User Login
  Become a Member

Freddie Mac: Multifamily Affordability is Now a Key Focus

Published Tuesday, February 26, 2013
by Christina Mlynski

 

Various factors are driving the increase in rental housing affordability, including demographic trends, household formations, higher credit standards for residential mortgages and changing attitudes about homeownership in light of the housing crisis, according to Senior Vice President David Brickman of Multifamily at Freddie Mac. Brickman made those assertions in a blog this past week.

However, adequate, affordable rental housing is hard to find in certain parts of the country due to gross rent, which is rent plus tenant-paid utilities.

More than half of all renters spend more than 30% of their income on housing, up from 40% of renters in 2000. Additionally, roughly 30% of renters spend at least 50% of their income on housing while low-income households tend to spend even larger portions of their incomes on rent, according to the U.S. Census Bureau's American Community Survey 2000-2011. 

Nonetheless, Brickman noted that Freddie Mac’s dedication to support affordable rental housing is in the government-sponsored enterprise’s 'DNA.' 

"Working closely with multifamily property owner/borrowers and our network of lenders, Freddie Mac Multifamily structures financings in a way that lets us offer very competitive, long-term rates," he said. 

Brickman added, "Owners realize lower costs of ownership and the benefits are typically passed on to tenants through sustainable, viable properties and lower rents than might otherwise be available." 

Freddie Mac Multifamily purchased more than $150 billion in mortgage loans, financing nearly 2.6 million rental units, between 2005 and 2012.

In January, Freddie Mac set a new record for multifamily loan purchases as well as guarantee volumes.

The GSE’s multifamily business volume reach a record of $28.8 billion, or a 42% increase, compared to $20.3 billion in 2011, according to Brickman's blog.

"Freddie Mac's consistent support for the entire multifamily rental housing market provides significant confidence to private apartment developers and construction lenders," Brickman stated. 

He added, "In turn, this helps ensure a strong and stable pipeline of new apartment communities to accommodate the growing demand for affordable rental housing."

 

 

    Events|News|Legislative|Services

Upcoming Events

Vinyl at Hard Rock Hotel & Casino
Las Vegas, Nevada
April 22nd, 2015 | 6:00p - 8:00p
Arzano
Las Vegas, Nevada
April 23rd, 2015 | 8:00a - 4:30p &
April 24th, 2015 | 8:00a - 4:30p
Texas Station
Las Vegas, Nevada
April 23rd, 2015 | 9:00a - 12:00p
NVSAA Training Center
Las Vegas, Nevada
April 29th, 2015 | 9:00a - 11:00a
Angel Park and Cloud 9 Golf Course
Las Vegas, Nevada
May 8th, 2015 | 7:00a - 3:00p
The Orleans
Las Vegas, Nevada
May 20th, 2015 | 9:00a - 12:00p

Latest News

Published Friday, April 17, 2015

Record-setting tourism and the strongest convention attendance in several years are driving employment growth and creating apartment demand Las Vegas. Job growth is well above the national average, spurring developers to complete projects that were mothballed since the recession. In addition, multifamily permitting is trending more than 60 percent higher as builders rush to keep up with demand for rental space. While more than 1,400 apartments have been completed during the past year, vacancy fell sharply and concession activity nearly halted on well-located properties near employment hubs. The leisure and hospitality sector is providing the biggest job gains in the economy, although more corporations are relocating to the metro due to its position as a travel destination and the lack of a state income tax. The new workers hired by these companies are choosing to rent in prime areas to the southwest of the city, close to shopping centers, freeways and the Strip. Single-family housing costs in these areas are above the metro average, spurring strong rental growth and pushing vacancy down. Tightening operations will lift rents up 3.4 percent this year, more than 100 basis points above inflation.

Published Wednesday, February 25, 2015

You can be THE FIRST to know what's happening in the Las Vegas housing market each and every month. FastFacts is the e-newsletter that tells you exactly what's going on in both the new and existing home market in terms of volume, prices, and trends.

Published Tuesday, February 24, 2015

I think it's fascinating how consumer-to-business connections change over time ... and I'm always paying attention.

Published Monday, February 23, 2015

With over 2.6 million apartment units updated each month, ALN Apartment Data is one of the most complete and accurate data provider available anywhere in the country. The Las Vegas Apartment Market Overview for January 2015 is now available to view.

Current Legislative News

Published Friday, January 24, 2014
Published Wednesday, March 13, 2013
Published Wednesday, March 13, 2013



NVSAA Platinum Sponsors

Please Join the NVSAA and Thank Our Platinum Sponsors Below

SundlandAsphalt
ABOUT US | EVENTS | EDUCATION | NEWS | RESOURCES | SCREEN YOUR TENANTS | CONTACT US

Address 9011 West Sahara Avenue, Suite #150 | Las Vegas, Nevada | 89117
Phone 702.436.7662 | eFax 702.446.8445 | Email nsaa@nvsaa.org

All website content is Copyright © 2015 Nevada State Apartment Association. All rights reserved.

PRIVACY POLICY

Top