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Multifamily housing starts dropped 7.1% year over year in July, with completions down 25.6%, according to HUD and the U.S. Census Bureau. Permits for multifamily units rose 6.3% annually, signaling future activity. Regional data show multifamily driving construction in the Northeast and West, while total starts fell sharply in the Midwest and South. Builders face rising costs, labor shortages, and financing pressures, though rental demand remains resilient.
Dallas-based multifamily investment manager Knightvest Capital announced the acquisition of three apartment properties totaling 1,027 units in the Austin metropolitan area. The portfolio, located in the Silicon Hills corridor, will undergo exterior and interior upgrades. Knightvest CEO David Moore said the assets were purchased at a deep discount to prior peak pricing, reflecting current market conditions in Austin.
Cityview has named Gabi Franco managing director of asset management. Franco will oversee the firm's development and value-add assets, working alongside construction, property management, and development teams as Cityview expands nationally.
On Aug. 13, Brookfield Asset Management and Varia US Properties AG formed a $694 million joint venture covering 13 U.S. multifamily properties. The deal provides up to $200 million for future acquisitions, strengthens Varia's balance sheet, and supports portfolio expansion and quality improvement.
TruAmerica has made its inaugural structured finance investment, committing $27 million in preferred equity to a ground-up apartment development in San Carlos, California. The move follows the hiring of Ash Baraghoush to lead the new vertical and reflects the firm's ambition to build a $500 million private credit portfolio and evolve into a residential investment management company.
Hillpointe, a Florida-based real estate and investment firm, has entered the Kentucky market with two new developments in Lexington and Nicholasville, totaling 868 attainable residences. The projects are part of master-planned communities and aim to address housing supply gaps in the region.
The Seattle City Council has passed an ordinance banning rental 'junk fees' such as administrative service charges, pet rent, and package fees. The legislation, approved 8-0, requires clear upfront pricing, expands investigative authority, and allows the City Attorney to recover triple the amount of illegal fees. The measure takes effect for agreements entered after July 1, 2027.
AvalonBay Communities and Equity Residential announced Wednesday that shareholders overwhelmingly approved all proposals necessary to close their pending 'merger of equals.' The deal is expected to close on Aug. 17, with the combined company to be named Vivmark Residential, trading under 'VMRK' starting Aug. 18. The merger will create a multifamily giant with a pro forma equity market capitalization of about $53 billion and an enterprise value of roughly $71 billion.
Multifamily CMBS distress rate more than doubled since February to 13%, with $992 million in newly distressed loans in July, 96% tied to apartments. Trepp data also shows rising servicing and delinquency rates. Key drivers include soaring insurance and property taxes, maturity stress, deferred maintenance, and floating-rate exposure.
In response to the 21st Century ROAD to Housing Act, the U.S. Chamber of Commerce has created a Housing Advisory Council to promote market-driven housing policies. The council will address zoning, capital, and labor challenges, leveraging a network of 1,500 chambers. Inaugural members include James Hardie, UMH Properties, Citi, and JPMorganChase, with the latter chairing the council.