Investors have set their sights on suburban and tertiary markets. Lenders are responding favorably to the trend. While banks will continue to keep one foot planted in major metros, many are following their trusted relationships to less familiar terrain outside of city limits. Sleepy secondary markets are waking up The shift began as a trend prompted by the pandemic but has continued at a steady clip through the highs and lows of COVID-19. This is particularly true in cities where major employers have transitioned to remote and hybrid models. Many white collar industries such as technology, consulting and legal have adapted more flexible work conditions. With zero or fewer days required for office attendance, employees have been exploring their housing options. Blake Hering, principal with Gantry Inc explains, “As these remote operating models adopted by many office users have taken root and grown following last year’s social distancing mandates, a generational shift valuing the lower cost of living, higher quality of life, and larger footprint domiciles available in secondary markets has clearly fueled the beginning of a new, robust cycle for regional markets outside the MSA domain.” Employees are venturing further from their workplace hubs to secondary and tertiary markets where their money likely goes farther: lesser-known markets may offer more square footage for their money and more outdoor space, housing trends that were revitalized during the pandemic. Lending follows the leader The migration is particularly evident in MSA markets such as Seattle, Wash., and Portland, Ore.  in the Pacific Northwest. Investors are following demand to smaller markets such as Bend, Salem and Tacoma. “This shift is now rewarding experienced sponsors in what have become prioritized markets by offering access to a host of new lending sources that once only reserved their allocations for operators...

Last year, New York state implemented new protections for residents of rent-stabilized and market-rate housing, including the conditions under which rent hikes and evictions are allowed. Affordable housing advocates saw the landmark Housing Stability and Tenant Protection Act of 2019 as vital to helping low-income people avoid homelessness in expensive markets such as New York City. Skeptics predicted it would backfire and reduce incentives to develop, invest in and manage rental housing. The law has been under siege in the courts from landlord interests who claim it violates the Constitution’s taking and due process provisions. One year into the new era, has either side been proven right? Obviously, a lot has changed in the New York rental market since the law was signed in June 2019. But in December of that year, before the COVID-19 pandemic took hold, the New York Times reported that evictions in the state dropped by 20% in the preceding six months. State and federal provisions put in place during COVID have further strengthened eviction protections for more than 1.5 million state residents not able to pay rent due to the pandemic. In April and May, rents in New York City actually went up year over year. The Times reported in June that “those looking to sign or renew leases in the last few months say that while some landlords are grudgingly offering short-term concessions, like a free month of rent, most are unwilling to budge on pre-pandemic pricing and, in some cases, are even increasing rents.” And how about rent payments? Yardi Matrix data collected in July revealed rent declines ranging from 0.8% to 1.6% in Brooklyn, Manhattan and Queens that month, while occupancy levels in the metro have been flat for several months. “With the vacancy rate where...

Are you practicing the most efficient and effective management strategies? Implementing technology at every point in the leads-to-leases process can help you optimize your approach. During the 2019 SVN Rock Advisors Apartment Conference (AptCon) in downtown Toronto, Peter Altobelli, vice president and general manager, sales at Yardi Canada, presented on the impact of new technology on property management strategies. In the session, “Operations and Management: Maximizing Value Through Professional Management,” Altobelli collaborated with fellow industry experts Lucy Gouveia, marketing and leasing director at Greenwin, Zola Mehlmakulu, operations manager at Skycord, and Trish MacPherson, executive vice president, operations at CAPREIT. The panel discussed the inextricable tie between successful modern management and technology. Marketing and Lease-Up Strategies Intelligent software can make the marketing and lease-up processes more efficient and effective. The panel recommended the following strategies: Create, launch and maintain a corporate website, regardless if you are in the construction phase. Include floor plans, photos and videos. Websites promote your brand and attract prospects who are interested in becoming a part of your community. For new builds, begin the lease-up at least two months into construction. This schedule provides time to craft your renter experience within your marketing and customer relationship management (CRM) software. Paying special attention to your renter experience provides you with a way to build trust, reliability, and customer satisfaction with prospects. “Yardi in Canada is known for our ERP and accounting software solutions,” began Altobelli. “In conjunction with that, we’re offering a fully integrated marketing and CRM solution in a single database that connects to all Yardi products. With lease-up underway, the advantages of a fully integrated system become apparent. Once the applicant becomes a resident, their information is fed seamlessly into the property management and accounting system. Having integrated software saves...

A new research bulletin from Yardi Matrix assesses the ongoing recovery of multifamily markets in U.S. areas hit hard by hurricanes, wildfires and other natural disasters in 2017. Three hurricanes inflicted about $110 billion in property damage and $300 billion of economic loss in Texas, Florida and Puerto Rico, the bulletin notes, with the affected counties in the two states accounting for about 13% of total U.S. housing permits. Relocation by renters and homeowners sparked a rapid rise in apartment rents. Houston, for example, saw a 1.6% increase over the last four months of 2017, reversing about 18 months of decline. While increases were lower in Miami, Tampa and Orlando, this may change as residents displaced from Puerto Rico, which still needs major infrastructure resources, spur demand in these Florida metros. The bulletin predicts that the long-term need for housing will lead to higher occupancy rates, especially in the renter-by-necessity segment. Another factor impacting the housing recovery is a shortage of construction labor, driven by fewer young people entering the industry and a declining immigrant labor force. “As a result, expect prolonged construction delays nationwide,” the bulletin says. The report also examines natural disasters’ impact on the insurance market. Property owners in the private insurance market “should brace themselves for not only increasing insurance rates but also tightening terms and conditions of their policies,” the bulletin says, noting that “insurers are increasing deductibles for multifamily portfolios, and changing the deductible structure from a dollar value to a percentage of property value.” In California, which endured wildfires from San Diego to Sonoma, Proposition 103, an insurance regulatory measure, is expected to moderate rate hikes. Download the complete bulletin, titled “Flood and Fire: The Multifamily Sector’s Response to Natural Disasters.”...

If you’re a Canadian property owner, manager or renter, here is the scoop from this year’s Ontario Rental Market Overview & Outlook. Hosted by Canada Mortgage and Housing Corporation and Federation of Rental-Housing Providers of Ontario, the market survey results were presented at the FRPO & GTAA (Greater Toronto Apartment Association) Rental Market Update Breakfast that took place on February 8, 2018. Industry leaders attend these sessions to gather key analytical data about marketing and rent trends along with policy updates for the apartment and purpose-built industry. CMHC’s Ted Tsiakopoulos, regional economist, and Dana Senagama, principal, market analysis for the GTAA, spoke about the new data released in this year’s report. While the presentations focused on Ontario, the report also includes information about other provinces. Keep reading for some key takeaways. Tightening Up Since 2015, Ontario’s economy has been growing faster compared with the rest of the country, and it’s not surprising that Ontario and British Columbia are still the tightest rental markets. Toronto is experiencing record low vacancy rates, influenced by the job market, demographics, cost gap, expectations and new rental supply. Due to lack of supply and slow building, the GTAA also reports  accelerated rent growth – up 4.2%. The expectation is that vacancy rates still have room to fall – and rents will keep growing. Regarding housing types, there’s a higher domestic investment in condos, with 32.7% of condo units rented in 2017 (compared to 30.1% in 2015, and only 18.8% in 2008). Condo rentals significantly outpace apartment rentals. Rentals show a flattening out in the growth trajectory, and new building trends, there is the added challenge of lengthy construction timelines (up to three years). Shifting Demands With renter households outgrowing supply, demand in Ontario is shifting to less expensive housing....

What does a largely stagnant year for the multifamily industry in 2017 imply for this year?  How will economic, tax policy, demographic, capital market and supply factors impact the segment?  These and other issues comprise the content of “Sustainable Pace?”, a new market analysis compiled by Yardi Matrix. The Yardi Matrix research team’s study suggests that there’s enough steam left in the sector’s bull run to make multifamily a solid, dependable real estate market segment over the next 18 to 24 months for property owners, residents and investors. Rent growth cooled in 2017 amid robust development and occupancy levels began to trend down in some metros.  On the upside, demand for multifamily shows no signs of slowing in 2018, as the renter cohort ages 20-34 keep growing while retirees continue to downsize.  Urbanization and other social trends will also conspire to keep rental demand steady. Economy: Bright Prospects With regard to the national economy, “we expect another year of moderate economic growth, which potential upside from the recently passed tax reform bill that will lower tax rates and encourage corporate investment,” the report says, adding, “Job growth could slow as the labor market nears full employment, but should remain healthy.”  A 17-year high in consumer confidence plus healthy housing, automobile, manufacturing and other segments are additional positive indicators. Rent Growth: Modest but Steady Following multifamily’s significant deceleration in 2017, the report forecasts rent growth in the 2.5% range nationally this year, with increases in supply and lack of affordability in high-cost metros checking growth.  “Supply is the biggest headwind,” the report says, forecasting apartment deliveries in 2018 to increase by 20% to 360,000.  This new supply will outstrip demand and prompt a slow slide in the occupancy rate. Sacramento, Calif., is the projected leader...

We’d need 4.6 million new apartments by 2030 to meet demand for rental living and keep prices in check, reports the National Multifamily Housing Council. That’s about 373K new units each year on average, a number that’s rather optimistic considering the pace of apartment construction in the last decade. So how feasible is this plan? A recent study from RentCafe on the apartment market suggests the country’s growing renter population need not be too concerned. According to data from real estate data provider Yardi Matrix, apartment construction is at a 20-year high, with most of our country’s biggest cities seeing significant upgrades in rental stock. After a slow post-recession period, the market started rebounding in 2012 and by 2014 new supply had amounted to more than 237,000 units delivered in one year, well above historical averages. Between 1997 and 2006, annual completions averaged 212,740 units. In 2017, apartment completions are expected to top 345,000, a 21% increase compared to last year’s deliveries when more than 285,000 units saw the light of day. Hot Urban Markets See Rents Softening as Developers Ramp Up Apartment Construction After peaking in 2014 at 5.1%, monthly rent prices rose just 1.5% to $1,316 in May, the lowest annual growth rate we’ve seen in more than three years. In 2017, the average U.S. rent is expected to increase a modest 3.9%. Does this mean apartment prices are finally taking a break from rent growth? Apparently so, and thanks to intensified apartment construction, that’s even the case with some of the country’s historically tight (or rather outrageously expensive) markets. Close to 6,200 new units entered the San Francisco metro area in 2016, with approx. 5,400 apartments expected to be delivered this year and another 9,500 under construction. While demand is still strong...

Yardi Canada’s Peter Altobelli and Sam Jaishankar had the honor of speaking about key technology innovations impacting the real estate industry at the Canadian Federation of Apartment Associations (CFAA) Rental Housing Conference, June 6-9 in Toronto. The conference brings together leaders from the rental housing industry from across the country to discuss topics such as building and development, marketing, leasing, staffing and technology. Yardi participated in three sessions this year. Yardi is proud to sponsor industry events including the CFAA conference and participates in a variety of educational opportunities that help move the real estate industry forward. Property and Operations Management Apps Improving rental operations and solving problems using technology were the focus of this session. Pain points included processing payments, tracking maintenance, completing inspections and managing vendors. Panelists included Peter Altobelli, Vice President and General Manager, Yardi Canada; David Janowski, CEO, Pay Quad; Leonard Drimmer, CEO, Property Vista; and Andy Larson, VP of Business Development, HappyCo. Altobelli spoke about using mobile apps for more efficient property operations and how these tools help companies advance and take their services to the next level. Not only are mobile apps key to optimizing real estate business processes, but they are also critical to engage the next generation of employees who expect tech-forward workplaces. “We are starting to see a transition here in Canada with deploying new technologies to operations staff — be it maintenance or leasing or financial accounting. Consumers demand a quick turnaround in everything they do. They want to go online or use their mobile device to make a request or complete a transaction at their convenience, they expect quick responses and they want instant confirmation when things are done. For real estate, these customer demands require operational changes,” Altobelli said. Automating the Marketing Process...

The Low Income Housing Tax Credit (LIHTC) program creates more than $8 billion per year to develop and rehabilitate affordable housing units. According to the United States Department of Housing and Urban Development, LIHTC is the most important resource for creating affordable housing in the United States today. More than 2.7 million affordable housing units have been developed over the past 30 years though LIHTC. However, there is uncertainty about the continued success of the program. Potential changes to income tax law are delaying affordable housing projects currently in development, and projects in the planning phase are suddenly challenged with budget shortfalls. History of LIHTC The LIHTC program was signed into law in 1987 and is monitored by the Internal Revenue Service. Housing finance agencies in all 50 states oversee the daily administration of the program. LIHTC differs from the approach the federal government takes towards other housing programs. Instead of using federal funds to build and manage housing resources across the county, the LIHTC program gives states, investors, and affordable housing advocates the ability to plan, finance and build projects that best fit their local needs. Nonprofit housing developers acquire tax credits from their state housing finance agencies based on a competitive process. States award credits to projects they deem most valuable based on pre-defined criteria. Awarded non-profits then turn around and sell tax credits to private investors such as banks and corporations. Those investors save on their annual tax bill and nonprofits raise capital to build housing. It’s a win-win for all. Future Uncertainty Because the sale of tax credits is a bidding process, prices are based on the need for investors to reduce their tax burden. If that need is reduced through tax reform, then there is less competition for tax...

There has been a series of encouraging reports emerging from the U.S. Department of Veterans Affairs (VA) this quarter. The nation enters fall with a positive outlook regarding housing and services for veterans facing homelessness. A recent report reveals a 47 percent decline in veteran homelessness since 2010, with a 17 percent decrease between January 2015 and January 2016. Communities throughout America contribute data to the Point-in-Time (PIT) report, hosted by The U.S. Department of Housing and Urban Development (HUD). This separate analysis of veteran well-being estimates a 56 percent decrease in veterans without shelter since 2010. These notable successes are a direct result of greater federal and community commitment to end homelessness amongst former service members: One of the first targeted initiatives came from the HUD-VA Supportive Housing (HUD-VASH) Program in 2008. Through the program, veterans receive rental assistance along with the support of medical and professional services. Early this summer, HUD-VASH issued $38 million towards housing for 5,200 veterans who struggled with stable housing. The funds were directed to communities’ housing and case management organizations. Two months later, HUD-VASH provided the funding needed to secure permanent housing for an additional 108 homeless veterans in seven states. To date, more than 114,000 veterans have received assistance through the program. In 2010, HUD, VA, and the United States Interagency Council on Homelessness finalized Opening Doors. This one-of-a-kind federal program strategically plans to end chronic homelessness by 2017. The program includes efforts to identify former service members who are at risk of homelessness and take steps to prevent the loss of shelter. For veterans experiencing homelessness, professionals provide barrier-free entry to temporary shelter. They simultaneously work to secure long-term housing and the necessary assistance to maintain those accommodations. Following in 2014, First Lady Michelle Obama...

Economic forecasts can seem as mysterious as reading tea leaves or interpreting the energy of a crystal ball. Hit or miss at best. Yet with several economists spotting a recession on the horizon, property managers may want to take precautions. The U.S. Bureau of Labor Statistics kicked off the summer with a wave of bad news. Only 38,000 nonfarm jobs were created in the previous month—122,000 fewer than many economists expected. World economies are tottering on the brink of a slump. Washington Times points to the misallocation of credit as a catalyst for economic decline. Policies created by the Fed, Bank of Japan, and European Center bank subsidize government debt rather than funneling that support to job-generating small business. Additional financial, labor, and economic policies muddy up the economic waters. The end results may be stagnant or weakening economies throughout North America, Europe and Asia. The bottom line: the next 12 months may bring another economic decline. JP Morgan cites the U.S. as a “medium-term recession risk.” If there is a decline, it’s too early to determine its severity. Property managers can brace for impact of any caliber with these stabilizing tips: Be selective. Now is the time to be picky about your tenants. In depth screening processes will help property managers identify tenants who pose the least amount of risk. Collect now. Reconcile late payments and balance the books. Position the business in the best financial state possible and maintain that balance. Clean house. Replace problematic tenants with more reliable candidates while the market is still favorable. Appear occupied. If your space is currently vacant, outsiders should not be able to tell. Properties that show signs of neglect are a turn off for property hunters. In contrast, neglected properties are very appealing to...

With an eye towards sustainability and passive building principals, University of Colorado Denver’s prefab, cabin-style dorms connect modern architecture with outdoor living. Just outside Denver, Colorado sits a cluster of 14 micro dormitories outfitted with all the essentials necessary for comfortable, environmentally-friendly cabin living. Created in partnership with Outward Bound, the micro dorm project was developed by 28 University of Colorado Denver, graduate students participating in CU-Denver’s Colorado Building Workshop.   Hands-On and Creative Established in 1991, the Colorado Building Workshop began as part of an effort to pair non-profits with innovative architectural projects. With an emphasis on promoting hands-on skills and creative design, workshop participants use cutting-edge materials and inventive design to produce buildings for disadvantaged communities. Graduate students from CU-Denver’s Studio IV must apply to be part of the workshop. If accepted, they are required to complete 18 credit hours of the Design Build Certificate. The course of study emphasizes both the basics of Design Build and Integrated Project Delivery. The program’s courses cover topics focused on quality and risk management, along with group assignments requiring students to work together to shepherd a project from initial concept to completion. “Collaboration is the core principle of the design-build program,” declares the program’s website. “We are thankful to all the businesses and individuals who support this work and recognize its importance in the local community.” Two Structures, One Footprint Rick Sommerfeld, founder and director of Colorado Building Workshop,  set out with his students to create living spaces capable of coexisting with the land. As a result, their final design make the most of open-air entry-points while also providing basic living quarters. With front-facing decks and floorplans that “sit lightly on the landscape,” each individual unit balances private and community spaces. Surrounded by pine forest and...

With home prices rising faster than the cost of senior housing, many older adults could be ready to make the change from homeowner to senior living resident. For Americans facing retirement age, it can be difficult to determine when to trade in the private home for a senior living residence. While some seniors fear losing a certain amount of independence or surrendering to age and infirmity, others may be primarily concerned with finances. Data provided by A Place for Mom reveals many budget-minded retirees could be better off selling the family home and moving into a senior housing. A Place for Mom collected the data as part of its Senior Living Cost Index. By comparing expenditures on actual rent and care at over 2000 U.S. locations, the index delivers a database for consumers looking to quantify the pros and cons of retirement living. For Charlie Severn, vice president of brand marketing at A Place for Mom, the index stands out from other databases because it includes the actual rent and senior care payments, instead of the typical cost-of-care estimate, making it a “first of its kind.” According to the Index, which includes data from over 100,000 move-ins from 2012-2015, there has been 2.7% rise in all types of senior care in the last year. This increase is 1.5 times faster than core inflation, but still slower than the 7% rise in home prices. As a result, Severn explains, selling the family home may mitigate much of the outlay of moving into senior housing. “This makes the sale of a home from a timing standpoint pretty good,” he tells Senior Housing News. In the end, A Place for Mom hopes the National Senior Living Index can provide helpful information on senior housing options. The Index lists...

With over 20% of older Americans living outside major cities, rural senior living providers face unique challenges and untapped opportunity In small towns across the country, senior citizens face a trio of challenges as they transition into retirement: lower than average incomes, few housing options, and a shortage of services. As aging baby boomers put even greater strain on senior living services, rural communities throughout the United States will have to act quickly to meet demand. Small, Expensive and Rare According to a 2014 survey by the Housing Assistance Council (HAC) entitled Housing and Aging Rural America: Rural Seniors and Their Homes, nearly one-quarter of US seniors live in rural communities. Unfortunately, for older adults residing outside of the nations’ urban centers, senior housing options are slim to nonexistent. Additionally, the standard of care available doesn’t always compare to what’s offered in suburban and urban areas. Even in situations where facilities exist, most are too expensive because incomes are usually much lower outside larger municipalities. “Much of the affordable-housing stock in rural housing areas is old and in need of repair, says Sheila Crowley, president of the National Low-Income Housing Coalition. “Many of the people who live there don’t have the resources that they need in order to keep the houses in good repair,” “A rapidly aging population will significantly impact nearly all aspects of the nation’s social, economic, and housing systems,” note the authors of HAC’s report. “With the scope and magnitude of the looming demographic shift of seniors, rural communities will need to develop a range of housing options available to seniors such as more rental housing, rehabilitation and repair programs, housing with services, and assisted living.” Filling the Void Where HAC highlights the challenges of rural development, Jane Adler sees opportunity....

Christie’s International Real Estate Report lists Canada and Norway as the sites of the three fastest growing luxury markets.  The wealthiest home shoppers in the world are investing in these unexpected locales. For years, Hong Kong, London, and New York have led the world in luxury real estate. To qualify, these cities possess a robust inventory of properties well above the world average of $2.2 million. These markets rank at the top of the pack, driving the 8 percent growth that the global luxury home market saw last year: London tops the list for the most luxurious, prime properties. It is home to the highest quantity of luxury listings as well as some of the most costly. One of the most recent luxury sales includes a $141 million estate. Hong Kong leads the group in terms of average luxury home price per square foot. Buyers easily exchange $3,000 per square foot of livable space. The sale of a 5,706-square-foot mansion at 28 Barker Road for $194 million was the crowning glory of 2015. London and New York vie for second place, both averaging about $2,000 per square foot. The three cities’ dominance in the market could be short lived. Luxury homes in these cities linger on the market longer than before. Hong Kong and London saw an increase in average days on the market in 2015. London, for example, saw an increase from 165 days to 270 days from 2014-2015. Yet worldwide, luxury homes experienced a 23 percent decrease in days on the market It seems that buyers have become increasingly interested in what other affluent cities have to offer. Auckland is the hottest city to watch, posting growth of 63 percent in 2015. A notable recent sale includes the $24 million cliff-top house...

When it comes to new construction, students are finding themselves in a dilemma similar to renters twice their age. A shortage of affordable and middle-market properties has students and seniors struggling to pay for shelter. Senior Care In senior housing, Boomers face limited affordable and middle-income options for their aging loved ones or themselves. New construction caters largely to high-end buyers. Location is a major factor: seniors’ most desired areas include sites with easy access to public transportation, activities, and proximity to family. These centralized locations come with high land costs. In the end, those costs and the costs of fluctuating building materials roll over to the seniors and their caretakers. Vorice Ratchford served as her mother’s caregiver for nearly a decade. She often checked for housing near her home in a southeastern suburb of Atlanta, but could never find accommodations within her price range. “Even when she was healthier, we couldn’t find housing that we could afford,” recalls Ratchford. “As her health declined—she had dementia—it became even harder.” The Alzheimer’s Association reports that housing costs range from $43,200 per year for basic services to $91,250 per year for a private room in a nursing home. In a single-earner household, taking on additional debt to pay for senior housing wasn’t an option. According to the 2013 Survey of Consumer Finances, the average American household has $15,054.54 in credit card debt, excluding mortgages and auto loans. Ratchford, like many Americans, has been struggling toward debt freedom. Ratchford became a full-time caregiver for her mother, putting three adults on the support of a single income. “I can’t imagine how someone with a full-time job could be a caregiver for someone with dementia,” Ratchford says. “Even with my previous job, every cent of my income would need...

Though the GenX and Millennial generation are often touted as the “green living” demographic, as the New York Times reports, demand for green retirement communities is on the rise, outstripping supply and inspiring new projects and renovations. Sustainable Retirement Many of the newest senior living facilities include state-of-the-art technologies that are inherently energy and water efficient including low-flow fixtures, LED lighting, and onsite power systems including solar and geothermal. Natural light and an avoidance of toxic building materials helps developers provide living quarters that are aesthetically and philosophically pleasing to potential residents. As a bonus, many environmentally friendly options can also help property managers save money. Increased efficiency can lower energy costs by reducing electricity demands, and there is often government funding available for retrofits and renovations. Another surprising benefit – onsite power systems can also serve as backup during natural disasters or service interruptions, enabling facilities to stay up and running during a grid failure. Leading with LEED When LEED for Health Care was adapted in 2011 to include assisted living communities and nursing homes, many communities seized the chance to earn certification. Because of strict regulations within the health care industry, allowances were made to the certification process and special protocols were included to account for issues like infection control and patient privacy. LEED properties adhere to a comprehensive set of guidelines that cover not just energy use, but construction waste, water efficiency and landscaping, and greenhouse gas emissions. While LEED provides a standard for sustainability, many communities are also finding other ways to expand the notion of sustainable senior living. Even without LEED certification, many facilities prioritize recycling and walkability. Many pledge to avoid pesticides and introduce drought resistant landscaping. Some communities even make a farm-to-fork pledge, buying a majority of foodstuff and...

A camera pans across the room, revealing the usual suspects – senior residents grouped around small tables, some in wheelchairs, creating a typical scene playing out in senior living facilities across the world. And then, the unexpected…a young man enters, sitting down to share cakes and conversation. At that moment, it becomes clear – this is not your typical “old folks home.” Finland, like many industrialized nations throughout the world, is facing a severe housing problem. According to estimates, in Helsinki 90,000 renters are competing for approximately 60,000 units. This gap in availability has resulted in a brutal housing market, severely affecting young adults trying to move out and live independently. Ranked as the 16th most expensive city in the world, Helsinki is facing rapid population growth and ever-rising housing costs – leaving the city’s youth vulnerable to homelessness. “It’s a very expensive city to live in,” 23-year-old kindergarten teacher Emil Bostrom recently explained to CNN. “If you manage to get an apartment that the city owns, it can be quite affordable. But the amount of applicants for those apartments is so high that the waiting list takes forever.” “Youth homelessness is the sum of many parts, and there is no simple solution,” Finnish Youth Housing Association Secretary General Minna Vierikko declares. “It is essential that different actors join their forces and start seeking alternative models to solve the problem of youth homelessness. For Miki Mielonen, Homes That Fit provides a simple solution. Homes That Fit invites Finnish millennials to cohabitate with Helsinki senior citizens as part of a pilot program run by City of Helsinki’s Youth Department, Design Driven City, the non-profit rental housing company Alkuasunnot, and the national youth housing association Nuorisoasuntoliitto. In exchange for socializing with elderly residents, 25 eligible participants...

In the U.S., the impending wave of aging baby boomers has sparked a cultural shift in senior living industry, inspiring thousands of new projects and products. But what about the rest of the world? According to United Nations Population Fund (UNFPA) report Aging in the 21st Century, “the population of people over 60 will reach 1 billion within the decade.” Even more eye-popping, 80% of the world’s seniors will live in developing countries. As the UNFPA explains, “While the trend of aging societies is a cause for celebration, it also presents huge challenges as it requires completely new approaches to health care, retirement, living arrangements and intergenerational relations.” “People everywhere must age with dignity and security.” Exporting Strategies Stateside, senior living providers have already begun to plan for the impact of millions of seniors by offering new alternatives and greater options in an effort to woo future residents. However, even more tantalizing than the millions of U.S. senior citizens poised to enter retirement are the hundreds of millions of Chinese and Indian citizens who will soon turn 65. As Forbes contributor Benjamin Shobert points out in a recent piece for the New York Times, U.S. senior living providers are perfectly positioned to capitalize on the rise of the international senior population. “With the realization that we are all living longer in mind, now is the time for American and European senior living companies to begin laying the groundwork for the globalization of senior living.” Looking East For Shobert, China and India top the list of potential markets ripe for western-style senior living offerings. By 2050, the number of Chinese citizens over 65 years in age will number well above the entire U.S. population. In consideration of this expected demographic explosion, U.S. senior care companies...

Orlando—Overdevelopment? Affordability? Rising capitalization rates? An economic downturn? Falling stock market prices? Bring it on, the multifamily market can handle it this year. At least that seemed to be the consensus at the National Multifamily Housing Council’s annual meeting, held this week in Orlando. Panelists at the conference’s Apartment Strategies Outlook event were generally bullish on the outlook for the sector in 2016. “It’s a great time to be in apartments,” is how one panelist summed it up. The litany of positive fundamental drivers are familiar by now: vacancy rates are near historical lows, with demand driven by strong job growth, the growing number of Millennials and the increasing propensity to rent among young and older renters. Rent growth since the last recession has far outpaced long-term average, while properties values have soared. The market is “Awash in Capital.” That punctuation is not a typo, but the title of a panel at the conference. Bob White, president of Real Capital Analytics, released full-year 2014 numbers that showed multifamily sales at a record high, up 32 percent over 2014. Cap rates and cross-border investment are at all-time highs, although White said that prices are plateauing and appreciation is starting to slow. The conditions that produced the influx of capital seem likely to continue into 2016. The U.S. economy, as mediocre as GDP growth might be by historic standards, remains a beacon of stability compared to the struggling economies of Europe and Asia. Not only is that attracting sovereign wealth funds and pension funds from overseas, but there is an influx of high-net-worth investors from China who want to own U.S. real estate, particularly multifamily. That is increasing competition for multifamily assets, not just Class A properties in core markets, but small- and medium-sized properties in...