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Denver Outlook

Last week, EPIC Asset Management Group and Regency Investment Group closed on The Fairview Apartments in the Denver area. We look forward to a successful partnership with Regency and are excited to to expand our business to an up-and-coming state such as Colorado.

Denver has experienced excellent growth in recent years. According to Marcus & Millichap and CBRE reports, Denver has continued its strong job growth which will help help drive the multifamily market. In addition, low vacancies and steady rent increases in the B and C class apartment market generate great investment potential for the city and the surrounding suburbs.

If you’d like to see detailed reports from Marcus & Millichap and CBRE on the Denver market and projections for the remainder of 2017, click on the links provided below.

Marcus & Millichap – Overview

CBRE Denver Market Report – In-depth

 

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Phoenix Heating Up?

Phoenix has been experiencing steady improvements as of late, and it seems as if the capital of Arizona could continue trending upward for years to come. Yardi Matrix recently published the Spring 2017 Phoenix Multifamily Market Analysis. According to the report, new supply is on pace with demand, resulting in high occupancy rates, employment is on the rise, and job growth is strong thanks to low cost of living.

Other interesting facts and statistics included in the report:

  • Phoenix rents rose a nation-leading 5.1% year-over-year through March.
  • Yardi projects Phoenix rents to continue growing at above-trend 6% in 2017.
  • Strong investor demand: Over $5 billion worth of multifamily properties have changed hands since the start of 2016.
  • Over 1.1 million square feet of office space added to Phoenix market in first quarter of 2017.
  • $7 billion investment by Intel in the Fab 42 plant, which could produce ~10,000 local jobs.

The Yardi Matrix report contains a number of graphs, charts, and other helpful information so review the complete report for a complete understanding of the Phoenix multifamily market as of Spring 2017.

Click here for the entire Yardi Matrix Spring 2017 Phoenix Multifamily Market Analysis

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Top ZIP Codes for Millennial Renters

HomeUnion, an online real estate investment firm, recently conducted a study to discover the best ZIP codes for millennial renters. Each renter’s market was evaluated based on median rent, commute time, and school ranking percentage.

According to the results, the top three ZIP code for millennial renters are: 

1) Elm Grove, Wisconsin 53122 – Suburb of Milwaukee

2) Middletown, Kentuky 40243 – Suburb of Louisville

3) Central Austin, Texas 78705

Click here to see the other top 21  millennial renting markets in the U.S.

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Tax Reform and its Potential Impact on Multifamily

Last week, the National Multifamily Housing Council (NMHC) published an article examining the recent tax reforms proposed by the Trump Administration. The article provides a visual breakdown of how Trump’s tax plan compares to current tax laws and the House Republican Tax Blueprint.

A number of principles from each proposal have potential to make a significant impact on multifamily housing and investment. For example, one principle from the House Republican Tax Blueprint proposes to eliminate the Low-Income Housing Tax Credit (LIHTC), a program responsible for financing almost 3 million apartments and serving over 13 million residents since 1986. Contrary to elimination, the NMHC is insisting lawmakers expand the program by 50 percent. Also, the House Republican Tax Blueprint would tax investment income only 16.5 percent, rather than the current 20 percent plus 3.8 percent on net investment income.

The Trump Administration have some impactful provisions outlined, as well. A proposed 15 percent tax rate for all business would be 10 percent lower than the House Republican’s proposed maximum rate of 25 percent, and a whopping  24.6 percent below the current maximum business tax rate of 39.6 percent. Furthermore, the Trump proposal looks to eliminate the estate tax and cut individual tax rates by consolidating today’s seven tax brackets down to three.

Tax reform was scheduled for the August recess but has been postponed until later this year.

 Click here to see the Tax Plan Comparison Table and a highlight of the Trump Administration tax plan 

*House Republican Tax Blueprint Highlight*