Cold weather earlier this year didn’t put a brake on new construction for long. Developers are starting more new commercial and multifamily projects than experts anticipated, even before the long, cold winter.
Banks are willing to make permanent loans to apartment properties at rock bottom interest rates. To compete, Fannie Mae and Freddie Mac lenders are offering the lowest rates they can, plus faster service.
Apartment rents will grow faster in many secondary markets than in the top primary markets like New York City and Los Angeles, according to 2014 projections from data firms Reis Inc. and Pierce Eislen.
Despite high prices for apartment properties, REITs are on a buying binge. They are finding value in mergers that offer them efficiencies that put a strong hold on their markets. They are also looking at market and regions where property prices aren’t so high compared to the income from the properties.