What is bringing Boston investors into secondary markets north of the city? Value-add opportunities in the Merrimack Valley are attracting investors who have been priced out of the Boston area. Situated along the northeastern Massachusetts and southern New Hampshire borders, this region is experiencing economic growth and improving demographics in submarkets including Lowell, Lawrence and Haverhill.
Low supply and high demand continue to define Boston’s multifamily housing market. With a finite amount of available land, adaptive reuse is becoming an increasingly popular way to bring new multifamily inventory to market at a time where the appetite for apartment housing – be it workforce level or luxury – seems nearly insatiable.
Throughout 2018, Rhode Island’s single family home market was characterized by demand outpacing supply. In May 2018, the Rhode Island Association of Realtors reported the state’s median single family home price reached $275,000, a 10% increase over the previous May. And, late 2018 reports showed home values were still rising, particularly on the East Side of Providence. With residents left to explore other housing options – and with a continued statewide focus on economic development and business expansions on the horizon – 2019 looks to be another strong year for multifamily investment real estate in Rhode Island.
Did you know that 22 million people in the U.S. live in manufactured homes? Manufactured housing ranks among the country’s largest sources of unsubsidized affordable housing. Boasting lower costs per unit, less tenant turnover and decreased competition among investors, manufactured housing can offer investors viable investment opportunities. As multifamily investors seek avenues for diversifying their portfolios, manufactured housing (otherwise referred to as trailer parks) is one often overlooked opportunity for achieving this objective.
Adaptive reuse and transit-oriented development are two prominent trends shaping the Northeast investment real estate market. As vacant office properties, abandoned mills and defunct retail assets are adapted for new uses such as multifamily housing, investors have opportunities to acquire Class-B and Class-C assets below market value and create the conditions to establish and maintain in-demand housing units.
The recently passed tax reform package represents the most sweeping tax reform the country has seen since the Tax Reform Act of 1986 and will shift the dynamics of the real estate market in 2018 and beyond. While changes to mortgage interest and local and state deductions may adversely impact many homeowners, the new provisions are generally seen as positives for real estate investors and developers. In fact, many of the provisions passed will help investors by putting more money back into their pockets
Hartford, Conn. and Springfield, Mass. are both markets offering upside for value-added investors. With the expansion of transportation along the Hartford-Springfield corridor and job creation from the new MGM Springfield, this is an opportune time to consider acquiring a Class-B or Class-C property to reposition as part of your investment real estate portfolio. Here are some of the trends currently shaping the Hartford-Springfield market.
With cap rates at rock bottom and interest rates rising, many investors believe we are at or beyond the peak of the current market cycle. Add a resurgent stock market to the mix and investors may see more attractive yield alternatives beyond real estate. That said, opportunity still exists to add value and grow rents in selected Class-B and Class-C assets throughout the Northeast. In 2017 we will be hosting a series of investor workshops in New York, Boston, New Haven and Hartford/Springfield to address these issues and more.
Over the past ten years, we have seen a significant evolution in the multifamily market as homeownership rates nationwide have steadily declined, reaching a 50-year record low in 2015. During a recent presentation for the Institute of Real Estate Management, Connecticut Chapter, I shared insights on national trends and the regional multifamily housing market. Here are some highlights: