Markets & EconomyRentals

Freddie-backed multifamily properties perform and grow

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Revenue and income growth at multifamily properties backed by Freddie Mac grew by 3.9 percent last year. According to CoStar News, these 2,928 apartment properties -- comprising nearly 765,000 units -- continue to perform despite the volume of new multifamily deliveries, which has resulted in rising vacancies and higher expenses/debt service coverage. “The strong revenue and NOI (net operating income) performance reflects the surprising continued demand for apartments,” according to CoStar Portfolio Strategy. Average revenue per room in 2014 totaled $13,002, up from $12,520 in 2013. The average NOI per room in 2014 totaled $7,183, an increase of $6,911 compared to 2013. During the same period, overall vacancy rose from 5.8 percent to 8.2 percent at Freddie Mac-securitized properties. Properties’ operating expenses were also up 4.1 percent year over year, while average debt service amount rose by 4.5 percent. Of the 2,928 loans analyzed, all but five were p...