Major Centers are Being Outpaced in Rental Growth

With several major centers bearing the brunt of renters moving out Q3 has seen multifamily rents flatten and secondary and tertiary markets starting to outperform the major metros. Yardi Matrix reports a national average rental drop of 0.6% year over year. Outmigration for large markets to secondary hubs is amplifying and bedroom communities with lower costs of living are outperforming the larger centers. In addition coastal metros are seeing inland migrations with cities such as Sacramento (5.0%), Las Vegas (3.9%) and Phoenix (3.8%) seeing better growth. Tertiary markets are seeing a similar influx with Boise (8.1%), Huntsville (6.8%) and Portland, Maine (6.5%) leading the markets in rental growth while major centers such as New York (-10.0%), San Francisco (-8.2%), Washington, D.C. (-3.7%), Boston (-3.1%), Chicago (-2.9%) and Los Angeles (-2.8%) are seeing significant drops. Ron Cadman is a Director of Investar USA, an active Build For Rent Development Company in the southwe

Phoenix Multifamily Rebounded in Q3

  Following a decline in Q1 and a halt in activity through Q2 of 2020, the Phoenix Multifamily market has seen a significant rebound through Q3. ABI Multifamily has reported closings on 12 apartment sales in October of 2020 and 40 properties set to trade before the end of the year. While there was a pricing corrections seen in the early days of the pandemic, ABI is currently reporting pre-pandemic values and rental growth in the market. Phoenix has long been a popular area for multifamily investors however the pandemic shut downs in some states, rent control in California and overall uncertainty in the market has brought an influx of interest back to the area. With a low cost of living and high in-migration, Phoenix is building on its fundamentals and starting to see steady growth. Ron Cadman is a Director of Investar USA, an active Build For Rent Development Company in the southwest United States. 

This is not a typical recession says Ron Cadman of Investar USA.

  This is not a typical recession says Ron Cadman of Investar USA. This is not a typical recession says Ron Cadman of Investar USA. People have lost jobs due to a government induced recession and Congress decided to break until September with no regard for the mess they created. Politics is taking priority over collaboration and addressing the real issues impacting America’s working class resulting from Covid-19. Those of us with hard assets are fine and are seeing asset values rise while the working class have lost jobs and are sliding deeper into debt. According to a recent analysis by John Friedman, an economics professor at Brown University, U.S. stocks are hovering near a record high, a stunning comeback since March that underscores the new phase the economy has entered: The wealthy have begun to recover. The bottom half remain far from it. This dichotomy is evident in many facets of the economy, especially in employment. Jobs have returned for the highest wage earners,

What’s in store for the housing market in 2020?

2020 is fast turning out to be an up-and-up year for the housing sector, driven by increased job markets and low mortgage rates. However, those in the market for a new home this year may have problems looking for one, according to Ron Cadman of residential and commercial property developer Investar USA. Real estate professionals say that generally speaking, the growth of the housing industry this year will be solid but modest and will carry over to 2021. This is driven by expert anticipation that the sector will finally have a real effect on GDP growth. And because of the mixture of more people getting employed and interest rates plummeting, consumer spending will increase, and more people will be shopping for new residential properties. The positive developments are bolstered by the recent signing of the Phase One deal in the ongoing U.S.-China Phase trade talks. And, though much has yet to be done to improve foreign relations with the Asian nation ultimately, players in the r

How Healthy is the Housing Market for 2020? Ron Cadman Discusses Residential Real Estate Investment Prospects

The housing forecast indicates that the market for entry-level housing will strengthen, affordability will be new home buyers’ chief concern, and millennials will be the largest segment of the home buying population. Real estate developer and co-founder of Investar USA Ron Cadman discusses these and other housing market trends for 2020. Ron Cadman specializes in multifamily rental housing. What can we expect from the housing market in 2020? For sellers, affordability will be the key factor, with supplies being limited in most regions due to insufficient construction. Here are some of the trends we can expect in the coming year. The housing market will be dominated by the millennial population. 2020 will be the year the majority of millennials will enter their 30s – standard home-buying age – and will account for more than half of all mortgages. Supply will fail to meet demand. Entry-level home inventory will not be sufficient for the number of new home buyers, in

Apartment or single-family housing: What property to invest on

Millions of people in America make the choice each year of whether or not to move into an apartment or a single-family housing. Given that real estate is perhaps the biggest investment adult Americans enter, weighing all the options is necessary when making this choice. This is why real estate investors should be savvy about the type of properties they invest in. Do they want to keep to single-family housing or do they want to invest on residential buildings? Ron Cadman of Investar USA believes that people should know what property to invest in, as well as the circumstances that come with their choices. From the get-go, there is a large difference when it comes to the financing of single-family housing and apartments. Qualifications for residential lending and commercial lending differ in aspects like method of valuation, credit scores, prepayment penalties, and restrictions. While apartment rental may seem like the cheaper option, there are other factors outside financing tha

Ron Cadman: Should You Invest in an Apartment or a Single-Family Home?

With the spring season in full swing, you may be gearing up to embark on some real estate investing. The question is, should you invest in a single-family home or an apartment building? Many investors become intimidated by apartment buildings that feature more than five units. However, large apartment units carry great promise for investors when compared with single-family residences, according to Ron Cadman, a co-director of Investar USA development firm. Here is a rundown on why you should invest in an apartment building this spring. The biggest reason to invest in an apartment building is that valuations are handled differently between an apartment complex and a single-family home. With the latter, your property value will end up fluctuating when you compare your home with your neighbor’s. However, a larger apartment complex is valued based on the income approach. With this approach, the value of your property will depend on your building’s net operating income, not on neighboring