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Developers and builders are more optimistic

The the National Association of Home Builders (NAHB) Multifamily Production Index (MPI) reached a seven year high, recording its highest reading since the third quarter of 2005 with an index of 51, measuring developer and builder sentiment about current conditions in the multifamily market on a scale of 100. The MPI rose 2.0 percent from the fourth quarter to the first, marking the seventh consecutive quarter of increases.

[ba-pullquote align=”right”]The MPI rose 2.0 percent from the fourth quarter to the first, marking the seventh consecutive quarter of increases.[/ba-pullquote]The MPI provides a composite measure of three key elements of the multifamily housing market: construction of low-rent units, market-rate rental units and “for-sale” units, or condominiums. The index and all of its components are scaled so that any number over 50 indicates that more respondents report conditions are improving than report conditions are getting worse.

In the first quarter of 2012, the MPI component tracking builder and developer perceptions of market-rate rental properties recorded an all-time high of 69, while low-rent units dipped slightly to 53. For-sale units increased to 37, which is the highest reading for this component since the fourth quarter of 2005.

Construction continues despite difficulties

[ba-pullquote align=”right”]”In spite of continuing difficulties in the capital markets, it appears that new construction is underway.” -W. Dean Henry[/ba-pullquote]”In spite of continuing difficulties in the capital markets, it appears that new construction is underway,” said W. Dean Henry, president of Legacy Partners Residential in Foster City, Calif., and chairman of NAHB’s Multifamily Leadership Board. “This is certain to help satisfy some of the pent up demand that has occurred over the past several years.”

The Multifamily Vacancy Index (MVI), which measures the multifamily housing industry’s perception of vacancies, dropped to a level of 31, the lowest recording since the inception of the index in 2003. With the MVI, lower numbers indicate fewer vacancies. The MVI has decreased considerably in the last three years, after peaking at 70 in the second quarter of 2009.

“Multifamily construction continues to be a bright spot in the overall housing market,” said NAHB Chief Economist David Crowe. “However, as indicated by the MVI, demand for apartments is now quite high, and production is still very low in a historic context and in the context of what we project is necessary to meet long-term demand.”

Historically, the MPI and MVI have performed well as leading indicators of U.S. Census figures for multifamily starts and vacancy rates, providing information on likely movement in the Census figures one to three quarters in advance.

RentJuice pushes the envelope. Again.

AGBeat first introduced you to RentJuice.com over a year ago, as they acquired one of their closest competitors was funded to the tune of over $6 million. Last fall, they introduced the first of its kind directory of rental industry insiders, blowing the doors off of what has long been a closed-door, almost secret network.

Now, they are attempting the impossible by launching a “Common Application” for renters to complete through their system either on their computer, iPad or iPhone, complete with digital signatures. A video demo is available here.

Common Application and the implications

In many markets, renters race against the clock to get available units, and with vacancy rates diminishing, this is becoming problematic. The new RentJuice “Common Application” is similar to Facebook Connect in that consumers fill out the common application once and their personal information can prepouplate any real estate office’s custom leasing-related forms including applications for separate rental units.

The company said in a statement, “The time-and-effort-saving Common Application is a key component of RentJuice’s new online leasing process, which gives renters working with a RentJuice broker the chance to initiate and complete the rental application process immediately. Landlords and agents can send a client a consolidated set of online forms for a property in their RentJuice account using a smartphone or tablet, eliminating the need to make a trip to the office. No pen and paper, scanner, fax machine or envelope is needed – applicants can even sign leasing forms online using a mouse or their finger with any touchscreen mobile device.”

RentJuice is already available in Boston, Chicago, Miami, New York, and was recently launched in San Francisco. Since the limited pilot program was launched in February, they say nearly 4,000 new lease deals have been created in these markets with RentJuice.

Security of the global renter identity database

The company says the service is more secure than sending scanned documents over email and that all personal information is password-protected in a 256-bit-security rental data repository. The company says that the details collected from consumers come standard with every RentJuice account – live and as a downloadable PDF – but the platform also supports the numerous, varied applications for which different landlords ask, simplifying them to the most common set of questions and information. Landlords and leasing managers that are RentJuice users can link into this global renter identity database to receive and compare applications easily – online, in one place.

“In recognition of an aggressive rental market, this is a giant step toward expediting the leasing process, bringing it almost entirely online in a completely unique way,” said David Vivero, CEO of RentJuice. “Online lease signing and the Common Application iron out a pretty complex process for renters while respecting the unique needs of each landlord or broker. It allows all business to be conducted remotely with just an Internet connection and mobile device – this is not just an app; it’s a way of doing business.”