Dear Friends and Family,
As the summer gets underway, the real estate industry looks to the future. California takes steps to address its housing affordability crisis with new legislative action, while also announcing a new budget to tackle a number of other issues. As the fall semester approaches for Southern California colleges, the demand for student housing is seeing a comeback, especially as COVID-related restrictions lead to more people on campus. Finally, multifamily property owners feel a sense of normalcy in leasing activity with an increase in interest and tours.
California Takes a Legislative Response to the Affordable Housing Crisis
Also known as the Neighborhood Homes Act, SB 6 would allow residential development in commercial and residential-zoned areas, as long as the project is not adjacent to an industrial use. According to Joe DiStefano, CEO of UrbanFootprint, the bill would “increase market-feasible capacity by as many as 2 million new homes.” If this came to fruition, the net fiscal benefit to the state’s jurisdictions could be $6 billion in annual revenues, adds DiStefano.
California Budget Deal Includes Rent Aid, Programs for Small Businesses
About $12 billion of those relief dollars and cash surplus is earmarked to address homelessness over the next two years. That includes expanding Project Homekey, a statewide program to buy and convert hotels into permanent housing for the recently homeless. The state will also expand its health and human services programs. Another $7.2 billion is set aside to assist existing renters. About $5.2 billion of that will cover unpaid rent accrued during the pandemic and $2 billion will cover overdue utility bills.
Student Housing is Poised to Rebound, But Demand Points to On-Campus Preference
https://www.bisnow.com/los-angeles/news/student-housing/student-housing-demand-coronavirus-109416
Claremont McKenna had offered limited on-campus housing and off-campus apartments during the past year but is now expecting maximum occupancy in student housing for the fall semester due to a convergence of spillover factors from the coronavirus pandemic year. Some students who were expecting to do a study abroad program can’t go because their program isn’t running, others who would have normally gone on a study abroad program aren’t interested in traveling right now, and the freshman class has not seen the usual drop-off rate, so there are more students moving on to the second year than would normally be expected, Claremont McKenna College Assistant Dean of Students and Director of Residential Life Jenny Guyett said.
“We’ve Seen the Bottom”: Leasing Activity, Fewer Concessions Sparks Optimism in LA Multifamily Owners
“In the past 30 days, all of a sudden, it’s like the sea split and we see a wave of renters coming in,” Manoucheri said. He said his company has “a record amount of leases” in buildings that, until recently, had occupancy of 80% or 85%. Lee said more than 30% of tours at Jamison’s properties, especially virtual tours, were for people who left LA because of the coronavirus pandemic and are looking to return because they have to go or anticipate having to go back into the office.
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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!
