RubinBrown Apartment Stats 2016
Each year, data is collected from our clients, as well as other contacts and referrals within the industry, to comprise averages in a variety of markets within the United States.
’16 APARTMENT STATS
A Publication of RubinBrown LLP
WELCOME
RubinBrown is pleased to present the 2016 Apartment Statistical Analysis, an annual survey compiled by the Real Estate Services Group. Each year, data is collected from our clients, as well as other contacts and referrals within the industry, to comprise averages in a variety of markets within the United States. The accompanying statistical information includes operational data for 2015 and represents approximately 460 apartment projects in roughly 29 states. While these averages are representative of a smaller pool of projects, the trends are usually consistent with those experienced at the national level.
If you have questions about the content of this publication, please contact us (see page 17 for contact information).
RubinBrown Real Estate Services Group
Contents 1 Executive Summary 3 Comparison of Operations 4 Government Assisted 8 Government Assisted by Region 10 Government Assisted by Project Size 12 Market Rate 14 Low Income Tax Credit Projects 17 RubinBrown Real Estate Services Group
@RubinBrownRE
@RubinBrownRealEstate
EXECUTIVE SUMMARY
Industry Update The multifamily rental housing industry had another good year in 2015. Although there were a large number of new properties completed in 2015, the demand continued to outpace the supply. The rents continued to increase while the vacancy rates remained relatively steady. The growth that we have seen in the rental housing market over the past years indicate that rental units are indeed a growing market within the housing industry and not just a temporary correction from the prior recession. According to the Multifamily Outlook 2016 published by Freddie Mac, in 2015, 306,000 family units were completed. Freddie Mac indicates that this is the most units entering the market in a single year since 1989. The study goes on to say that the level of multifamily supply is expected to remain elevated over the next few years, given that the number of new construction permits rose again in 2015. Despite the increase in interest rates by the Federal Reserve Bank in December 2015, the Freddie Mac publication indicates that in the short-term, the price growth and capitalization rates will not be significantly impacted in the multifamily rental housing market. The rental market continues to grow each year. In 2015, 36% of all households were renting. According to the Joint Center for Housing Studies of Harvard University this is the largest percentage since the late 1960’s. The study also says that in the past decade the number of renters has increased by nine million, which is the largest ten-year gain on record. This increase in rental demand has been across all income levels, age groups and household demographics. The increase is attributed to an aging population, the increase in baby-boomer renters and the mobility provided by renting preferred by single people and families without children. Millennials (born 1982–2004) are experiencing less purchasing ability because inflation is out pacing their salaries. In fact, several studies point to a trend that millennials are renting for a higher number of years than previous generations. According to the Survey of Market Absorption , new multifamily units are being constructed with fewer bedrooms than those built over the last 20 years. More than 50% of the unfurnished, market-rate rentals in structures of more than five units are studios or one-bedroom apartments.
While the number of low and very low income households continues to grow, the number of renters receiving assistance from the U.S. Department of Housing and Urban Development (HUD) is falling. This decline results in millions of households trying to find affordable housing in the private market. There has been increased pressure on state and local governments to assist these households as the federal response has not been strong enough. Market Trends Homeownership has continued to decrease to its lowest level in nearly 50 years. While the decline is especially large among the first-time home buyers group, we must also look at forfeitures. Corelogic estimates that more than 9.4 million homes, were forfeited through foreclosures, short sales and deeds in lieu of foreclosure from 2007–2015. Although forfeitures have continued to decline, they remain at twice the annual average rate from before the start of the housing crash in 2007. According to the Bankers Association the share of loans that are seriously delinquent (90 days or more past due or in foreclosure) has also fallen, but is currently at double the average of the first half of the 2000’s. We are likely to see continued downward homeownership rates over the next several years. According to the State of the Nation’s Housing 2016 , published by the Joint Center for Housing Studies of Harvard University, cost-burdened renters are at an all-time high. The number of households paying more than 50% of their income has grown to 11.4 million. The lowest-income renters’ (earning less than $15,000) is very high at 72%. In most market areas, at least half of the lowest-income renters have a severe housing cost burden. The nation still has a serious affordable housing issue. The demand for low-cost units is exceeding the supply. The gap between the supply and demand is the greatest for extremely low-income renters (earning up to 30% of the area median) but also is high for very low income renters (earning up to 50% of the area median). A study conducted by the National Low Income Housing Coalition found that for every 100 extremely low income renters there were only 31 units available and for every 100 very low income renters there were only 57 rental units available.
RubinBrown Apartment Stats 2016 | 1
EXECUTIVE SUMMARY
Accessible units have also been in short supply. Only about 1% of all rental units offer no-step entry, extra-wide halls and doors, single-floor living, lever door handles and accessible electrical controls. Many of these units are not affordable to elderly and disabled households because of the cost of rent. Renters are staying where they are in record numbers. According to data from property management software provider RealPage, renters who renewed their leases hit an all-time high of 53.8%. In the mid 2000’s the figure was closer to 45%. It is noteworthy that the renewal rate has been rising steadily since 2010. This rise is attributed to the high cost of home ownership, stricter standards to qualify for mortgages, millennials waiting to get married, while trying to save money and pay down student loan debt. Renters that would like to move are having difficulty finding units in the neighborhoods or at price points that they are seeking. Conclusion Demand for multifamily rental housing remained high in 2015 and was able to absorb most of the newly completed supply. Vacancy rates remained low while rents have continued to increase. The multifamily rental market will continue to grow, backed by the steady economy.
According to the Freddie Mac Multifamily Outlook we can expect 2016 to be another strong year for the multifamily housing market. “Favorable demographic trends and an improving economy will generate robust demand for multi-family properties. Even if the economy experiences extended low oil prices or slow near- growth over the next year, most multi-family markets will continue to perform above average.” 2016 should be another good year for those looking to focus their investments in the multifamily rental housing market. Although the amount of capital invested in multifamily rental housing has decreased slightly due to the slowing economy, it is still one of the top safe investments. The low vacancy rates in the industry are not expected to go any time soon. Rent growth will remain strong in 2016, but will not likely match what was experienced in 2015. RubinBrown invites you to utilize this study as a development and management tool to compare your financial operations to the operating results of your peers. This study also provides sound comparable data to utilize in formulating an acquisition model. Like all compilations of data, it will be most useful when carefully and properly interpreted. We sincerely thank everyone who took time to participate in RubinBrown’s survey.
2 | RubinBrown Apartment Stats 2016
COMPARISON OF OPERATIONS
Government Assisted
Market Rate
Total Number of Projects
425
31
Average Project Age In Years
10.10
12.11
Average Number of Units
109
266
Averages Per Unit: Monthly Rent
$750
$897
Square Feet
951
926
Rooms
4.41
3.60
Economic Occupancy
90.0%
87.3%
Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income
31.0%
50.3%
A
B
C
A
B
C
Revenues
Gross Potential Rent
$9,004
$9.47
100.0%
$10,763
$11.62
100.0%
Less: Vacancy Loss
(617)
(0.65)
-6.9%
(929)
(1.00)
-8.6%
Collection Loss
(167) (104)
(0.18) (0.11)
-1.9% -1.2%
(101) (334)
(0.11) (0.36)
-0.9% -3.1%
Concession Loss
Rent Collected
8,116
$8.53
90.0%
9,399
10.15
87.4%
353
0.37
3.9%
945
1.02
8.8%
Other Income Total Income
$8,469
$8.90
93.9%
$10,345
$11.17
96.2%
Expenses
Salaries and Personnel
$1,211
$1.27
13.5%
$1,044
$1.13
9.7%
Administrative
487
0.51
5.4%
480
0.52
4.5%
Marketing
62
0.07
0.7%
168
0.18
1.6%
Management Fees
471
0.50
5.2%
476
0.51
4.4%
Utilities
925
0.97
10.3%
648
0.70
6.0%
Carpeting
173
0.18
1.9%
90
0.10
0.8%
Painting
58
0.06
0.6%
66
0.07
0.6%
Landscaping
151
0.16
1.7%
105
0.11
1.0%
HVAC
71
0.07
0.8%
45
0.05
0.4%
Appliances
72
0.08
0.8%
32
0.03
0.3%
Plumbing
58
0.06
0.7%
42
0.04
0.4%
Electrical
49
0.05
0.5%
17
0.02
0.2%
Other Repairs and Services
1,047
1.10
11.6%
542
0.59
5.0%
Insurance
369
0.39
4.1%
279
0.30
2.6%
Real Estate Taxes
510 129
0.54 0.14
5.7% 1.4%
1,005
1.09 0.10
9.3% 0.9%
96
Other Taxes
Total Expenses
$5,844
$6.15
64.9%
$5,135
$5.54
47.7%
Net Operating Income Before Debt Service and Depreciation
$2,625
$2.75
29.0%
$5,208
$5.62
48.4%
Capital Expenditures
$405
$.43
4.5%
$973
$1.05
9.0%
A = Dollars per unit, per year
B = Dollars per square foot, per year
C = Percent of gross potential rent
RubinBrown Apartment Stats 2016 | 3
GOVERNMENT ASSISTED
2015
2014
2013
Total Number of Projects
425
516
371
Average Number of Units
109
108
108
Averages Per Unit: Monthly Rent
$750
$735
$702
Square Feet
951
944
952
Rooms
4.41
4.46
4.34
Economic Occupancy
90.0%
89.1%
90.8%
Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income
31.0%
35.3%
36.3%
A
B
C
A
B
C
A
B
C
Revenues
Gross Potential Rent
$9,004
$9.47
100.0%
$8,816
$9.34
100.0%
$8,421
$8.85
100.0%
Less: Vacancy Loss
(617)
(0.65)
-6.9%
(744)
(0.79)
-8.4%
(597)
(0.63)
-7.1%
Collection Loss
(167)
(0.18)
-1.9%
(123)
(0.13)
-1.4%
(111)
(0.12)
-1.3%
Concession Loss
(104)
(0.11)
-1.2%
(93)
(0.10)
-1.1%
(67)
(0.07)
-0.8%
Rent Collected
8,116
8.53
90.0%
7,856
8.32
89.1%
7,646
8.03
90.8%
Other Income
353
0.37
3.9%
456
0.48
5.2%
400
0.42
4.8%
Total Income
$8,469
$8.90
93.9%
$8,312
$8.80
94.3%
$8,046
$8.45
95.6%
Expenses
Salaries and Personnel
$1,211
$1.27
13.5%
$1,068
$1.13
12.1%
$1,079
$1.13
12.8%
Administrative
487
0.51
5.4%
496
0.53
5.6%
469
0.49
5.6%
Marketing
62
0.07
0.7%
56
0.06
0.6%
52
0.05
0.6%
Management Fees
471
0.50
5.2%
467
0.49
5.3%
449
0.47
5.3%
Utilities
925
0.97
10.3%
827
0.88
9.4%
867
0.91
10.3%
All Repair, Maintenance and Contract Services
1,680
1.76
18.6%
1,386
1.48
15.7%
1,333
1.40
15.8%
Insurance
369
0.39
4.1%
348
0.37
4.0%
327
0.34
3.9%
Real Estate Taxes
510
0.54
5.7%
511
0.54
5.8%
467
0.49
5.5%
Other Taxes
129
0.14
1.4%
84
0.09
1.0%
82
0.09
1.0%
Total Expenses
$5,884
$6.15
64.9%
$5,243
$5.57
59.5%
$5,125
$5.37
60.8%
Net Operating Income Before Debt Service and Depreciation
$2,625
$2.75
29.0%
$3,069
$3.23
34.8%
$2,921
$3.08
34.8%
A = Dollars per unit, per year
B = Dollars per square foot, per year
C = Percent of gross potential rent
4 | RubinBrown Apartment Stats 2016
$1 = 0.0025”
dot = 0.1206“
1/2 dot =0.0603”
Average Monthly Rent per Unit
2012
2011
386
372
$1,000
107
105
$900
$750
$735
$800
$721
$702
$699
$699
$721
$700
932
964
$600
4.31
4.32
$500
2015
2014
2013
2012
2011
88.6%
89.4%
35.4%
40.0%
Economic Occupancy
100%
90%
A
B
C
A
B
C
80%
70%
$8,383
$8.99
100.0%
$8,653
$8.98
100.0%
60%
(758)
(0.81)
-9.0%
(704)
(0.73)
-8.1%
50%
(127)
(0.14)
-1.5%
(130)
(0.13)
-1.5%
40%
(79)
(0.08)
-0.9%
(84)
(0.09)
-1.0%
30%
7,419
7.96
88.6%
7,735
8.03
89.4%
375
0.40
4.5%
469
0.49
5.4%
20%
$7,794
$8.36
93.1%
$8,204
$8.52
94.8%
10%
0%
90.0% 2015
89.1%
90.8%
88.6%
89.4%
2014
2013
2012
2011
$1,031
$1.11
12.3%
$892
$0.93
10.3%
453
0.49
5.4%
454
0.47
5.2%
52
0.06
0.6%
102
0.11
1.2%
Gross Potential Rent vs. Net Operating Income per Square Foot
434
0.47
5.2%
444
0.46
5.1%
784
0.84
9.4%
831
0.86
9.6%
$2.75 $9.47
2015
1,428
1.54
17.0%
1,475
1.53
17.1%
$3.23 $9.34
2014
284
0.30
3.4%
350
0.36
4.0%
464
0.50
5.5%
514
0.53
5.9%
$3.08 $8.85
2013
103
0.11
1.2%
110
0.11
1.3%
$2.94 $8.99
2012
$5,033
$5.42
60.0%
$5,172
$5.36
59.7%
$3.16 $8.98
2011
$2,761
$2.94
33.1%
$3,032
$3.16
35.1%
NET OPERATING INCOME
GROSS POTENTIAL RENT
RubinBrown Apartment Stats 2016 | 5
GOVERNMENT ASSISTED
Expense Trends per Unit
$1,211
$1,068
Salaries and Personnel
$1,079
$1,031
$892
$549
$552
Administrative and Marketing
$521
$505
$556
$1,680
$1,386
Contract Services and Repairs & Maintenance
$1,333
$1,428
$1,475
$876
1,008
$945
Taxes and Insurance
$876
$851
$974
$0
$250
$500
$750
$1,000 $1,250 $1,500
$1,750
2013
2012
2011
2015
2014
6 | RubinBrown Apartment Stats 2016
RubinBrown Apartment Stats 2016 | 7
GOVERNMENT ASSISTED BY REGION
North
East/Northeast
Midwest
South/Southeast
Total Number of Projects
21
57
218
74
Average Project Age In Years
10.7
12.4
10.2
9.1
Average Number of Units
96
115
107
103
Averages Per Unit: Monthly Rent
$661
$759
$727
$707
Square Feet
1009
935
894
1,008
Rooms
4.24
4.39
4.37
5.03
Economic Occupancy
92.2%
89.8%
87.6%
92.7%
Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income
21.8%
28.8%
30.5%
25.2%
A
B
C
A
B
C
A
B
C
A
B
C
Revenues
Gross Potential Rent
$7,941
$9.87 100.0%
$9,520 $10.18 100.0%
$8,724
$9.76 100.0%
$8,481 $8.41 100.0%
Less: Vacancy Loss
(468) (0.46)
-5.9%
(697) (0.74)
-7.7%
(742) (0.83)
-8.5%
(406) (0.40)
-4.8%
Collection Loss
(108) (0.11)
-1.4% -0.5%
(197) (0.21)
-2.2% -0.3%
(188) (0.21) (148) (0.17)
-2.2% -1.7%
(164) (1.16)
-1.9% -0.6%
(39) (0.04)
(29) (0.03)
(51) (0.05)
Concession Loss
Rent Collected
7,326
7.26
92.2%
8,597
9.19 0.46
90.3%
7,646
8.55 87.6%
7,860
7.80 0.35
92.7%
418 0.41
5.3%
430
4.7%
426
0.48
4.9%
350
4.1%
Other Income Total Income
$7,744
$7.67 97.5%
$9,027
$9.65 94.8%
$8,072
$9.03 92.5%
$8,210 $8.15 96.8%
Expenses
Salaries and Personnel
$1,073
$1.06
13.5%
$1,172
$1.25
12.9%
$1,216
$1.36
13.9%
$1,191
$1.18
14.0%
Administrative
574
0.57
7.2%
511
0.55
5.6%
484
0.54
5.5%
762
0.76
9.0%
Marketing
50
0.05
0.6%
128
0.14
1.4%
53
0.06
0.6%
47
0.05
0.6%
Management Fees
489
0.48
6.2%
515 0.55
5.7%
430
0.48
4.9%
489
0.49
5.8%
Utilities
987
0.98
12.4%
915
0.98
10.1%
861
0.96
9.9%
796
0.79
9.4%
Carpeting
181
0.18
2.3%
213
0.23
2.3%
173
0.19
2.0%
157 0.16
1.9%
Painting
23
0.02
0.3%
49
0.05
0.5%
58 0.06
0.7%
102
0.10
1.2%
Landscaping
137
0.14 1.7%
193
0.21
2.1%
106
0.12
1.2%
236
0.23
28%
HVAC
43
0.04 0.5%
89
0.09
1.0%
52
0.06
0.6%
131
0.13
1.5%
Appliances
31
0.03
0.4%
96
0.10
1.1%
60 0.07
0.7%
76 0.08
0.9%
Plumbing
55
0.05
0.7%
95
0.10
1.0%
42
0.05
0.5%
54 0.06
0.7%
Electrical
20
0.02
0.2%
44
0.05
0.5%
58
0.07
0.7%
31
0.03
0.4%
Other Repairs and Services
1,121
1.11
14.1%
1,086
1.14 11.7%
1,014
1.13
11.6%
1,096
1.09
12.9%
Insurance
300
0.30
3.8%
277
0.30
3.0%
391
0.44
4.5%
399
0.40
4.7%
Real Estate Taxes
761
0.75
9.6% 2.8%
687
0.73 0.07
7.5% 0.7%
483 128
0.54 5.5%
409 160
0.41 0.16
4.8% 1.9%
220 0.22
62
0.14
1.5%
Other Taxes
Total Expenses
$6,056
$6.00
76.3%
$6,132
$6.54 67.1%
$5,609
$6.27
64.3%
$6,139 $6.12
72.5%
Net Operating Income Before Debt Service & Depreciation
$1,688
$1.67
21.2%
$2,895
$3.10 30.4%
$2,463 $2.76
28.2%
$2,071
$2.03 24.3%
A = Dollars per unit, per year
B = Dollars per square foot, per year
C = Percent of gross potential rent
8 | RubinBrown Apartment Stats 2016
Monthly Rent per Unit
South/Southwest
West/Northwest
25
30
$661
$793
9.9
8.5
120
1122
$870
$727
$768
$769
$870
$707
880
892
4.24
3.52
90.4%
97.6%
28.8%
31.9%
A
B
C
A
B
C
Net Operating Income per Square Foot
$1.67
$9,215 $10.47 100.0%
$10,440 $10.91 100.0%
$3.10
(736) (0.84)
-8.0%
(140) (0.16)
-1.4%
$4.58
(103) (0.12)
-1.1% -0.5%
(84) (0.09) (25) (0.03)
-0.8% -0.2%
$2.76
(45) (0.05)
$2.83
$2.03
8,331
9.46 0.38
90.4%
10,191
11.43 97.6%
338
3.7%
268
0.30 2.3%
$8,669
$9.84 94.1% $10,459 $11.73 99.9%
$1,282
$1.46
13.9%
$1,266
$1.42
12.1%
681
0.77 7.4%
616 0.69
5.9%
73 0.08
0.8%
20
0.02
0.2%
451
0.51 4.9%
579
0.65
5.5%
Economic Occupancy
1,120
1.27
12.2%
1,321 1.48
12.7%
126
0.14
1.4%
152 0.17
1.5%
92.2%
89.8%
26 0.03
0.3%
37
0.04
0.4%
126
0.14
1.4%
192
0.22
1.8%
97.6%
87.6%
67
0.08
0.7%
46
0.05
0.4%
76
0.09
0.8%
106
0.12 1.0%
90.4%
92.7%
33
0.04
0.4%
119
0.13
1.1%
18
0.02
0.2%
31 0.04 0.3%
950
1.08
10.3%
1,102
1.24 10.6%
405
0.46
4.4%
353
0.40
3.4%
598 0.68 142 0.16
6.5% 1.5%
302
0.34
2.9%
127 0.14 1.2%
$5,174 $7.01
67.1%
$6,369 $7.15
61.0%
West/Northwest
North
East/Northeast
$2,495
$2.83
27.0%
$4,090 $4.58
38.9%
South/Southwest
Midwest
South/Southeast
RubinBrown Apartment Stats 2016 | 9
GOVERNMENT ASSISTED BY PROJECT SIZE
0-50 Units
51-100 Units
101-150 Units
151-200 Units
Over 200 Units
Total Number of Projects
125
119
96
42
43
Average Project Age In Years
8.3
9.6
11.2
12.7
12.1
Average Number of Units
32
73
116
165
274
Averages Per Unit: Monthly Rent
$653
$709
$767
$800
$769
Square Feet
1,060
916
900
943
921
Rooms
4.92
4.19
4.24
4.11
4.41
Economic Occupancy
94.3%
92.9%
90.1%
86.7%
88.0%
Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income
30.1%
26.6%
28.8%
28.4%
33.3%
A
B
A
B
A
B
A
B
A
B
Revenues
Gross Potential Rent
$7,836
$7.39
$8,513
$9.29
$9,198 $10.23
$9,599 $10.18
$9,226 $10.01
Less: Vacancy Loss
(136) (0.13)
(421) (0.46)
(606) (0.67)
(896) (0.95)
(770) (0.84)
Collection Loss
(160) (0.15)
(132) (0.14)
(143) (0.16)
(221) (0.23)
(186) (0.20)
Concession Loss
(159) (0.15)
(42) (0.05)
(154) (0.17)
(167) (0.18)
(158) (0.17)
Rent Collected
7,381
6.69
7,918 8.64
8,295
9.23
8,315 8.82
8,112
8.80
Other Income Total Income
448
0.42
309
0.34
382 0.42
593 0.63
186 0.20
$7,829
$7.38
$8,227
$8.98
$8,677
$9.65
$8,908
$9.45
$8,298 $9.00
Expenses
Salaries and Personnel
$936
$0.88
$1,427
$1.56
$1,250
$1.39
$1,272
$1.35
$1,073
$1.16
Administrative
678 0.64
646
0.71
593
0.66
558
0.59
437
0.47
Marketing
21 0.02
48
0.05
44
0.05
54
0.06
108 0.12
Management Fees
451
0.43
461
0.50
515
0.57
467
0.50
445
0.48
Utilities
731
0.69
834
0.91
1,101
1.22
1,030
1.09
829
0.90
Carpeting
67
0.06
180
0.20
190 0.21
177
0.19
193
0.21
Painting
39 0.04
67
0.07
50
0.06
58
0.06
66
0.07
Landscaping
111
0.11
182 0.20
175
0.19
144
0.15
124
0.13
HVAC
59
0.06
72
0.08
68
0.08
72
0.08
76
0.08
Appliances
36
0.03
61 0.07
95
0.08
67
0.07
92 0.10
Plumbing
21
0.02
48 0.05
84 0.09
75
0.08
48
0.05
Electrical
143
0.13
61 0.07
70
0.08
253
0.27
202
0.22
Other Repairs and Services
1,034 0.97
993 1.08
1,042
1.16
1,117 1.18
1,055
1.14
Insurance
468
0.44
352 0.38
336
0.37
391
0.41
368
0.40
Real Estate Taxes
536
0.51
458
0.50
459
0.51
530
0.56
576
0.63
Other Taxes
140
0.13
149
0.16
127
0.14
117
0.12
119
0.13
Total Expenses
$5,471
$5,16
$6,039
$6.59
$6,180
$6.86
$6,382
$6.76
$5,811
$6.31
Net Operating Income Before Debt Service and Depreciation
$2,358 $2.22
$2,188
$2.39
$2,497
$2.79
$2,526 $2.69
$2,487 $2.70
Capital Expenditures
$123
$0.12
$339
$0.37
$433
$0.48
$248 $0.26
$328
$0.36
A = Dollars per unit, per year
B = Dollars per square foot, per year
10 | RubinBrown Apartment Stats 2016
RubinBrown Apartment Stats 2016 | 11
MARKET RATE
2015
2014
2013
Total Number of Projects
31
38
45
Average Number of Units
266
279
263
Averages Per Unit: Monthly Rent
$897
$806
$780
Square Feet
926
942
909
Rooms
3.60
4.00
4.00
Economic Occupancy
87.3%
86.2%
85.8%
Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income
50.3%
47.8%
45.9%
A
B
C
A
B
C
A
B
C
Revenues
Gross Potential Rent
$10,763 $11.62 100.0%
$9,666
$10.26
100.0%
$9,358
$10.30
100.0%
Less: Vacancy Loss
(929)
(1.00)
-8.6%
(887)
(0.94)
-9.2%
(908)
(1.00)
-9.7%
Collection Loss
(101)
(0.11)
-0.9%
(90)
(0.10)
-1.0%
(121)
(0.13)
-1.3%
(334)
(0.36)
-3.1%
(349)
(0.37)
-3.6%
(303)
(0.33)
-3.2%
Concession Loss
Rent Collected
9,399 $10.15
87.4%
8,340
$8.85
86.2%
8,026
8.84
85.8%
945
1.02
8.8%
1,039
1.10
10.7%
1,088
1.20
11.6%
Other Income
$10,345 $11.17
96.2%
$9,379
$9.95
96.9%
$9,114
$10.04
97.4%
Total Income
Expenses
Salaries and Personnel
$1,044
$1.13
9.7%
$981
$1.04
10.1%
$939
$1.03
10.0%
Administrative
480
.52
4.5%
427
0.45
4.4%
438
0.48
4.7%
Marketing
168
.18
1.6%
139
0.15
1.4%
153
0.17
1.6%
Management Fees
476
.51
4.4%
395
0.42
4.1%
419
0.46
4.5%
Utilities
648
.70
6.0%
665
0.71
6.9%
664
0.73
7.1%
All Repairs and Maintenance and Contract Services
939
1.01
8.7%
1,035
1.10
10.7%
1,050
1.16
11.2%
Insurance
279
.30
2.6%
267
0.28
2.8%
311
0.34
3.3%
Real Estate Taxes
1,005
1.09
9.3%
900
0.95
9.3%
841
0.93
9.0%
96
0.10
0.9%
82
0.09
0.8%
120
0.13
1.3%
Other Taxes
Total Expenses
$5,135
$5.54
47.7%
$4,891
$5.19
50.5%
$4,935
$5.43
52.7%
Net Operating Income Before Debt Service and Depreciation
$5,208
$5.62
48.4%
$4,488
$4.76
46.4%
$4,179
$4.61
44.7%
A = Dollars per unit, per year
B = Dollars per square foot, per year
C = Percent of gross potential rent
12 | RubinBrown Apartment Stats 2016
Average Monthly Rent per Unit
2012
2011
34
35
$1,000
$897
248
246
$900
$806
$780
$766
$800
$674
$766
$674
$700
926
938
$600
4.14
4.20
$500
85.0%
88.6%
2015
2014
2013
2012
2011
49.0%
49.4%
Economic Occupancy
100%
A
B
C
A
B
C
90%
80%
70%
$9,193
$9.93
100.0%
$8,093
$8.63
100.0%
(824)
(0.89)
-9.0%
(438)
(0.47)
-5.4%
60%
(116)
(0.13)
-1.3%
(62)
(0.07)
-0.8%
50%
(435)
(0.47)
-4.7%
(420)
(0.45)
-5.2%
40%
7,818
8.44
85.0%
7,173
7.64
88.6%
30%
821
0.89
8.9%
630
0.67
7.8%
20%
$8,639
$9.33
93.9%
$7,803
$8.31
96.4%
10%
0%
86.2%
88.6%
87.3%
85.8%
85.0%
2015
2014
2013
2012
2011
$976
$1.05
10.6%
$762
$0.81
9.4%
305
0.33
3.3%
339
0.36
4.2%
127
0.14
1.4%
104
0.11
1.3%
350
0.38
3.8%
319
0.34
4.0%
Gross Potential Rent vs. Net Operating Income per Square Foot
596
0.64
6.5%
584
0.62
7.2%
1,054
1.14
11.6%
883
0.94
10.9%
$5.62 $11.62
2015
264
0.28
2.9%
233
0.25
2.9%
$4.76 $10.26
2014
690
0.75
7.5%
647
0.69
8.0%
$4.61 $10.30
2013
48
0.05
0.5%
76
0.08
0.9%
$4,410
$4.76
48.1%
$3,947
$4.20
48.8%
$4.57 $9.93
2012
$4,229
$4.57
45.8%
$3,856
$4.11
47.6%
$4.11 $8.63
2011
NET OPERATING INCOME
GROSS POTENTIAL RENT
RubinBrown Apartment Stats 2016 | 13
LOW INCOME TAX CREDIT PROJECTS
2015
2014
2013
Total Number of Projects
386
508
362
Average Number of Units
99
108
107
Averages Per Unit: Monthly Rent
$709
$735
$798
Square Feet
952
952
955
Rooms
4.42
4.51
4.36
Economic Occupancy
90.6%
88.9%
90.6%
Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income
30.6%
35.3%
36.5%
A
B
C
A
B
C
A
B
C
Revenues
Gross Potential Rent
$8,513
$8.94
100.0%
$8,824
$9.27
100.0%
$8,429
$8.83
100.0%
Less: Vacancy Loss
(580)
(0.61)
-6.8%
(757)
(0.79)
-8.6%
(617)
(0.65)
-7.3%
Collection Loss
(160)
(0.17)
-1.9%
(123)
(0.13)
-1.4%
(111)
(0.12)
-1.3%
(63)
(0.07)
-0.7%
(94)
(0.10)
-1.1%
(69)
(0.07)
-0.8%
Concession Loss
Rent Collected
7,710
8.09
90.6%
7,850
8.25
88.9%
7,632
7.99
90.6%
275
0.29
3.2%
450
0.47
5.1%
404
0.42
4.8%
Other Income
$7,985
$8.38
93.8%
$8,300
$8.72
94.0%
$8,036
$8.41
95.4%
Total Income
Expenses
Salaries and Personnel
$1,172
$1.23
13.8%
$1,071
$1.12
12.1%
$1,076
$1.13
12.8%
Administrative
452
0.47
5.3%
489
0.51
5.5%
457
0.48
5.4%
Marketing
57
0.06
0.7%
57
0.06
0.6%
51
0.05
0.6%
Management Fees
448
0.47
5.3%
467
0.49
5.3%
447
0.47
5.3%
Utilities
862
0.91
10.1%
818
0.86
9.3%
852
0.89
10.1%
All Repair, Maintenance and Contract Services
1,631
1.71
19.2%
1,531
1.61
17.3%
1,353
1.42
16.1%
Insurance
352
0.37
4.1%
349
0.37
4.0%
327
0.34
3.9%
Real Estate Taxes
451
0.47
5.3%
509
0.53
5.8%
463
0.49
5.5%
96
0.13
1.4%
82
0.09
0.9%
74
0.08
0.9%
Other Taxes
Total Expenses
$5,546
$5.82
65.2%
$5,373
$5.64
60.8%
$5,100
$5.35
60.6%
Net Operating Income Before Debt Service and Depreciation
$2,439
$2.56
28.6%
$2,927
$3.08
33.2%
$2,936
$3.06
34.8%
A = Dollars per unit, per year
B = Dollars per square foot, per year
C = Percent of gross potential rent
14 | RubinBrown Apartment Stats 2016
Average Monthly Rent per Unit
2012
2011
367
363
$1,000
109
106
$900
$798
$800
$735
$722
$709
$697
$697
$722
$700
947
952
$600
4.38
4.37
$500
88.8%
89.2%
2015
2014
2013
2012
2011
35.4%
36.9%
Economic Occupancy
100%
A
B
C
A
B
C
90%
80%
70%
$8,370
$8.84
100.0%
$8,665
$9.11
100.0%
(748)
(0.79)
-8.9%
(718)
(0.75)
-8.3%
60%
(129)
(0.14)
-1.5%
(130)
(0.14)
-1.5%
50%
(67)
(0.07)
-0.8%
(83)
(0.09)
-1.0%
40%
7,426
7.84
88.8%
7,734
8.13
89.2%
30%
373
0.39
4.4%
465
0.49
5.4%
20%
$7,799
$8.23
93.2%
$8,199
$8.62
94.6%
10%
0%
88.9%
89.2%
90.6%
90.6%
88.8%
2015
2014
2013
2012
2011
$1,031
$1.09
12.3%
$890
$0.94
10.3%
450
0.48
5.4%
453
0.48
5.2%
51
0.05
0.6%
102
0.11
1.2%
434
0.46
5.2%
444
0.47
5.1%
Gross Potential Rent vs. Net Operating Income per Square Foot
792
0.84
9.5%
829
0.87
9.6%
1,435
1.52
17.1%
1,476
1.55
17.0%
$2.56 $8.94
2015
282
0.30
3.4%
348
0.37
4.0%
$3.08 $9.27
2014
459
0.48
5.5%
518
0.54
6.0%
$3.06 $8.83
2013
103
0.11
1.2%
110
0.12
1.3%
$5,037
$5.33
60.2%
$5,170
$5.45
59.7%
$2.90 $8.84
2012
$2,762
$2.90
33.0%
$3,029
$3.17
34.9%
$3.17 $9.11
2011
NET OPERATING INCOME
GROSS POTENTIAL RENT
RubinBrown Apartment Stats 2016 | 15
RUBINBROWN REAL ESTATE SERVICES GROUP
For more than 30 years, RubinBrown’s Real Estate Services Group has developed a strong reputation nationally as a leader in accounting and advisory services. Today, the group provides specialized services to real estate entities from coast to coast. The RubinBrown Real Estate Services Group provides a full range of assurance, tax, business planning, and consulting services to: · Investment funds · Real estate partnerships · Developers
· Senior housing consulting · Business valuations · Low-income housing tax credit consulting and compliance · Affordable housing consulting and compliance · Historic rehabilitation tax credit consulting · Sales and Use Tax consulting · Governmental cost certifications (FHA & state housing agency) · NMTC consulting and compliance · Renewable energy consulting and compliance · Design and evaluation of financial reporting systems and internal control systems · Capital asset segregation analysis · Construction draw accounting and processing · Structured and complex deal structuring · Assistance in obtaining debt/equity financing · Like-kind exchange consulting
· Management companies · Governmental agencies · Syndicators and investors · Financial institutions · Construction-related companies
RubinBrown Real Estate Services Group’s services include: · Financial forecasts and projections · Cash flow and operational analyses · Specialized and complex tax planning · Troubled project workouts · HOPE VI consulting
· Strategic planning · Feasibility studies
16 | RubinBrown Apartment Stats 2016
Through the years, our clients have grown to depend on our expertise in four key areas of the real estate sector: Affordable Housing: This complex and highly regulated industry has been one that RubinBrown has focused on since the early days of HUD and the advent of the federal low-income housing tax credit program. Historic Tax Credit Services: RubinBrown has extensive experience with consulting on historic rehabilitation projects across the country. New Markets Tax Credit Services: In addition to initial program guidance and consulting, RubinBrown experts can help you with NMTC application assistance. Renewable Energy: There are many new financial incentives for companies in the renewable energy sector. We can help you sort through the opportunities and provide financial guidance to move your businesses forward. In addition, the RubinBrown Real Estate Services Group regularly sponsors seminars and roundtables dealing with current topics affecting the real estate industry.
Bryan Keller, CPA, CGMA Partner-In Charge 314.290.3341 bryan.keller@rubinbrown.com
Dave Herdlick, CPA Partner & Vice Chair 314.290.3383 dave.herdlick@rubinbrown.com
Amy Broadwater, CPA Partner 615.480.2871 amy.broadwater@rubinbrown.com
Jeff Cunningham, CPA Partner 303.952.1257 jeffrey.cunningham@rubinbrown.com
RubinBrown Apartment Stats 2016 | 17
Denver Office 1900 16th Street Suite 300 Denver, Colorado 80202 ph: 303.698.1883 Kansas City Office 1200 Main Street Suite 1000 Kansas City, Missouri 64106 ph: 816.472.1122 Nashville Office 3102 West End Avenue Suite 400 Nashville, Tennessee 37203 ph: 615.253.5200 St. Louis Office One North Brentwood Suite 1100 St. Louis, Missouri 63105 ph: 314.290.3300 St. Louis Cortex Office 4240 Duncan Avenue CIC@4240, Suite 200 St. Louis, Missouri 63110 ph: 314.290.3300
RubinBrown.com
1.800.678.3134
RubinBrown LLP
@RubinBrown
18 | RubinBrown Apartment Stats 2016
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