Multifa mily MUL T IF AMIL Y Ma rke t Re vie w MARKE T RE - - PowerPoint PPT Presentation

Multifa mily

Ma rke t Re vie w

MUL T IF AMIL Y MARKE T RE VIE W

Dwig ht Dunto n

Re nte rs b y Ne c e ssity a nd b y Cho ic e

T

• ug h E

c onomic Conditions Mille nnia ls’ une mplo yme nt ra te : 10.9% Na tio na l Une mplo yme nt Ra te : 7.7% Hig h stude nt-de b t lo a ds Wa iting to Sta rt a F a mily 75% o f a ll Mille nnia ls a re Sing le 47% o f a ll Mille nia ls live with a F a mily Me mb e r L ife style Drive n 77& o f Mille nnia ls wa nt to live in urb a n a re a s 67% o f Mille nnia ls wa nt to live in a wa lka b le c o mmunity More Wome n Working 96% o f Mille nnia ls list b e ing inde pe nde nt a s the ir mo st impo rta nt life g o a ls.

Sources: RCLCO, Pew Research

T he Cha ng ing L a ndsc a pe

“Last year, according to census data, construction was started

• n a little less than one

million new residential units, and about 1 in 3 of those was a rental in a multifamily building…” “The move toward apartment construction reflects the convergence of several trends…mortgage credit still tight…muted wage gains…high student debt loads…larger numbers of young adults leaving parents’ homes…”

But you already knew this…you heard it here a year ago.

Ma rke t T re nds

Units Unde r Construc tion

• 3,632+ units under construction
• 3.8% growth rate in supply

Vacancy Rate 6.6% Demand is expected to continue to

• utpace

Supply 1,500 1,000 500

SOURCE: Reis Reports January 2014

Ma rke t T re nds

Va c a nc y Ra te s

• Current vacancy rate 6.6%

Stabilized

SOURCE: Apt Index November 2013

Ma rke t T re nds

Re nta l Ra te s

• Average rental rate is $952
• How does Hampton Roads rental rate compare?

0.0% 0.1% 0.1% 0.2% 0.2% 0.3% 0.3% 0.4% 0.4% 0.5% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Norfolk/Hampton Road South Atlantic United States Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Norfolk/Hampton Road 0.4% 0.4% 0.1% 0.0% 0.1% 0.0% 0.2% 0.3% 0.0% 0.3% 0.0% 0.1% 0.3% South Atlantic 0.2% 0.1% 0.1% 0.2% 0.2% 0.2% 0.4% 0.3% 0.2% 0.3% 0.1% 0.1% 0.3% United States 0.2% 0.1% 0.2% 0.2% 0.2% 0.3% 0.3% 0.4% 0.2% 0.4% 0.2% 0.2% 0.3%

SOURCE: Reis Reports January 2014

Ha mpto n Ro a ds is Ope n fo r Busine ss

New Capital Coming From Out Of Town

Ove r the 2 ½ ye ar s:

• $400,000,000

total sold

• 77% c ame

fr

• m outside
• f Vir

ginia

Bo utiq ue is the Ne w Ma instre a m

Bo utiq ue is the Ne w Ma instre a m

Oc e a nfront a nd Virg inia Be a c h T

• wn Ce nte r:

A lot of ne w a dditions

Summer House Mayflower Encore Aqua Indigo19

T rue o r F a lse : Yo u Ca n Ne ve r Ha ve T

• o Muc h
• f a Go o d T

hing

I s it to o muc h o r is it to o little ?

Absorption Ra te :

1,400 units annually over past 5 years

Unde r Construc tion:

3,632+ units

Propose d to Sta rt:

2,720 units

SOURCE: Apt Index November 2013