RubinBrown Apartment Stats 2020
Each year, data is collected from our clients, as well as other contacts and referrals within the industry, to comprise averages in a variety of markets within the United States.
’20
APARTMENT STATS
A publication by RubinBrown LLP
Contents
RubinBrown is pleased to present the 2020 Apartment Statistical Analysis, an annual survey compiled by the Real Estate Services Group.
1 Executive Summary 3 Comparison of Operations 4 Government Assisted 8 Government Assisted by Region 10 Government Assisted by Project Size 12 Low Income Tax Credit Projects 14 Market Rate 16 RubinBrown Real Estate Services Group
Each year, data is collected from our clients, as well as other contacts and referrals within the industry, to comprise averages in a variety of markets within the United States. The accompanying statistical information includes operational data for 2019 and represents approximately 800 apartment projects in roughly 40 states. While these averages are representative of a smaller pool of projects, the trends are usually consistent with those experienced at the national level. If you have questions about the content of this publication, please contact us (see page 17 for contact information).
Disclaimer: Apartment Stats, a publication of RubinBrown LLP, is designed to provide general information regarding the subject matter covered. Although prepared by professionals, its content should not be construed as the rendering of advice regarding specific situations. If accounting, legal, or other expert assistance is needed, consult with your professional business advisor. Please call RubinBrown with any questions.
www.RubinBrown.com
RubinBrown Apartment Stats 2017
ii
EXECUTIVE SUMMARY
The Outlook for Affordable Housing by Emily Cadik, guest writer from Affordable Housing Tax Credit Coalition
The Road Ahead: What We Know There is already a slate of broadly supported, well-vetted proposals to strengthen our nation’s affordable housing poised for advancement in any political climate. Even in this period of hyper-partisanship, the Affordable Housing Credit Improvement Act, legislation to expand and strengthen the Housing Credit, has the support of more than half of the House of Representatives and more than one-third of the Senate – ranging from members of the Freedom Caucus to Democratic Socialists. Advocacy from the affordable housing community over many years (taking members of Congress to see developments and meet with residents firsthand, meeting with members of Congress and staff on Capitol Hill, and now virtually) has paid dividends in terms of the depth and breadth of support we have built. The question is not if there is support for the Housing Credit, but rather when we will get some of our top priorities across the finish line. With Democrats retaining control of the House, we know that House Democratic leadership, including Speaker Nancy Pelosi (D-CA) and House Ways and Means Chairman Richie Neal (DMA), have been committed to expanding and strengthening the Housing Credit. There also are tenacious champions for the program on both sides of the aisle in Representatives Suzan DelBene (D-WA) and Jackie Walorski (R-IN). The House has passed sweeping legislation, which has stalled in the Senate, that would make nearly a dozen changes to significantly expand and strengthen the Housing Credit while also providing $100 billion in rental assistance, which we expect to remain a priority in 2021. We also know that, regardless of which party controls the Senate, the leaders of the Senate Finance Committee that oversees the Housing Credit, current Ranking Member Sen. Ron Wyden (D-OR) and upcoming leader Sen. Mike Crapo (R-ID), are strong supporters of the Housing Credit and affordable housing generally. Whereas outgoing Senate Finance Committee Chairman Chuck Grassley (R-IA) was largely focused on oversight, there are more potential areas of overlap between Sen. Crapo and Sen. Wyden’s agendas, including housing.
The COVID-19 crisis has provided a powerful reminder of the need for a safe home, and since it began, we have seen growing political awareness of the now staggering need for affordable housing. But, the past few months have also seen excruciating legislative gridlock that has prevented even modest bipartisan solutions from advancing. Congress had initially planned for five phases of COVID-19 relief legislation, but has yet to come to an agreement on anything past the CARES Act, which was signed into law in March, meaning there are still two phases left to go. Ever since the passing of Supreme Court Justice Ruth Bader Ginsburg, the prospect for bipartisan compromise on additional relief has waned further. But, the climate in Washington changes by the hour, and there could be any of a number of events forcing parties back to the negotiating table over the coming weeks and months. Most immediately, the Affordable Housing Tax Credit Coalition and their partners are urging Congress to keep affordable housing production moving forward by enacting measures related to the Low-Income Housing Tax Credit (Housing Credit), while also providing sorely needed rental assistance to help keep renters housed. The most immediate issue facing the Housing Credit is that the so-called “4 percent” Housing Credit rate has fallen to an all-time low of 3.07% as a result of the cuts to federal borrowing rates. A minimum 4% rate is needed to allow developments to move forward. But longer term, additional resources — including an expansion and strengthening of the Housing Credit — will be needed to build more affordable housing that can stabilize the growing number of households in need and stimulate the economy. In addition to affordable housing production, there is a need for a substantial infusion of rental assistance. Though recent eviction moratoria provide a temporary reprieve for some renters, rental assistance is imperative to ensure overdue rent payments can be paid back.
Executive Summary
1
EXECUTIVE SUMMARY
And, strong Senate champions on both sides of the aisle in Sen. Maria Cantwell (D-WA) and Sen. Todd Young (R-IN). The Congressional Landscape Legislation that has already passed the Democratic House, and has the support of the Senate Democrats and the Biden team, is ready for advancement at the beginning of the next Congress. This includes House-passed COVID-19 relief legislation and infrastructure legislation, which taken together would authorize well over $200 billion in additional housing resources, including an expansion of the Housing Credit. Few facts remain clear, there is growing awareness of the need to take meaningful action on affordable housing, thoughtful legislative solutions are at the ready, and sustained advocacy and education from the affordable housing community has laid a strong foundation to make housing a key part of our nation’s recovery.
While we usually look at historical perspectives in our annual Apartment Statistics publication Executive Summary, this year, we thought it more valuable to look ahead. With COVID-19 changing all aspects of the affordable housing industry, it’s important to take a deeper look at where we go from here and how the landscape in Washington could alter the industry in the future.
Real Estate Services Blog The RubinBrown Real Estate Services Blog is a value-added approach keeping clients and contacts informed about current, relevant topics affecting the real estate industry. www.RubinBrown.com/RealEstateBlog
RubinBrown Apartment Stats 2020
2
COMPARISON OF OPERATIONS
Government Assisted
Market Rate
Total Number of Projects
787
12
Average Project Age In Years Average Number of Units
11.39
12.45
108
164
Averages Per Unit: Monthly Rent
865 910 4.47
1,092 1,087
Square Feet
Rooms
4.19
Economic Occupancy
92.1%
98.7%
Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income
38.8%
45.9%
A
B
C
A
B
C
Revenues Gross Potential Rent Less: Vacancy Loss
10,354
11.38
100.0%
13,101
12.05
100.0%
(822) (126)
(0.90) (0.14) (0.06)
-7.9% -1.2% -0.5% 90.4%
(172)
(0.16) (0.02) (0.04)
-1.3% -0.2% -0.3% 98.2%
Collection Loss
(24) (42)
(55)
Concession Loss
Rent Collected Other Income Total Income
9,351
10.28
12,863
11.83
611
0.67
5.9%
198
0.18
1.5%
$9,962
$ 10.95
96.3%
$13,061
$12.01
99.7%
Expenses Salaries and Personnel
1,143
1.26 0.69 0.07 0.54 1.01 0.09 0.07 0.12 0.08 0.04 0.05 0.04 1.20 0.44 0.66 0.34
11.0% 6.0% 0.6% 4.7% 8.8% 0.8% 0.6% 1.0% 0.7% 0.4% 0.5% 0.4% 3.9% 5.8% 3.0% 10.5% 58.7%
1,319
1.21 0.29 0.24 0.50 0.96 0.09 0.06 0.13 0.08 0.30 0.02 0.02 1.13 0.36 1.06 0.05
10.1%
Administrative
624
318 266 549
2.4% 2.0% 4.2% 8.0% 0.7% 0.5% 1.1% 0.6% 2.5% 0.1% 0.2% 9.4% 3.0% 8.8% 0.4%
Marketing
66
Management Fees
487 915
Utilities
1,046
Carpeting
86 62
94 65
Painting
Landscaping
108
141
HVAC
75 39 49 38
85
Appliances
322
Plumbing Electrical
19 25
Other Repairs and Services
1,088
1,228
Insurance
403 599 313
392
Real Estate Taxes
1,152
51
Other Taxes
Total Expenses
$6,095
$6.70
$7,072
$6.50
54.0%
Net Operating Income Before Debt Service and Depreciation
$3,867
$4.25
37.6%
$5,989
$5.51
45.7%
Capital Expenditures
$(142)
$(0.16)
-1.4%
$293
$0.27
2.2%
A = Dollars per unit, per year
B = Dollars per square foot, per year
C = Percent of gross potential rent
Comparison of Operations
3
GOVERNMENT ASSISTED
2019
2018
2017
Total Number of Projects
787
736
701
Average Number of Units
108
107
105
Averages Per Unit: Monthly Rent
$865
$834
$ 767
Square Feet
910
908
923
Rooms
4.47
4.48
4.50
Economic Occupancy
92.1%
92.0%
92.3%
Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income
38.8%
34.9%
34.5%
A
B
C
A
B
C
A
B
C
Revenues Gross Potential Rent Less: Vacancy Loss
10,354
11.38
100.0%
$10,010
$11.02 (0.88) (0.15) (0.07)
100.0%
$9,208
$9.98
100.0%
(822) (126)
(0.90) (0.14) (0.06)
-7.9% -1.2% -0.5% 90.4%
(801) (137)
-8.0% -1.4% -0.7% 89.9%
(708) (130)
(0.77) (0.14) (0.05)
-7.7% -1.4% -0.5% 90.4%
Collection Loss
Concession Loss
(55)
(68)
(46)
Rent Collected
9,351
10.28
9,004
9.92 0.73
8,324
9.02 0.80
Other Income
611
0.67
5.9%
667
6.7%
742
8.1%
Total Income
$9,962
$10.95
96.3%
$9,671
$10.65
96.6%
$9,066
$9.82
98.5%
Expenses Salaries and Personnel
$1,143
$1.26
11.0%
$1,117
$1.23
11.2%
$1,087
$1.18
11.8%
Administrative
624
0.69 0.07 0.54 1.01
6.0% 0.6% 4.7% 8.8%
735
0.81 0.09 0.54 1.02
7.3% 0.8% 4.9% 9.3%
735
0.80 0.08 0.50 0.96
8.0% 0.8% 5.0% 9.7%
Marketing
66
82
78
Management Fees
487 915
494 928
461 890
Utilities
All Repair, Maintenance and Contract Services
1,545
1.70
14.9%
1,595
1.75
15.9%
1,477
1.61
16.1%
Insurance
403 599 313
0.44 0.66 0.34
3.9% 5.8% 3.0%
360 703 283
0.40 0.77 0.31
3.6% 7.0% 2.8%
333 577 302
0.36 0.63 0.33
3.6% 6.3% 3.3%
Real Estate Taxes
Other Taxes
Total Expenses
$6,095
$6.70
58.7%
$6,297
$6.93
62.9%
$5,940
$6.45
64.6%
Net Operating Income Before Debt Service and Depreciation
$3,867
$4.25
37.6%
$3,374
$3.72
33.7%
$3,126
$3.37
33.9%
A = Dollars per unit, per year
B = Dollars per square foot, per year
C = Percent of gross potential rent
RubinBrown Apartment Stats 2020
4
AVERAGE MONTHLY RENT PER UNIT
2016
2015
$1,000
562
425
$865
$900
$834
$802
$750
$767
106
109
$800
$700
$802
$750
$600
899
951
4.50
4.41
$500
2019
2018
2017
2016
2015
92.1%
90.0%
35.4%
31.0%
ECONOMIC OCCUPANCY
100%
A
B
C
A
B
C
90%
80%
$9,514
$10.58 (0.83) (0.15) (0.10)
100.0%
$9,004
$9.47
100.0%
70%
(749) (134)
-7.9% -1.4% -0.9% 89.8%
(617) (167) (104) 8,116
(0.65) (0.18) (0.11)
-6.9% -1.9% -1.2% 90.0%
60%
(88)
50%
8,543
9.50 0.73
8.53 0.37
40%
661
6.9%
353
3.9%
30%
$9,204
$10.23
96.7%
$8,469
$8.90
93.9%
20%
10%
0%
92.0%
92.3%
92.1%
92.1%
90.0%
$1,079
$1.20
11.3%
$1,211
$1.27
13.5%
560
0.62 0.08 0.53 0.98
5.9% 0.7% 5.0% 9.2%
487
0.51 0.07 0.50 0.97
5.4% 0.7% 5.2%
2019
2018
2017
2016
2015
71
62
476 879
471 925
10.3%
GROSS POTENTIAL RENT V.S. NET OPERATING INCOME PER SQUARE FOOT
1,645
1.83
17.3%
1,680
1.76
18.6%
367 578 288
0.41 0.64 0.32
3.9% 6.1% 3.0%
369 510 129
0.39 0.54 0.14
4.1% 5.7% 1.4%
$4.25 $11.38
2019
$3.72 $11.02
2018
$3.37 $9.98
$5,943
$6.61
62.4%
$5,884
$6.15
64.9%
2017
$3.63 $10.58
2016
$3,261
$3.63
34.3%
$2,625
$2.75
29.0%
$2.75 $9.47
2015
GROSS POTENTIAL RENT
NET OPERATING INCOME
Government Assisted
5
GOVERNMENT ASSISTED
EXPENSE TRENDS PER UNIT
2019
$1,143
$1,117
2018
Salaries and Personnel
$1,087
2017
2016
$1,079
2015
$1,211
$690
$817
Administrative and Marketing
$813
$631
$549
$1,545
$1,595
Contract Services and Repairs & Maintenance
$1,477
$1,645
$1,680
$1,315
$1,346
Taxes and Insurance
$876
1,212
$1,233
$1,008
$0
$250
$500
$750
$1,000 $1,250 $1,500
$1,750
RubinBrown Apartment Stats 2020
6
GOVERNMENT ASSISTED BY REGION
North
East/Northeast
Midwest
South/Southeast
Total Number of Projects
28
71
512
102
Average Project Age In Years Average Number of Units
17.26
14.62
10.93
10.68
110
121
105
95
Averages Per Unit: Monthly Rent
905 976 4.44
983 947 4.77
820 843 4.33
844 890 4.85
Square Feet
Rooms
Economic Occupancy
92.0%
92.1%
92.6%
89.3%
Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income
35.1%
40.1%
40.0%
30.9%
A
B
C
A
B
C
A
B
C
A
B
C
Revenues Gross Potential Rent Less: Vacancy Loss
10,632
10.90 100.0%
11,796
12.46 100.0%
9,799
11.63 100.0%
10,132
11.39 100.0%
(854) (0.88) (105) (0.11) (45) (0.05)
-8.0% -1.0% -0.4% 90.6%
(937) (0.99) (126) (0.13) (21) (0.02)
-8.0% -1.0% -0.4% 90.6%
(725) (0.86) (114) (0.14) (46) (0.05)
-7.4% -1.2% -0.5% 90.9%
(1,082) (1.22) -10.7%
Collection Loss
(163) (0.18) (93) (0.10)
-1.6% -0.9% 86.8%
Concession Loss
Rent Collected
9,628
9.85 0.78
10,712
11.32
8,914
10.58
8,794
9.89 0.54
760
7.1%
674
0.71
5.7%
572
0.68
5.8%
483
4.8%
Other Income
$9,486 $11.26
96.7%
$9,277 $10.43
91.6%
$10,388 $10.63
97.7% $11,386 $12.03
96.3%
Total Income
Expenses Salaries and Personnel
$1,104
$1.13
10.4% 5.9% 0.6% 4.6% 2.2% 1.5% 1.0% 0.8% 0.3% 0.6% 0.5% 3.5% 6.9% 3.3% 10.7% 10.7%
$1,148
$1.21
9.7% 5.7% 0.6% 4.6% 9.2% 1.6% 0.4% 1.1% 0.7% 0.5% 0.7% 0.5% 3.4% 6.6% 2.3%
$ 1,106
$1.31
11.3% 5.7% 0.6% 4.6% 8.5% 0.5% 0.6% 0.8% 0.8% 0.4% 0.4% 0.3% 3.7% 6.3% 3.1% 10.6%
$1,253
$1.41
12.4%
Administrative
626
0.64 0.07 0.50 1.16 0.24 0.17 0.11 0.08 0.04 0.06 0.06 1.17 0.38 0.75 0.35
667
0.70 0.07 0.58 1.15 0.20 0.05 0.14 0.09 0.06 0.09 0.06 1.26 0.42 0.83 0.28
560
0.66 0.07 0.53 0.99 0.06 0.07 0.09 0.09 0.04 0.04 0.03 1.23 0.43 0.73 0.36
808
0.91 0.07 0.60 0.97 0.12 0.09 0.20 0.10 0.05 0.07 0.06 1.12 0.50 0.48 0.45
8.0% 0.6% 5.2% 8.5% 1.1% 0.8% 1.8% 0.9% 0.5% 0.6% 0.5% 9.8% 4.4% 4.3% 3.9%
Marketing
64
70
63
62
Management Fees
486
548
449 834
531 862 108
Utilities
1,133
1,087
Carpeting
233 164 104
192
53 56 78 75 34 38 27
Painting
50
82
Landscaping
135
181
HVAC
81 37 63 57
82 61 86 59
93 48 62 50
Appliances
Plumbing Electrical
Other Repairs and Services
1,141
1,193
10.1%
1,040
996 447 431 397
Insurance
372 736 346
397 783 267
363 613 302
Real Estate Taxes
Other Taxes
Total Expenses
$6,747
$6.91 63.5%
$6,825
$7.19 57.9%
$5,691
$6.73 58.2%
$6,411
$7.20 63.3%
Net Operating Income Before Debt Service & Depreciation
$3,641
$3.72 34.2%
$4,561
$4.84 38.6%
$3,795
$4.53 38.5%
$2,866 $3.23 28.3%
A = Dollars per unit, per year
B = Dollars per square foot, per year
C = Percent of gross potential rent
RubinBrown Apartment Stats 2020
8
MONTHLY RENT PER UNIT
South/Southwest
West/Northwest
20
38
$905
$983
12.75
11.21
118
117
$1,283
$820
1,179 1,061
1,283
$1,179
$844
839
4.06
3.01
88.3%
94.4%
32.3%
46.3%
A
B
C
A
B
C
NET OPERATING INCOME PER SQUARE FOOT
14,151
13.33 100.0%
15,401
18.35 100.0%
$3.72
$4.84
(1,661) (1.56) -11.7%
(862) (1.03) (132) (0.16) (48) (0.06)
-5.6% -0.9% -0.3% 93.2%
(292) (0.27) (290) (0.27)
-2.1% -2.1% 84.1%
$8.59
$4.53
11,908
11.23
14,359
17.10
$3.88
$3.23
773
0.73
5.5%
1,209
1.44
7.8%
$12,681 $11.96
89.6%
$15,568 $18.54 101.0%
$1,491
$1.41
10.5%
$1,491
$1.78
9.7% 5.9% 0.3% 5.2% 0.6% 0.2% 0.9% 0.3% 0.3% 0.5% 0.3% 3.8% 1.9% 3.0%
893 206 604
0.84 0.19 0.57 1.21 0.15 0.08 0.25 0.10 0.04 0.07 0.14 1.33 0.51 0.93 0.26
6.3% 1.5% 4.3% 9.1% 1.2% 0.6% 1.8% 0.8% 0.3% 0.5% 1.1% 9.9% 3.8% 7.0% 2.0%
901
1.07 0.05 0.96 1.93 0.11 0.03 0.16 0.05 0.05 0.10 0.05 2.03 0.69 0.34 0.55
44
803
ECONOMIC OCCUPANCY
1,283
1,619
10.5%
163
93 24
92.0%
88
92.1%
261 110
133
94.4%
40 40 81 44
92.6%
44 72
88.3%
89.3%
150
1,408
1,707
11.1%
540 984 281
581 288 464
$8,578
$8.08 60.7%
$8,353
$9.95 54.5%
North
West/Northwest
South/Southeast East/Northeast
$4,103
$3.88 28.9%
$7,215
$8.59 46.5%
South/Southwest
Midwest
Government Assisted
9
GOVERNMENT ASSISTED BY PROJECT SIZE
0-50 Units
51-100 Units
101-150 Units
151-200 Units
Over 200 Units
Total Number of Projects
102
154
119
44
44
Average Project Age In Years Average Number of Units
10.86
12.46
15.24
14.61
15.25
36
77
121
176
280
Averages Per Unit: Monthly Rent
793
866 878 4.15
957 919 4.30
804 926 4.44
887 896 4.64
Square Feet
1,013
Rooms
5.08
Economic Occupancy
94.4%
93.7%
91.7%
93.6%
89.9%
Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income
24.8%
34.0%
39.1%
34.7%
38.7%
A
B
A
B
A
B
A
B
A
B
Revenues Gross Potential Rent Less: Vacancy Loss
$9,520
$9.40
$10,398 $11.84 (651) (0.74) (153) (0.17)
$11,481 $12.49 (947) (1.03) (117) (0.13)
$9,644 $10.41 (618) (0.67) (147) (0.16)
$10,648 $11.88 (1,078) (1.20)
(534) (0.53) (200) (0.20)
Collection Loss
(188) (0.21)
(99) (0.10)
(77) (0.09)
(35) (0.04)
(21) (0.02)
(75) (0.08)
Concession Loss
Rent Collected
8,687
8.57 0.62
9,517
10.84
10,382
11.29
8,858
9.56 0.59
9,307
10.39
Other Income
626
763
0.87
544
0.59
549
939
1.05
Total Income
$9,313
$9.19
$10,280 $11.71
$10,926 $11.88
$9,407 $10.15
$10,246 $11.44
Expenses Salaries and Personnel
$1,226
$1.21
$1,307
$1.49
$1,183
$1.29
1,179
$1.27
1,209
$1.35
Administrative
826
0.82 0.03 0.53 0.89 0.08 0.08 0.19 0.11 0.06 0.05 0.05 1.28 0.55 0.70 0.30
752
0.86 0.07 0.63 1.15 0.13 0.06 0.16 0.10 0.05 0.07 0.08 1.26 0.59 0.67 0.36
645
0.70 0.07 0.61 1.19 0.19 0.09 0.15 0.09 0.06 0.07 0.05 1.25 0.43 0.65 0.34
606
0.65 0.04 0.52 1.04 0.12 0.08 0.08 0.08 0.04 0.05 0.05 1.26 0.44 0.63 0.28
477
0.53 0.10 0.54 1.02 0.12 0.08 0.12 0.09 0.04 0.07 0.04 1.18 0.49 0.97 0.27
Marketing
26
62
66
35
93
Management Fees
537 906
557
562
484 967 107
487 917 105
Utilities
1,010
1,092
Carpeting
80 81
112
176
Painting
54
81
71 71 78 38 48 42
68
Landscaping
191 108
142
141
107
HVAC
88 47 63 70
82 56 66 42
79 37 65 33
Appliances
61 54 46
Plumbing Electrical
Other Repairs and Services
1,295
1,103
1,152
1,171
1,059
Insurance
561 704 299
518 592 313
400 595 314
411 580 255
437 865 243
Real Estate Taxes
Other Taxes
Total Expenses
$7,001
$6.93
$6,790
$7.73
$6,653
$7.23
$6,143
$6.63
$6,281
$7.01
Net Operating Income Before Debt Service and Depreciation
$2,312
$2.26
$3,490
$3.97
$4,273
$4.65
$3,264
$3.52
$3,965
$4.43
Capital Expenditures
$236
$0.23
$284
$0.32
$315
$0.34
$456
$0.49
$252
$0.28
A = Dollars per unit, per year
B = Dollars per square foot, per year
RubinBrown Apartment Stats 2020
10
LOW INCOME TAX CREDIT PROJECTS
2019
2018
2017
Total Number of Projects Average Number of Units
666
595
597
107
109
107
Averages Per Unit: Monthly Rent
858 908 4.49
$833
$771
Square Feet
913
929
Rooms
4.47
4.48
Economic Occupancy
92.2%
92.7%
93.2%
Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income
38.6$
35.0%
34.8%
A
B
C
A
B
C
A
B
C
Revenues Gross Potential Rent Less: Vacancy Loss
$10,483
$11.55 (0.90) (0.14) (0.07)
100.0%
$9,996
$10.95 (0.80) (0.15) (0.08)
100.0%
$9,253
$9.96
100.0%
(819) (125)
-7.8% -1.2% -0.6% 90.4%
(732) (134)
-7.3% -1.3% -0.7% 90.6%
(633) (117)
(0.68) (0.13) (0.04)
-6.8% -1.3% -0.4% 91.5%
Collection Loss
(62)
(74)
(41)
Concession Loss
Rent Collected
9,477
10.44
9,056
9.92 0.72
8,462
9.11 0.78
593
0.65
5.7%
655
6.6%
723
7.8%
Other Income
$10,070
$11.09
96.1%
$9,711
$10.64
97.2%
$9,185
$9.89
99.3%
Total Income
Expenses Salaries and Personnel
$1,148
$1.26
11.0%
$1,104
$1.21
11.0%
$1,084
$1.17
11.7%
Administrative
622
0.69 0.08 0.54 1.02
5.9% 0.7% 4.7% 8.8%
700
0.77 0.10 0.55 1.01
7.0% 0.9% 5.0% 9.2%
750
0.81 0.09 0.50 0.95
8.1% 0.9% 5.0% 9.6%
Marketing
72
89
80
Management Fees
493 921
499 924
466 885
Utilities
All Repair, Maintenance and Contract Services
1,563
1.72
14.9%
1,591
1.74
15.9%
1,467
1.58
15.9%
Insurance
411 630 322
0.45 0.69 0.35
3.9% 6.0% 3.1%
364 756 286
0.40 0.83 0.31
3.6% 7.6% 2.9%
329 621 311
0.35 0.67 0.33
3.6% 6.7% 3.4%
Real Estate Taxes
Other Taxes
Total Expenses
$6,182
$6.80
59.0%
$6,313
$6.91
63.2%
$5,993
$6.45
64.9%
Net Operating Income Before Debt Service and Depreciation
$3,888
$4.29
37.1%
$3,398
$3.73
34.0%
$3,192
$3.44
34.4%
A = Dollars per unit, per year
B = Dollars per square foot, per year
C = Percent of gross potential rent
RubinBrown Apartment Stats 2020
12
AVERAGE MONTHLY RENT PER UNIT
2016
2015
$1,000
466 111
386
99
$858
$900
$833
$812
$771
$800
$709
$812
$709
$700
885
952
4.48
4.42
$600
$500
92.6%
90.6%
2019
2018
2017
2016
2015
36.6%
30.6%
ECONOMIC OCCUPANCY
A
B
C
A
B
C
100%
90%
$9,748
$11.01 (0.81) (0.14) (0.10)
100.0%
$8,513
$8.94
100.0%
80%
(717) (128)
-7.4% -1.3% -0.9% 90.4%
(580) (160)
(0.61) (0.17) (0.07)
-6.8% -1.9% -0.7% 90.6%
70%
(87)
(63)
60%
8,816
9.96 0.80
7,710
8.09 0.29
50%
707
7.2%
275
3.2%
40%
$9,523
$10.76
97.7%
$7,985
$8.38
93.8%
30%
20%
10%
$1,086
$1.23
11.1%
$1,172
$1.23
13.8%
0%
92.2%
92.6%
90.6%
92.7%
93.2%
570
0.64 0.09 0.55 1.01
5.9% 0.8% 5.0% 9.1%
452
0.47 0.06 0.47 0.91
5.3% 0.7% 5.3%
2019
2018
2017
2016
2015
77
57
490 892
448 862
10.1%
GROSS POTENTIAL RENT V.S. NET OPERATING INCOME PER SQUARE FOOT
1,637
1.85
16.8%
1,631
1.71
19.2%
362 624 296
0.41 0.71 0.33
3.7% 6.4% 3.0%
352 451
0.37 0.47 0.13
4.1% 5.3% 1.4%
$4.29 $11.55
2018
96
$3.73 $10.95
2017
$6,034
$6.82
61.9%
$5,546
$5.82
65.2%
$3.44 $9.96
2016
$3,489
$3.94
35.8%
$2,439
$2.56
28.6%
$3.94 $11.01
2015
$2.56 $8.94
2014
NET OPERATING INCOME
GROSS POTENTIAL RENT
Low Income Tax Credit Projects
13
MARKET RATE
2019
2018
2017
Total Number of Projects Average Number of Units
12
33
18
164
198
296
Averages Per Unit: Monthly Rent
1,092 1,087
$1,383
$1,246
Square Feet
835
929
Rooms
4.19
4.03
4.38
Economic Occupancy
98.7%
89.5%
93.7%
Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income
45.9%
50.3%
53.3%
A
B
C
A
B
C
A
B
C
Revenues Gross Potential Rent Less: Vacancy Loss
$13,101
$12.05 (0.16) (0.02) (0.04)
100.0%
$16,598
$19.88 (2.09) (0.24) (0.10)
100.0% -10.5% -1.2% -0.5% 87.8%
$14,946
$16.09 (1.01) (0.15) (0.04)
100.0%
(172)
-1.3% -0.2% -0.3% 98.2%
(1,746)
(938) (138)
-6.3% -0.9% -0.2% 92.6%
Collection Loss
(24) (42)
(201)
(81)
(35)
Concession Loss
Rent Collected
12,863
11.83
14,570
17.45
13,835
14.89
198
0.18
1.5%
1,123
1.34
6.8%
245
0.26
1.6%
Other Income
$13,061
$12.01
99.7%
$15,693
$18.79
94.5%
$14,080
$15.15
94.2%
Total Income
Expenses Salaries and Personnel
$1,319
$1.21
10.1%
$934
$1.12
5.6% 4.7% 1.8% 3.9% 5.3%
$763
$0.82
5.1% 5.8% 1.0% 3.0% 5.0%
Administrative
318 266 549
0.29 0.24 0.50 0.96
2.4% 2.0% 4.2% 8.0%
788 301 648 883
0.94 0.36 0.78 1.06
870 151 452 745
0.94 0.16 0.49 0.80
Marketing
Management Fees
Utilities
1,046
All Repairs and Maintenance and Contract Services
1,979
1.82
15.1%
1,791
2.15
10.8%
1,813
1.95
12.1%
Insurance
392
0.36 1.06 0.05
3.0% 8.8% 0.4%
325
0.39 2.24 0.30
2.0%
232 996 547
0.25 1.07 0.59
1.6% 6.7% 3.7%
Real Estate Taxes
1,152
1,871
11.3%
51
254
1.5%
Other Taxes
Total Expenses
$7,072
$6.49
54.0%
$7,795
$9.34
47.0%
$6,569
$7.07
44.0%
Net Operating Income Before Debt Service and Depreciation
$5,989
$5.52
45.7%
$7,898
$9.45
47.6%
$7,511
$8.08
50.2%
A = Dollars per unit, per year
B = Dollars per square foot, per year
C = Percent of gross potential rent
RubinBrown Apartment Stats 2020
14
AVERAGE MONTHLY RENT PER UNIT
2016
2015
$2,000
28
31
288
266
$1,383, ,
$1,600
$1,246
$1,092
$949
$1,200
$897
$949
$897
$800
943
926
4.24
3.60
$400
$0
90.7%
87.3%
2019
2018
2017
2016
2015
50.0%
50.3%
ECONOMIC OCCUPANCY
A
B
C
A
B
C
100%
90%
$11,383
$12.07 (1.12) (0.13) (0.22)
100.0%
$10,763 $11.62 100.0%
80%
(1,057)
-9.3% -1.1% -1.8% 87.9% 11.4%
(929) (101) (334)
(1.00) (0.11) (0.36)
-8.6% -0.9% -3.1% 87.4%
70%
(121) (203)
60%
10,002
10.61
9,399 $10.15
50%
1,294
1.37
945
1.02
8.8%
40%
$11,296
$11.97
99.2%
$10,345 $11.17
96.2%
30%
20%
10%
$649
$0.69
5.7% 5.1% 1.4% 4.0% 6.1%
$1,044
$1.13
9.7% 4.5% 1.6% 4.4% 6.0%
88.6% 7 3
0%
92.1% 98.7%
90.0% 89.5%
89.1% 93.7%
90.8% 90.7%
580 164 459 695
0.62 0.17 0.49 0.74
480 168 476 648
.52 .18 .51 .70
2019
2018
2017
2016
2015
GROSS POTENTIAL RENT V.S. NET OPERATING INCOME PER SQUARE FOOT
1,591
1.69
14.0%
939
1.01
8.7%
224
0.24 1.12 0.24
2.0% 9.3% 2.0%
279
.30
2.6% 9.3% 0.9%
$5.52 $12.05
1,053
1,005
1.09 0.10
2018
231
96
$9.45 $19.88
2017
$5,646
$5.98
49.6%
$5,135
$5.54
47.7%
$8.08 $16.09
2016
$5,650
$5.99
49.6%
$5,208
$5.62
48.4%
$5.99 $12.07
2015
$5.62 $11.62
2014
NET OPERATING INCOME
GROSS POTENTIAL RENT
Market Rate
15
RUBINBROWN REAL ESTATE SERVICES GROUP
Affordable Housing This complex and highly regulated industry has been one that we have focused on since the early days of HUD and the advent of the federal low-income housing tax credit program. Historic Tax Credit Services Our team has extensive experience with consulting on historic rehabilitation projects across the country. New Markets Tax Credit Services In addition to initial program guidance and consulting, our experts can help you with NMTC application assistance. Opportunity Zones This incentive program was created by the Tax Cuts & Jobs Act of 2017 and is designed to bring growth to communities across the country. Our team of opportunity zone experts can help guide you through the complexities of the program by helping with transaction structuring, compliance, tax and accounting. Renewable Energy There are many new financial incentives for companies in the renewable energy sector. We can help you sort through the opportunities and provide financial guidance to move your businesses forward.
For more than 30 years, RubinBrown’s Real Estate Services Group has developed a strong reputation nationally as a leader in accounting and advisory services. Today, the group provides specialized services to real estate entities from coast to coast. RubinBrown’s Real Estate Services Group provides a full range of assurance, tax, business planning and consulting services to:
· Investment funds · Real estate partnerships · Developers
· Management companies · Governmental agencies · Syndicators and investors · Financial institutions · Construction-related companies
Through the years, our clients have grown to depend on our expertise in five key areas of the real estate sector including affordable housing, historic tax credit services, new markets tax credit services, opportunity zones and renewable energy.
RubinBrown Apartment Stats 2020
16
RubinBrown Real Estate Services Group’s services include:
Tim Anderson, CPA Partner | St. Louis 314.678.3545 tim.anderson@rubinbrown.com Dave Herdlick, CPA Partner & Vice Chair | St. Louis 314.290.3383 dave.herdlick@rubinbrown.com Bryan Keller, CPA, CGMA Partner-In Charge |St. Louis 314.290.3341 bryan.keller@rubinbrown.com Jeff Cunningham, CPA Partner | Denver 303.952.1257 jeffrey.cunningham@rubinbrown.com Chris Langley, CPA Partner | Chicago 847.972.5964 chris.langley@rubinbrown.com
· Transaction and tax consulting services · Assurance and accounting services · Financial projections · Complex deal structuring · Capital adjuster calculations · Cost certifications
· Affordable Housing consulting and compliance · Historic Tax Credit consulting and compliance · New Markets Tax Credit consulting and compliance · Renewable Energy consulting and compliance · Opportunity Zone consulting and compliance · HUD audit and consulting services · Deal exit consulting and troubled project workouts · Nonprofit consulting and compliance · Capital asset segregation analysis · Sales and Use tax consulting · Business valuations and appraisals · Design and evaluation of financial reporting and internal control systems
RubinBrown Real Estate Services Group
17
1.800.678.3134 www.RubinBrown.com
@RubinBrown RubinBrown LLP
Founded in 1952, RubinBrown is one of the nation’s leading accounting and professional consulting firms with a commitment to building personal relationships with clients. The RubinBrown name and reputation are synonymous with experience, integrity and value. RubinBrown helps clients build and protect value, while at all times honoring the responsibility to serve the public interest.
RubinBrown is an independent member of Baker Tilly International, a high-quality, dedicated network of 125 independent firms in 147 countries.
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