November 2024 Newsletter
Market Minute
Election Year Impact on Multifamily Real Estate
A recent JP Morgan article debunked the common myth in Multifamily Real Estate that election years cause irregular movement in the market: “‘Generally, individual elections have a limited impact on multifamily housing and the markets. “History tells us markets can get volatile around elections, but it’s usually temporary and related to the uncertainty,” said Ginger Chambless, Head of Research for Commercial Banking at JPMorgan Chase. “After the results, the direction of markets is more likely to be driven by the economic outlook and prevailing investor sentiment, rather than the election outcome itself—markets could rally simply because the election is behind us.”’
Similarly, a recent article from CBRE’s research team studied cap rates during election years and found: “…investment activity during the quarter when a presidential election was held and the following two quarters. There was no statistical evidence to suggest that the lifting of pre-election uncertainty unlocked capital. This gives us confidence that elections don’t impact investment activity over the short term. The same conclusion holds for property values: Rather than elections, broader macro conditions —particularly interest rates—are what drive changes in capitalization rates.”
‘Nxt Level’
Maintenance Appreciation Week
Risk management and asset preservation starts and ends with maintenance staff that think like owners of multifamily real estate. Our teams are trained to place a heavy emphasis on preventative maintenance and ensuring the properties they work at are well taken care of and hold value for decades to come.
In a show of our gratitude we recently held a Maintenance Appreciation Week. The week included catered breakfast, gift bags and culminated with an axe throwing event. We are thankful for the hard work all our maintenance team members demonstrate each and every day. They are the embodiment of Nxt’s culture and always strive to serve others like family.
Ask the Editor
Question: What marketing lead sources have yielded the best conversions?
Answer: Great question! We have seen an uptick in conversions that originate from Pay Per Click (PPC) campaigns. Rent Cafe conducted a national study where they surveyed over 1,500 properties and found that PPC campaigns average a 15.44% lead-to-lease conversion rate. The properties in our portfolio that most use PPC campaigns average a slightly higher conversion rate than that with one of our top properties bolstering an over 31% conversion rate from lead to lease.
As a reminder, feel free to ask any questions about the apartment world to sales@nxtmgt.com and we would love to feature and answer the question in next month’s newsletter.
Until next time,
