Industry News
Independent Seniors Housing Generates More Demand Than Assisted Living
The seniors housing sector is improving, reports the National Investment Center for the Seniors Housing & Care Industry. Seniors housing data indicate a slow, but growing demand, with the average occupancy rate having consistently increased over the last seven quarters to 88.2% at the close of 2011 compared to the sector's cyclical low of 87.1%, reached in the first quarter of 2010. One real surprise about seniors housing, according to NIC, is the trend of independent living generating more demand than assisted living. Although the average independent living occupancy rate of 88% was slightly lower than assisted living properties' average of 88.6%, independent living was the only seniors housing property type that showed quarter-over-quarter improvement. NIC forecasts that seniors housing occupancy rate will rise by about 100 basis points during 2012, to 89.2%. / PMA Up to the Minute, February 21, 2012
Multifamily Owners Could Pocket $3.4 Billion Annually Through Energy Upgrades
Multifamily owners in the United States could keep approximately $3.4 billion in their pockets annually through energy efficiency upgrades, according to a report released by CNT Energy and the American Council for an Energy-Efficient Economy (ACEEE). The report entitled, Engaging as Partners in Energy Efficiency: Multifamily Housing and Utilities, outlines the opportunities and strategies for the multifamily industry to engage electric and natural gas utilities in order to expand resources available for energy-efficiency retrofits and improve the use of these investments. Certain upgrades at properties with five units or more can reduce electricity costs by up to 15% and produce gas savings as high as 30%. The report lists Washington, DC, with a housing stock that is 49.7% multifamily, as a "particularly fertile ground for improving energy efficiency policy toward multifamily buildings." / PMA Up to the Minute, February 6, 2012
Washington, DC Is the LEED Green Buildings Leader
Washington, DC leads the 2011 list of top ten states for LEED-certified commercial and institutional buildings released by the U.S. Green Building Council (USGBC). When measured by square feet of green construction per capita, the District led the nation with nearly 19 million sq. ft. of LEED-certified space in 2011. This amounts to more than 31 sq. ft. per resident. Colorado (13.8 million sq. ft. of green construction, 2.74 sq. ft. per person) and Illinois (34.5 million sq. ft. and 2.69 sq. ft.) ranked second and third respectively. Virginia came fourth with 19.3 million sq. ft. of LEED-certified space, 2.42 sq. ft. per resident. Maryland ranked sixth with 11.9 million sq. ft. of green construction, 2.07 sq. ft. per resident. The top ten USGBC list is based on the U.S. 2010 Census information and indicates how much exposure residents in different states have to green building according to each state's portfolio of LEED-certified places in 2011. While California was the number one state that had the highest volume of LEED-certified places in 2011 (71.5 million sq. ft.), its green building exposure per resident was only 1.92 sq. ft. per resident. / PMA Up to the Minute, ]anuary 23, 2012
Apartment Vacancies Drop to a 10-Year Low
U.S. apartment vacancies dropped to a 10-year low in the fourth quarter, and rent increases are likely to continue this year, according to real estate research firm Reis. The nationwide vacancy rate fell to 5.2%, the lowest level since the end of 2001. Just three months ago, the rate was 5.6%. A year earlier the vacancy rate was 6.6%. Reis reports that the average monthly effective rent increased 2.3% from a year earlier to $1,009. Reis credits rising foreclosures and tightened lending standards for making rental housing the best-performing segment of commercial real estate for the past two years. The firm also points out to modest signs of improvement in the office market. The national office-vacancy rate stood at 17.3% in the fourth quarter, slightly lower than 17.4% three months earlier and the post-downturn peak of 17.6% in mid-2010. / PMA Up to the Minute, ]anuary 9, 2012
Multifamily Housing Starts Jump 25% in November
U.S. home building climbed to the highest level in 19 months during November and construction permits grew, with most of the increase in housing starts coming from multifamily construction, according to The Wall Street Journal. The increase in November was driven by a 25.3% jump in multifamily homes with at least two units, reported the newspaper referring to data from the Commerce Department. Housing starts skyrocketed 53.8% in the Northeast, 22.6% in the West and 4.1% in the South while falling 18.2% in the Midwest. By contrast, single-family home construction, which accounts for about 65% of the market, rose only 2.3% nationwide. / PMA Up to the Minute, December 27, 2011
Multifamily Sector to Remain Investors' Favorite in 2012
Investors favored the multifamily sector this year and this trend will continue in 2012, according to Jones Lang LaSalle's Apartments Outlook 2012 Survey. Investors' favorites included transit-oriented properties (52%) and value-added assets (67%) that generate high cash flow, especially after a makeover, and present an opportunity to sell at a higher price. Strong multifamily fundamentals combined with attractive financing options attracted investors in top multifamily markets that include Los Angeles, San Francisco, Dallas, San Diego and Phoenix. These top five markets, expected to attract the most of investment activities in 2012, mark a significant change from 2011, when New York City and Washington, DC, topped the list. The reason is not weaker fundamentals, but an overwhelming competition that creates a major barrier for many investors in the District and NYC. Jones Lang LaSalle projects a continued improvement of apartment fundamentals, if multifamily development in each market is kept in check. / PMA Up to the Minute, December 12, 2011
More Residents Moving Around the National Capital Region
The national capital region is defying national trends that show the lowest levels of mobility in the post-World War II era. More residents in the Washington, DC area moved around the region in 2010 than in 2009, according to recently released U.S. Census data and The Examiner. Almost 34,000 people over the age of 1 year moved from the District to Maryland or Virginia in 2010, up from about 29,000 in 2009. An additional 21,000 relocated from Maryland and Virginia to the District, up from about 16,000 in 2009. Movement between Maryland and Virginia was almost even, with 25,000 people having crossed the Potomac on each side. The number one reason for the higher than national average mobility is stronger job growth and a less depressed housing market. The Census' movement data include both homeowners and renters and serve as an indicator of where jobs are created and relocation preferences. / PMA Up to the Minute, November 28, 2011
Washington Area Developers Take a Chance with Speculative Office Projects
The Washington Post reports that speculative office projects have returned to the marketplace. More than half a dozen speculative office projects are underway despite the fact that leasing activity has softened considerably in the past six months, mostly because of cutbacks by Uncle Sam, and due to the difficulty finding financing for speculative projects. 1812 North Moore, a 581,000-square-foot building in Rosslyn, is the biggest speculative project in the region. Monday Properties that started the building's garage in 2010 believes that when it completes the project in 2013, the market will be strong. JBG Cos., Lerner Enterprises and the Macerich Co. are among the companies that are planning to build or have already started new office buildings without any tenants. D.C. may be the only commercial market in the country with speculative office construction. / PMA Up to the Minute, November 14, 2011
U.S. Fire Administration Advises Vigilance on Halloween Night
On both Halloween and the evening before, popularly called Devil's Night, the occurrence of fire increases in both structures and outdoors, warns the U.S. Fire Administration and the National Fire Protection Association. According to the Administration, arson fires on these days are nearly 10% higher than the national average. There is evidence that over a 3-day period around Halloween open flame fires increase by 50%, largely due to the increased use of candles. Alcohol and drugs may also contribute to the increased rates of Halloween fires given the popularity of costume parties or other celebrations where alcohol is served. Some communities have adopted fire-related "watch" programs during the Halloween period, with "some success," reports the Fire Administration. Be watchful while your residents and tenants are having fun--PMA is wishing you a happy and incident-free Halloween! / PMA Up to the Minute, October 31, 2011
Rental Vacancy Rates Drop in Maryland and Virginia, Go Up in DC
The Department of Commerce's Census Bureau released new data showing rental vacancy rates for the first two quarters 2011. In Maryland, the rates were 8.5% in the first quarter and 7.8% in the second quarter and in the District of Columbia - 7.3% in the first quarter and 8.2% in the second quarter. In contrast to DC and Maryland, in Virginia the rental vacancy rates were higher - 10.2% in the first quarter and 9.3% in the second quarter. National rental vacancy rates in the second quarter 2011 were 9.2%. The Bureau also reported that for rental housing by area, the second quarter 2011 vacancy rates inside principal cities (9.6%) were higher than in the suburbs (8.6%), but not statistically different from the rate outside Metropolitan Statistical Areas (9.1%). The rental vacancy rates in principal cities and in the suburbs were lower than a year ago, while the rate outside MSAs was not statistically different from the second quarter 2010 rate. / PMA Up to the Minute, October 17, 2011
Obama's Jobs Bill Offers Funding for Multifamily
The Jobs Bill proposed by President Obama includes $15 billion for Project Rebuild under the Neighborhood Stabilization Program (NSP) that can benefit multifamily owners and developers. It will provide funding to those of them who want to purchase, rehab or demolish foreclosed or otherwise blighted apartment buildings. Previously, only nonprofits and government agencies were allowed to compete for NSP funds. Project Rebuild will change that by allowing for-profit, private companies to compete for this money. About $5 billion are set aside to be distributed through competition to employ or house low-, moderate-, or middle-income individuals or families. Grantees will have to spend 100% of the money within three years. / PMA Up to the Minute, October 3, 2011
EPA Unveils Multifamily High-Rise Energy Star Program
The U.S. Environmental Protection Agency (EPA) announced that new multifamily high-rise residential buildings are now eligible to be considered Energy Star rated. To qualify for the Energy Star, new or substantially rehabilitated multifamily high-rises must meet EPA's energy-efficiency guidelines and be designed to be at least 15% more energy-efficient than the energy use standard developed by the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE). In addition, buildings should feature a combination of energy-efficient improvements including:
· Effective insulation systems
· Properly sized heating and cooling equipment
· Tight construction and ducts
· Energy Star qualified lighting and appliances
· High-performance windows
In the past, only single-family homes and low-rise multifamily buildings were eligible to earn the Energy Star. / PMA Up to the Minute, September 6, 2011
Record-High Housing Affordability Has Little Effect on Multifamily
Nationwide housing affordability during the first quarter of 2011 jumped to its highest level in the more than 20 years it has been measured, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). The HOI shows that 74.6% of all new and existing homes sold in the first quarter of 2011 were affordable to families earning the national median income of $64,400. Until 2009, the HOI rarely topped 65% and never reached 70%. Despite the fact that homeownership has become affordable to more households than it has been for more than two decades, it has little effect on the multifamily rental market because many potential buyers are weary of ongoing uncertainty about the economy and increasingly tighter criteria for obtaining a mortgage. In addition, there is a large pent-up demand for rental housing caused by people postponing new household formations due to economic reasons. NAHB estimates that more than 2 million household formations have been postponed. This trend is expected to offset the number of renters that will buy their own houses when the economy finally improves. / PMA Up to the Minute, August 22, 2011
Maryland's Montgomery County Approves Smoking Ban for Multifamily Residences
The Montgomery County Council approved a regulation that will prohibit smoking in certain common areas of multifamily communities and their playground areas. It will ban smoking within 25 feet of playground areas on privately owned property that has a primary purpose to serve residents of more then one dwelling. The ban will go into effect on Aug. 12. The regulation also will prohibit smoking in indoor common areas of multifamily properties, including hallways, lobbies and laundry rooms. "This regulation will not deny anyone their rights, but it will protect the rights of people who do not want to be impacted by second-hand smoke - particularly children," said Councilmember Leventhal. "People who live in multifamily communities do not have the choice to easily avoid the second-hand smoke created by others. Now those who want to avoid smoke in the common areas of the place they live will be able to do so." / PMA Up to the Minute, August 8, 2011
Apartment Vacancies Are Lowest in Three Years; Office Vacancies Also Dip
Declining vacancies and rising rents are welcome signs of the multifamily recovery nationwide, reports Reis Inc. In the second quarter of 2011, the average effective rent was $997, an increase from $974 a year ago. Second-quarter rents went up in all but two major markets. The apartment vacancy rate fell to 6% in the three months ended June 30 from 6.2% in the first quarter and 7.8% a year earlier. This rate is the lowest since the end of 2007, according to Reis. Office markets performance is also improving. From April to June, the U.S. office market reduced inventory by 3.7 million square feet of net occupied space, making it the third quarter to experience an occupancy increase, reports Reis. Office markets in San Francisco, Boston and New York posted the largest gains in effective rent growth. / PMA Up to the Minute, July 25, 2011
PMA Announces Rising Stars Program
PMA is launching a new program comprising a series of 13 half-day seminars. The new Rising Stars Program will help fill the gaps in skill sets and competencies of property management staff. Topics presented at the seminars will range from why and how to increase rent to leadership development and change management. Any member who attends 10 or more sessions will become a PMA Superstar and will be a member of the PMA Rising Stars Council. The cost of each session will be $125 per person. / PMA Up to the Minute, July 11, 2011
PMA Members Can Save Up to 28% on Shipping with UPS
We always have good news for members, but this one is especially nice. PMA is offering members an exclusive deal to save up to 28% on UPS shipping. To take advantage of this offer, go to the PMA page on the UPS web site and look for a headline, "Yes, Sign Me Up!" in the right-hand bar. If you already have an account with UPS, you can continue using it with PMA's discounted rates. If you don't have a UPS account, you will be able to create one and obtain PMA's discount. / PMA Up to the Minute, June 27, 2011
Demand for Green Building Materials to Grow 13% Annually Through 2015
U.S. demand for green building materials is projected to expand 13% annually through 2015, according to a study by the Freedonia Group. The rising demand is driven by increased availability, environmental concerns, stricter building codes and a rebounding construction industry. The largest value gains will come from concrete products featuring recycled content (e.g., fly ash, blast furnace slag), which will surpass floor coverings to become the largest green building material segment by 2015. Green floor coverings, primarily Green Label Plus-certified carpets and products made from fast-growing natural resources such as bamboo and cork, and sustainable doors are expected to grow by almost 12% annually through 2015, while insulation will grow by 14%. Green roofing materials will see the smallest annual growth at just 4.1%. Products expected to see fast growth through 2013 include water-efficient plumbing fixtures and fittings, and energy-efficient lighting. Demand for these products will benefit from regulations banning the sale of general-use incandescent lamps, as well as the expansion of the EPA's Water-Sense labeling program. / PMA Up to the Minute, June 13, 2011
ERC Study Claims Illegal Discrimination by DC Apartment Owners
Some DC owners illegally discriminate against apartment seekers with housing vouchers on a regular basis, claims a recent report by the Equal Rights Center based in Washington, DC. The study was conducted using housing testers. The report, Still in Search of Decent Housing, says 15% of 91 District's owners refused to accept housing vouchers when a potential resident inquired about using one. Refusing to accept a housing voucher violates DC law that protects against income discrimination. One example described in the report refers to a leasing associate that "immediately hung up the phone when the tester asked if he or she could use a [voucher] to pay rent." ERC's findings alerted the DC Housing Authority whose spokesperson said the 15% figure is "about right" and "that is not acceptable." The Washington Examiner reports that the agency has asked for the names of the properties that illegally refused tenants for outreach purposes. / PMA Up to the Minute, May 31, 2011
Number of Renters Paying 50% of Income on Rent at All Time High
Falling incomes and the recession have pushed both the number and share of renters spending more than 50% of income on rent and utilities to all time highs, according to a new report by Harvard University's Joint Center for Housing Studies. Nearly one in four renters fall into this category. Over the last decade, the number of renters spending 30% to 50% of their income on rent and utilities rose from 20.5% to 26.2%. In the Washington, DC metropolitan area, the share of renter households spending more than 50% of income on rent and utilities rose from 15.9% in 2000 to 21.5% in 2009. In the Baltimore, MD metropolitan market, these figures were 18.9% in 2000 and 27% in 2009. The growing shortage of affordable housing and rising energy costs are the primary reasons contributing to this trend. Household utility costs rose 22.7% from 2000 to 2010. Energy costs increased from 10.8% to 15% of renters' housing costs between 2001 and 2009. Lowest-income renters saw the largest increase, climbing from 12.7% to 17.4%.
For more information about rental market conditions, renter demographics, rental housing stock and policy challenges, see America's Rental Housing: Meeting Challenges, Building on Opportunities
PMA Up to the Minute, May 16, 2011
DC Shows Upsurge in Office Property Sales; Bargains Harder to Come By
Preliminary data for the first quarter of 2011 show that office property sales are increasing in top markets led by New York and Washington, DC, according to CoStar's first-quarter state of the office market outlook. New York and DC have each posted around $2 billion in office sales volume. The average year-to-date price in these markets totaled more than $300 per square foot. Prices were less than $100 per square foot in Tampa/St. Petersburg, Chicago, Philadelphia, Atlanta, Detroit and Phoenix. CoStar also reports that "investors are beginning to look more towards future income growth by targeting properties with higher vacancies." The average prices for nondistressed properties have remained relatively flat over the past year. Distressed property prices have increased by as much as 20% in the past quarter. Distress sales are expected to increase further in 2011, spurred by investor demand and improving market fundamentals. / PMA Up to the Minute, May 3, 2011
What It Takes to Win!
Celebrated real estate strategist Chris Lee (CEL & Associates) offered the following suggestions for winning the property management game during his PMEXPO keynote address:
· Set your vision and reset your priorities. Make sure everyone on your team is on the same page and they know what the priorities are and are focused on achieving them.
· Implement a collaborative business model. Collaboration works by desire. Cooperation works by necessity.
· Make sure you have a brand and a compelling story to tell. Become customer-centric and knowledge-driven. Understand what your residents and tenants want and deliver on their needs and desires.
· Specialize in your discipline. Focus on converting data into knowledge.
· Improve your systems. What are you doing that you can change for the better?
· Take advantage of competitors that are struggling. Hire their best people. Go after their customers.
· Make sure that everything you pursue is done with passion.
· Expand your service offerings to include asset management, appraisals and other ancillary services that enable you to offer a more complete service.
· Strengthen your capital base.
· Take care of your people. Success is the direct result of how well your staff performs.
PMA Up to the Minute, Apr. 19, 2011
Four Out of Five Renters Say Renting Has Been a Positive Experience
A recent Fannie Mae survey confirmed the general population's shifting preferences toward renting, with only two-thirds of the population considering buying a house a safe investment (a 16% decline from 2003). More people who move choose to rent rather than buy. One-third (33%) of the general population would rent. Of those who would rent again, more than one-third (34%) said they have no plans to own a house ever. While these and similar statistics show changing attitudes of Americans who look at renting in a increasingly favorable light, four out of five current renters say renting has been a positive experience. Conversely, 96% homeowners are pleased that they own their home. /PMA Up to the Minute, Apr. 5, 2011
ERC Has No Standing to Bring Discrimination Suit
The Equal Rights Center (ERC) has sued a number of property owners and managers for alleged violations of the Federal Fair Housing Act (FHA) and Americans with Disability Act (ADA). The proceeds of ERC efforts are used to provide counseling and education services that promote fair housing and to finance more litigation.
ERC sued Post Properties in November 2006 alleging that Post had "designed, constructed and operated its [apartment] complexes in a manner making them inaccessible to persons with disabilities in violation of the Fair Housing Act." ERC claimed more than $9 million in damages because Post had "directly and substantially injured" ERC's mission to eradicate housing discrimination. Post filed a summary judgment motion, claiming ERC's damages were voluntarily incurred because the company elected to investigate and bring suit. Damages suffered were self-inflicted. A District court agreed and ruled for Post.
On March 18, 2011, a US Court of Appeals upheld the summary judgment motion. The appellate court stated that spending money on research and litigation does not in itself constitute an injury. The litmus test should be if those expenditures respond to, and counteract a defendant's alleged discriminatory practice rather than in anticipation of litigation. To prove damages, ERC needed to show if Post's alleged violations of FHA injured ERC's interest in promoting fair housing and if ERC used its resources to counteract those injuries.
During depositions, a former ERC executive director testified that he was unaware of how Post had frustrated ERC's mission or caused ERC to divert resources. The court also found that more than two years after filing suit, Counsel for ERC stated that "at least some, and perhaps all, of the expenses" it cited as damages for programs "had not yet been incurred." The court concluded that ERC's actions were focused on putting legal pressure on Post and not dedicated to resolving fair housing problems. /PMA Up to the Minute, Mar. 21, 2011
Commercial Property Values Are on the Rise
Commercial property values ticked up in February and have increased more than 10% since mid-2009, according to data from Green Street Advisors. The Green Street Advisors Commercial Property Price Index rose by 1% in February. However, transaction volume remains low and values are still off by roughly 30% from the 2007 peak. "The good news is that pricing has been firming since the middle of '09, especially in the last six months," commented Mike Kirby, Green Street's director of research. "Sellers are feeling less pressure to act, the outlook for fundamentals has become clearer, well-capitalized buyers are becoming plentiful, and return requirements across capital markets have come down. The bad news is that pricing is still far below the levels that prevailed from '05 through '07."/PMA Up to the Minute, Mar. 7, 2011
Further Tightening of Apartment Sector Expected Near-Term
The apartment industry continues its broad-based recovery, according to the National Multi Housing Council's (NMHC) latest Quarterly Survey of Apartment Market Conditions. NMHC reports that for the second consecutive quarter, 60% of respondents said markets were tighter (lower vacancies and/or higher rents) than three months ago. The Market Tightness Index recorded its second-highest January reading on record at 78. (A reading above 50 indicates improving market conditions.) "Rising apartment demand reflects a drop in demand for homeownership in today's marketplace," said NMHC Chief Economist Mark Obrinsky. "This growing demand against the backdrop of the lowest apartment starts in 40 years - barely enough to offset the units lost to demolition and obsolescence - will result in further tightening in the apartment sector in the near term."/PMA Up to the Minute, Feb. 22, 2011
President Introduces Better Buildings Initiative
In his speech at Penn State University on Feb. 3, President Obama introduced the Better Buildings Initiative, which focuses on making commercial buildings 20% more energy efficient over the next decade. The initiative seeks to reduce energy bills by about $40 billion per year through facility upgrades and to boost the private sector's commitment to save energy. Achieving the goals outlined by the President could be good news for property managers. They include new tax incentives that would increase current deductions for commercial building upgrades and more financing opportunities for commercial retrofits. In addition, the President's budget proposes a new pilot program run by the Department of Energy to guarantee loans for energy-efficiency upgrades at hospitals, schools and other commercial buildings./PMA Up to the Minute, Feb. 7, 2011
High Barrier to Entry Will Suppress Fast Growth of New Apartment Supply, Keep Vacancies Tight
Favorable demographic trends, improving supply/demand metrics and lower construction costs will stimulate apartment development in 2011. According to CoStar Group, this year 22,536 units will be added to the nation's apartment supply, followed by up to 94,588 units in 2012 and more than 109,000 units in 2013. By 2015 CoStar forecasts development will ramp up to its 10-year historical average. However, some high-barrier-to-entry metro areas such as Boston, San Francisco, Washington, DC, and New York may see slower delivery of new projects. As a result, vacancies there will be tight, helping owners realize solid rent increases. /PMA Up to the Minute, Jan. 24, 2011
2011 Might Be a Great Multihousing Year
Get ready for continued firming of apartment demand this year. Global research Consulting-Econometrics Advisors at CB Richard Ellis forecasts that by the end of this year, the average apartment rent will approach $1,130 per unit. This figure is only 3% below the $1,167 average rent registered at the height of the apartment market in the third quarter of 2008. Further declines in homeownership and a significant number of foreclosures were primary reasons for multihousing growth in 2010 and will continue to affect the apartment market in the nearest future. According to government data, the third quarter homeownership rate stood at 66.9%, down from its peak level of 69.2% in the fourth quarter of 2004 during the condo boom. Apartment industry experts say every 1% drop in the homeownership rate translates into more than 1 million new renters. As for foreclosures, a record 2.82 million homes were foreclosed in 2009, and 2010 was expected to generate another million of foreclosures. The latest foreclosure statistics show that in October 2010, one in every 389 housing units received a foreclosure notice. /PMA Up to the Minute, Jan. 11, 2011
GSA Requires LEED Gold Requirement for New Construction and Major Renovation Projects
The U.S. General Services Administration (GSA) confirmed new sustainability requirements for new construction and substantial renovation projects. At a minimum, these projects now must be certified at LEED Gold level. According to GSA, for new projects that were funded prior to FY 2010 and are currently in design, LEED Gold will be required to be incorporated into designs only where possible, considering budget and schedule constraints containing in existing contracts. Previously, GSA required that federal tenants lease in buildings that are LEED Silver-certified. The LEED Silver certification will still be applicable to leases of 10,000 square feet or more in newly built space. For leases in existing buildings, tenant agencies are allowed to request LEED for Commercial Interior as an option. /PMA Up to the Minute, Dec. 28, 2010
New Bill Seeks to Modify Fair Housing Law
Rep. Jerrold Nadler (D-NY) in partnership with Rep. John Conyers (D-Mich.) and Rep. Edolphus Towns (D-NY) introduced the Housing Opportunities Made Equal (HOME) Act, seeking to revise the Fair Housing Act by extending federal civil rights protections to people based on their sexual orientation, gender identity or source of income. If enacted, the HOME Act would add protections based on marital status and bolster existing protections for people who are discriminated against after they have already rented or purchased a home. The definition of familiar status would also be modified to include nontraditional family types. The current Fair Housing Act does not explicitly extend protections to lesbian, gay, bisexual or transgendered people or those who pay for housing with government assistance. /PMA Up to the Minute, Dec. 14, 2010
Consumers Flock to Apartments: Number of Renter-Occupied Units Approaches Its Decade High at 34.7%
After peaking at a historical high of 67.3% in 2006, the proportion of owner-occupied units versus renter-occupied units has steadily declined in recent years, according to the most recently released data from the American Community Survey, conducted by the U.S. Census Bureau. The data confirm the trend of American households financially and electively precluding themselves from homeownership as a response to current economic conditions. The proportion of renter-occupied units (both multifamily and single family) reached 34.1% in 2009. This figure is approaching its decade high of 34.7%. Statistics from the September Fannie Mae National Housing Survey offer additional insight: Only 67% of Americans think that buying a house is a safe investment. In 2003, 80% of Americans considered housing a great place to stash their cash. /PMA Up to the Minute, Nov. 30, 2010
Apartment Industry Continues to Gather Strength
The apartment market continued to gather strength during the last three months, according to the National Multi Housing Council's Quarterly Survey of Apartment Market Conditions released in November. Debt and equity are more available than last quarter and markets are tighter, NMHC reports. The Sales Volume Index increased from 78 to a record high of 84. For this and other NMHC indexes figures above 50 indicate improving market conditions, and this was the fifth consecutive quarter this index has been above 50. Other key NMHC findings show some improvement in borrowing conditions (the Debt Financing Index increased from 81 to 82), better availability of equity financing (the Equity Financing Index decreased slightly from a record 73 to 70, but it's been well above 50) and increased occupancies. The Market Tightness Index, which NMHC uses to measure changes in occupancy rates and/or rents, went down from 83 to 77, but remained well above the "break-even" mark of 50. Sixty percent of respondents said markets were tighter, meaning lower vacancies and/or higher rents, according to the survey. /PMA Up to the Minute, Nov. 15, 2010
Class-Action Suit Targets USGBC, LEED
Last month, the U.S. Green Building Council (USGBC) and its founders were named in a class action lawsuit filed in federal court on behalf of Henry Gifford, owner of Gifford Fuel Saving. The suit alleges that USGBC is fraudulently misleading consumers and fraudulently misrepresenting energy performance of buildings that are LEED-certified. Among other allegations is that LEED is harming the environment by leading consumers away from using proven energy-saving strategies, according to the lawsuit. Other claims refer to deceptive business practices, false advertising under New York State law, wire fraud and unjust enrichment. The suit demands that USGBC end deceptive practices and pay $100 million in compensation to victims./PMA Up to the Minute, Nov. 2, 2010
Jones Lang LaSalle Reports Positive Fundamentals for DC Metro Office
The national capital area's office market is on its way to recovery, according to a Jones Lang LaSalle 3rd quarter report. Office properties in Bethesda, Rosslyn/Ballston as well as in Southeast, Southwest and NoMa have reduced concessions and are asking higher rents. Leasing activity is 29.1% higher than a year ago. The DC metro area's office tenants have absorbed 4.2 million square feet of space year to date. Considering that historical occupancy averages in the region are 4 million square feet, it is an especially encouraging sign. The Bethesda and Rosslyn/Ballston submarkets are particularly well positioned and could see rent spikes in 12 to 18 months. JLL also reports that developers are looking forward to even higher demand in the next two years and are beginning to consider giving the green light to new projects./PMA Up to the Minute, Oct. 18, 2010
Family Files $500,000 Bed Bug Lawsuit in Howard County, MD
Two residents of a Howard County apartment community are suing the owners for half a million dollars over bed bugs. The residents claim that they and their three-year-old daughter were bitten nightly by the insects and forced to move out of their apartment, discard most of their furniture and all their daughter's toys. The child is suffering skin discolorations from bed bug bites, and her mother is undergoing a treatment for insomnia and emotional trauma because of the bed bugs. The resident's lawyer also is representing a woman who filed a bed bug suit in September against the owner of a Cockeysville, MD, apartment complex, which is believed to be the first bed bug-related lawsuit in Maryland. The incidence of suits is expected to increase./PMA Up to the Minute, Oct. 4, 2010
More People Rent by Choice
Sixty percent of today's apartment renters are renters by choice, according to a recent survey by Apartments.com. Survey participants listed maintenance-free living as the top reason for renting by choice followed by having access to amenities such as a clubhouse and a well equipped fitness center. They also mentioned the ability to live in a nice neighborhood that otherwise would be unaffordable and the freedom to relocate at their convenience. The survey found that approximately 30% of the nation's pool of renters are entering the apartment market for the first time, and 34% have been apartment dwellers for four years or less. Apartments.com also reports registering "record-breaking traffic" during the first six months of 2010./PMA Up to the Minute, Sep. 21, 2010
