Finding a real estate market that fits your investment goals seems to be getting tougher and tougher. With markets tightening up across the state, investors are starting to feel it. Now, more than ever, investors need to be tracking investment market data – looking for trends and analyzing data to find viable markets.
Investors may be familiar with Yardi for property management services, but did you know they also offer comprehensive market research and data software? This system allows real estate investors to track investment market data on a national level, or zero-in on specific markets and sub-markets.
This episode, we welcome from Yardi Matrix: Senior analyst and editorial contributor, Chris Nebenzahl, and research and data analyst, Doug Ressler.They discuss what investors need to know about tracking investment market data. They also offer up an update on Florida’s commercial and multifamily markets.
Florida Multifamily Overview
Rent growth and development strong overall
Focus on A + Super A properties
Increasing demand for B + C properties, but limited supply
B + C properties seeing value-add opportunity
Florida Multifamily Market Highlights
Miami and Orlando: 9000 expected multifamily developments for completion, 2017
Tampa: 7200 expected multifamily developments for completion, 2017
Development expected to crest after 2017
Rapid rent growth may pose affordability issues in Miami/SFL
The Federal Reserve is institution many are aware of. As the central bank of the United States, it serves as the standard for banking as well as regulates and moderates national interest rates. What many don’t know is that the Federal Reserve also has many other responsibilities.
Carl D. Hudson, Ph.D. is the Director of the Center for Real Estate Analytics at the Federal Reserve Bank Atlanta. The Atlanta division of the Fed (1 of 12) oversees much of the Southeast U.S., including Florida. Dr. Hudson is responsible for identifying and analyzing systemic impacts in real estate, economy, financial institutions and consumers. This week he shares his insights on the post-recession rates of Florida’s real estate market and its relation to the rest of the nation.
Florida is real estate market economy
Immigration major factor in FL real estate market
2000-2007 – >300k/ year in population growth
2008-2009 – <100k/ year
Economy is improving slowly
FL employment growth rates – 3.4% annually, highest in Southeast U.S.
Only .2% growth from pre-recession peak
Interest Rates may see increase over time
Short-term rate increases likely
Indicative of returning economy
No dramatic increases
Multi-Family markets in FL
40% year-after-year construction growth rates
Major Markets: Tampa, Ft. Lauderdale, Miami, Jacksonville, Orlando seeing positive trends in construction
Largely driven by foreign market
July 2012: 4200 units under construction; June 2015 20,000 units under construction
Strengthening of U.S. dollar may inhibit foreign investment
Lower rates than pre-recession, but functioning at rates equivalent to early 2000s
Changes to investing
Prior to recession – financing investment involved a deposit
Post-recession – “pay as you go” financing on the rise
Greater commitment to investment, not easy to walk away
Growth trends for Florida?
Panama Canal reopening could mean major impacts on East Coast port cities
In FL – Jacksonville, Tampa, Miami, Ft. Lauderdale
To find out more from Dr. Hudson’s department, visit The Federal Reserve Bank of Atlanta’swebsite and click the Center for Real Estate Analyticslink
Click here to read the President of the Atlanta Federal Reserve, Dennis Lockhart‘s speech on the national economy