The national outlook for the multifamily sector remains positive through the end of 2022, with asking rent performance expected to have increased by around eight percent by year’s end. That’s according to the latest U.S. Multifamily Outlook report released today by Yardi® Matrix, a leading provider of data and analysis on most real estate verticals. The report examines the state of the economy, including ongoing inflation and recession concerns, but concludes that though rent growth is slowing down, gains are expected to continue. Average national asking rents increased 5.7 percent in the first six months of the year. Year-over-year rent growth at the year’s midpoint was 13.7 percent, down 100 basis points from the end of 2021 and 150 basis points from the February peak of 15.2 percent. “While growth is moderating, we expect gains will continue to remain well above trend, with average asking rents increasing by 7.9 percent nationally by the end of 2022,” states the forecast. However, the increases are far from 2021’s record 14.7 percent increase. Property fundamentals continue to be exceptional, with demand driven by robust household formation, job growth, migration to suburbs and secondary markets, and the inaffordability of single-family homes for many would-be buyers. More than 900,000 new multifamily units are under construction nationally, with 420,000 expected to be delivered this year. Gain more insights about expectations for the remaining months of 2022 in the latest Matrix Multifamily Outlook. Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn...

What do you call a group of diverse digital natives and entrepreneurial decision-makers with the ability to change the multifamily industry? This title belongs to Generation Z, the largest and most tech-savvy group of renters yet. Last summer, REACH by RentCafe conducted a survey to better understand Gen Z’s search habits, but members of this generation are now a year older. This means they’ve lived through 365 days of new experiences, changes and adventures. It also means that they have had a whole year to refine their online search behaviors. This summer, REACH wanted to investigate where this generation stands a year later when it comes to their online search habits and how best to win their attention. To do this, we interviewed over 12,000 members of Gen Z to gain insight into how to best attract members of the youngest, biggest and perhaps most important renter group yet. Here’s our Gen Z update: What are Gen Zers looking for? Findings from this year’s survey confirm that, once again, many Gen Zers don’t yet know what they’re searching for. This year, 41% admit that they’re still figuring it out when asked what they’re looking for in an apartment. This data tells us that the apartment search starts early for Gen Zers. At this stage, they’re probably using an ILS to shop for and compare apartments. On the other hand, 59% of Gen Zers know more about what they want, including apartment size, price, location and desired amenities; a full 26% of Gen Zers say they have all the information needed to make a purchasing decision. These renters are ready to take the next step, using long-tailed search terms to find the specific apartment that meets their needs. So how do you market to the...

Corey Rothgeb is the senior staff accountant for Self Storage Plus, an independent business that generates $3.6 million in annual revenue. We talked with him about what it takes to succeed in the storage industry, how he addresses industry challenges and the ways Yardi Voyager saves Self Storage Plus enormous amounts of time and energy. Tell us a little about yourself. What’s your background, and how long have you been in property management?I’ve been with Self Storage Plus since August of 2020. Prior to that I lived in San Diego, California. I studied at the University of California San Diego and received my bachelor’s in economics in 2019. I got my foot in the door in property management with a publicly traded REIT in San Diego. That’s where I practiced on property management software. I worked there for about nine months as an accounts payable clerk and financial administrator working on budgets. Then I made the move to the East Coast in August of 2020 and started as a staff accountant at Self Storage Plus. I’ve since progressed from staff accountant to senior staff accountant and currently hope to progress to controller. There have been opportunities to grow tremendously in property management, and I love the whole real estate industry in general. What challenges does property management software solve for your business?Voyager helps with reporting on our end. I think the biggest challenge we faced when the company switched to Voyager in 2020 was just having processes in place, and Yardi really helped provide structure for those. The invoicing and reporting automation in general provided a kickstart to getting all of our processes in place. What features in Voyager are helping you solve those challenges?The ability to run and automate specific reports. In fact,...

Average U.S. multifamily rents rose another $19 in June to edge over $1,700 for the first time ever, according to the latest Yardi® Matrix Multifamily Report. The increase was fueled by strong demand and rent growth throughout the country. Rent growth increased at least 10 percent year-over-year in 25 of Yardi’s top 30 metros. National occupancy rates were solid at 96 percent. On a year-over-year basis, growth continues to slow down. In June, it decelerated by 50 basis points to 13.7 percent. That’s 130 basis points off the February peak of 15.2 percent. Rents in the single-family build-to-rent (BTR) sector continue to grow as well. The average single-family BTR asking rent increased by $23 in June to an all-time high of $2,071. Year-over-year growth dropped by 90 basis points to 11.8 percent. “The multifamily market is starting to show signs of deceleration in June but is still performing at extremely high levels. Year-over-year rent growth was down 50 basis points from May. While rent growth in 2022 is still higher than any previous year on record, it is the fourth month in a row year-over-year rent growth declined,” note Matrix analysts. The expectation for the remainder of 2022 is for rents to increase at slower rates as the economy cools off. “Inflation rates will take a while to ebb, causing consumers to cut into savings and their ability to afford increasing rental rates will lessen as the year goes on,” states the latest report. Learn more in the latest multifamily report. Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email [email protected], call...

Yardi is committed to supporting the community in every city where our offices are housed. Each year, the company distributes philanthropic aid to organizations selected by its employees. In 2021, Yardi offices supported more than 350 nonprofits worldwide. For the remainder of the year, we will be bringing you the stories of those organizations and insight into how they aid their communities. Today, we introduce you to Women Called Moses Coalition and Outreach of Dallas, Texas. This organization provides services for women and children that have been impacted by domestic violence. It’s a hard topic to talk about, but one that is critical to address. “We place clients in safe places, and link housing, food, any resources available so that we can help women and children and prevent them from returning to their perpetrator or abuse,” said Debra Nixon-Bowles, Founder and CEO of Women Called Moses. “Women Called Moses connects these victims to larger shelters that may be able to give them access to more resources. We focus on making the connection, so these individuals do not become homeless. Women Called Moses works with second chance apartments and local furniture banks to make sure our clients have beds to sleep in, and tables to eat on. We connect employment, mental and health partnerships, private physicians, and more,” Nixon-Bowles explained. Recovering from a challenging time For many non-profits, the pandemic was a disruptive period. That was the case for Women Called Moses. “We lost 70 percent of our funding, including case managers, staffing, and repeat donors. Our focus is now on getting a full staff, grants, fundraising, and provide safety and resources for our clients,” said Nixon-Bowles. “This includes new partnerships and resources for women and children in the community. For an agency of our...

Many companies are returning workers to their offices and sending them to conferences and other gatherings. Is remote work, done by more than 70 percent of workers who can work remotely according to Pew Research Center, passing or permanent in the work environment? Just a decade ago, working from home was the exception, usually allowed only in select cases. It took time for teleconferencing technology to advance to the point where occasionally working from home became more acceptable and normal. “Ten years ago, remote employment basically meant a telemarketing or customer service position at below minimum wage,” said Samantha Lambert, director of human resources for New York City website design company Blue Fountain Media. “It rarely was connected with a full-time career.” Then came the pandemic. The outbreak prompted many employers to shift to a predominantly remote work model to limit spread of the coronavirus and comply with distancing mandates. Along with supporting public health, companies saw an opportunity to save money by cutting down on expensive office space while allowing workers the freedom to create their own schedules and work from wherever they please. Eighty-three percent of employees responding to a workplace survey in 2021 reported that a hybrid model combining remote with time in the office that accommodates both business needs and employee desires is optimal. Tech options Zoom, Microsoft Teams and other systems gained new prominence during the pandemic and cemented remote work into the American economy. “Now, technology affords us the ability to get the same job done, no matter where in the world we are. [It has] enabled us to be in contact with co-workers or clients at any time,” Lambert says. “This technology has advanced so quickly that many companies have even done away with traditional offices and instead...

If you’re looking for a story to brighten your day, look no further. We have a heartwarming post in store featuring preschoolers, seniors and some pretty special friendships.   The story comes from this summer feature of Chatham Magazine, a lifestyle publication that’s only released five times per year. Each feature discusses all-things food, arts and the community. And for the story we’re sharing today, you’ll see how local preschoolers paid a sweet visit to senior living residents in their area. We hope the highlight below brings a smile to your face. Feel free to flip to page 96 of the magazine to read the full story. Local preschoolers help senior living residents overcome isolation The past few years have been challenging for seniors and their families. From strict lockdowns to other regulations preventing in-person visits, seniors residing in communities have faced feelings of loneliness and isolation. But there’s always light at the end of the tunnel. And for residents at Galloway Ridge at Featherington, part of that light was a visit from the Primrose School of Chapel Hill preschoolers. The visit was brought to be as part of the school’s “Adopt-a-grandparent” program, which creates opportunities for young children and seniors to develop respectful, positive relationships. “The program provides children the chance to be of service, feel needed, develop sensitivity and respect the needs of others,” shares the co-owner of Primrose School of Chapel Hill, Melissa Mart. “For the [adopted] grandparent, the program offers an opportunity to share talents, knowledge and friendship with the children.” The program brings children into community rooms to play games, make crafts and enjoy story time with senior living residents. The kids also craft greetings, posters and drawings for their “adopted” grandparents. “Adopt-a-grandparent” was in full swing before the...

After Jack Fitzgerald stumbled across the term ‘proptech’ he spent a sleepless night burning the midnight oil or more accurately, draining the battery on his phone. The technology that had transformed other sectors of the economy was coming for real estate. Fitzgerald, Hitachi’s Director of Smart Cities and Real Estate Tech, recently sat down with Bernie Devine for the latest illuminating installment of the Yardi Proptech Insights series. Fitzgerald has worn many hats. During his eight years with Lendlease, he oversaw the development of Singapore’s Paya Lebar Quarter, played in the experimental sandpit as Lendlease’s head of innovation for Asia and launched Propell Asia, Singapore’s first proptech accelerator. Late at night, he scoured the internet for information on proptech start-ups. From this he built Disrupt Property, a database on 800 companies that was eventually acquired by Unissu. In 2020, he seized the opportunity to “change the future” with Hitachi and is now working with everything from AI to EVs, driverless trains to robots. Technology has not yet delivered the seismic shifts seen in other sectors – but disruption is ahead, Fitzgerald warned. The baby steps – digitising tasks once managed by spreadsheets – have been taken. Now, we are in the “early teenage awkward years” where buildings are getting smarter, but this is not obvious to the user. “The dream is that the building knows I’m arriving, the lifts are waiting for me, the latte is heating up, and the lights are turning on as I sit at my desk,” Fitzgerald said. But this “frictionless experience” is still some years away. But today’s leading-edge technology is tomorrow’s business-as-usual. As soon as tenants experience smart parking or destination lifts in one building, they expect it in all of them, Fitzgerald said. This consumer demand for...

Online apartment reviews are an important way for potential renters to get a feel for your community, and it’s critical to have them on your website. In addition, reviews directly impact how your website appears in a search. In fact, it’s estimated that reviews account for 17% of the ranking factor for the Google 3-pack of local listings! A June 2022 survey from RentCafe.com revealed that over 60% of Gen Z renters consider ratings and reviews most of the time when searching online. But it’s not just Gen Z. The NMHC 2022 Renter’s Preference Report found that 69% of prospective renters looked at ratings and reviews when searching for an apartment community. A solid reputation management strategy impacts three areas of your business: marketing, leasing and customer service. Read more to understand the importance of reputation management throughout the renter lifecycle. How does reputation management impact marketing? Good apartment reviews lead to good search signals, which will boost your community in search engine results, helping you get found by more prospective renters. But there’s more to it than simply collecting a few good reviews. A solid reputation management strategy focuses on four key components when it comes to reviews: Quantity – How many reviews do you have compared to your competitors? More reviews mean more visibility and greater reach.Quality – How good are your reviews compared to your competitors? Positivity and honesty are important when it comes to creating quality reviews.Recency – When were your latest reviews posted? A review from one month ago will carry much more weight than one from six months ago.Responses – Is your business responding to every review? 46% of renters expect to see responses to all reviews, so it’s important to follow up on both good and bad...

Here’s the latest of our periodic updates of news and trends reported by the Energy Information Administration, a statistical and analytical agency of the U.S. Department of Energy. Conflict spurs fuel price uncertainty Fuel price projections are uncertain, due in part to the Russia-Ukraine war’s potential impact on nations, energy producers and markets. With global inventories of crude oil, natural gas, and coal below average before the war, U.S. gasoline and diesel prices hit multiyear highs in March. EIA forecasts that the average inflation-adjusted prices of gasoline and diesel this summer will be the highest since summer 2014. Production could temper prices in ‘23 EIA projects that U.S. oil production will average 12.4 million barrels per day in 2023, surpassing the record high for domestic crude oil production set in 2019, with domestic crude oil production increasing steadily between 2021 and 2023. Crude oil inventories will reach 465 million barrels at the end of 2023, which is about 11% more than inventories at the end of 2021. “We expect global demand for petroleum products to return to and surpass pre-pandemic levels this year, but crude oil production grows at a faster rate in our forecasts,” said EIA Acting Administrator Steve Nalley. “We expect that as crude oil production increases, inventories will begin to replenish and help push prices lower for gasoline, jet fuel, and other products in the short term.” By September 2023, U.S. natural gas production will hit an all-time high daily average. Coal consumption, meanwhile, will fall by 2% in 2022 and remain relatively unchanged in 2023. Home appliances getting smarter EIA’s recently released 2020 Residential Energy Consumption Survey offers a look at electricity-consuming devices used in American homes. The survey reveals that nearly half of U.S. households used LED lighting in...

If you’ve visited The Balance Sheet recently, you’ve likely seen our posts about Changemakers, an interview series that spotlights innovative leadership in senior living. As a sponsor for the fourth consecutive year, we’re honored to shine a light on each leader’s story. The in-depth interviews are released in batches by Senior Housing News (SHN). And the latest group of honorees includes Changemaker Bryan McCaleb, president of Sagora Senior Living and someone who embodies what it means to put residents first. About Bryan McCaleb As president of Sagora, a Yardi senior living client and resident-focused organization, Bryan McCaleb knows how to push boundaries and build success. Most importantly, he stands behind Sagora’s mission to help seniors enjoy retirement with style and dignity. Since joining the Sagora team in 2006, McCaleb has helped the organization serve seniors — exceeding their wants and needs — through exceptional residential alternatives. In his detailed interview with SHN, McCaleb shares how Sagora has grown in such a competitive landscape, sharing how promoting internal team members has made the difference. Read a portion of Bryan McCaleb’s interview below:   SHN: As you think back on your career in senior living, what changes have you driven that you’re especially proud of? McCaleb: Our company has always made a difference through creating. The term “Resident first” may be a cliché in our industry, but it is not a cliché at Sagora, where we have a motto “Resident First, Team focused and Quality centered.” We’ve worked hard over the last six years to create a team member-first environment. If the team member is our focus, they can take the care focus from us. From my seat, it really makes a difference. When they’re happy to be there and they feel appreciated, every aspect of...

According to Naseem Wenzel, Executive Director and Head of Real Estate Assets at Lionpoint Group, “ESG is coming fast and furious, which leaves investment managers, real estate owners and operators and service providers in a position of either being reactive or proactive.” What position is your company in? In OSCRE’s May 25 Innovation Forum, ESG: Insights to Assess Your Readiness, the panel, moderated by Wenzel, discussed what’s needed to move the industry forward. The speakers represented “a mix of perspectives from change leaders in the industry” including Chris Devine, head of client analytics, Cushman & Wakefield, Rick Ferrino, senior VP technology, Blackstone and Soheil Pourhashemi, senior VP business technology, Brookfield Properties. When asked individually about their company’s approach to ESG, the panelists touched on creating long term strategies, dealing with resource issues including staffing and training to focus on ESG and the overall need to automate data collection, analytics and reporting. The speakers agreed that evolving practices and focusing on how data flows — including real-time reporting from assets, are important initiatives. With regard to governance, the panel discussed measuring and normalizing data, creating data standards and developing organizational maturity. One speaker commented that ESG practices are integral to building a resilient business and creating value for investors. ESG is also a critical aspect of capital fundraising. For service providers, the focus is on the occupier side and how to get data standards in place, with information flowing from investors to occupiers. All the panelists agreed that automating data collection and reporting is key. Survey responses on ESG readiness   In OSCRE’s recap of the session, the audience’s answers to the polling questions included these key takeaways: 53% of respondents described their organization’s level of preparedness as just getting started and 0% reported that...

Yardi is committed to supporting the community in every city where our offices are housed. Each year, the company distributes philanthropic aid to organizations selected by its employees. In 2021, Yardi offices supported more than 350 nonprofits worldwide. For the remainder of the year, we will be bringing you the stories of those organizations and insight into how they aid their communities. Today, get to know Hugs Café in McKinney, Texas, which provides meaningful training and employment opportunities for adults with intellectual and developmental disabilities.  This year, seven-year-old Hugs Café is focusing its efforts on raising funds for a permanent training facility, Hugs Training Academy. “This expansion will allow us to continue our mission and increase the number of skilled individuals we can provide the culinary and hospitality workforce,” said Ruth Thompson, Founder and Board President of Hugs Café. “In addition, we will no longer have to say we have a wait list for admission into one of our programs. Previously our waitlist prevented us from accepting new individuals into our mission. This expansion will provide a consistent opportunity for others to come in and receive services.” Thompson shared the story of participant Kathy, known as “Bread Queen” at Hugs Café. “Before coming to work for Hugs Café, Kathy was working for a wine bottle company and her job was to put labels on the wine bottles. Due to Kathy’s Cerebral Palsy, this job was very challenging and not something she was able to do effectively. Kathy was allowed to sit at the work station and be paid just like her peers, but she was unable to perform the task assigned and would leave work each day in tears,” Thompson shared. “Now that Kathy has a meaningful job at Hugs Café, her day is...

Rents in most American cities continue to rise slightly each month but are not duplicating the rapid escalation rates exhibited in 2021. But given ongoing gains, Yardi Matrix has revised its end-of-year projections upwards for most markets in a new special report. Average month-over-month asking rents increased by 1.1 percent in May compared to the one percent month-over-month increase in April. However, year-over-year asking rents decelerated, from 16 percent in April to 14 percent in May. “While we are seeing the usual seasonal increase leading into the summer months, 2022 does not look like a repeat of 2021 even though rent growth remains elevated,” state Matrix analysts. Asking rents fell in only six markets: the gateway markets of Queens and Brooklyn; small Southern markets Macon, Ga., and Jackson, Miss.; and tropical Honolulu and the Southwest Florida Coast. Conversely, 84 markets experienced greater than one percent month-over-month increase, and seven markets saw month-over-month growth that topped two percent: Charleston, Knoxville, the Bay Area-South Bay, Miami, the Urban Twin Cities, Wilmington, N.C., and Portland, Maine. Most markets received an increase to their end-of-year projections in the newly released Matrix report. The biggest increases were concentrated in markets that continue to outperform expectations, with Scranton-Wilkes-Barre, Wilmington, South Bend and Spokane all seeing a more than five percent increase for year-end 2022. The nation’s economic outlook plays an important role in rent forecasts. That outlook has become increasingly tumultuous, with inflation at a 40-year-high but unemployment historically low. Analysts are continuing to keep a close eye on the market and monitoring the impact of the Federal Reserve’s approach to combatting inflation as well as the war in Ukraine. “The Fed will likely ramp up its pace of rate hikes and quantitative tightening, increasing the chance of recession for...

Yardi is committed to supporting the community in every city where our offices are housed. Each year, the company distributes philanthropic aid to organizations selected by its employees. In 2021, Yardi offices supported more than 350 nonprofits worldwide. For the remainder of the year, we will be bringing you the stories of those organizations and insight into how they aid their communities. Today, learn about the Me Fine Foundation of Durham, NC, which provides vital financial assistance and emotional support to families with children facing a medical crisis so that they can focus on their child. “Me Fine is focused on continuing to meet the needs of the community in a reliable and dignified manner while hoping to become a household name in the Triangle area of NC. Introducing more people to what our families endure will hopefully convince them to help us in our work,” said Joey Powell, Executive Director. “Major corporate support from partners like Yardi help us meet these family needs. As a responsive (rather than prescriptive) organization, we believe these families know what they need during their child’s crisis.” Powell shared the heart-wrenching story of a family with a child who had an aggressive form of cancer. The little girl was treated for about a year intensively and was able to beat the disease into remission. “However, the treatment regimen was so intense and required so much of a time commitment from her family, that the parents were really in financial peril. Unfortunately, a few years later, the cancer returned, and the girl succumbed to the recurrence quickly. Her family was so financially strapped that they couldn’t afford to have her body claimed from the hospital morgue. Me Fine was able to work with a local funeral home to help...