There are more than 38 million Americans living in apartments. The multifamily sector continues to drive America’s housing construction, and contributes more than $1 trillion annually to the country’s economy through financing, development, and operations of apartment complexes.
But available data about this sector and its residents continue to be sparse, given the size of this market and its growth.
To fill “critical voids” in that data, the National Multifamily Housing Council has raised $2.25 million in cash commitments from some of the biggest companies in this sector for the launch of a nonprofit NMHC Research Foundation that would fund unique and original research on such topics as housing, demographics, tax policy, regulations, zoning, and land use.
“As the multifamily industry grows in sophistication, so must the quality and breadth of our analysis,” says Doug Bibby, NMHC’s President and CEO. “The NMHC Research Foundation ensures that we’re able to continue providing leading, actionable information for the apartment market and support our member businesses.”
The Foundation, a 501(c)(3) entity, is guided by a board of directors comprised of Bibby; Kenny Emson, NMHC’s Senior Vice President of Finance Administration; and Mark Obrinsky, Senior Vice President for Research and Chief Economist. A Board of Advisors will provide input into the Foundation’s program of research.
It is not immediately clear how the research conducted and published by the Foundation will overlap or add to research that NMHC already churns out in such forms as its quarterly report of apartment market conditions, or various newsletters and reports that have recently touched on such subjects as the single-family rental market and aging apartment stock.
The NMHC research is generally members-only content.
Jim Lapidis, NMHC’s Vice President of Strategic Communications, tells BD+C that the Foundation is being layered into NMHC’s operations. “We do not anticipate hiring anyone specifically for the Foundation. We will be relying on a group of industry experts to volunteer their time and energy to review and award research grants,” he says.
It appears the Foundation’s research will be deeper dives into different topics, such as:
•Assessing risk-adjusted returns on apartments compared to other real estate and non real estate assets returns on apartments compared to other real estate and non real estate assets;
•Analyzing costs, challenges, and effects of inclusionary zoning policies;
•Studying energy consumption in multifamily buildings, with an eye toward providing guidance for energy efficiencies;
•Reviewing the norms of parking ratios in new developments;
•Examining the age of apartment stock and the cost of rehabilitation; and
•Exploring consumer needs and business viability of longer-term leases geared toward older and/or retired households.
Companies that have made early funding commitments to the Foundation include founding partners RealPage (a $1 million pledge) and Weidner Apartment Homes ($500,000). Each will pay out over a three-year period, and RealPage is availing Foundation with access to its databases and analytic capabilities.
“RealPage is excited to partner with NMHC to enhance the industry’s intelligence,” says Steve Winn, its Chairman and CEO.
NMHC identifies a total of 32 “early” contributors, comprising a veritable who’s who of developers, owners, and property managers in the multifamily space. They include Marcus & Millichap, Trammell Crow, Mill Creek Residential, UDR, Bozzuto Group, Pinnacle, SARES REGIS Group, Waterton, and Essex Property Trust.
Related Stories
Multifamily Housing | Feb 23, 2020
A post-storm Puerto Rico reconsiders how and what to rebuild
Federal help means tougher code enforcement. And will this island of homeowners embrace renting?
| Feb 17, 2020
Interior designers weigh in on outdoor kitchens
Designers weigh in on outdoor kitchens
Multifamily Housing | Feb 12, 2020
4 products for your next multifamily project
These new products can help improve any new multifamily project.
Mixed-Use | Feb 7, 2020
Rising to the occasion
Roof deck entertainment spaces are popular amenities that present engineering and code complexities.
Multifamily Housing | Jan 31, 2020
Higher-income renters continue to drive what’s getting built and leased in the multifamily sector
Nearly half of all renters are “cost burdened,” according to the latest Joint Center for Housing Studies report.
Multifamily Housing | Jan 20, 2020
U.S. multifamily market posted solid gains in 2019
Rents grew 3% for the year, according to Yardi Matrix.