Apartment Market Gains Momentum in Q2


Good news released late last month by the National Association of Home Builders (NAHB) improves the outlook on multifamily housing.  The NAHB published their Multifamily Production Index (MPI) for the second quarter of 2013.  The index shows a nine-point increase to 61, which is the highest reading since the inception of the index in 2003.

Multifamily housing refers to apartments and condominiums. The index measures builder and developer responses about current market conditions – rating on a scale from 0 to 100.  Any reading above 50 shows that more professionals report conditions are improving rather than getting worse.  The index is measured using three key elements: construction of low-rent units, “for-sale” units, and market-rate rental units.

In the second quarter, all components saw a welcomed increase. Market-rate rental properties rose six points to 67.  This is the 11th straight quarter where this number was above 50.  Low-rent units also increased five points to 60 and for-sale units saw an incredible 16-point jump.

W. Dean Henry of Legacy Partners Residential and chairman of NAHB’s Multifamily Leadership Board says, “Multifamily developer confidence is currently at an all-time high … we expect to see that continue for the foreseeable future.  Much of the consumer demand that we are now seeing is coming from a large generation of young people who are able to find jobs and establish their own households as the economy continues to improve.”

With every aspect of the MPI improving, we’ll see a much-needed boost in the apartment industry. The Chief Economist of NAHB, David Crowe, notes that the expanding production is necessary to keep up with the demand and to catch up with new unit production that was lost during the housing downturn. We’re definitely moving in the right direction!

Arcadia Run is a prime example of positive apartment production.  Our apartments are the nicest in the Manassas area and offer the perfect living alternative for those who don’t want to buy a house. Not to mention, our spaces provide the best features available while still being affordable.  With more people choosing to rent, the demand for Arcadia Run apartments will grow, and their availability will soon be limited – so don’t hesitate!  As the economy and apartment industry improve, there is no better time to rent with Arcadia Run.

SourceThe National Association of Home Builders

Welcoming the Fall Season

Ahh, it’s officially fall.  What do you have on your bucket list this season?  Here are a few of our favorite fall activities around the Manassas area – and we think you’ll enjoy them too!

Bands, Brews, and Barbeque Festival

To kick off your fall festivities, visit the 3rd annual Bands, Brews, and Barbeque Festival this weekend (Sep. 28, 12:00pm to 7:00pm) on The Manassas Museum Lawn.  This is a free festival where attendees can enjoy a picnic on the lawn, the best barbeque in Virginia, and listen to talented bands play everything from rock to jazz.

Manassas Fall Jubilee

The following weekend, stop by the 31st Annual Manassas Fall Jubilee in Old Town Manassas.  This event is the classic fall festival with everything from crafts, to face painting, to food and entertainment.  If you’re not quite ready for fall, this festival is sure to put you in the mood.

Visit a Farm

Just 20 minutes out of Manassas is Burnside Farms, a farm that offers pick-it-yourself organic produce.  You can pick out the perfect pumpkin for carving or get a basket full of fresh apples.

Shop at a Farmer’s Market

If you can’t make it to a farm, visit the Farmer’s Market held every week in Manassas. In the fall, produce switches to pumpkin, squash, kale, and other seasonal fruits and vegetables.  Visiting a local farmer’s market lets you buy the freshest produce while supporting local farmers.

Manassas National Battlefield Park

Feel like indulging in a little history?  No problem.  Visit the Manassas National Battlefield Park on a sunny day to explore the rich history of our town.  This park is also the number one ranked attraction in Manassas! Go with your friends or family to take a tour and learn a little bit about the 1st and 2nd Battle of Manassas.  The crisp air and colorful leaves will only add to your experience.

These are only just a few of the many, many things to do in Manassas during the fall season.  We look forward to more festivals, spooky attractions, and colder weather in the future!


14.5% of US Homeowners Underwater

 Just one more reason why you’ll be happy you’re renting: Despite gains in the real estate market and increases in home prices, millions of homeowners still owe more on their home than their home is worth. 
When the housing bubble burst a few years ago, home values dropped dramatically.  Homeowners lost upwards to 60 percent of their home’s value in just a matter of years.  Salaries were cut and employment dropped, but many still had to pay their mortgages on a home that was no longer worth the price.
As a whole, American homeowners are missing $428 billion of equity that has yet to be recovered. According to CoreLogic, a residential property analytics company, this puts 7.1 million people, or nearly 15 percent of all homeowners, underwater on their mortgages. Unfortunately, many still have a long and taxing road to recovery, if they recover at all.
The Chief Economist for CoreLogic says, “In just the first half of 2013, almost three and a half million homeowners have returned to positive equity, but the pace of improvement will likely slow as price appreciation moderates in the second half.”  While many remain optimistic from the major improvements in the housing market, homeownership may no longer be an option for millions of Americans.
This daunting reality has encouraged more and more people to rent instead of buy.  And with the headache that so many homeowners will continue to face in the future, there’s no better way to enjoy your home than to rent.  Renters can live in nicer apartments for less – without the fear of losing their house.
Also, for those who aren’t ready to take on the extra costs that come with owning a home – like maintenance, repairs, homeowners insurance, and much more – renting is the perfect option for your active lifestyle.
Arcadia Run offers the best of apartment living at a huge pricing advantage.  Renters live in homes with the best, most up-to-date features, and only pay a fraction of what homeowners are currently paying.  Within the next year, Arcadia Run residents will also enjoy a jogging trail, a playground, a fitness center, and a resort-style swimming pool.
All of this without the stresses of homeownership, what could be better?

Source: Money Watch – CBS News

Renters Can Afford More for Less

Arcadia Run Unit 122 Living Area

Earlier this summer, CoreLogic released their Rental Applicant Risk report for the first quarter of 2013.  The report was encouraging for current and prospective renters all over the country.

The report details that during the first quarter of this year, the Renter Applicant Risk (RAR) index was up two points to 104, which is considered healthy.  This new number is also up from the 99 that was reported at this time in 2011.  Any number above 100 means that applicants have better credit and are most likely able to meet their lease requirements.

“As the economy continues to grow slowly, conditions appear cautiously optimistic for continued improvement in renter applicant qualifications in the year ahead”, says CoreLogic Safe Rent senior director Jay Harris. “During this relatively upbeat period, renter trends are pointing toward increased confidence among property owners and applicants.”

Additionally, national apartment vacancy rates are falling.  The U.S. Department of Commerce reports that rental vacancy rate declined more than one percent in the second quarter. And according to Wells Fargo, “Solid fundamentals and employment growth are expected to continue to support the rental market.” This just further proves that the rental market is making a major comeback.

Rental properties are in high demand, encouraging renters to move quickly when choosing a new apartment. Renters, especially in today’s market, are able to get better, bigger, and nicer apartments by choosing to rent instead of buy.  Arcadia Run is a perfect example why.  We provide the absolute best apartment buildings in Manassas. We take care of maintenance costs and our renters have access to a gym, walking and jogging trails, a soon-to-be pool, and much, much more.  Those who buy a home might never have access to these types of amenities without paying a huge price.

Upscale apartments offered at reasonable rent have proven to be extremely popular.  Our apartments are newly built with the best amenities and features, and nestled in an ideal location. It couldn’t get any better than this!  The rental market won’t be slowing down any time soon with more renters than ever choosing this active lifestyle.  Renters get the best of all worlds when they choose Arcadia Run.


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