The apartment REIT players dealing in the higher-end markets on the coasts are complaining about a bit of a supply glut, but not so in the market for affordable rental units, says Freddie Mac.
Freddie sees an annual shortfall of about 400K housing units, even when taking single-family starts into account. At issue are increasing rents and stagnant incomes. What would help? More supply, of course, with Freddie standing by to help with financing.
The closings were part of a reverse 1031 exchange initiated withNexPoint's (NYSE:NXRT) June purchase of Rockledge Apartments.
The cumulative sales price was $116M. After paying off the mortgage and closing costs, what's left will be used to pay down short-term debt incurred with the Rockledge purchase and to finance a portion of the BH Buyout.
The percentage of households renting rose to just under 37% last year, according to Pew Research. That's vs. 31% in 2006, and just less than the 37% seen all the way back in 1965.
While the groups that have historically tended to rent - young adults, nonwhites, and the lesser educated - continue to do so, Pew found rising rates of renters among traditional buyers like whites and middle-aged adults.
The reasons are well-known - home prices are back on the rise, and wages aren't keeping up, particularly in the more expensive coastal markets.
Included in the data is interesting news for Airbnb (Private:AIRB) fans ... there are a lot of unoccupied rooms out there - renting these out could generate $14K-$24K for the strapped homeowner.