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Good morning wonderful professionals, I hope everyone is well. The recent US existing home data is out.
U.S. existing home sales fell to 4.06 million in 2024, the lowest level since 1995.
For context, the U.S. population was about 70 million smaller in 1995; 266 people million then and 335 people million now.
This marks the third consecutive year of declining home sales, a trend last seen during the 2006 housing market crash and the recessions...Good morning wonderful professionals, I hope everyone is well. The recent US existing home data is out.
U.S. existing home sales fell to 4.06 million in 2024, the lowest level since 1995.
For context, the U.S. population was about 70 million smaller in 1995; 266 people million then and 335 people million now.
This marks the third consecutive year of declining home sales, a trend last seen during the 2006 housing market crash and the recessions of the 1980s and 1990s.
Adding to concerns, first-time buyers made up just 24% of all purchases in 2024, the lowest share on record.
At the same time, the median home price surged 6% to $404,400, setting a new all-time high.
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After 20+ years in this industry (shhh, don't tell anyone I'm not in my twenties), I'm always fascinated by how quickly market dynamics can shift.
Reading about the projected starts and rent growth for Multifamily in the NAA update on 2024's apartment market and the 2025 outlook reminded me that the devil is always in the details.
Despite projected national growth, markets like my hometown of Austin are experiencing significant rent declines (nearly...After 20+ years in this industry (shhh, don't tell anyone I'm not in my twenties), I'm always fascinated by how quickly market dynamics can shift.
Reading about the projected starts and rent growth for Multifamily in the NAA update on 2024's apartment market and the 2025 outlook reminded me that the devil is always in the details.
Despite projected national growth, markets like my hometown of Austin are experiencing significant rent declines (nearly 10%!), and demand remains incredibly strong.
Year-to-date absorption is only second to the record-breaking 2021, proving once again that multifamily is about so much more than just units and national trends—it's about understanding complex economic ecosystems and the specific unique factors that impact each market.
The resilience of this market never ceases to amaze me.
What are you predicting for 2025?
(Link to the full article in the comments)
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I’m writing to you from the future (or at least many things seem that way while I’m in China). I’m not sure if any domestic suppliers are selling these yet but once there is critical mass jump in with both feet. From a building delivery management these are amazing. Multi family, hotels, commercial buildings they are used all over. Deliveries are dropped in the not that then deliver to the door. Great for restricted access spaces. Small...I’m writing to you from the future (or at least many things seem that way while I’m in China). I’m not sure if any domestic suppliers are selling these yet but once there is critical mass jump in with both feet. From a building delivery management these are amazing. Multi family, hotels, commercial buildings they are used all over. Deliveries are dropped in the not that then deliver to the door. Great for restricted access spaces. Small packages are staged up in central area then delivered once someone is home and calls for it.
What is just stupid cool is how fast food comes here. 15-20 minutes foods here or pretty much anything else you want.
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Why do developers build luxury apartments? Because they are easy to underwrite. Just raise projected rents till the proforma works, build it, then toss it over to the opps team to take the bullet(s) in the back of the head. It takes years before the NOI catches up to the development proforma.
And then there’s the damned “re-positionists” that think fixing pot-holes in the parking lot, replacing a few rotten boards and patching leaky roofs...Why do developers build luxury apartments? Because they are easy to underwrite. Just raise projected rents till the proforma works, build it, then toss it over to the opps team to take the bullet(s) in the back of the head. It takes years before the NOI catches up to the development proforma.
And then there’s the damned “re-positionists” that think fixing pot-holes in the parking lot, replacing a few rotten boards and patching leaky roofs should increase NOI.
That’s all for today’s rant…!!! l.facebook.com/l.php
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HUD has approved new underwriting parameters on multifamily projects, effectively lowering the minimum DSCR threshold and the raising the maximum LTV or LTC thresholds. These changes benefit refinance and acquisition projects via the 223(f) program, as well as new construction and substantial rehabilitation projects via the 221(d)(4) program, by increasing available loan proceeds in most situations.
Additionally, HUD has created a "Middle...HUD has approved new underwriting parameters on multifamily projects, effectively lowering the minimum DSCR threshold and the raising the maximum LTV or LTC thresholds. These changes benefit refinance and acquisition projects via the 223(f) program, as well as new construction and substantial rehabilitation projects via the 221(d)(4) program, by increasing available loan proceeds in most situations.
Additionally, HUD has created a "Middle Income" underwriting category for the 221(d)(4) program. This category effectively broadens the more aggressive underwriting metrics designated for affordable projects to a larger swath of the market. Middle Income requires a minimum of 50% of a project's units be restricted to 120% AMI or less, with a recorded use restriction monitored by a public agency.
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Good morning wonderful Professionals, I hope EVERYONE is well.
The 10-year note yield is now up 100 basis points since the Fed’s cuts in September 2024.
To put in perspective, the Fed has CUT rates by 100 bps, rates in the market have RISEN by 100 bps.
So why are interest rates rising as the Fed cuts rates?
Short answer, the markets have realized that inflation is back on the rise.
3-month annualized core CPI is nearing 4% (for perspective you...Good morning wonderful Professionals, I hope EVERYONE is well.
The 10-year note yield is now up 100 basis points since the Fed’s cuts in September 2024.
To put in perspective, the Fed has CUT rates by 100 bps, rates in the market have RISEN by 100 bps.
So why are interest rates rising as the Fed cuts rates?
Short answer, the markets have realized that inflation is back on the rise.
3-month annualized core CPI is nearing 4% (for perspective you want to be 2%< ) while PCE, PPI, and CPI inflation are all rising again.
Prior to any tariffs and tax cuts negatively impacting these metrics.
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Help! I need a new marketing company that’s not expensive that will help me with move in and prospect offers! See pics for examples!
I have an Active 55 property with two DIY rooms in the plans. There is no design concept other than built-ins from construction. Anyone have one they can share photos of. Any do's or don'ts when planning the space? Photos of one of the two spaces still under construction.
Residents at a senior living complex said they've been stuck inside for four months due to a broken elevator. One tenant even goes to the lengths of having the fire department help her out every time she needs to leave the building.
abc13.com/post/broken-elevator-has-renters-stuck-i…
A day in the life of a LL... 9 year tenant lost 75% of here BS IHSS income 5 months ago, instead of finding a really job she has spent her time fighting to regain here hours after 2 appeals and countless efforts to help her find assistance we started the eviction process with her owing 2.5 months of rent... Today was lock out...
Although we have been paying for pest control for the last 9 years she still has roaches... I don't understand why people...A day in the life of a LL... 9 year tenant lost 75% of here BS IHSS income 5 months ago, instead of finding a really job she has spent her time fighting to regain here hours after 2 appeals and countless efforts to help her find assistance we started the eviction process with her owing 2.5 months of rent... Today was lock out...
Although we have been paying for pest control for the last 9 years she still has roaches... I don't understand why people enjoy living like this... 🤮
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