Dear Friends and Family,
As 2020 begins, billions of dollars are being invested across Southern California in sports arenas, museums and light rail lines. The rental market across all property types continues to rise with small multifamily having the most robust rent growth. We look at the trends fueling the multifamily market from the lending perspective. All while we take a closer look at California’s game changing 1995 Costa Hawkins Rental Housing Act and its implications.
Here’s What’s Coming in 2020
Across Southern California, billions of dollars are being invested in new infrastructure and private developments. Here is a look at some of the biggest projects set to debut in 2020.
Small Multifamily Rent Growth Leads All Other Property Types
According to the most recent housing data from the U.S. Census Bureau American Community Survey, the U.S. rental market continued to see rents rising steadily across all property types. Small multifamily saw the most robust growth while maintaining its status as the least expensive asset class.
Multifamily Finance Experts Discuss 2020 Outlook
Rich Martinez, senior vice president of multifamily production and sales at Freddie Mac, points out that low interest rates, positive rent growth of over 4% and vacancy rates that have been moderating but not increasing are all fueling demand for multifamily housing. “Demand continues to exceed the supply of multifamily housing, and as a result we do not see any signs of weakness of the overall markets.”
Costa Hawkins: the California Law Renters Want Repealed, Explained
For the first time in history, California is implementing rent control statewide. But it has an old law on the books that curbs how individual cities and counties implement rent control at the local level. California’s 1995 Costa Hawkins Rental Housing Act sets limits on the kind of rent control policies cities can impose. Right now, more than a dozen places statewide have their own rent control policies – many of them stricter and more comprehensive than the new state law.
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As always, please respond with your questions, comments and thoughts. Until next time, hope you have a great rest of your day!