""/
Insights

The unintended consequences of pervasive zoning, land use, and environmental regulations in perpetuating the housing shortage

Increasingly stringent local zoning, land use, and environmental laws and regulations are arguably the most significant headwinds adversely impacting housing production. State and local regulations impose significant risk elements and unproductive costs and serve to limit not only where new housing can be developed, but also constrain the asset class, product type, density, material, and style of new developments.

""/
Insights

The chronic housing shortage: Understanding the structural market drivers of the undersupply

New housing supply (i.e., net housing deliveries) is the completion of new housing units, less demolished and newly uninhabitable units. A housing unit is any form of housing accommodation, such as an apartment, townhome, single-family home, condominium, or mobile home. Housing supply has two sources: 1) private construction, or non-governmental enterprises, which makes up 98.5% of new construction spending; and 2) public construction, or government funded construction, which is just 1.5% of construction spending. This White Paper will focus on private construction due to its prevalence as the primary source of new supply.

""/
Insights

The growing U.S. population and a decreasing average household size puts pressure on housing demand

Demand for housing is best quantified by the formation of new households. A household is defined as one or more people living in an individual dwelling unit, such as a family living in a home together, roommates sharing a rental unit, or an individual living alone. Household formation occurs when an individual or a group of individuals move from one household into a separate household, such as when a young adult moves out of their parents’ home to live alone, or with a roommate or partner, or when an immigrant (either an individual or family unit) moves into the country. These new households, by definition, need to move into a separate housing unit.

""/
Insights

Understanding the chronic housing shortage in the U.S., the impact on the working middle class, and the opportunity for investors

The US housing market is chronically undersupplied. This is a direct result of a long-term, secular trend that began after the 2008/2009 Global Financial Crisis (the “GFC”) and has worsened each subsequent year. Prior to the GFC’s end, the US had a peak estimated housing surplus of 2.9 million units. However, after the GFC ended and its effects on the residential construction sector became fixed within the economy, this surplus declined every year until housing demand surpassed supply in 2017, when a shortfall of 731,000 units materialized, according to Kingbird analysis of Federal Reserve Board of St. Louis, US Census Bureau, ACS IPUMS, and CoStar data. This shortfall has since grown to between 3.8 and 6.8 million, as of 2020, according to Freddie Mac Housing Supply: A Growing Deficit May 2021 and National Association of Realtors Housing is Critical Infrastructure: Social and Economic Benefits of Building More Housing June 2021.

""/
Uncategorized

Don’t let doom and gloom headlines distract from your investment strategy

Amidst rising interest rates, high inflation, and broader economic uncertainty – there is no shortage of doom and gloom headlines when it comes to CRE investment. Recent apartment vacancies piling up in certain geographies and sectors of the multifamily market have created a shift in media sentiment and headlines that multifamily has been immune to over the last few years. As headlines continue to simplify the narrative, our research continues to illustrate that the underlying demographic fundamentals and demand drivers remain compelling. Multifamily and related rental housing investment is a long game – and it’s critical to stay focused on the structural and secular factors that form the basis for a durable long-term investment program in the sector.

""/
Uncategorized

GlobeSt.com: Multifamily Investment’s Bright Spots for 2023

Rising interest rates, a potential policy-induced recession, credit terms, and valuation uncertainties are all a reality, but the current “doom and gloom” headlines oversimplify and obscure the long-term positive fundamentals of the multifamily asset class specifically. Ken Munkacy talked to GlobeSt about Kingbird’s research and analysis that shows the underlying fundamentals in the multifamily asset class – especially workforce housing – remain solid, and investing in distress as 2023 unfolds presents an opportunity to capture strong risk-adjusted returns.

1 2 3 4
Privacy Settings
We use cookies to enhance your experience while using our website. If you are using our Services via a browser you can restrict, block or remove cookies through your web browser settings. We also use content and scripts from third parties that may use tracking technologies. You can selectively provide your consent below to allow such third party embeds. For complete information about the cookies we use, data we collect and how we process them, please check our Privacy Policy
Youtube
Consent to display content from Youtube
Vimeo
Consent to display content from Vimeo
Google Maps
Consent to display content from Google
Spotify
Consent to display content from Spotify
Sound Cloud
Consent to display content from Sound