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- The Canovo Report - November 14, 2023
The Canovo Report - November 14, 2023
🗞️ New Multifamily Listings, Apartment Rents Plateau, CRE Bank Loan Delinquencies Skyrocket,
Happy Tuesday!
Check out this week's Top New Multifamily Listings, last weeks Sold Listings, and our Multifamily Market Snapshot and News Headlines.
If you have any questions about buying or selling multifamily property in Utah, you can schedule a brief strategy call with me here.
Happy Investing,
David Robinson
New Multifamily Listings
Our team has analyzed these deals using our custom bulk property analyzer. If you’d like more detail regarding any of these listings, click the links below. If you’d like to learn how we help exclusive investor clients find and acquire off-market multifamily, click here.
$775,000.00
1237 W 4700 S Riverdale Utah , 84405
Type: 4
Est Proforma Cap: 8.00%
Total Monthly Expenses: $1,560.94
Gross Monthly Income: $6,936.00
$449,900.00
2054 S Taylor Ave Ogden Utah
Type: SFR+
Est Proforma Cap: 6.78%
Total Monthly Expenses: $822.38
Gross Monthly Income: $3,468.00
$599,900.00
6843 S 3335 W West Jordan Utah
Type: SFR+
Est Proforma Cap: 5.96%
Total Monthly Expenses: $1,021.23
Gross Monthly Income: $4,122.00
$899,000.00
1804 W 400 N Salt Lake City Utah , 84116
Type: 4
Est Proforma Cap: 5.78%
Total Monthly Expenses: $1,506.23
Gross Monthly Income: $6,016.00
$899,000.00
3279 S 4140 W West Valley City Utah , 84120
Type: 4
Est Proforma Cap: 5.78%
Total Monthly Expenses: $1,506.23
Gross Monthly Income: $6,016.00
$1,060,000.00
1713 N Main Sunset Utah , 84015
Type: 6
Est Proforma Cap: 6.22%
Total Monthly Expenses: $1,846.87
Gross Monthly Income: $7,566.00
Canovo Group may not be the listing brokerage for the above properties. The information provided is not guaranteed and should not be relied upon to make investment decisions. Buyers should complete their own analysis and due diligence before making any investment.
Sold Multifamily Listings Last Week
Here's a roundup of multifamily properties sold over the past week. We've estimated their selling cap rates using our bulk analyzer. Interested in your property's value? Request a complimentary broker's opinion of value.
What is Your Property Worth? Request a Free Valuation.
Utah Market Snapshot
Top News, Reports & Insights
> Rent prices drop along Wasatch Front, but it won't last long
Summary: After a decade of consistent increases, rent prices along Utah's Wasatch Front have recently seen a notable decrease of 5.71% compared to last year, a trend influenced by the end of some remote work policies, reduced inbound migration, and a surge in new apartment constructions. This decline is also attributed to seasonal demand changes, with an expectation of rents rising again in the spring, albeit at lower growth rates than during the pandemic. Despite the current dip, average rent remains significantly higher than pre-pandemic levels, indicating a new baseline for future rent price growth.
> CRE Bank Loan Delinquency Rates Hit Decade-Long High
Summary: Delinquency rates for commercial real estate (CRE) bank loans have reached a ten-year high, with a notable 30% increase in past-due loans for properties rented to others, totaling $17.7 billion in the three months to September 2023. Despite this spike, the overall health of bank lending is still considered historically strong, with only 1.5% of commercial property loans past due. Contributing to the precarious state of the office sector is the WeWork bankruptcy, which allows for significant lease cancellations and renegotiations, exacerbating an already high national office vacancy rate.
Source: globest.com
> After Rapid Cooldown, Apartment Rents Plateau (For Now)
Summary: The U.S. apartment rental market has seen a stabilization in rent growth, with a slight annual increase of 0.1% as of October 2023, ending a period of decline. This trend is largely influenced by a significant rise in housing supply, especially in areas with high construction rates. Additionally, wage growth has been consistently outpacing rent increases, suggesting an improvement in rental affordability.
Main Takeaways:
Stabilization of Rent Growth: National apartment rent growth has shown signs of stabilization with a marginal increase of 0.1% annually as of October 2023. This follows an 18-month period of declining rent growth, indicating a plateau in the market.
Impact of Supply on Rental Market: The construction boom, which was a response to high rent growth and low vacancies in 2021 and early 2022, has led to a significant increase in apartment supply. This surge in new apartments is contributing to the cooling of rent growth, especially in areas with above-average construction rates.
Wage Growth vs. Rent Increases: A positive development is that wage growth has been outpacing rent increases for several months. This trend is expected to continue, potentially offsetting the rent-over-wage imbalance seen in 2021 and early 2022 and broadening the pool of potential renters.
Source: realpage.com
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