Housing Markets Diverge, Renter Needs Change: March Multifamily News Roundup
The Biggest March 2022 Real Estate News
We have summarized the biggest multifamily real estate from March of 2022. In March, single family and multifamily housing markets diverged, renters reported new needs and the FHA approved a major loan.
Single Family and Multifamily Markets Diverge
Findings from the National Association of Home Builders show that while the rate of single-family growth in all markets peaked in the second quarter of 2021, multifamily growth in these markets has surged since the second quarter. As the COVID-19 pandemic wanes, the single-family housing boom in low-density areas has fallen off, and demand has returned to higher density markets. Given lumber and supply-chain constraints, builders have struggled to meet market demand in single and multifamily construction.
Housing starts are still up, but building permits have dropped 1.9%, indicating low homebuilder confidence due to increased mortgage rates, inflation, high commodity prices and the ongoing conflict in Ukraine. Despite these concerns, deal flow for multifamily housing continues to hit new levels, and those in the industry should still expect an even busier year this year than last.
Renter Needs Change Due to Pandemic
A survey from the 2022 National Multifamily Housing Council reports that renters have needs and desires shaped by the pandemic. As more people continue to work remotely, reliable cell service and seamless internet connectivity is the first priority of most renters. Renters also want home offices, shared community meeting spaces, and flexible, adaptable design layouts that can easily accommodate various several different uses.
FHA Approves Marshall Gardens Loan
The Federal Housing Administration announced the completion of a $12 million loan insured under the 221(d)(4) mortgage insurance program for Marshall Gardens in Baltimore, Maryland. This affordable multifamily housing project is named for the late Thurgood Marshall, who grew up in the neighborhood and was the first African-American justice of the Supreme Court. The project includes rehabilitating existing units and the new construction of rental and row homes, in accordance with National Green Building standards. The project is funded by AGM Financial Services, and sponsored by The Community Builders, a non-profit affordable and mixed-income housing developer. Additional funding came from Low Income Housing Tax Credits, a loan from the Maryland Department of Housing and Community Development of Rental Housing Funds, a grant from Project C.O.R.E., and an Affordable Housing Program General Fund loan from the Federal Home Loan Bank. HUD provided 42 project-based Section 8 vouchers and the City of Baltimore provided a tax pilot.
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