Supply: Historically low and favorable conditions are expected to continue.
Single family residential (SFR) starts were 17% below one year earlier in the six-month phase ending March 2019. Multi-family construction starts were down 7% from a year earlier.
Multi-family construction remained steady in 2018, with year-end totals the same as the prior year. Demand for multi-family rentals has generally been higher during this residential construction recovery compared to new SFRs. However, buyer-occupant demand for SFRs is gradually increasing as jobs are recovered.
SFR construction starts continued to rise in 2018, turning in a 9% increase over 2017. While positive, this rate of increase was down from the previous year, which saw a 17% rise. Expect SFR construction to continue to slow through much of 2019, the result of rising mortgage rates, slowing sales volume and decreasing home prices. Further, compared to the 150,000 SFR starts achieved in 2005 at the height of the boom, even 2018’s positive performance – resulting in 62,600 SFR starts – is a fraction of what is needed to meet demand.
Like SFR construction, multi-family starts amount to just a small amount of what is needed to keep up with rising demand from California’s growing population. State-initiated legislative efforts to add to the low- and mid-tier housing stock have focused on encouraging more multi-family construction. Therefore, the slowing in multi-family construction will not be as steep as that experienced for SFR starts, even as home sales continue to slow across California.
RENTCafe’s Adrian Rosenberg said, “Located in East Vallejo, ZIP code 94591 is the 4th largest Baby-Boomer hot-spot in the Bay Area. More than 80 percent of its residents live in single-family homes, in one of the most affordable sub-markets in metro San Francisco. Close to shopping and entertainment, the area has a 21 percent share of Baby Boomers, down by 11 percent over the last five years, when 23 percent of its residents (some 12,300) were Boomers.”
We believe we are well positioned to achieve organic growth through a combination or rent increases driven by strong market fundamentals, increasing operational efficiencies, and capital expenditure. We continue to identify and implement new opportunities and ideas to drive revenue in the near and long term by applying new and proven approaches of multifamily rental providers. We also see new opportunities to expand margins by centralizing administrative support and professional expertise. The teams of CPA’s, contractor’s, and attorney’s that we have employed and partner continue to optimize our platform. In addition, we intend to capitalize on highly fragmented markets by utilizing our unique acquisition capability and flexible balance sheet to make attractive investments.
- Multifamily National Report - October 2019
- Multifamily National Report - September 2019
- Garden City: Still In Full Bloom - Multifamily Report - San Jose -Winter 2020
- U.S. Multifamily National Outlook - Winter 2020
- Multifamily National Report - December 2019
- Multifamily National Report Summer 2020
- Yardi Aug 2020 Real Estate Report
- Yardi Multifamily National Report September 2020
- Yardi Multifamily San Francisco Report Summer 2020
- 2020 Multifamily North america Investment Forecast
- Marcus Milchap Real Estate Report 04-01-2020
- Marcus Milchap Real Estate Update Apr 2020
- Special Report_MM_Stock Market vs. CRE_2020-3-19
- Marcus & Millichap West Coast RE Summer 2020
- Marcus Milichap MFR Report Q3 2020
- Marcus & Milichap CA Prop 15 Report 09-04-2020
- Marcus & Milichap CA Prop 21 Review 09-03-2020
- Marcus & Milichap Q2 Rent Collections Report 09-03-2020
- East Bay Market Report 11-10-2020
- Multifamily Rerport Q3 2020
- Goldman Sachs Pandemic Economy Research 2020
- Goldman Sachs - Genesis Capital Real Estate Report October 2020
- Goldman Sachs - Genesis Sept 2020 Real Estate outlook
- Goldman Sachs Economic Outlook 2020
- National Economic Housing Nov 2020
- US Reopening Scale 11-10-2020
- Vaccine Recovery 11-10-2020
- Economic Snapshot Dec 2020
- Virus Resurgence by Industry 12-10-2020
- How Fannie and Freddie Have Changed Since the Crisis - Wall Street Journal - Sep 08, 2019
- Raskin-Zrihen, Rachel. “Part of Vallejo Makes Top 20 List for Baby Boomers.” Times, Times-Herald, 20 June 2019
- The Slowing Trend in California Construction Starts.” First Tuesday Journal
- Greystone Q4 2019 Multifamily Market Report
- ARBOR Q1 2020 SFR Report 05-07-2020
- HUD Eviction Moratorium Flyer Covid19 Corona 05-05-2020
- Reonomy COVID-19 MFR Report 05-07-2020
- WD Spring Multifamily Outlook
- EDD Economic Summary 2020
- Arbor MFR Report Q2 2020
- National SFR Performance Increase 11-10-2020
- Realtor.com Strongest Housing Markets of 2021
- Zillow Home Purchases Research