RubinBrown Apartment Stats 2024

’24

APARTMENT STATS

A publication by RubinBrown LLP

RubinBrown is pleased to present the 2024 Apartment Statistical Analysis, an annual survey compiled by the 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 2023 and represents approximately 1,000 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).

Contents 1

Executive Summary

3 4 8

Comparison of Operations

Government Assisted

www.RubinBrown.com

Government Assisted by Region

10 12 14 16

Government Assisted by Project Size

Low Income Tax Credit Projects

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.

Market Rate

RubinBrown Real Estate Services Group

ii

EXECUTIVE SUMMARY

High supply, high interest rates, and slowing rental growth have defined the multifamily landscape during 2023 and the first part of 2024. Although demand remains strong, an abundance of new supply not seen in decades has kept rent growth low. Assuming the economy avoids a recession, demand should remain high enough to keep rent growth positive despite the high supply. The unaffordability crisis prevails as pandemic-era protections for renters expire and environmental hazards threaten existing rental housing and drive up costs for owners to insure and repair their properties. This executive summary will encompass the different elements pressuring the current multifamily real estate market, while incorporating insights from FreddieMac’s Midyear Outlook and Harvard University’s Joint Center for Housing Studies (JCHS). Record Supply Outpaces Demand Despite strong demand in the fourth quarter of 2023 and the first quarter of 2024, some multifamily rental housing markets are seeing rent growth slow down and occupancy decrease due to supply reaching its highest level in over forty years. A few markets could see new inventory at more than double the national rate. Due to rising construction and startup costs, more of these new units are high-end housing, rather than affordable options, accentuating the need for more affordable construction methods and government subsidies to encourage the development of new affordable housing. Zoning laws also play a role, with the JCHS reporting that an estimated 75% of land in major cities is restricted to single-family homes. Rent Growth Declines & Vacancies Increase While rent growth is expected to remain positive, growth rates are predicted to fall below average due to the high supply. RealPage reports that rent growth has not exceeded 0.3% since August 2023. Apart from 13 markets, most of the nation has seen rent growth slow. FreddieMac forecasts a lower-than-average rent growth of 2.7% for 2024. Multifamily operators face the choice of trading higher vacancies for higher rents, although rent cuts have occurred in the highest-supply markets, according to RealPage.

FreddieMac’s Midyear Outlook projects a 6% vacancy rate nationwide for 2024, which assumes an economic soft landing. In the event that a recession occurs, vacancies would see increases, while rents would be pressured downward. Unaffordability Concerns Pressure Governments The JCHS reports that the number of renters living in housing that they cannot afford has reached a record high. Unaffordable housing, which exists when a household spends more than 30% of their income on housing costs, affected 22.4 million renter households when last measured by the US Census Bureau in 2022. Among these households, 12.1 million saw housing costs exceed 50% of their income. investors and eliminate barriers to development, the affordable housing crisis is unlikely to be alleviated. Climate Change Threatens Existing Housing As climate-related hazards become more common and severe, costs to insure, repair, and rebuild property in affected areas rise, requiring pre-disaster mitigation strategies, as well as climate adaptation strategies, per the JCHS. The Center reports that 41% of the nation’s occupied rental stock is under threat, with California and Florida leading the way at 77% and 89%, respectively, of each state’s rental stock at risk. Furthermore, while emissions and high energy costs can be mitigated through investment in efficient energy, incentives from governments are likely needed to aid the cost of modifying existing properties. Such investment would help combat a changing climate while easing energy costs for the increasingly financially burdened renter base. Conclusion While the housing market cools as a result of increasing supply and interest rates, the necessity for affordable housing prevails as more Americans than ever are facing financial stress. More frequent and dangerous climate related events increase costs for both owners and tenants. Pressure mounts for governments to provide additional initiatives to attract investors to affordable housing and efficient energy upgrades, as well as for disaster mitigation and assistance with rising insurance costs in at-risk areas. This data reflects the critical shortage of affordable units. Without action from all levels of government to incentivize

Executive Summary

1

COMPARISON OF OPERATIONS

Government Assisted

Market Rate

Total Number of Projects

1024

6

Average Project Age in Years Average Number of Units

11.47

8.00

105

164

Averages Per Unit: Monthly Rent

$1,294

$1,298

Square Feet

875

1,087

Rooms

4.36

4.19

Economic Occupancy

92.0%

95.0%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

37.5%

38.3%

A

B

C

A

B

C

Revenues Gross Potential Rent Less: Vacancy Loss

$15,886

$18.16 (1.45) (0.46) (0.26)

100.0%

$15,574

$14.33 (0.72) (0.31) (0.57)

100.0%

(1,272)

-8.0% -2.6% -1.4% 88.0%

(783) (339) (620)

-5.0% -2.2% -4.0% 88.8%

Collection Loss

(406) (224)

Concession Loss

Rent Collected Other Income Total Income

13,983

15.99

13,832

12.72

786

0.90

5.0%

1,422

1.31

9.1%

$14,770

$16.89

93.0%

$15,254

$ 14.03

97.9%

Expenses Salaries and Personnel

$1,605

$1.84

10.1% 7.1% 0.7% 4.2% 8.0% 0.5% 0.5% 1.0% 0.7% 0.3% 0.4% 0.2% 5.1% 4.9% 4.3% 10.1% 58.3%

$1,780

$1.64

11.4%

Administrative

1,128

1.29 0.13 0.76 1.46 0.08 0.10 0.18 0.13 0.05 0.08 0.04 1.84 0.92 0.88 0.79

788 321 940 346 340 235 145

0.72 0.30 0.87 1.16 0.32 0.31 0.22 0.13 0.08 0.09 0.14 0.92 0.41 0.66 0.70

5.1% 2.1% 6.0% 8.1% 2.2% 2.2% 1.5% 0.9% 0.5% 0.6% 1.0% 6.4% 2.8% 4.6% 4.9%

Marketing

112 661

Management Fees

Utilities

1,277

1,259

Carpeting

73 84

Painting

Landscaping

157 110

HVAC

Appliances

48 67 36

84

Plumbing Electrical

100 150

Other Repairs and Services

1,605

1,004

Insurance

805 772 689

441 722 757

Real Estate Taxes

Other Taxes

Total Expenses

$9,229

$10.55

$9,414

$8.66

60.4%

Net Operating Income Before Debt Service and Depreciation

$5,541

$6.34

34.7%

$5,840

$5.37

37.5%

Capital Expenditures

$870

$0.99

5.5%

$413

$0.38

2.7%

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

2023

2022

2021

Total Number of Projects Average Number of Units

1024

1102

939

105

107

106

Averages Per Unit: Monthly Rent

$1,294

$1,155

$1,077

Square Feet

875

901

905

Rooms

4.36

4.45

4.43

Economic Occupancy

92.0%

92.4%

93.0%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

37.5%

37.0%

40.9%

A

B

C

A

B

C

A

B

C

Revenues Gross Potential Rent Less: Vacancy Loss

$15,886

$18.16 (1.45) (0.46) (0.26)

100.0%

$13,860

$15.38 (1.16) (0.32) (0.18)

100.0%

$12,925

$14.28 (1.00) (0.28) (0.30)

100.0%

(1,272)

-8.0% -2.6% -1.4% 88.0%

(1,048)

-7.6% -2.1% -1.2% 89.2%

(909) (250) (272)

-7.0% -1.9% -2.1% 89.0%

Collection Loss

(406) (224)

(292) (161)

Concession Loss

Rent Collected

13,983

15.99

12,359

13.72

11,494

12.70

Other Income

786

0.90

5.0%

803

0.89

5.8%

1,101

1.22

8.5%

Total Income

$14,770

$16.89

93.0%

$13,162

$14.61

95.0%

$12,595

$13.92

97.5%

Expenses Salaries and Personnel

$1,605

$1.84

10.1%

$1,382

$1.53

10.0%

$1,243

$1.37

9.6% 6.8% 0.7% 4.7% 7.7%

Administrative

1,128

1.29 0.13 0.76 1.46

7.1% 0.7% 4.2% 8.0%

1,191

1.32 0.12 0.66 1.30

8.6% 0.8% 4.3% 8.5%

873

0.96 0.10 0.67 1.10

Marketing

112 661

112 596

92

Management Fees

602 994

Utilities

1,277

1,173

All Repair, Maintenance and Contract Services

2,181

2.49

13.9%

2,034

2.26

14.7%

1,899

2.10

14.7%

Insurance

805 772 689

0.92 0.88 0.79

5.1% 4.9% 4.3%

598 895 314

0.66 0.99 0.35

4.3% 6.5% 2.3%

540 834 364

0.60 0.92 0.40

4.2% 6.5% 2.8%

Real Estate Taxes

Other Taxes

Total Expenses

$9,229

$10.55

58.3%

$8,295

$9.21

59.8%

$7,441

$8.22

57.7%

Net Operating Income Before Debt Service and Depreciation

$5,541

$6.34

34.7%

$4,867

$5.40

35.1%

$5,154

$5.70

39.8%

A = Dollars per unit, per year

B = Dollars per square foot, per year

C = Percent of gross potential rent

RubinBrown Apartment Stats 2024

4

AVERAGE MONTHLY RENT PER UNIT

2020

2019

$1,294

$1,300

902

787

$1,155

109

108

$1,200

$1,077

$1,100

$834 $978

$978

$865

$1,000

907

910

$865

$900

4.48

4.47

$800

92.8%

92.1%

2023

2022

2021

2020

2019

41.8%

38.8%

ECONOMIC OCCUPANCY

100%

A

B

C

A

B

C

90%

80%

$11,740

$12.94 (0.93) (0.18) (0.07)

100.0%

$10,354

$11.38 (0.90) (0.14) (0.06)

100.0%

70%

(844) (164)

-7.2% -1.4% -0.5% 90.9%

(822) (126)

-7.9% -1.2% -0.5% 90.4%

60%

(62)

(55)

50%

10,670

11.76

9,351

10.28

40%

450

0.50

3.8%

611

0.67

5.9%

30%

$11,120

$12.26

94.7%

$9,962

$10.95

96.3%

20%

10%

0%

$1,178

$1.30

10.0%

$1,143

$1.26

11.0%

92.0%

92.4%

93.0%

92.8%

92.1%

789

0.87 0.09 0.59 1.03

6.7% 0.7% 4.6% 8.0%

624

0.69 0.07 0.54 1.01

6.0% 0.6% 4.7% 8.8%

2023

2022

2021

2020

2019

77

66

539 937

487 915

GROSS POTENTIAL RENT V.S. NET OPERATING INCOME PER SQUARE FOOT

1,441

1.59

12.3%

1,545

1.70

14.9%

426 753 328

0.47 0.83 0.36

3.6% 6.4% 2.8%

403 599 313

0.44 0.66 0.34

3.9% 5.8% 3.0%

$6.34 $18.16

2023

$5.40 $15.38

2022

$6,468

$7.13

55.1%

$6,095

$6.70

58.7%

$5.70 $14.28

2021

$4,652

$5.13

39.6%

$3,867

$4.25

37.6%

$5.13 $12.94

2020

$4.25 $11.38

2019

GROSS POTENTIAL RENT

NET OPERATING INCOME

Government Assisted

5

GOVERNMENT ASSISTED

EXPENSE TRENDS PER UNIT

2023

$1,605

$1,382

2022

Salaries and Personnel

$1,243

2021

2020

$1,178

$1,143

2019

$1,240

$1,303

Administrative and Marketing

$965

$866

$690

$2,181

$2,034

Contract Services and Repairs & Maintenance

$1,899

$1,441

$1,545

$2,266

$1,807

Taxes and Insurance

$1,738

$1,507

$876 $1,315

$0

$250

$500

$750

$1,000 $1,250 $1,500

$1,750 $2,000

RubinBrown Apartment Stats 2024

6

GOVERNMENT ASSISTED BY REGION

North

East/Northeast

Midwest

South/Southeast

Total Number of Projects

25

107

623

160

Average Project Age In Years Average Number of Units

14.09

13.16

11.67

9.39

106

117

102

103

Averages Per Unit: Monthly Rent

$1,296

$1,375

$1,240

$1,364

Square Feet

869

938

810

1,025

Rooms

4.22

4.52

4.23

5.19

Economic Occupancy

91.7%

92.8%

92.1%

91.9%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

28.5%

37.9%

38.6%

37.4%

A

B

C

A

B

C

A

B

C

A

B

C

Revenues Gross Potential Rent Less: Vacancy Loss

$15,627 $17.99 100.0% $16,808 $17.92 100.0%

$15,044

$18.57 100.0% $16,651

$16.24 100.0%

(1,297)

(1.49) (0.52)

-8.3% -2.9% -1.3% 87.6%

(1,211) (1.29) (423) (0.45) (658) (0.70)

-7.2% -2.5% -3.9% 86.4%

(1,190)

(1.47)

-7.9% -2.3% -1.0% 88.8%

(1,341)

(1.31)

-8.1% -3.4% -1.3% 87.2%

Collection Loss

(449)

(343) (0.42) (150) (0.19)

(571) (0.56) (215) (0.21)

(197) (0.23)

Concession Loss

Rent Collected

13,684

15.75

14,516

15.48

13,360

16.49

14,525

14.17

933

1.07

6.0%

724

0.77

4.3%

748

0.92

5.0%

827

0.81

5.0%

Other Income

$17.42 $93.8%

$14.98

92.2%

$14,617 $16.82

93.5% $15,240 $16.25

90.7%

$14,108

$15,352

Total Income

Expenses Salaries and Personnel

$1,519

$1.75

9.7% 5.5% 2.2% 4.7% 0.6% 0.7% 0.7% 0.6% 0.3% 0.6% 0.3% 5.6% 8.1% 3.2%

$1,305

$1.39

7.8% 9.2% 0.4% 3.9% 8.4% 0.8% 0.5% 0.9% 0.7% 0.5% 0.5% 0.4% 9.9% 4.5% 5.9% 2.0%

$1,553

$1.92

10.3% 6.7% 0.8% 4.0% 7.8% 0.4% 0.5% 0.9% 0.6% 0.2% 0.4% 0.2% 4.6% 5.2% 5.1% 10.0% 57.6%

$1,926

$1.88

11.6%

Administrative

866 336 734

1.00 0.39 0.85 1.80 0.11 0.12 0.13 0.11 0.06 0.11 0.05 2.53 1.01 1.46 0.57

1,540

1.64 0.07 0.71 1.51 0.15 0.08 0.15 0.13 0.09 0.08 0.07 1.78 0.81 1.06 0.37

1,011

1.25 0.14 0.74 1.44 0.07 0.09 0.16 0.12 0.04 0.07 0.03 1.86 0.85 0.96 0.96

1,198

1.17 0.11 0.78 1.21 0.08 0.11 0.24 0.14 0.06 0.07 0.04 1.52 1.00 0.52 0.44

7.2% 0.7% 4.8% 7.4% 0.5% 0.7% 1.4% 0.9% 0.4% 0.4% 0.2% 9.3% 6.2% 3.2% 2.7%

Marketing

69

114 600

110 797

Management Fees

662

Utilities

1,564

10.0%

1,412

1,168

1,239

Carpeting

98

136

53 73

83

Painting

103 117

78

115 241 147

Landscaping

144 123

128

HVAC

93 50 92 44

97 32 55 26

Appliances

83 76 63

63 72 39

Plumbing Electrical

Other Repairs and Services

2,197

14.1%

1,671

1,510

1,556 1,029

Insurance

880

763 994 344

690 780 774

Real Estate Taxes

1,272

538 455

495

Other Taxes

Total Expenses

$10,458 $12.04

66.9%

$9,465 $10.09

56.3%

$8,666 $10.70

$9,609

$9.37

57.7%

Net Operating Income Before Debt Service & Depreciation

$4,159

$4.78

26.6%

$5,775

$6.16

34.4%

$5,442

$6.72

36.2%

$5,743

$5.61

34.5%

A = Dollars per unit, per year

B = Dollars per square foot, per year

C = Percent of gross potential rent

RubinBrown Apartment Stats 2024

8

MONTHLY RENT PER UNIT

South/Southwest

West/Northwest

30

51

$1,296

$1,375

12.37

11.16

111

104

$1,788

$1,240

$1,435

1,788

$1,435

$1,364

879

679

4.01

3.33

89.2%

93.6%

27.8%

38.9%

A

B

C

A

B

C

NET OPERATING INCOME PER SQUARE FOOT

$17,217 $19.58 100.0% (1,856) (2.11)-10.8%

$21,457

$31.60 100.0%

$4.78

$6.16

(1,382) (2.03)

-6.4% -3.0% -1.2% 89.3%

(536) (0.61) (181) (0.21)

-3.1% -1.1% 85.1%

(648)

(0.95)

$11.61

(267) (0.39)

$6.72

14,645

16.65

19,161

28.22

$4.91

$5.61

896

1.02

5.2%

1,071

1.58

5.0%

$15,541 $17.67

90.3%

$20,232 $29.80

94.3%

$1,947

$2.21

11.3% 7.5% 0.7% 4.0% 8.0% 1.1% 0.7% 1.4% 1.0% 0.3% 0.6% 0.6% 7.4% 6.1% 4.1% 10.2%

$1,883

$2.77

8.8% 6.2% 0.6% 4.3% 0.3% 0.3% 1.1% 0.4% 0.4% 0.7% 0.2% 10.0% 13.0%

1,299

1.48 0.13 0.79 1.57 0.22 0.14 0.28 0.20 0.06 0.12 0.12 2.00 1.45 1.20 0.79

1,324

1.95 0.19 1.35 3.15 0.09 0.09 0.34 0.13 0.12 0.22 0.06 4.11 2.08 0.82 0.73

112 693

128 919

ECONOMIC OCCUPANCY

1,381

2,138

196 120 242 172

62 64

91.7%

92.8%

230

93.6%

87 80

92.1%

49

89.2%

91.9%

109 107

146

40

1,754 1,278 1,059

2,792 1,412

6.6% 2.6% 2.3%

554 493

698

$11,217 $12.76

65.1% $12,352 $18.19

57.6%

North

West/Northwest

South/Southeast East/Northeast

South/Southwest

Midwest

$4,324

$4.91 25.1%

$7,880 $11.61

36.7%

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

68

100

85

26

25

Average Project Age In Years Average Number of Units

14.50

16.27

17.55

14.80

13.68

36

78

121

174

288

Averages Per Unit: Monthly Rent

$1,160

$1,193

$1,185

$1,067

$870

Square Feet

1,014

883

878

849

975

Rooms

4.99

4.18

4.11

4.22

4.69

Economic Occupancy

92.5%

92.7%

91.0%

91.9%

92.7%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

24.0%

27.0%

26.5%

24.6%

28.7%

A

B

A

B

A

B

A

B

A

B

Revenues Gross Potential Rent Less: Vacancy Loss

$13,919 $13.73

$14,605 $16.54 (1,061) (1.20) (409) (0.46) (290) (0.33)

$14,384

$16.38 (1.47) (0.62) (0.53)

$13,764

$16.21

$10,976 $11.26 (800) (0.82) (306) (0.31)

(1,048)

(1.03)

(1,289)

(1,114)

(1.31)

Collection Loss

(423) (0.42) (303) (0.30)

(544) (463)

(547) (0.64) (615) (0.72)

Concession Loss

(83) (0.08)

Rent Collected

12,146

11.98

12,845

14.54

12,087

13.78

11,487

13.53

9,787

10.04

Other Income

1,210

1.19

419

0.47

597

0.68

812

0.96

590

0.61

Total Income

$13,356 $13.17

$13,264 $15.01

$12,684 $14.45

$12,299 $14.49

$10,377 $10.65

Expenses Salaries and Personnel

$1,685

$1.66

$1,522

$1.72

$1,283

$1.46

$1,590

$1.87

$1,212

$1.24

Administrative

1,048

1.03 0.06 0.73 1.19 0.11 0.15 0.34 0.15 0.06 0.07 0.05 1.82 1.36 0.85 0.39

1,028

1.16 0.09 0.71 1.49 0.15 0.10 0.21 0.22 0.08 0.10 0.09 1.80 1.15 0.69 1.18

911

1.04 0.07 0.73 1.53 0.19 0.10 0.23 0.12 0.09 0.10 0.06 1.84 1.07 0.74 1.25

1,012

1.19 0.06 0.70 1.78 0.20 0.12 0.20 0.13 0.11 0.13 0.03 1.97 1.28 0.70 0.45

589

0.60 0.05 0.54 1.01 0.09 0.06 0.12 0.10 0.03 0.04 0.03 1.73 0.83 0.83 0.29

Marketing

60

79

63

50

46

Management Fees

738

627

639

598

524 981

Utilities

1,205

1,316

1,345

1,511

Carpeting

113 150 341 156

133

169

167 105 167 109

86 61

Painting

93

84

Landscaping

185 194

203 103

119

HVAC

93 33 44 27

Appliances

57 73 49

74 89 81

78 89 54

93

Plumbing Electrical

112

22

Other Repairs and Services

1,841 1,378

1,588 1,020

1,616

1,676 1,087

1,683

Insurance

937 654

806 811 281

Real Estate Taxes

858 396

612

598 379

Other Taxes

1,042

1,094

Total Expenses

$10,149 $10.01

$9,682 $10.95

$9,321 $10.60

$9,275 $10.91

$7,396

$7.58

Net Operating Income Before Debt Service and Depreciation

$3,207

$3.16

$3,582

$4.06

$3,363

$3.85

$3,024

$3.58

$2,981

$3.07

Capital Expenditures

$1,206

$1.19

$437

$0.43

$978

$0.96

$1,107

$1.09

$701

$0.69

A = Dollars per unit, per year

B = Dollars per square foot, per year

RubinBrown Apartment Stats 2024

10

LOW INCOME TAX CREDIT PROJECTS

2023

2022

2021

Total Number of Projects Average Number of Units

971 106

1032

865

108

107

Averages Per Unit: Monthly Rent

$1,298

$1,166

$1,084

Square Feet

885

912

917

Rooms

4.37

4.46

4.44

Economic Occupancy

92.0%

92.5%

93.1%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

36.7%

37.7%

41.3%

A

B

C

A

B

C

A

B

C

Revenues Gross Potential Rent Less: Vacancy Loss

$15,957

$18.02 (1.43) (0.45) (0.25)

100.0%

$13,993

$15.34 (1.16) (0.31) (0.18)

100.0%

$13,007

$14.19 (0.98) (0.27) (0.32)

100.0%

(1,270)

-8.0% -2.5% -1.4% 88.2%

(1,054)

-7.5% -2.0% -1.2% 89.2%

(898) (248) (290)

-6.9% -1.9% -2.2% 89.0%

Collection Loss

(400) (219)

(283) (167)

Concession Loss

Rent Collected

14,068

15.89

12,489

13.69

11,571

12.62

576

0.65

3.6%

807

0.88

5.8%

1,123

1.23

8.6%

Other Income

$14,644

$16.54

91.8%

$13,296

$14.58

95.0%

$12,694

$13.85

97.6%

Total Income

Expenses Salaries and Personnel

$1,625

$1.83

10.2%

$1,369

$1.50

9.8% 8.5% 0.8% 4.2% 8.3%

$1,235

$1.35

9.5% 6.8% 0.7% 4.6% 7.6%

Administrative

1,130

1.28 0.13 0.75 1.44

7.1% 0.7% 4.1% 8.0%

1,187

1.30 0.13 0.65 1.28

887

0.97 0.11 0.66 1.08

Marketing

114 661

114 593

97

Management Fees

603 986

Utilities

1,272

1,163

All Repair, Maintenance and Contract Services

2,177

2.46

13.6%

2,032

2.23

14.5%

1,890

2.06

14.5%

Insurance

803 777 708

0.91 0.88 0.80

5.0% 4.9% 4.4%

595 908 314

0.65 1.00 0.34

4.3% 6.5% 2.2%

533 858 362

0.58 0.94 0.40

4.1% 6.6% 2.8%

Real Estate Taxes

Other Taxes

Total Expenses

$9,268

$10.47

58.1%

$8,275

$9.07

59.1%

$7,451

$8.15

57.2%

Net Operating Income Before Debt Service and Depreciation

$5,376

$6.07

33.7%

$5,021

$5.51

35.9%

$5,243

$5.70

40.4%

A = Dollars per unit, per year

B = Dollars per square foot, per year

C = Percent of gross potential rent

RubinBrown Apartment Stats 2024

12

AVERAGE MONTHLY RENT PER UNIT

2020

2019

$1,298

$1,300

808

666

$1,166

110

107

$1,200

$1,084

$1,100

$984

$858

$984

$1,000

920

908

$858

4.48

4.49

$900

$833

$800

92.9%

92.2%

2023

2022

2021

2020

2019

42.3%

38.6%

ECONOMIC OCCUPANCY

A

B

C

A

B

C

100%

90%

$11,804

$12.84 (0.92) (0.17) (0.07)

100.0%

$10,483

$11.55 (0.90) (0.14) (0.07)

100.0%

80%

(843) (160)

-7.1% -1.4% -0.5% 91.0%

(819) (125)

-7.8% -1.2% -0.6% 90.4%

70%

(64)

(62)

60%

10,737

11.68

9,477

10.44

50%

456

0.50

3.9%

593

0.65

5.7%

40%

$11,193

$12.18

94.9%

$10,070

$11.09

96.1%

30%

20%

10%

$1,173

$1.28

9.9% 6.7% 0.7% 4.6% 7.9%

$1,148

$1.26

11.0%

0%

92.2%

92.0%

93.1%

92.9%

92.5%

796

0.87 0.09 0.59 1.02

622

0.69 0.08 0.54 1.02

5.9% 0.7% 4.7% 8.8%

2023

2022

2021

2020

2019

82

72

538 935

493 921

GROSS POTENTIAL RENT V.S. NET OPERATING INCOME PER SQUARE FOOT

1,411

1.53

12.0%

1,563

1.72

14.9%

419 776 325

0.46 0.84 0.35

3.6% 6.6% 2.8%

411 630 322

0.45 0.69 0.35

3.9% 6.0% 3.1%

$6.07 $18.02

2023

$5.51 $15.34

2022

$6,455

$7.03

54.8%

$6,182

$6.80

59.0%

$5.70 $14.19

2021

$4,738

$5.15

40.1%

$3,888

$4.29

37.1%

$5.15 $12.84

2020

$4.29 $11.55

2019

GROSS POTENTIAL RENT

NET OPERATING INCOME

Low Income Tax Credit Projects

13

MARKET RATE

2023

2022

2021

Total Number of Projects Average Number of Units

6

11

12

164

164

164

Averages Per Unit: Monthly Rent

$1,298

$1,206

$1,191

Square Feet

1,087

1,087

1,087

Rooms

4.19

4.19

4.19

Economic Occupancy

95.0%

96.8%

96.5%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

38.3%

43.7%

46.8%

A

B

C

A

B

C

A

B

C

Revenues Gross Potential Rent Less: Vacancy Loss

$15,574

$14.33 (0.72) (0.31) (0.57)

100.0%

$14,469

$13.31 (0.43) (0.20) (0.98)

100.0%

$14,292

$13.15 (0.46) (0.12) (0.88)

100.0%

(783) (339) (620)

-5.0% -2.2% -4.0% 88.8%

(465) (214)

-3.2% -1.5% -7.3% 88.0%

(501) (130) (958)

-3.5% -0.9% -6.7% 88.9%

Collection Loss

(1,060)

Concession Loss

Rent Collected

13,832

12.72

12,730

11.71

12,703

11.69

1,422

1.31

9.1%

1,340

1.23

9.3%

1,307

1.20

9.1%

Other Income

$15,254

$14.03

97.9%

$14,070

$12.94

97.2%

$14,010

$12.89

98.0%

Total Income

Expenses Salaries and Personnel

$1,780

$1.64

11.4%

$1,384

$1.27

9.6% 3.2% 1.7% 4.0% 7.3%

$1,346

$1.24

9.4% 3.1% 1.3% 4.0% 7.7%

Administrative

788 321 940

0.72 0.30 0.87 1.16

5.1% 2.1% 6.0% 8.1%

468 245 573

0.43 0.23 0.53 0.97

445 183 568

0.41 0.17 0.52 1.01

Marketing

Management Fees

Utilities

1,259

1,052

1,103

All Repairs and Maintenance and Contract Services

2,405

2.21

15.4%

2,455

2.26

17.0%

2,033

1.87

14.2%

Insurance

441 722 757

0.41 0.66 0.70

2.8% 4.6% 4.9%

577

0.53 0.97 0.11

4.0% 7.3% 0.8%

478

0.44 1.05 0.15

3.3% 8.0% 1.1%

Real Estate Taxes

1,050

1,142

120

161

Other Taxes

Total Expenses

$9,414

$8.66

60.4%

$7,923

$7.29

54.8%

$7,459

$6.86

52.1%

Net Operating Income Before Debt Service and Depreciation

$5,840

$5.37

37.5%

$6,147

$5.65

42.4%

$6,551

$6.03

45.9%

A = Dollars per unit, per year

B = Dollars per square foot, per year

C = Percent of gross potential rent

RubinBrown Apartment Stats 2024

14

AVERAGE MONTHLY RENT PER UNIT

2020

2019

$1,400

10

12

$1,298

164

164

$1,300

$1,206

$1,191

$1,200

$1,102

$1,092

$1,102

$1,092

$1,100

1,087

1,087

4.19

4.19

$1,000

$900

98.6%

98.7%

2023

2022

2021

2020

2019

45.0%

45.9%

ECONOMIC OCCUPANCY

A

B

C

A

B

C

100%

90%

$13,227

$12.17 (0.17) (0.01) (0.03)

100.0%

$13,101

$12.05 (0.16) (0.02) (0.04)

100.0%

80%

(188)

-1.4% -0.1% -0.3% 98.2%

(172)

-1.3% -0.2% -0.3% 98.2%

70%

(15) (34)

(24) (42)

60%

12,990

11.96

12,863

11.83

50%

205

0.19

1.6%

198

0.18

1.5%

40%

$13,195

$12.15

99.8%

$13,061

$12.01

99.7%

30%

20%

10%

$1,264

$1.16

9.6% 3.1% 2.1% 4.3% 8.1%

$1,319

$1.21

10.1%

0%

88.6% 98.7%

92.1% 95.0%

90.0% 96.8%

89.1% 96.5%

90.8% 98.6%

407 271 570

0.37 0.25 0.52 0.98

318 266 549

0.29 0.24 0.50 0.96

2.4% 2.0% 4.2% 8.0%

2020

2019

2023

2022

2021

1,065

1,046

GROSS POTENTIAL RENT V.S. NET OPERATING INCOME PER SQUARE FOOT

1,866

1.72

14.1%

1,979

1.82

15.1%

434

0.40 1.12 0.14

3.3% 9.2% 1.2%

392

0.36 1.06 0.05

3.0% 8.8% 0.4%

$5.37 $14.33

1,221

1,152

2023

157

51

$5.65 $13.31

2022

$7,254

$6.65

55.0%

$7,072

$6.49

54.0%

$6.03 $13.15

2021

$5,941

$5.50

44.8%

$5,989

$5.52

45.7%

$5.50 $12.17

2020

$5.52 $12.05

2019

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 2024

16

RubinBrown Real Estate Services Group’s services include:

Tim Anderson, CPA Partner | St. Louis 314.678.3545 tim.anderson@rubinbrown.com Bryan Keller, CPA, CGMA Partner-In Charge |St. Louis 314.290.3341 bryan.keller@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

Jeff Cunningham, CPA Partner | Denver 303.952.1257 jeffrey.cunningham@rubinbrown.com Chris Langley, CPA Partner | Chicago 847.972.5964 chris.langley@rubinbrown.com

RubinBrown Real Estate Services Group

17