Latest news with #NationalMultifamilyHousingCouncil
Business Wire
a day ago
- Business
- Business Wire
Regulation Increases Rent Costs, New Study Finds
WASHINGTON--(BUSINESS WIRE)--A new follow-up study conducted by economists from MetroSight—sponsored by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA)—shows that some housing regulations increase the cost of rent, particularly for lower-income renters and those renting from small multifamily properties. This report importantly builds on findings released earlier this year, revealing that overregulation can increase operating costs. 'As housing affordability continues to be a nationwide concern requiring action from state, local and federal lawmakers, this study importantly shows how misguided regulations have the ability to increase monthly costs for renters,' said NAA President and CEO Bob Pinnegar. 'Now more than ever, our nation needs responsible, sustainable policy solutions that, instead of raising costs, work to boost the supply of housing and improve affordability long-term.' 'As the nation continues to confront a housing affordability crisis, it's critical that we understand how sometimes well-intentioned regulations may impact rent levels—particularly for those who can least afford increases,' said NMHC President Sharon Wilson Géno. 'This new research finds that certain policies, while at times designed to protect renters, are associated with higher rents, especially for lower-income households. By bringing these data to light, we and our partners at NAA hope to support a more balanced policy conversation—one that supports renters while improving affordability and expanding the supply of rental housing.' The research specifically analyzed the impact of source-of-income, eviction, resident screening and state preemption laws on rent costs. The study used two distinct and separate datasets, one from CoStar Group – which included market-level data from 391 metros between 2000 and 2024 – and another from the U.S. Census Bureau's American Community Survey (ACS), which featured 307 metros between 2005 and 2023. Some of the report's key findings include: Source-of-income regulations increase rents between 5.2% and 5.3%, or about $876 to $1,104 per unit annually. Eviction laws increase rents between 5.9% and 6.3%, or about $1,092 to $1,224 per unit annually. Resident screening laws increase rents between 1.5% and 3.4%, or about $252 to $708 per unit annually. 'If we want rent regulations to align with affordability, we need to plainly recognize the tensions between them,' said Metrosight Founder and Economist Issi Romem, Ph.D. 'It is striking that we found their cost has fallen hardest on lower-income renters and residents of small apartment buildings—the very people they're meant to support.' To learn more about the research, access the full report. For more than 27 years, the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA) have partnered on behalf of America's apartment industry. Drawing on the knowledge and policy expertise of staff in Washington, D.C., as well as the advocacy power of 141 NAA state and local affiliated associations, NAA and NMHC provide a single voice for developers, owners and operators of multifamily rental housing. One-third of all Americans rent their housing, and 40 million of them live in an apartment home.
Forbes
03-07-2025
- Business
- Forbes
Lower Property Taxes For Homeowners Can Mean Higher Rents
Lower property taxes for single-family homes and higher ones for apartments is a transfer of wealth ... More from poor renters to wealthy homeowners. Property taxes have a way of becoming complicated quickly, especially when it comes to apartment buildings. One of the arguments often made by people who own and operate multifamily housing is that property taxes form a big part of fixed costs. Rules and regulations that limit rent collection trap owners without a way to keep their buildings solvent. Worse, fixed doesn't mean they taxes are fixed at the same rate. Usually, property taxes go up and they can't be avoided. Rent is the only way to offset the costs of rising property taxes, and when rents go up, people get upset and a 'crisis' ensues. A review of a deep study of the effect of property taxes by the National Multifamily Housing Council (NMFHC) is a good place to start when trying to understand this dynamic. The review is titled, Unequal Burdens: Exploring Effective Property Tax Variation and the Regressive Nature of Apartment Property Taxes, and is a look at a deeper study of the topic by The Lincoln Institute of Land Policy and the Minnesota Center for Fiscal Excellence called, '50-State Property Tax Comparison Study: For Taxes Paid in 2023.' That report is complex and I haven't yet fully digested it. But the NMFHC overview is good as entry point to that work and a good review of how property taxes ultimately effect rents and thus the quality of life of people with less money. It's worth restating what I've said in writing and in presentations all over the country: rental housing is a marginal business. Money coming in must match the money being spent on operations. If that is not at least in balance, the business will fail and go bankrupt. Apartments are just like a restaurant, retail outlet, or a bowling alley. If the costs of maintaining the capital assets of the building and paying staff and other costs exceed income, there is no business. In spite of this obvious fact, many people in the general public and policy makers think of rental housing as different, passive income. Property owners simply collect the rent checks, deposit them, and go back to the beach. Or, as the NMHC post puts it, 'all else equal, higher effective apartment property taxes increase overhead costs for housing providers; this translates into providers being forced to raise rents to offset the cost, impacting the project's viability and/or affordability levels.' It's repetitive, but saying more than once and in different ways is for emphasis but especially to counter moves like banning eviction during the pandemic; that move meant many people who lost their jobs couldn't pay rent, but local jurisdictions didn't stop collecting property taxes. And often, those property taxes fall more heavily on apartment buildings. First, the way local governments tax property favors single-family homes. Often, single-family homeowners or those paying mortgages benefit from lower assessments and many exemptions like those for senior citizens or veterans. Those lower rates and exemptions end up being shifted to commercial properties and apartments. Another challenge is that taxes vary by jurisdiction, and the Lincoln study looks at all 50 states. There are some highly localized factors that impact taxation in different jurisdictions. Some states and local jurisdictions rely heavily on property taxes while others lean more on income or sales tax. Interestingly, jurisdictions with higher valuations – places with lots of properties that are assessed to be worth more money – can have lower tax rates. That is, when there is inflation in the housing market, property tax rates can effectively go down because the same money can be raised as a percentage of tax without raising rates. For example, a building with a value of $1 million dollars and a tax rate of 5% would generate $50,000 in revenue while a property with the same rate but a value of $100,000 would only generate $5,000. State and local governments can also boost taxes to cover deficits or more spending, and they can impose property classifications which hit commercial and apartment properties harder than single-family. This classification practices grinds against policy directives that those same governments might have on sustainable growth. Taxing single-family properties less encourages more inefficient land use and punishes dense housing with higher costs, costs that get passed on to renters. The Lincoln and Fiscal Excellence quantifies this vividly. Higher property taxes for apartments and lower taxes for single family mean higher rents subsidize ... More single-family equity. As the NMHC post describes, 'the extent to which apartment buildings subsidize homesteads can be captured by the ratio of the effective tax rate on apartments to that of homesteads. Doing so produces an average 'apartment-homestead classification ratio' of 1.44, meaning apartments pay an effective tax rate 44% higher on average than homesteads.' These ratios reflect deliberate policy decisions, pushing people to buy houses rather than rent even when they can't afford a mortgage. The irony of this is that while state and local politicians fret over a 'housing crisis' their property tax polices often speak louder than their speeches about housing, ultimately pushing up rents while favoring those with more money who can afford a mortgage. In the end, it is a transfer of wealth from the poorest Americans to the wealthiest. Whatever positive urges elected officials have toward reducing regulation must be coupled with, even alloyed with better property tax policy. The benefits of land use and zoning reforms given with one hand, can easily be taken away with the other in the form of excessive property taxes.
Globe and Mail
18-04-2025
- Business
- Globe and Mail
AKA University City Redefines Philadelphia Luxury Living with Ultra-Premium Residences and Elevated Lifestyle Amenities
Philadelphia's skyline landmark delivers an unmatched residential experience with spacious annual lease apartments and exclusive amenities. As demand for high-end urban living continues to grow, AKA University City is elevating expectations in the heart of Philadelphia with an exceptional blend of design, comfort, and sophistication. Occupying the top 19 stories of the Cira Centre South tower, AKA University City offers luxury apartments in Philadelphia, PA that cater to discerning residents seeking long-term leases paired with hotel-style service and amenities. According to industry data from the National Multifamily Housing Council, more than one-third of American renters live in luxury multifamily units, reflecting growing preferences for upscale urban residences with premium amenities. As part of this national trend, AKA University City has established itself as a premier option for those searching for philly luxury apartments that merge convenience and style. Residences at AKA University City range from expansive studios to spacious one- and two-bedroom apartments and penthouses, all available with annual leases. Every detail has been considered—from custom Italian cabinetry and stainless steel appliances in contemporary kitchens to spa-inspired bathrooms that support a wellness-focused lifestyle. The design-forward approach of Pelli Clarke Pelli Architects and interiors by Piero Lissoni Associati reflect the property's commitment to aesthetics and quality. The building's exclusive Level 28 amenity floor sets a new standard for luxury apartment buildings in Philadelphia. Entirely devoted to enhancing the lifestyle of its residents, Level 28 features a 72-foot indoor pool, Technogym fitness center, private screening room, and sky-high lounges with panoramic views of the Philadelphia skyline. Additional spaces for co-working, private dining, and wellness support modern routines, making home life more seamless and fulfilling. Location continues to be a critical factor in the luxury rental market, and AKA University City offers unmatched access to the innovation corridor of University City. Residents are positioned near academic institutions, medical centers, and major employers while remaining connected to the cultural vibrancy of Center City. Those exploring luxury apartments Philadelphia benefit from a rare mix of tranquility and accessibility. To support prospective residents seeking a superior standard of living, AKA University City is currently offering a limited-time promotion: one month complimentary on a 13-month lease for spacious two-bedroom deluxe suites. Terms and conditions apply. While Philadelphia continues to experience residential development at a rapid pace, AKA University City stands apart through its blend of hotel-caliber service, high-end finishes, and thoughtfully curated resident experiences. The demand for luxury rentals with long-term stability has fueled growth in buildings offering not only high-spec interiors but also comprehensive lifestyle services. At AKA University City, this integrated approach is redefining what it means to lease in a luxury high-rise. With rising interest in extended urban living arrangements—especially among professionals, couples, and downsizers—AKA University City continues to meet market needs by combining permanence with elevated hospitality. Long considered a hub for innovation and culture, University City's residential landscape is being transformed by developments like AKA's that reflect a broader shift toward sophisticated urban lifestyles. To explore availability or learn more about AKA University City's luxury residences, visit About AKA University City Designed by internationally renowned firm Pelli Clarke Pelli Architects with interiors and public spaces by Piero Lissoni Associati, AKA University City occupies the upper 19 stories of the Cira Centre South tower. The property features brand-new ultra-luxury residential offerings, including studios, one- and two-bedroom apartments, and penthouse residences. Every unit includes contemporary kitchens with custom Italian cabinetry, stainless steel appliances, and spa-inspired bathrooms. Residents also enjoy access to Level 28, a dedicated club floor offering wellness and entertainment amenities curated for elevated living. For more information, visit Media Contact Company Name: AKA University City Apartments Contact Person: Nick Email: Send Email Country: Afghanistan Website:
