Multifa mily MUL T IF AMIL Y Ma rke t Re vie w 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 oug 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. T he Cha ng ing L a ndsc a pe Sources: RCLCO, Pew Research
“The move toward “Last year, according to apartment construction census data, reflects the convergence of construction was started several trends…mortgage on a little less than one credit still tight…muted million new residential wage gains…high student units, and about 1 in 3 of debt loads…larger those was a rental in a numbers of young adults multifamily building…” 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% 1,500 1,000 500 Demand is 0 expected to continue to outpace Supply 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? 0.5% 0.4% 0.4% 0.3% Norfolk/Hampton Road 0.3% 0.2% South Atlantic 0.2% United States 0.1% 0.1% 0.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 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 om outside of 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 own Ce nte r: Encore A lot of ne w a dditions Summer House Indigo19 Aqua Mayflower
T rue o r F a lse : Yo u Ca n Ne ve r Ha ve T o o Muc h o 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
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