Silicon Valley & Peninsula Multifamily eNews – December 2016

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The Apartment Industry Reacts to a Trump Presidency
Multifamily Executive asks a few multifamily executives to share their thoughts on how they think the new administration will affect their businesses, in both the near and long terms. How will this affect building owners?  read more

The Market is Betting Trump Will Bring Higher Interest Rates
The bond market is, as a rule, a more reliable guide to what global investors believe the future will look like, rather than the erratic stock market. On Wednesday, bond markets sent one signal loud and clear, that the Trump years are likely to feature higher inflation, and higher interest rates, than have prevailed in recent years.   read more

A Return to Normal Rent Growth
The national average apartment rent fell by $3 in October to $1,216 from $1,219, three times the amount it fell last month, according to the Matrix Monthly report by Yardi Matrix. This is the second average apartment rent decrease since November 2015, and the steepest month-over-month drop since October 2013. However, rents grew by 4.4% on a year-over-year basis in October, down 30 basis points (bps) from September’s year-over-year growth, but up 230 bps from October 2015.  read more

Rent Control Measures That Lived and Died
Residents of five Bay Area cities decided on new rent control proposals: Alameda, Burlingame, Mountain View, Richmond and San Mateo. Oakland voters also decided on whether to strengthen existing rent control and eviction policies. Here’s a full list of the rent control measures put on the ballot by tenants rights activists and the results from the election at publication time.  read more

Housing Market Becomes More Pessimistic, FNMA Survey Finds…
A home-buying sentiment index from Fannie Mae weakened for the third straight month in October, a sign the market’s momentum may be faltering.“Since July, more consumers, on net, have steadily expected mortgage rates to rise and home price appreciation to moderate,” said Fannie chief economist Doug Duncan in a statement. “Furthermore, consumers’ perception of their income over the past year deteriorated sharply in October to the worst showing since early 2013.”  read more

But the Economy Keeps Chugging Along
The U.S. labor market continues to show signs of gradual strengthening, with newly released government data showing the economy added 161,000 jobs last month. Annual wage growth surged to levels not seen since the financial crisis, while the unemployment rate dipped to 4.9 percent in October from 5 percent the previous month.  read more

Buyers Market Expected by 2019 In Single Family Housing 
The balance of power in the US housing market will shift from sellers to buyers by 2019, according to experts surveyed by Zillow. This, of course, will have an impact on rents and values in the multifamily market.  read more

It’s Not a “Housing Crisis” for Everyone
Renters have long struggled with soaring rents in some of the top housing markets in the US. In San Francisco, it’s called the “Housing Crisis”, because middle-class households, such as teachers, can no longer afford to rent – with the median one-bedroom apartment going for $40,000 a year and a two-bedroom for $56,000…But who is renting these high-dollar apartments? Isn’t renting supposed to be for folks at the lower end of the income spectrum, with higher-income folks buying houses and condos?  read more

San Jose HCDC Will Review Rent Control Ordinance Input
The HCDC will review input received over the last few weeks, from our public outreach, on important questions that were asked on how to implement the Apartment Rent Ordinance, Ellis Act, and Anti-Retaliation & Protection Ordinance. The Commission will also be able to provide their input. The HCDC meeting will be held on Monday, December 5, at 5:45 pm, at San José City Hall.  read more

New Rental Survey is Completed
Interested in the rental rates for properties in your area? Contact me for a copy of our Rental Trends Report. If you’re not keeping your rents to market level then you’re not maximizing the income, return, and value that your multifamily asset can provide. Contact Michael Shields via email or at 408-356-1900 for details or for a copy of the report for your area.

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