You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur. FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. PLEASE LET ME KNOW HOW I CAN HELP YOU. Call me if you want to sell your property and need an estimated value. Phone / Prefer cell: 520-975-5207
Office: 480-948-5554 or email me walterunger@ccim.net. – What is a CCIM.
In Business and in Life you don’t get what you deserve, you get what you Negotiate.
contact me if you want me to get you the value of your property.
CLICK HERE TO VIEW ALL MY LISTINGS.
Are you ready to sell or purchase your Land or Commercial Building in Phoenix, Scottsdale, Maricopa County and Pinal County, Arizona, please call me?
Walter Unger CCIM – cell: 520-975-5207 – walterunger@ccim.net
By Ashley Fahey – Editor, The National Observer: Real Estate Edition,
Jul 12, 2023 Updated Jul 13, 2023, 5:57am MST
While the national apartment market saw recovery on a few key metrics in the second quarter, other activity remains well below what it typically is this time of year.
RealPage Inc., a data analytics and property-management software company for the apartment industry, found occupancy started to stabilize nationally in Q2 2023 after consistent declines observed in 2022. Net demand nationally was at 83,449 units in the second quarter, a five-quarter high but still well below numbers seen in 2021, which was a record-breaking year for the rental-housing sector.
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In fact, both quarterly net absorption and year-to-date rent growth are about 40% to 50% below what they typically are, said Carl Whitaker, senior director for research and analysis at Richardson, Texas-based RealPage. Same-store effective asking rents rose 0.46% between May and June, the smallest increase for any June in the past decade except for June 2020. It’s predicted by the firm year-over-year rent change will flatten or even turn slightly negative later this summer.
While leads tracked by RealPage suggest people are in the market right now for apartments, they’re typically looking at two, three or four options rather than one, as there’s more availability and supply for renters to consider today than two years ago, Whitaker said.
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“Ultimately, that’s what supply does, and what it’s supposed to do in a lot of ways,” he said. “More inventory and more options for renters may mean operators are having a more conservative approach to pricing.”
A record number of apartments are delivering this year, with more than 107,000 units having finished construction in Q2 and another 1 million units under construction at the end of June, according to RealPage.
Construction starts have slowed since the start of 2023, reflective of higher interest rates that began to be imposed by the Federal Reserve about a year ago. Starts dropped about 40% on a quarterly basis in Q2 while dropping about 140% year over year, Whitaker said.
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Apartment demand in the first half of 2023 remained highest in the nation’s Sun Belt markets, according to RealPage absorption data. One Midwestern market, Chicago, ranked fourth for absorption among the metro areas tracked by RealPage.
The Sun Belt continues to have appealing factors to pull investors into that region, Whitaker said, but there’s more competition now, and that has weakened rent growth in
“Maybe that creates more of a challenge in getting a property at the sales price that you hoped,” he said, adding markets currently leading on rent growth are also seeing weaker absorption numbers because occupancy tends to be pretty tight and those markets — such as Indianapolis, Cincinnati and Jersey City, New Jersey — aren’t adding a lot of new supply.
With so many units under construction and expected to deliver later this year, Whitaker said a few markets, including Austin, Texas, and Phoenix, will be “a little over their skis” on inventory, which could provide headwinds for those markets in the short term.
At least one person who tracks the multifamily markets believes there could be an oversupply of studio and one-bedroom units in the coming months.
Michael Broder, CEO and co-founder of RCKRBX, a Washington, D.C.-based research platform for multifamily real estate, said research his company has conducted on renters suggests a continued preferences for larger unit sizes. He said that’s not surprising, given how much time people spent in their homes during the Covid-19 pandemic and now with continued remote and hybrid work.
“I think that’s going to be problematic for those buildings delivering today in markets that already have oversupply of the smaller units,” Broder said, adding it may have a net negative effect on the rent premiums a studio apartment could yield when new projects deliver.
RCKRBX uses predictive analytics and polling methods similar to what political campaigns use during elections, building on the background of Broder — a former campaign strategist and media consultant to several gubernatorial, senatorial and congressional candidates — and other RCKRBX executives. RCKRBX tracks preferences of current and prospective renters in its polling.
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Although rental-rate growth has slowed and even declined in some markets since the big run-up observed in 2021, Broder said data from his company indicates a bit more tightening in what people are willing to spend because of economic concerns.
“We have seen a little slide from the fourth quarter of last year until today, and I’m not sure yet we’ve flattened out,” Broder said. “Even in areas where there’s the most demand, it’s not necessarily driving premiums at the same rate as it was in 2022.”
And while migration patterns during the pandemic had people moving in droves to places outside of gateway markets — which had a direct, and significant, impact on multifamily demand and rents — more recently it seems most of the migration has renters moving to new submarkets within their current metro areas, especially submarkets that are urban-suburban in nature, Broder said. In the Washington, D.C., metro, that could include places like Bethesda, Maryland, and Old Town Alexandria and Tysons in Virginia, he said.
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FROM ME: FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. Now is the time, if you are thinking of selling or purchasing your Land or Commercial Building in Phoenix, Scottsdale, Maricopa County, Pinal County, Arizona / Office / Retail / Industrial / Multi-family / please call me on my cell 520-975-5207 or e-mail me walterunger@ccim.net. Investors and Owner / Users need to really know the market today before making a move. The market has a lot of moving parts. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands your needs. I am marketing my listings on Costar, Loop-net, CCIM, CREXi, Catylist, and various other web sites. I also sold hundreds millions of dollars’ worth of Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also international
DISCOVER WHAT IS HAPPENING IN ARIZONA
History of Arizona from 900 BC – 2017 -Timeline.
What is a CCIM. In Business and in Life you don’t get what you deserve, you get what you Negotiate.
contact me if you want the me to get you the value of your property.
Walter Unger CCIM – cell: 520-975-5207 – walterunger@ccim.net
Click here to find out what is a CCIM:
CLICK HERE TO VIEW ALL MY LISTINGS.
Are you ready to sell or purchase your Land or Commercial Building in Phoenix, Scottsdale, Maricopa County and Pinal County, Arizona, please call me?
Walter Unger CCIM
Associate Broker
West USA Commercial Division
14350 N. 87th. Street, Suite 180
Scottsdale AZ, 85260
Phone: 480-948-5554
Cell: 520-975-5207
History of Arizona from 900 BC – 2017 -Timeline.
History of Arizona from 900 BC – 2017 -Timeline.
WHY PHOENIX? AMAZING!!! POPULATION IN 1950 – 350 K PEOPLE; “NOW 5 MIL”. – “5TH. BIGGEST CITY IN USA”
- DEMOGRAPHIC FACTS ABOUT MARICOPA COUNTY:
Walter Unger CCIM – walterunger@ccim.net – 1-520-975-5207 – http://walter-unger.com
Timeline of Phoenix, Arizona history
Facts of Arizona – year 1848 to 2013
CLICK HERE: Arizona Opportunity Zones As We Understand /maps. Interested!!! Please contact me.
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.
Walter Unger CCIM
Associate Broker
West USA Commercial Division
14350 N. 87th. Street, Suite 180
Scottsdale AZ, 85260
Phone: 480-948-5554
Cell: 520-975-5207
FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. PLEASE LET ME KNOW HOW I CAN HELP YOU PLEASE CALL ME
CLICK HERE TO VIEW ALL MY LISTINGS.
Also Call me if you need an estimated value of your Property.
Call me if you want to see a map with what is in the Construction Pipeline for Apartments.
Prefer cell: 520-975-5207, or email me walterunger@ccim.net. CLICK HERE TO VIEW ALL MY LISTINGS.
Check out my professional profile and connect with me on LinkedIn.
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial / Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us.
Please reply by e-mail walterunger@ccim.net or call me on my cell 520-975-5207
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