Marcus & Millichap Multifamily Market Report: Charlotte

Posted on December 5, 2018 by Jeff Carroll

Marcus & Millichap released their 2018Q4 multifamily market report for Charlotte. The study finds that metro vacancy rates have declined 20 basis points to 4.4 percent over the past year while average rents have increased 4.6 percent. The researchers attribute this to the strong household formation (2.6 percent annualized) and economic growth (2.5 percent annualized) taking place in the greater Charlotte area.

According to the report, 7,800 apartment units were completed over the past 12 months, a 200-unit increase over last year. Although multifamily production is up, units are being absorbed quickly. According to the report: “Even though construction is brisk, robust renter demand lowered vacancy to 4.4 percent in September.”

The report also finds a $430 monthly affordability gap for renters versus owners and significant demand for older apartment units. According to the report: “Older, more affordable buildings registered the strongest year-over-year rent increase. In pre-1970s apartments the effective rent vaulted 5.2 percent to an average of $873 per month.”

This underscores the need for more workforce housing in the greater Charlotte area.

The following link will take you to the report:

https://www.marcusmillichap.com/research/researchreports/reports/2018/11/14/north-carolina-multifamily-market-report

Fannie Mae Report: Workforce Housing

Posted on December 4, 2018 by Jeff Carroll

The Urban Land Institute defines workforce households as those households earning between 60% and 100% of Area Median Income (AMI). According to Fannie Mae, this income band accounts for about 30% of all renter households in the United States.

But half of all new construction targets those households earning more that 100% of AMI; the other half targets those earning less than 60% of AMI. Fact is, very few new units are being built to meet the needs of the workforce housing market segment – the backbone of any local economy.

Follow this link to the Fannie Mae report:

https://www.fanniemae.com/content/fact_sheet/wpworkhouse.pdf

CBRE Report: The Case for Workforce Housing

Posted on December 4, 2018 by Jeff Carroll

CBRE Research recently published a report entitled The Case for Workforce Housing. The report enumerates the many reasons to invest in this underserved market segment. According to CBRE “…workforce housing has very strong supply/demand fundamentals that give the sector a solid foundation to provide continued good investment returns.”

For more information, follow this link to the report:

https://www.cbre.com/research-and-reports/The-Case-for-Workforce-Housing

Grand Opening: Buchanan’s Crossing

Posted on March 17, 2018 by Jeff Carroll

On October 17, 2017, the grand opening was held for Buchanan’s Crossing – the newest fully-accessible development serving veterans and seniors in Kansas City, Kansas. The project’s sponsors, Tartan Residential (a North Carolina-based for-profit developer), Hughes Development Company (a local for-profit developer) and Northeast Economic Development Corporation (a local non-profit), were in attendance.

The mayor and several commissioners were also in attendance, as were some of the future residents, Horizon Bank (a regional lender providing construction and permanent funding for the project), Midwest Housing Equity Group (a regional investor in newly-constructed multifamily developments), and Bear Claw Construction (the general contractor).

When completely built out, the project will include a total of 40 two- and three-bedroom duplex units in a mixed-income rental environment.

The project included a major off-site sanitary sewer improvement including a 144-foot bridge to make utilities available to the project and up to 400 additional units in the area.

Jeff Carroll (President of Tartan Residential) and Bob Hughes (President of Hughes Development Company) addressed the attendees at the grand opening, followed by a ribbon cutting and a walk-through for an available unit.

According to Mr. Carroll, “This has been a work in progress for the past two years. We are excited to wrap up this phase of the development and look forward to bringing more units on line over the next couple of years.”

For leasing information contact the property manager at 913-593-0296.