July 16, 2025 • 10 mins
In this episode, Sandy MacKay provides an overview of the current market forecast and factors affecting the housing market. A case study on multifamily investment in Tacoma offers practical insights. Sandy introduces top apartment REITs for income investors, including Essex Property Trust, Camden Property Trust, AvalonBay Communities, Mid-America Apartment Communities, Equity Residential, and American Homes 4 Rent. The discussion also covers Equity LifeStyle Properties, UMH Properties, and UDR, Inc. Sandy concludes with insights on American Assets Trust and additional investment opportunities.
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Episode Transcript
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(00:00):
Did you know that the Canadian Real EstateAssociation has downgraded its forecast for
(00:04):
home sales twice this year, yet a marketturnaround might be on the horizon?
Welcome to the Multifamily Real Estate InsightsPodcast.
I'm your host, Sandy MacKay.
Let's get right to it.
The Canadian Press recently reported that theCanadian Real Estate Association, or CREA, has
(00:25):
again adjusted its forecast for home sales in2025.
Despite the downward revision, there isoptimism that the market may be nearing a
recovery.
In June, the number of homes sold nationwideincreased by 3.5 percent compared to the same
month last year.
This reflects a 2.8 percent rise from May whenseasonally adjusted.
(00:48):
The CREA now anticipates that 469,503residential properties will be sold this year,
which is a 3 percent decrease from 2024.
In April, the CREA had predicted that homesales for 2025 would remain largely unchanged
from the previous year.
This was already a significant reduction fromits January forecast, which anticipated an 8.6
(01:14):
percent year-over-year increase.
The national average home price is expected todrop 1.7 percent annually to $677,368, about
$10,000 less than the CREA's April prediction.
However, CREA senior economist Shaun Cathcartsuggests that the housing market rebound might
(01:36):
only be delayed by a few months due to externalfactors like the Canada-U.S.
trade war.
Cathcart noted that June's market performanceclosely mirrored May's, though uncertainty
persists with the latest 35 percent tariffthreat from U.S.
President Donald Trump.
The uncertainty surrounding tariffs has led toreduced activity, particularly in British
(01:57):
Columbia, Alberta, and Ontario.
Nevertheless, markets seem to be entering arecovery phase, buoyed by pent-up demand, lower
interest rates, and a resilient economy that isexpected to sidestep the worst-case tariff
scenarios.
CREA chair Valérie Paquin mentioned that if thespring market was held back by economic
(02:21):
uncertainty, the delayed activity couldpotentially surface this summer and fall,
assuming no further major shocks occur.
The CREA now forecasts that national home salesin 2026 will improve by 6.3 percent, returning
to levels expected in their April forecast.
The national average home price is projected torise 3 percent from 2025 to $697,929 in the
(02:50):
following year.
The Greater Toronto Area led the recovery insales activity over the past two months, though
activity remains slower than usual.
Cameron Forbes, a Toronto-area broker, pointedout that the uncertainty of tariffs is keeping
many buyers on the sidelines, even those withsecure jobs and home equity.
(03:12):
Forbes emphasized that much depends on theoutcome of ongoing trade negotiations between
Canada and the U.S., with an August 1 deadlinelooming.
A compromise could lead to a healthier market,while failure to reach an agreement might
prolong the current uncertainty.
Shawna De La Rosa from the Business Journalsreported on July 15, 2025, that an investor
(03:38):
based out of Los Angeles has acquired amultifamily complex in Tacoma for a staggering
$84 million.
This acquisition marks a significant investmentin the Tacoma real estate market, which has
been gaining attention due to its potential forgrowth and development.
The purchase underscores the confidence thatinvestors have in the multifamily sector,
(03:59):
particularly in regions that are showingpromising signs of economic expansion and
stability.
The Tacoma multifamily complex, which includesa substantial number of rental units, is
expected to benefit from the area's increasingdemand for housing.
This demand is driven by factors such as jobgrowth and an influx of new residents seeking
(04:20):
more affordable living options compared tolarger cities like Seattle.
The acquisition aligns with a broader trend ofinvestors turning their attention to secondary
markets, where opportunities for higher returnson investment are more prevalent.
Experts in the real estate industry havehighlighted the potential for Tacoma to become
a hub for multifamily investments, given itsstrategic location and favorable economic
(04:44):
indicators.
The city's proximity to major transportationroutes and its ongoing urban development
initiatives make it an attractive option forinvestors looking to diversify their
portfolios.
While the investor's identity was notdisclosed, the transaction reflects a growing
trend of cross-border investments in themultifamily sector.
(05:05):
The appeal of stable returns and long-termvalue appreciation continues to draw interest
from both domestic and international investors.
As the market evolves, it's likely that we'llsee more such high-value transactions in the
multifamily space, particularly in areas thatare witnessing robust economic growth.
It's encouraging to see such confidence in themultifamily market, especially as we navigate
(05:30):
through economic uncertainties.
This purchase not only emphasizes theresilience of the multifamily sector but also
highlights the opportunities that exist inemerging markets like Tacoma.
As always, it's crucial for investors to stayinformed and consider the broader market trends
when making investment decisions.
Today, we're diving into an insightful analysisshared by Aristofanis Papadatos on the 10 best
(05:55):
apartment real estate investment trusts, orREITs, to buy now for income investors.
With inflation reaching a 40-year high lastyear, the Federal Reserve has been raising
interest rates to stabilize the economy.
However, with inflation showing signs ofresurgence and potential tariff impacts,
there's speculation that the Federal Reservemight lower interest rates again.
(06:18):
This scenario could be advantageous forapartment REITs due to their resilience during
recessions and their high dividend yields,which surpass the average of the S&P 500 Index.
Let's explore some of these top REITs, startingwith Essex Property Trust, which was founded in
1971.
Essex focuses on the West Coast of the UnitedStates, investing in multi-family residential
(06:41):
properties.
The trust reported a slight decline in fundsfrom operations per share but saw an increase
in core funds from operations, driven byrevenue growth and co-investment income.
Essex's concentration on high-demand areas likeSeattle and San Francisco positions it well for
future growth.
Next, Camden Property Trust, which isheadquartered in Houston, Texas, owns and
(07:06):
manages multifamily apartment communitiesacross the United States.
Camden recently reported a modest increase inproperty revenue and occupancy rates, and
management has raised its full-year guidance.
This demonstrates the trust's ability tonavigate challenging economic conditions while
maintaining steady growth.
AvalonBay Communities also makes the list, witha strategy focusing on metropolitan areas such
(07:30):
as New York, Washington D.C., and California.
AvalonBay reported significant growth inearnings per share and funds from operations,
highlighting its successful management andstrategic property investments.
Mid-America Apartment Communities, or MAA,focuses on the Sunbelt Region, known for its
strong population and economic growth.
(07:53):
Despite a slight dip in net operating incomedue to increased supply, MAA has maintained a
strong financial performance, reaffirming itsguidance for core funds from operations.
Equity Residential, another major player,benefits from affluent renters in urban areas
like Boston and San Francisco.
The trust reported a decrease in earnings pershare but an increase in funds from operations,
(08:19):
showcasing its capability to generate stableincome amidst market fluctuations.
American Homes 4 Rent focuses on single-familyrental properties and has demonstrated robust
revenue growth.
With increasing rental rates and occupancy,this REIT is well-positioned for continued
success, offering attractive returns to itsinvestors.
(08:42):
Equity LifeStyle Properties, specializing inmanufactured home and recreational vehicle
communities, reported positive growth in fundsfrom operations.
The trust's unique focus on lifestyle-orientedproperties provides a stable income stream,
even during economic downturns.
UMH Properties, which owns manufactured housingcommunities, has shown resilience with improved
(09:05):
occupancy rates and rental income.
This REIT's focus on affordable housingsolutions positions it well in times of
economic uncertainty.
UDR, or United Dominion Realty Trust, operatesin high barrier-to-entry markets, ensuring
strong demand and limited competition.
The trust continues to deliver consistentreturns, with a recent dividend increase
(09:29):
reflecting its solid financial health.
Finally, American Assets Trust, with a diverseportfolio across the United States, continues
to manage its properties effectively despitehigher interest expenses.
This REIT's experience in acquiring anddeveloping properties ensures its long-term
(09:49):
stability and growth potential.
In conclusion, apartment REITs offer compellingopportunities for income investors,
particularly in a market with rising economicuncertainties.
Their resilience during recessions andpotential benefits from falling interest rates
make them attractive options.
Thank you for listening to the Multifamily RealEstate Insights Podcast.
(10:11):
I'm your host, Sandy MacKay.
See you on the next one.
Did you know that the Canadian Real EstateAssociation has downgraded its forecast for
(00:04):
home sales twice this year, yet a marketturnaround might be on the horizon?
Welcome to the Multifamily Real Estate InsightsPodcast.
I'm your host, Sandy MacKay.
Let's get right to it.
The Canadian Press recently reported that theCanadian Real Estate Association, or CREA, has
(00:25):
again adjusted its forecast for home sales in2025.
Despite the downward revision, there isoptimism that the market may be nearing a
recovery.
In June, the number of homes sold nationwideincreased by 3.5 percent compared to the same
month last year.
This reflects a 2.8 percent rise from May whenseasonally adjusted.
(00:48):
The CREA now anticipates that 469,503residential properties will be sold this year,
which is a 3 percent decrease from 2024.
In April, the CREA had predicted that homesales for 2025 would remain largely unchanged
from the previous year.
This was already a significant reduction fromits January forecast, which anticipated an 8.6
(01:14):
percent year-over-year increase.
The national average home price is expected todrop 1.7 percent annually to $677,368, about
$10,000 less than the CREA's April prediction.
However, CREA senior economist Shaun Cathcartsuggests that the housing market rebound might
(01:36):
only be delayed by a few months due to externalfactors like the Canada-U.S.
trade war.
Cathcart noted that June's market performanceclosely mirrored May's, though uncertainty
persists with the latest 35 percent tariffthreat from U.S.
President Donald Trump.
The uncertainty surrounding tariffs has led toreduced activity, particularly in British
(01:57):
Columbia, Alberta, and Ontario.
Nevertheless, markets seem to be entering arecovery phase, buoyed by pent-up demand, lower
interest rates, and a resilient economy that isexpected to sidestep the worst-case tariff
scenarios.
CREA chair Valérie Paquin mentioned that if thespring market was held back by economic
(02:21):
uncertainty, the delayed activity couldpotentially surface this summer and fall,
assuming no further major shocks occur.
The CREA now forecasts that national home salesin 2026 will improve by 6.3 percent, returning
to levels expected in their April forecast.
The national average home price is projected torise 3 percent from 2025 to $697,929 in the
(02:50):
following year.
The Greater Toronto Area led the recovery insales activity over the past two months, though
activity remains slower than usual.
Cameron Forbes, a Toronto-area broker, pointedout that the uncertainty of tariffs is keeping
many buyers on the sidelines, even those withsecure jobs and home equity.
(03:12):
Forbes emphasized that much depends on theoutcome of ongoing trade negotiations between
Canada and the U.S., with an August 1 deadlinelooming.
A compromise could lead to a healthier market,while failure to reach an agreement might
prolong the current uncertainty.
Shawna De La Rosa from the Business Journalsreported on July 15, 2025, that an investor
(03:38):
based out of Los Angeles has acquired amultifamily complex in Tacoma for a staggering
$84 million.
This acquisition marks a significant investmentin the Tacoma real estate market, which has
been gaining attention due to its potential forgrowth and development.
The purchase underscores the confidence thatinvestors have in the multifamily sector,
(03:59):
particularly in regions that are showingpromising signs of economic expansion and
stability.
The Tacoma multifamily complex, which includesa substantial number of rental units, is
expected to benefit from the area's increasingdemand for housing.
This demand is driven by factors such as jobgrowth and an influx of new residents seeking
(04:20):
more affordable living options compared tolarger cities like Seattle.
The acquisition aligns with a broader trend ofinvestors turning their attention to secondary
markets, where opportunities for higher returnson investment are more prevalent.
Experts in the real estate industry havehighlighted the potential for Tacoma to become
a hub for multifamily investments, given itsstrategic location and favorable economic
(04:44):
indicators.
The city's proximity to major transportationroutes and its ongoing urban development
initiatives make it an attractive option forinvestors looking to diversify their
portfolios.
While the investor's identity was notdisclosed, the transaction reflects a growing
trend of cross-border investments in themultifamily sector.
(05:05):
The appeal of stable returns and long-termvalue appreciation continues to draw interest
from both domestic and international investors.
As the market evolves, it's likely that we'llsee more such high-value transactions in the
multifamily space, particularly in areas thatare witnessing robust economic growth.
It's encouraging to see such confidence in themultifamily market, especially as we navigate
(05:30):
through economic uncertainties.
This purchase not only emphasizes theresilience of the multifamily sector but also
highlights the opportunities that exist inemerging markets like Tacoma.
As always, it's crucial for investors to stayinformed and consider the broader market trends
when making investment decisions.
Today, we're diving into an insightful analysisshared by Aristofanis Papadatos on the 10 best
(05:55):
apartment real estate investment trusts, orREITs, to buy now for income investors.
With inflation reaching a 40-year high lastyear, the Federal Reserve has been raising
interest rates to stabilize the economy.
However, with inflation showing signs ofresurgence and potential tariff impacts,
there's speculation that the Federal Reservemight lower interest rates again.
(06:18):
This scenario could be advantageous forapartment REITs due to their resilience during
recessions and their high dividend yields,which surpass the average of the S&P 500 Index.
Let's explore some of these top REITs, startingwith Essex Property Trust, which was founded in
1971.
Essex focuses on the West Coast of the UnitedStates, investing in multi-family residential
(06:41):
properties.
The trust reported a slight decline in fundsfrom operations per share but saw an increase
in core funds from operations, driven byrevenue growth and co-investment income.
Essex's concentration on high-demand areas likeSeattle and San Francisco positions it well for
future growth.
Next, Camden Property Trust, which isheadquartered in Houston, Texas, owns and
(07:06):
manages multifamily apartment communitiesacross the United States.
Camden recently reported a modest increase inproperty revenue and occupancy rates, and
management has raised its full-year guidance.
This demonstrates the trust's ability tonavigate challenging economic conditions while
maintaining steady growth.
AvalonBay Communities also makes the list, witha strategy focusing on metropolitan areas such
(07:30):
as New York, Washington D.C., and California.
AvalonBay reported significant growth inearnings per share and funds from operations,
highlighting its successful management andstrategic property investments.
Mid-America Apartment Communities, or MAA,focuses on the Sunbelt Region, known for its
strong population and economic growth.
(07:53):
Despite a slight dip in net operating incomedue to increased supply, MAA has maintained a
strong financial performance, reaffirming itsguidance for core funds from operations.
Equity Residential, another major player,benefits from affluent renters in urban areas
like Boston and San Francisco.
The trust reported a decrease in earnings pershare but an increase in funds from operations,
(08:19):
showcasing its capability to generate stableincome amidst market fluctuations.
American Homes 4 Rent focuses on single-familyrental properties and has demonstrated robust
revenue growth.
With increasing rental rates and occupancy,this REIT is well-positioned for continued
success, offering attractive returns to itsinvestors.
(08:42):
Equity LifeStyle Properties, specializing inmanufactured home and recreational vehicle
communities, reported positive growth in fundsfrom operations.
The trust's unique focus on lifestyle-orientedproperties provides a stable income stream,
even during economic downturns.
UMH Properties, which owns manufactured housingcommunities, has shown resilience with improved
(09:05):
occupancy rates and rental income.
This REIT's focus on affordable housingsolutions positions it well in times of
economic uncertainty.
UDR, or United Dominion Realty Trust, operatesin high barrier-to-entry markets, ensuring
strong demand and limited competition.
The trust continues to deliver consistentreturns, with a recent dividend increase
(09:29):
reflecting its solid financial health.
Finally, American Assets Trust, with a diverseportfolio across the United States, continues
to manage its properties effectively despitehigher interest expenses.
This REIT's experience in acquiring anddeveloping properties ensures its long-term
(09:49):
stability and growth potential.
In conclusion, apartment REITs offer compellingopportunities for income investors,
particularly in a market with rising economicuncertainties.
Their resilience during recessions andpotential benefits from falling interest rates
make them attractive options.
Thank you for listening to the Multifamily RealEstate Insights Podcast.
(10:11):
I'm your host, Sandy MacKay.
See you on the next one.
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