Shawn Milligan’s Post

California is home to some of the most expensive metropolitan areas in the United States. Places like San Jose, San Francisco, San Diego, and Oakland all grapple with affordability hurdles. Here's another article regarding the May 28, 2024 report from Zumper. "Of the top 50 largest markets, the Bay Area and the Los Angeles metro area have seen some of the largest population losses in the last few years," the experts wrote, adding that both San Francisco and Los Angeles have not recovered from the COVID-related job losses experienced during the pandemic... According to the latest data, California's unemployment rate was the highest of all states, at 5.3 percent, in April... Cities like San Diego and Sacramento are also facing different types of struggles which likely led to the drop in demand that Zumper refers to. San Diego, according to a February report from Real Page, reported the worst demand performance of all the country's 150 largest apartment markets in Q4 2023, reporting net move-outs from nearly all its submarkets... Sacramento continues to struggle with low occupancy rates amid supply-side pressure." What is good news for renters may not be welcomed by landlords grappling with higher interest rates, increased insurance premiums, rising utility costs and increased regulations. #California #Rent #Affordability

According to the website ConnectCRE: "Even as apartments nationally continue to rise, with the national rent index for one and two-bedroom units increasing by 1.2% in May, California’s largest cities are moving in the opposite direction, the California Apartment Association reported. According to Zumper’s National Rent Report, seven out of eleven major California cities reported negative annual rent rates for one-bedroom units. Notably, most of these declining markets rank among the top 20% in terms of price and population. The most significant drops in rental prices occurred in Oakland and Sacramento, where rates fell by 9.1% and 8.1%, respectively, from a year ago. Other major cities also experienced year-over-year declines, although the decreases were smaller, including Los Angeles (5.0% decrease), San Jose (2.3%), San Francisco (1.7%), San Diego (1.3%) and Long Beach (1.1%). CAA noted that per the Zumper report, the primary driver behind the falling rental prices in California is not increasing housing supply but decreasing demand. In recent years, the Bay Area and Los Angeles have witnessed substantial population outflows and job losses, which haven’t been fully recovered. Additionally, California recorded the highest unemployment rate among all states in April 2024." #Rent #California #City

MARKET INSIGHT - Apartment Rent Growth Reaccelerates in Orange County. Average apartment rents in Orange County, California, increased by 3.8% in 2023 overall, rising at a quicker pace than they did in 2022. High-quality, Class A apartments led the charge with a 4.2% increase, while Class B apartment rents rose 3.6% and rents for lower-quality Class C apartments increased by 2.9%. Stronger gains, north of 6%, are forecasted for 2024. Heading into the new year, the pace of year-over-year rent growth for mid- and high-quality apartments is accelerating but moderating among Class C apartments. Orange County outpaced the national average rent growth rate in all but two years over the previous decade, most recently falling short in 2022, although tepid growth that year followed a record 17% increase in 2021. Vacant apartment units in Orange County are leasing faster now that the pandemic has ended, pushing the premium for living there higher. Although rents are rising, move-in affordability is improving. The cost of an annual lease at average market rates currently commands 28% of the area’s median household income, down from the all-time high of 30% reached in mid-2022. Furthermore, wage growth is outpacing rent growth heading into 2024. Within Orange County, 2023 rents increased most in the already expensive coastal and centrally located cities as demand returned. Rents in Newport Beach, Tustin and Irvine increased from 6% to 7%. Conversely, rent growth slowed in more affordable areas such as Anaheim and North County. Rents in Anaheim increased by a tepid 3% while 2022’s leader, North County, finished 2023 with the market’s mildest increase of less than 2%. The complete article can be found at this link: https://tr.ee/Pe0xiiBm9l For more information on this topic or to discuss your real estate investment needs, call (714) 608-3255 or email greg.bassirpou@marcusmillichap.com #CommercialRealEstate #apartmentinvesting #rents #multifamilyinvestments #southerncalifornia #californiarealestate #realestateinvestors #1031exchange #MarketInsights #investmentrealestate

On average, households in Metro Vancouver allocate +/- 78% of their monthly income to condominium housing, while for single detached homes and townhomes, this percentage surpasses 100%. The disparity is less pronounced in Victoria and Kelowna, yet still notable compared to Calgary and Edmonton, both of which fall below the recommended monthly income to housing ratio of 30%. Residents have opted to move, as evidenced by interprovincial migration data and the percentage of population growth relative to Metro Vancouver. This is more prominent for younger professionals and young families that are seeking home-ownership. Nevertheless, in the rental market, residents tend to base their decisions more on location preferences than solely on affordability as Victoria, Kelowna, Calgary and sub-markets of Metro Vancouver share similar price per square foot rental values. Please don't hesitate to reach out to us at advisory@zondaurban.com and happy to discuss market fundamentals, and we will be more than happy to provide your in-house team with the necessary data to make informed decisions.

📢🎉 Rents are finally falling in Los Angeles, but there's a catch. 😕 It may still not be enough for many struggling with housing affordability. 😔 Check out this article to learn more about the current rental market in LA and how it compares to other parts of the state. 📰🔍 https://lnkd.in/gckUDWZq #HousingCrisis #RentalMarket #AffordableHousing #LosAngeles #AGGLAReaders Article Link: Rents are finally falling in Los Angeles. But it’s still not enough for many 💻📲 💼✨🏢🔎 #RealEstate #LosAngelesRentals #HousingAffordability #RentControl

Another informative post from Jay Parsons of RealPage, Inc. Please like 👍, comment below 👇, or share 👉. Click the 🔔 in my profile to get notified of my posts. And follow me for more content like this. #singlefamilyrentals #buildtorent #buildforrent #realestate #housing

Pacaso is one solution to the US housing crisis: we consolidate demand into fewer homes, helping communities more efficiently leverage their local housing stock. Our inaugural “Pacaso YIMBY Report” (see attached) highlights those communities more broadly who are taking this crisis seriously, and who are taking important and creative steps to affirmatively solve this challenge. We applaud their efforts! This report comprehensively ranks the metropolitan areas and ZIP codes nationwide that are embracing the "Yes, In My Backyard" (YIMBY) movement, which aims to address the housing crisis by creating a more diverse and plentiful supply of homes. Our analysts worked with MetroSight to determine the ranking of top YIMBY metro areas and ZIP codes. A ZIP code area was classified as YIMBY if it experienced sharp growth in the number of residential units with relatively little growth in housing prices. The top ten YIMBY markets reflect a spectrum of approaches driving their prominence. Greater Washington, D.C., leads with more than 70% of high-demand areas embracing YIMBY policies. Chicago follows, leveraging updated ordinances for affordable housing. Ranking third, nearly half of Austin's ZIP code areas demonstrated YIMBY characteristics.

📌 Apartment rents in the Dallas-Fort Worth region slipped 0.3% in September, the third consecutive month of rent cuts and the steepest monthly decline since November 2022. Annually, rents are down 1%, and first turned negative in July. Half of the neighborhoods in Dallas-Fort Worth report rent cuts. The number of such areas has steadily risen as rent declines spread farther across the market. Areas facing heavy supply report the most dramatic declines, including outer suburbs in Collin and Denton counties and around Fort Worth. Meanwhile, areas in the mid-cities and outer-ring suburbs, including Mesquite, report stable growth, even as some of these communities have a heavier concentration of midtier, three-star apartment inventory. With more supply coming to market, leasing offices are competing for tenants. About 24% of properties reported offering some form of concession in September, up from 12% at the same time last year. Market participants say they are working to protect occupancy, and in some instances offer concessions as leases are set to renew. In terms of quality, four- and five-star properties report rents falling 2.3% over the past year, pulled lower by more competition. However, the three-star segment is essentially flat and expected to turn negative over the next month for the first time since the Great Recession. Demand is rising as rents retreat. Renters have filled about 13,000 units over the past three quarters, ranking second in the U.S. to New York. Fast-growing suburban neighborhoods in Collin and Denton counties report durable demand. Meanwhile, net absorption — or the change in the number of occupied units — is stabilizing in areas with heavier concentrations of midtier properties and where managers have struggled to maintain occupancy. Demand is expected to end the year closer to 18,000 to 19,000 units filled, and closer to pre-pandemic norms. Rent cuts are anticipated to rebound thanks to stabilizing demand and construction that's expected to roll over in the next year. CoStar’s base case scenario calls for rents to end 2023 essentially flat, then rebound closer to 3% by the end of 2024. #multifamily #innovation #clozzits #closets #AAGD #AATC #NMHC #TAA

Strong insights from our national analytics platform!

The Tale of Two Cities. In the four years following the global pandemic's onset, the U.S. apartment industry has seen significant shifts, with average effective rents increasing by approximately a quarter nationwide. However, this trend has not been uniform across the country, with South Florida and the Bay Area representing two extremes of rent change. Nationwide Rent Trends: Since February 2020, there has been a significant nationwide increase in average effective rents, a testament to the pandemic's widespread impact on the housing market. South Florida's Surge: South Florida, including Miami, Fort Lauderdale, and West Palm Beach, experienced the highest rent increase in the nation, with effective rents soaring by more than 43% over four years. Currently, rents in this region average around $2,500. Bay Area's Rent Stagnation: In stark contrast, the Bay Area's effective rents have remained stagnant or even declined in the case of San Francisco. Here, rents dropped by approximately $260 from pre-pandemic levels, with the current average rent around $2,960. Florida's Leading Rent Growth: Beyond South Florida, other Florida markets such as Tampa, Jacksonville, and Orlando have seen rent increases surpassing the national norm, highlighting Florida's strong performance in the rental market. Population Movements Affecting Demand: Population growth in South Florida, driven by international migration compensating for domestic outmigration, contrasts with the Bay Area's population decline due to significant domestic outmigration, despite some international immigration. Employment Growth Disparities: South Florida's employment rates have grown faster than the national average, especially in Miami, West Palm Beach, and Fort Lauderdale. The Bay Area, however, has not yet recovered the jobs lost during the pandemic, affecting renter demand. Diverse Market Implications: These contrasting trends between South Florida and the Bay Area illustrate how external factors like pandemics, migration trends, and job market shifts can dramatically affect the rental market. This examination of the post-pandemic rental market reveals significant regional disparities, influenced by a combination of demographic shifts, employment trends, and migration patterns, underscoring the complex nature of the U.S. housing market. #realpage #affordablehousing #apartments #multifamily #sfr #economy #southfloridarealestate #sanfranciscorealestate https://lnkd.in/gCacBH7H