outlook underscores developers’ confidence in the apartment market. Construction is scheduled to complete on nearly 12,000 units by year-end, up more than 18 percent from deliveries in 2018 – the most deliveries in more than two decades. Apartment leasing is expected to remain healthy too as employment growth – particularly in the professional and health sectors – is expected to outperform the national average in 2019.

HOUSTON – Houston’s multifamily market is set for supply and demand parity in 2019, according to Berkadia’s 2019 Houston Multifamily Market preview. Following a slowdown in absorption deriving partially from a return of homeowners to residences after Hurricane Harvey, multifamily developers will taper deliveries to bring supply and demand closer to equilibrium.

Four multifamily communities that Chesapeake Realty Partners developed rank in the 2018 Elite 1% ORA™ Power Ranking for having the best online reputations in the U.S. 

Michael Shadeed, director for Franklin Street Insurance Services of Atlanta, shares his insight on how multifamily, office, industrial and retail property owners can work with insurers to expedite their Hurricane Florence policy claims, as well as how the loss damages will impact commercial property insurance premiums.

1. How is Florence’s impact on commercial real estate different from other major storms like Irma or Maria?  The impact was driven mainly by severe flooding, which brings bacteria and rotting exposure to commercial real estate assets.  With the consistency of storms over the last few years, Florence will have a profound effect on the federal government’s National Flood Insurance Program although it’s still too early to tell how rates will change.   

In the last five years, New York, Florida, Texas, Louisiana, South Carolina, and North Carolina have all suffered billions in loss damages from individual events, all of which were substantially larger than the total amount of premiums collected for the program.  The government continues to bear the brunt of these losses. The program is $20.5 billion in debt and losing money at a considerable rate.

The U.S. Department of Energy (DOE) and the Department of Housing and Urban Development (HUD) recognized Jersey City Housing Authority (JCHA) as the nation's first public housing authority to achieve its 20 percent energy savings goal as a partner in the Better Buildings Challenge. JCHA actually exceeded its goal, reaching 26 percent savings in only six years.

NEW YORK - Inc. magazine has revealed that LandSouth Construction, a Jacksonville-based general contractor specializing in multifamily, senior living and mixed-use development is on its 37th annual Inc. 5000, the most prestigious ranking of the nation’s fastest-growing private companies.

CFAA urges Senate to ban home growing

Yesterday, at the Senate Committee on Legal and Constitutional Affairs, CFAA President John Dickie urged Senators to “to prohibit all cannabis growing in all dwellings.”

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