Technology in the multifamily industry has myriad benefits and can create efficiencies, including helping professionals make more informed decisions, improving property managers’ jobs and even playing a role in the labor shortage and leasing experience for property teams. In her article for The Multifamily Journal, Stacey Darden, Senior Director of Innovation & Compliance, examines how technology can contribute to successful operations while balancing this with face-to-face engagement to ensure everything functions seamlessly.
Read the article “Balancing Technology with Human Interaction in Multifamily” here.
San Diego’s downtown skyline endlessly evolves as multifamily developers remain full speed ahead despite a changing economic landscape. Even with this growth, COO Julie Blank told Western Real Estate Business optimism from multifamily developers is fine, but caution should be exercised as well.
“Operators must take a strategic look at the demographics they are targeting and set their business plans to real-life scenarios,” Blank said. “What can residents actually afford? Business owners can’t be swayed into thinking that everybody can afford something a little bit better.”
In the current economic climate, New Standard Equities is looking even closer at expense reductions, centralized business functions, increasing in-place technology automation and cutting dividend payments, among other strategies, as it combats rising interest rates and property management costs.
However, Blank acknowledged that demand for multifamily is still there, particularly in expensive markets like San Diego.
“With the increase in interest rates and the price of homes, multifamily is projected to continue to see high occupancy and rent growth,” Blank commented. “As rents continue to rise, so do home prices.”
Read the full Western Real Estate Business article here.
Ballooning home prices and rising interest rates in the for-sale housing market have served as an adrenaline shot for apartment demand, driving valuations up, but as inflation pummels the construction industry, the development pipeline still can’t keep up. In an interview with Bisnow, CEO Edward Ring and COO Julie Blank discuss why this is good news for existing multifamily owners but explain why they still need to be cautious.
“People are working, they’re paying their rent, they’ve gotten through Covid, and maybe they’ve been saving for years to buy a house — but suddenly the cost of everything about buying a house is way up, so they’re going to be renters still,” Ring commented.
A deep recession might bring the cost of housing down in a hurry, as it did in 2008, but in that case job losses would keep people in their apartments, Ring pointed out, though he’s skeptical that a recession in 2022 or 2023 would be the kind of implosion that happened during the Great Financial Crisis.
“A lot of institutional money seems to be mistaking today’s outlook with that of 2008,” Ring said. “They’re bracing for another massive recession. There are some similarities, such as in rising home prices, but otherwise dynamics aren’t the same.”
In short, Ring expects home prices to remain relatively high, along with the cost of mortgages, as long as the Federal Reserve tries to tamp down inflation via interest-rate increases. Rising interest rates are expected to have a clear impact on housing sales and the current climate might make things tough for renters who want to own, but multifamily owners stand to benefit as renters remain in place.
Despite an overall positive market outlook, multifamily owners should still be cautious, Blank told Bisnow.
“Operators must take a strategic look at the demographics they are targeting and set their business plans according to real-life scenarios,” she said. “What can residents actually afford? Business owners can’t be swayed into thinking that everybody can afford something a little bit better.”
Read the full article here.
New Standard Equities Founder & CEO Edward Ring is bringing his expertise as a member of the board to two organizations.
Recently appointed to serve on the Center Theatre Group’s Board of Directors, one of the nation’s leading nonprofit theatre companies, Edward is dedicated to raising the profile of Los Angeles theatre, supporting the development of new work, and igniting interest in the theatre among the community’s youth.
Edward is also a newly elected member of the Board of Trustees for the Children’s Bureau, an organization which supports families through child abuse prevention and treatment. In joining the Board, Edward will continue to support the organization’s mission and fundraising activities such as the President’s Invitational golf tournament, its annual dinner, and various other initiatives.