Rental Housing Journal On-Site
March 2017
3. The Informed Investor - Why Use 1031 IRC Exchanges? 5. 2017 Educational Conference and Exposition 9. Addressing Housing Affordability
10. Examining the National Boom in Markets Demand for Luxury Apartments 11. Dear Maintenance Men - Sidewalks, Fencing and Toilets 18. Survey on Home Buying By Gen X, Millennials and Boomers 21. The World is Searching for Reliable Property Managers
www.rentalhousingjournal.com • Professional Publishing, Inc 17,000 Papers Mailed Monthly To Puget Sound Apartment Owners, Property Managers & Maintenance Personnel Published in association with Washington Association, IREM & Washington Multifamily Housing Association
4Q16 Market Overview
6 Keys to Writing A Lease The Right Way
Multifamily Housing Update Seattle, WA
Payroll Job Summary Average Payrolls
1,676.5m
Annual Change
59.3m (3.7%)
RCR 2017 Forecast
59.1m (3.6%)
RCR 2018 Forecast
55.6m (3.3%)
RCR 2019 Forecast
51.6m (2.9%)
RCR 2020 Forecast
49.4m (2.7%)
RCR 2021 Forecast
46.0m (2.5%)
Unemployment (NSA)
3.6% (Dec.)
4Q16 Payroll Trends and Forecast The rate of Seattle employment growth accelerated for the fourth consecutive quarter as establishments added workers to payrolls at a 59,300-job, 3.7% year-on-year rate during 4Q16, up from 3.6% during the prior period. Seven of 12 industry super-sectors expanded at 4% rates or faster, led by personal and other services (9.1%), construction (8.2%), transportation (8.1%) and information services (7.3%). Subsector performance was highlighted by software (+2,500 jobs/4.7%), computer system design (2,000 jobs/5.2%) and healthcare services (7,900 jobs/4.4%). The booming cloud computing industry was the primary tech catalyst. Education services added employees at a 1,000 (3.5%) job annual pace, the first positive print in more than a year. Only the Jet City’s seminal aerospace industry shed jobs, trimming headcounts at a 5,000-slot, -5.6% y-o-y rate, the worst quarterly performance since 2008. Seasonally-adjusted data are somewhat at odds with the nominal results. This series show a net gain of 9,100 jobs October to December, representing the slowest quarterly add of 2016, and the fourth smallest
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By John Triplett, Rental Housing Journal
T
he webinar was by Buildium. com and run by Darcy Jacobsen, Director of Content, and Sam Driver, Product Director, and an experienced property manager at the company. During the webinar, they polled the group of property managers on a number of questions, and the first one was:
How many different leases do you use in your business? “The most common is one lease, especially when the units are often similar. And, especially with smaller operators, one lease works.” Driver said. “However we are finding it is not uncommon to shift to a two- or continued on page 10
U.S. Home Flipping Increases 3 Percent In 2016 To A 10-Year High Average Gross Flipping Profits and ROI at New Record Highs
A
TTOM Data Solutions, curator of the nation's largest fused property database, today released its 2016 Year-End U.S. Home Flipping Report, which shows that 193,009 single family homes and condos were flipped — sold in an arms-length transfer for the second time within a 12-month period — in 2016, up 3.1 percent from 2015 to the highest level since 2006, when 276,067 single family homes and condos were flipped. Home flips in 2016 accounted for 5.7 percent of all single family home and condos sales during the year, up from 5.5 percent in 2015 to a three-year high
but still well below the peak in 2005, when 338,207 single family homes and condos were flipped representing 8.2 percent of all sales. The report also shows that 126,256 entities — including both individuals and institutions — flipped homes in 2016, up less than 1 percent from 2015 to the highest number since 2007, when 143,266 entities flipped properties. Meanwhile, the share of flipped homes that were purchased by the flipper with financing increased to an eight-year high of 31.5 percent in 2016 while the median age of homes flipped increased to 37 years — a new high going back to
2000 — and the median square footage of homes flipped decreased to 1422 — a new record low going back to 2000. "Home flipping was hot in 2016, fueled by low inventory of homes in sellable or rentable condition along with a flood of capital — both foreign and domestic — searching for the returns and stability available with U.S. real estate," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "The combination of more home flips and a greater share of financing for flip purchases resulted continued on page 12
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