2019 ROI First Quarter Edition 2019 - HIS Capital Group | Page 54

in two-thirds of these transactions, the borrower raised
their mortgage rate in order to access their equity in cash. is currently available for $2,504. Residents enjoy an “urban
sundeck overlooking the Austin skyline.”
Florida cities see greatest percentage of price cuts
as housing market cools • Heading to Oklahoma City, there’s good inventory of
newer apartment communities. Take the Metropolitan in
downtown where a two-bedroom rents from $1,875 t0
$3,050. Expect to find a sophisticated lobby, cyber lounge,
SPIN room, and social lounge. For Millennials renting a
luxury apartment home means a more amenity-filled
lifestyle, for now, that is.
The housing market is tipping in favor of buyers, with a
significant percentage of homes on the market selling for
less than their original listing price. This is according to real
estate startup Knock, which reveals which markets have the
highest percentage of homes that will sell below asking in
its second quarter Miami nabbed the No. 1 spot for both
the size and the frequency of price reductions.
In the first quarter of 2019, 88% of homes in Miami sold
below their original listing price, and the average number
of days on the market before a sale was made was 82, Knock
said. Further, 79% of homes in Miami sold for at least 2%
below asking. Here is a chart from Knock predicting the cities
that will see the greatest percentage of price reductions in
Q2. The best deals, it reveals, can be found in the South.
Class-C apartment sales in 2018 totaled around
$46.8 billion, while class-B apartment sales totaled
near $63.5 billion.
The higher-earning renter household ($100,000 annual
earnings) is the fastest growing segment of the U.S. housing
market. Between 2008-2017, there were close to 2 million
high-earning households to join the ranks of renters. That’s
a national increase of 48%.
It’s not surprising mid-size metros with strong population
growth saw a surge in high-earning renters thanks to
strong economies and relatively lower rents than larger
metros. Denver, Austin and Oklahoma City are New Orleans,
Memphis, Raleigh, Minneapolis, Seattle, and Portland round
out the Top 10. Here’s a look at what the top 3 markets are
offering:
• lower downtown Denver, a new luxury apartment in
Union Denver, next to Whole Foods, there are four 1
bedroom and den units available, ranging in price from
$3,230 to $3, 815. Amenities include swimming pools, hot
tubs, outdoor TVs and indoor game room, theater and
conference rooms.
• In Austin where tech start-ups have been growing, the
Whitley Apartments offer a 698 square foot one-bedroom
Self Storage: overview by Brian Somoza, managing
director at JLL Capital Markets, National Self
Storage Investment Sales
• Self – storage is considered to be the booming sector
of commercial real estate. However, on a national level,
street-rate rents have gradually dropped as new projects
kept coming online. Despite its challenges, the self –
storage business is unlikely to face a recession.
• The sector has been recession resistant because the
demand for self – storage space is based on life events,
such as marriage and divorce, renovating and relocating.
During the Great Recession, self – storage was one of the
least foreclosed real estate sectors.
• West Coast markets recorded high occupancy and asking
rents throughout 2018. Heavily populated markets with
zoning restrictions and community opposition are ideal
when looking to purchase and/or develop a self – storage
facility.
• The effects of new supply flattening rent growth and
extending the lease-up of new facilities.
• During the last development cycle, the average self –
storage facility built was approximately 50,000 to 75,000
square feet. In this cycle, we’re recording larger self –
storage developments sometimes more than 200,000
square feet.
• We expect fewer deliveries of new product over the next
two years. Developers moved quickly from 2012 to 2016,
due to pent-up demand for self – storage product after
the Great Recession. Development over the last two years
has slowed as the market digests the new supply. The
cost of development has also increased
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