On Wednesday, the Feds hiked interest rates by 75 basis points (the highest since 1994). Mohamed El-Erian, CEO of Allianz calls this hike part of a “great awakening” for central banks and others. The Swiss National bank also hiked 50 bps as well, and the European Central Bank announced it would have its first-rate hike in over a decade next...
Traditionally rents would increase based upon factors such as employment growth or population growth. But the pandemic made changes in rent not seen before. The overall rent surges/declines throughout the beginning of the pandemic were mainly based on job growth/decline. The pandemic was a hard time for everyone everywhere and from April 2020-March 2021 no major metro gained jobs. The bigger...
In 2021 Yardi Matrix has stated that US multifamily property sales hit an all-time high of $215 billion, a 67.3% increase from the prior high point in 2019. On average it cost $192,000 per unit, a 21.6% increase over the past year. Rent growth has also been above the long-term average for at least half a decade (besides in 2020)...
SB 9 Allows for 2 units on a parcel zoned for single-family housing. It also allows for urban lot splits of SFR zoned parcels and up to 2 units for each new lot created. The development of lots must adhere to all objective zoning. Side and rear lot line setbacks cannot be less than 4 feet. Units must be rented for...
Sales of existing and new homes are bound to run into some major problems in the future. When the 30-year fixed interest rates were in the 3.2%-4.2% range, people were more inclined to purchase a home. Mortgage rates have now increased to over 5%, causing less interest from potential buyers. In San Diego, single family home prices increased 3.7% in March...
Data Courtesy of Yardi Matrix, source link here. The average US multifamily asking rent rose $19 in May to reach $1,680, an all-time high. Rent growth rose 10% over the last year in 26 of the top 30 metros. Despite the questioning of our decelerating economy and rising gas prices, the multifamily rents have continued to surge (3% over the past...
Yardi National Multifamily Report April 2022 Source: Yardi Matrix Amidst the U.S. economic volatility and recent hiccups, multifamily continues to strive while having a small handful of weaknesses within the product type. Even then, the demand for rent growth remains prominent as it has been positive in each of the top 30 metros over the past year. While many thought multifamily growth...
Source: WSJ, article link here. Article Summary Below: Investors have spent $63 billion on apartment buildings from 2019 to 2021, the highest figure on record. Prices paid for apartment buildings increased 22.4% from the first quarter of last year to the first quarter of this year. But with this, interest rates have quickly risen this year as well. This caused some multifamily...
Article Source Courtesy of CoStar Rents for San Diego Multifamily have risen 13.5% in the last 12 months in the San Diego Multifamily apartment market. But when adjusting for inflation, which was up 8.2% this year (and 7.9% in San Diego itself), the San Diego Multifamily rent growth rate is currently at 3.5% and is set to be at just under...
Chula Vista Eviction Moratorium Update 3/21/2022 While there hasn’t been an eviction tsunami for San Diego Apartment Buildings and Chula Vista Apartment Buildings, many claim otherwise and have made organized efforts to push for additional multifamily tenant protections, as well as a new eviction moratorium in Chula Vista and Chula Vista Apartment Buildings. Activists have been using the council meetings to put...