MCLEAN, VA – More renters are optimistic about their financial situations and expect to stay where they are even if their rents increased, according to new research released by Freddie Mac. Meanwhile, a declining number of renters say they are working toward homeownership, expect to buy a home, or go within the next few years.

According to the latest Freddie Mac renter survey, renters today are also saying renting is a excellent choice for them, expect renting to stay affordable, and would go into a smaller rental unit to be closer to a city. While sentiments differ among urban, suburban and rural households, nationally those saying they expect to rent their next home increased to 59 percent from 55 percent since Freddie Mac’s last renter survey in September 2016.

“It would appear from our new survey that renters today feel better about their finances, like where they are living, and view renting favorably. This is consistent with findings from earlier surveys that show a steadily growing number of renters have a positive view of renting,” said David Brickman, executive vice president of Freddie Mac Multifamily.

According to the survey released today, renter sentiments about their financial situation have improved since our last survey in September 2016. Specifically, 41 percent of renters now say they have enough money to last beyond each payday, up from 34 percent in September, while those who say they cannot afford essentials fell from 20 percent to 14 percent. Those saying they have enough to cover their expenses from payday to payday is relatively unchanged at about 45 percent.

Financial confidence rose for renters in all age groups no matter where they live. The largest increases were among rural households, up from 27 percent to 46 percent, and Baby Boomers, up from 38 percent to 48 percent.

Fewer Renters Say They Plot to Go

The increase in personal financial confidence, so far, has not triggered an increase in renter moving plans. Rather, the number of renters who don’t know when they expect to go rose to 37 percent from 30 percent while those who expect to go during the next two years fell from 38 percent to 33 percent since September. What’s more, 55 percent of all respondents, and 60 percent of 35- to 49-year olds, say they like where they live and don’t plot to go if their rents rose.

The number of renters who say renting is a excellent choice for them now rose to 52 percent from 46 percent since January 2016. Views on rent affordability have remained relatively flat at 68 percent.

The number of renters who say they plot to rent their next home rose from 55 percent to 59 percent since September 2016. The largest increases were among suburban households, up from 48 percent to 57 percent, and younger Millennials (ages 18-24), which rose from 64 percent to 73 percent.

While homeownership remains on the horizon, the percentage of renters who expect to own fell to 41 percent from 45 percent since September 2016. Similarly, in response to a related question, the number of renters who say they are working toward homeownership fell from 21 percent to 15 over the same period.

The Freddie Mac survey also indicates a preference for living in urban areas even if it means moving into a smaller home. Seventy-five percent of the renters surveyed say they would consider downsizing in order to live in an urban area, with half of those saying they are either very or honestly willing to downsize.

Conducted in March for Freddie Mac by the Harris Poll, the findings are based on responses from 1,282 renters in urban, suburban, and rural markets, including Millennials (aged 18-34), Gen-X’ers (35-49) and Baby Boomers (50-68).

Additional details about the research, including charts, are on the Freddie Mac website.

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ST LOUIS, MO – BRT Apartments announced that it bought, through joint ventures, three luxury multifamily properties with an aggregate of 355 units located in St. Louis, Missouri for $74.6 million, including $55.2 million of mortgage debt obtained in connection with the acquisitions.

The properties include: Vanguard Heights, a 174-unit mid-rise property in the desirable Creve Coeur neighborhood; The Tower at OPOP, a recently constructed 128 unit, 25-tale modern luxury building located in the heart of downtown St. Louis; and The Lofts at OPOP, a 53 unit multifamily loft building located near The Tower at OPOP.

“Our three property acquisition in St. Louis provides BRT with a meaningful presence in an attractive market. These properties are among the highest quality in our portfolio and have a strong resident profile,” stated Jeffrey A. Gould, President and Chief Executive Officer. “Our pipeline remains very active and we look forward to adding additional properties of this caliber throughout the year as we continue to scale our multifamily platform.”

BRT is a real estate investment trust that either directly, or through joint ventures, owns and operates multi-family properties and other real estate assets.

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SAN DIEGO, CA – The Richman Group of California Development Company has broken ground on K1, a mixed-use development that includes a 23-tale luxury residential tower with 222 apartments, more than 7,000 square feet of ground floor commercial space and parking for 317 vehicles. K1 also features an adjoining low-rise building, playfully called The Sliver, which will include two penthouses, a restaurant and urban garden. Completion of the project, which is located directly across from the Downtown Central Library, is scheduled for early 2020. Development costs for the 422,793-square-foot project, exceed $100 million.

Level 10 Construction of San Diego is the general contractor. The development team also includes architects DesignARC LA, Inc., Rob Wellington Quigley, FAIA, of San Diego and Large Architecture of Los Angeles; and landscape architect Spurlock Poirier of San Diego. NEXUS Plotting Consultants of San Diego is the land use consultant. Bank of America provided construction financing.

K1 occupies most of the block bounded by Park, 13th, J and K streets in Downtown’s East Village neighborhood. It is less than three blocks from Petco Park.

Architectural highlights include a two-tale “Sky Lounge” on the 19th floor, a resort-style pool area with spa and fire pits on the fifth-floor podium level and adjoining two-level recreation center with lounge, demonstration kitchen and gym.

“The site’s spectacular location – across the street from the Central Library and along the Bay-to-Park Link that joins San Diego Bay with Balboa Park – deserves an iconic project that complements the library and encourages public engagement,” said Luke Daniels, president of The Richman Group of California, part of the The Richman Group, the nation’s seventh largest apartment owner.

“K1 will be a Richman Signature Property, which combines first-class service, extensive amenities, and high-style architecture with a 30-day ‘Like It’ guarantee, 24/7 warranty response and individual design services,” said Daniels.

Quigley, whose Central Library design became an instant San Diego icon, designed the project’s secondary structure, ‘The Sliver,’ as an idiosyncratic, playful building to animate and give life to the tower. It features an energetic restaurant space that includes generous outdoor seating and two architecturally striking mid-rise penthouses.

The tower is designed to include 58 studios, 87 one-bedroom units and 77 two-bedroom units, and six levels of secure parking.

Landscape architects Spurlock Poirier has surrounded the project with inviting gardens and a wide promenade along Park Boulevard. The ground-level commercial space is plotted to open onto a new public park, diagonally connecting K Street with upper 13th Street.

“We were fortunate to have assembled such an illustrious design team,” said Preston Underdown, director of development for The Richman Group of California. “The tower blends perfectly with library next door and gives it breathing room. Rob Quigley provided invaluable insight to the project and added some unique architectural elements that will become the soul of K1 and a valuable community attraction,” he added.

K1 is The Richman Group’s second major Downtown San Diego residential project to break ground in the past year. Last May, The Richman Group broke ground on another Richman Signature Property, F11, a seven-tale luxury apartment/retail mixed-use development, located on the north side of F Street between 11th Avenue and Park Boulevard. F11 with 99 units is scheduled to open in mid 2018.

The four-year-ancient Richman Group of California is also nearing completion on Sage, a five-tale apartment community in Cerritos with 132 market-rate apartments and deluxe recreational amenities. Leasing for the first phase of apartments at Sage is scheduled to start this summer.

In addition to market-rate residential apartment properties, The Richman Group of California develops affordable apartment communities. Last year it completed construction on Ventana, a 95-unit affordable seniors community, located at 345 Commonwealth Avenue in downtown Fullerton, Calif. The six-tale, 130,000-square-foot midrise building was 100 percent leased upon completion.

Since its inception in 2014, The Richman Group of California has completed or started construction on 550 units and expects to have more than 750 units in production by yearend, including two new projects in Ventura County and Contra Costa County.

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