The Rent Roll with Jay Parsons EP#34 Alfonso Costa Jr. | 5 Takeaways From Apartment REIT Calls
May 15, 2025
Alfonso Costa Jr., COO at Falcone Group and former HUD official, shares insights on the evolving apartment market. He emphasizes the importance of collaboration between public and private sectors to address housing challenges. The conversation dives into effective strategies for new development amid high interest rates and ongoing economic uncertainties. Alfonso also discusses Florida's 'Live Local' initiative and its impacts on workforce housing, along with insights on navigating current construction costs and evolving market dynamics.
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REITs Hold Steady Amid Uncertainty
- Apartment REITs report strong fundamentals like low turnover and healthy rent growth despite uncertainty.
- No one is rushing to raise guidance due to macroeconomic concerns, mainly around tariffs and recession fears.
Renters Show Strong Financial Health
- Renters exhibit strong financial health with stable rent-to-income ratios and improved credit scores.
- Collections, renewals, and occupancy remain robust with no signs of consumer weakness in key markets.
Record Low Resident Turnover
- Resident turnover is at historical lows, supporting higher physical occupancy.
- Centralized renewal processes and improved resident experience significantly contribute to these low turnover rates.