RubinBrown Apartment Stats 2013

Executive Summary

However, the industry does have some wild cards looming on the horizon. Besides the potential threat of oversupply in the coming years, pending legislation could have a substantial effect on the industry’s continued growth – namely in the affordable housing and tax credit arenas – as the extensions passed early in 2013 are set to expire in 2014. Budget reform is expected to take center stage again when Congress meets in early 2014. Despite the strengths of the industry’s mission and overall community impact, it is uncertain the impact the pressure to pass a balanced budget will have on programs essential to the industry. RubinBrown invites you to utilize this study as a development and management tool to compare your financial operations to the operating results of your peers. This study also provides sound comparable data to utilize in formulating an acquisition model. Like all compilations of data, it will be most useful when carefully and properly interpreted. We sincerely thank everyone who took time to participate in RubinBrown’s survey.

As apartment owners look into the future, the focus will begin to shift toward pricing power. Price increases will be less effective at making up for increased vacancies as most units have already been priced as expensive as possible during the days of record low vacancy rates. All in all, the multifamily housing market is still poised to continue to perform very well, even as the recent growth rate and record vacancy rates stabilize. A RubinBrown survey conducted in January 2013 of clients and colleagues showed that 50.0% of those surveyed were considering starting new developments in 2013, 21.5% were considering asset or GP acquisitions, 21.4% were considering selling or repositioning properties in their current portfolios, and only 7.1% were not planning growth opportunities. Conclusion Current economic and social trends point towards a solid and healthy multifamily market through at least 2015. The continued slow recovery felt in the single family housing market as well as the current shift in the rent versus buy perspective remain impactful on the industry’s recovery.

2 | RubinBrown Apartment Stats 2012