When I was very young I went a Montessori school here in Toronto. If you’re not familiar with Montessori education, it’s basically a very open ended and independent form of learning. Students choose what they want to do.
Because of this, many have argued that a Montessori education is actually great training to be an entrepreneur. Instead of being told what to do, you as a student need to figure it out on your own. See the parallel? Both Google founders went to Montessori school.
When I was there (< grade 4), my absolute favorite thing to do was draw maps. I remember them having these large scale maps of the world where you could physically remove each country so that you could then trace it and create your own maps. I spent a lot of time doing exactly that.
To this day, I still really love maps. And I remember many of my friends in architecture school being the same way. So perhaps it comes with the territory.
In any case, I recently started playing around with a product called cartoDB. And one of the things you can easily do with it is connect it to Mailchimp (the service that manages the ATC email newsletter) and anonymously map the location of each subscriber. I couldn’t resist giving it a try.
Below is what that looks like. Not surprisingly, the highest concentrations of subscribers to this blog are in Canada and the US.
So here’s a zoomed in version:
I’ve been trying to branch out from talking about Toronto all the time. And that seems to be working somewhat. But I could still do a better job of creating more global content. I’ll try harder.
On my way back from Philadelphia this past weekend I wrote a post called, The Philadelphia (real estate) story. It was about how opposite the market is in Philly compared to Toronto.
After writing that post and because of a discussion in the comment section, I started thinking about condo vs. rental apartment development across the US. Because unlike cities such as Toronto and Vancouver, it struck me that – outside of maybe New York and Miami – most U.S. cities are really not building a lot of for sale condos. And if you’re from Toronto or Vancouver, I bet that feels odd to you.
But what exactly is that number?
As of the first quarter of 2015, condos as a percentage of all new multifamily (apartment) construction in the US was only 5.5%. That’s a tiny number and is down from over 50% before the Great Recession, which means most cities in the US really are building mostly rental. Last year the US built 264,000 multifamily units across 11,000 buildings.
When I was very young I went a Montessori school here in Toronto. If you’re not familiar with Montessori education, it’s basically a very open ended and independent form of learning. Students choose what they want to do.
Because of this, many have argued that a Montessori education is actually great training to be an entrepreneur. Instead of being told what to do, you as a student need to figure it out on your own. See the parallel? Both Google founders went to Montessori school.
When I was there (< grade 4), my absolute favorite thing to do was draw maps. I remember them having these large scale maps of the world where you could physically remove each country so that you could then trace it and create your own maps. I spent a lot of time doing exactly that.
To this day, I still really love maps. And I remember many of my friends in architecture school being the same way. So perhaps it comes with the territory.
In any case, I recently started playing around with a product called cartoDB. And one of the things you can easily do with it is connect it to Mailchimp (the service that manages the ATC email newsletter) and anonymously map the location of each subscriber. I couldn’t resist giving it a try.
Below is what that looks like. Not surprisingly, the highest concentrations of subscribers to this blog are in Canada and the US.
So here’s a zoomed in version:
I’ve been trying to branch out from talking about Toronto all the time. And that seems to be working somewhat. But I could still do a better job of creating more global content. I’ll try harder.
On my way back from Philadelphia this past weekend I wrote a post called, The Philadelphia (real estate) story. It was about how opposite the market is in Philly compared to Toronto.
After writing that post and because of a discussion in the comment section, I started thinking about condo vs. rental apartment development across the US. Because unlike cities such as Toronto and Vancouver, it struck me that – outside of maybe New York and Miami – most U.S. cities are really not building a lot of for sale condos. And if you’re from Toronto or Vancouver, I bet that feels odd to you.
But what exactly is that number?
As of the first quarter of 2015, condos as a percentage of all new multifamily (apartment) construction in the US was only 5.5%. That’s a tiny number and is down from over 50% before the Great Recession, which means most cities in the US really are building mostly rental. Last year the US built 264,000 multifamily units across 11,000 buildings.
So why is that happening?
There appears to be a number of factors, according to a recent article in the Wall Street Journal.
There’s a supply side constraint:
Another obstacle cited by developers: construction loans. Matt Allen, chief operating officer of the Related Group, a developer based in Miami, said he can get a construction loan for roughly 75% of the cost of building an apartment complex. But lenders will cover only 50%, on average, of a condo complex’s cost because of the greater risk, he said.
There’s a demand side constraint:
As a result, the Federal Housing Administration, which backs mortgages made to low-wealth buyers, tightened its lending standards in a series of moves from 2008 to 2012. Under the new rules, in order for the FHA to insure mortgages in a given condo complex, at least half of the units must be owner-occupied and no more than half can be FHA-insured, among other requirements. For condo projects under development, at least 30% of units must be under contract for sale before the FHA will start backing mortgages there. Mortgage giants Fannie Mae and Freddie Mac tightened their standards as well.
And there are macroeconomic factors:
On the entry-level end, tepid job growth early in the recovery and the younger generation’s affinity for flexibility have fueled demand for rentals. Apartment rents are up nearly 16% since 2010, according to Reis Inc.
Notwithstanding the above, could this be a post-recession policy pendulum that has swung too far in one direction?
One of my absolute favorite things to do is travel to cities, explore, and take lots of pictures. When I’m in a new place, I can’t help but examine everything about the built environment. That’s the architect in me and it’ll never go away.
When I was in undergrad I had a refurbished digital SLR camera that I used to use. But now I just use my iPhone. As the saying goes: the best camera is the one you have on you.
Seeing how I was just in Philadelphia, I’ve been posting a lot of new city related photos to my Instagram. And since about 10x more people follow this blog than follow my Instagram, I’m going to plug it here: follow me on Instagram :)
So why is that happening?
There appears to be a number of factors, according to a recent article in the Wall Street Journal.
There’s a supply side constraint:
Another obstacle cited by developers: construction loans. Matt Allen, chief operating officer of the Related Group, a developer based in Miami, said he can get a construction loan for roughly 75% of the cost of building an apartment complex. But lenders will cover only 50%, on average, of a condo complex’s cost because of the greater risk, he said.
There’s a demand side constraint:
As a result, the Federal Housing Administration, which backs mortgages made to low-wealth buyers, tightened its lending standards in a series of moves from 2008 to 2012. Under the new rules, in order for the FHA to insure mortgages in a given condo complex, at least half of the units must be owner-occupied and no more than half can be FHA-insured, among other requirements. For condo projects under development, at least 30% of units must be under contract for sale before the FHA will start backing mortgages there. Mortgage giants Fannie Mae and Freddie Mac tightened their standards as well.
And there are macroeconomic factors:
On the entry-level end, tepid job growth early in the recovery and the younger generation’s affinity for flexibility have fueled demand for rentals. Apartment rents are up nearly 16% since 2010, according to Reis Inc.
Notwithstanding the above, could this be a post-recession policy pendulum that has swung too far in one direction?
One of my absolute favorite things to do is travel to cities, explore, and take lots of pictures. When I’m in a new place, I can’t help but examine everything about the built environment. That’s the architect in me and it’ll never go away.
When I was in undergrad I had a refurbished digital SLR camera that I used to use. But now I just use my iPhone. As the saying goes: the best camera is the one you have on you.
Seeing how I was just in Philadelphia, I’ve been posting a lot of new city related photos to my Instagram. And since about 10x more people follow this blog than follow my Instagram, I’m going to plug it here: follow me on Instagram :)
Share Dialog
Share Dialog
Share Dialog
Share Dialog
Share Dialog
Share Dialog
