MARKET UPDATE BLOG
Top Takeaways: RealShare Apartments 2018
November 1, 2018

The Barry Slatt Mortgage team was an exhibitor at RealShare Apartments 2018 conference earlier this week. The following were our top takeaways.

  1. The multi-family sector is and will continue to be the favorite product type or real estate investors heading into 2019.
  2. A recessionary correction may be around the corner and could bring interest rates far down. This would further enhance the multi-family sector as one of the most desirable investments. Multi-family properties are seen as somewhat recession proof as the nature of the tenancies tend to be short-term and flexible to rent increases.
  3. Successful real estate investors are focusing on staying power.
  4. Unconventional multi-family product such as co-living and micro-unit developments are an increasing trend in major markets where young transient professionals are looking for experience over ownership.
  5. As an excess of luxury housing developments has flooded the market in the recent past, developers and investors are moving to more affordable units where demand has increased due to the increasing cost of living in major markets.
  6. Alternative technology will continue to shake up the multi-family space in all aspects from transactions to facilities management. Look for crowdfunding and marketplace lending to increase in the near future.
  7. There is still an ample amount of capital in CRE investing. This will continue to keep the marketplace healthy.
  8. All eyes are on California’s Proposition 10.
  9. Fannie Mae’s impact on green financing has had a major impact and will continue to do so in 2019. Developers are cleaning up contaminated sites as well as building smart and energy efficient properties that save money for owners by reduced operation and maintenance costs, as well as tenants with reduced living costs.
  10. All major lending types are actively looking to place loans on quality multi-family product.