Let Valuation Tech Help Improve Your Collateral Valuation

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Talking proptech with FinLedger Director Holden Page

In this episode, Page discusses the hottest topics coming across FinLedger’s news desk. Topics include: the online banking market, what’s happening in the proptech space and recent private market deals.

With a reinvigorated CFPB, what’s next for the NYDFS?

While the CFPB is reinvigorated under the Biden administration, there’s plenty of room for it to retake a leading role and coordinate with the NYDFS.

Does your CRM hurt or help the customer experience?

In real estate, data is king. The more you leverage your own data the better off your agents or loan officers will be because they’ll be able to identify, target and create better customer experiences.

Real Estate

Apartment construction is slowing down, even as occupancy reaches an all-time high

Cost of rent is up, too

Although multifamily occupancy rates keep climbing, with apartment occupancy rates in July reaching the highest level since 2000, multifamily construction is slowing.

Many major markets have seen a slow down in multifamily construction growth – slowing to the lowest level it’s been in almost four years, according to a new report from RealPage.

There were nearly 526,300 units underway at the end of June, down 5.5% year over year and the fewest since the third quarter of 2015. 

Although apartment construction saw a boom last year, it is expected to continue to decline. 

After slumping down to 110,311 units built in 2011, construction made its way up to 331,765 in 2017. Now, it’s slowly on the decline again. 

apartment construction

RealPage said that level of construction is still far above what’s normal for the U.S. market, almost doubled the long-term norm. Multifamily permits also dropped in June to its lowest level in over two years, according to the Bureau of Labor Statistics

New York’s market has seen the biggest slow down, with 42.8% fewer apartments being built than the year before. Some of the reasons behind the slow down is high construction costs and lack of skilled labor, RentCafe reports

Despite the projected slowing down of construction, there are some metros expected to see more building than others. 

The Dallas-Fort Worth metro area has seen the most apartment growth, with a total of 22,196 multifamily units expected to be built in 2019. Trailing DFW is Seattle, expecting 13,682 units to be built this year. 

Cost of rent is also slowing down after picking up speed the last few years, dropping from 3.7% in 2018 to 2.7% in 2019.

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3d rendering of a row of luxury townhouses along a street

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