Southeast U.S. Rental Housing Overview 2015 CAHEC Partners Conference Patrick M. Bowen Bowen National Research June 20, 2015

National Trends – Occupancy Rates National Apartment Occupancy Rate = ~ 95%, Trending Up Source: Axiometrics Tax Credit Projects ~ 97%+

National Trends – Rent Growth 2014 Rent Growth 3.5% to 4.5% Tax Credit Rent Growth 2.5% to 3.0%

National Trends – Multifamily Construction New Multifamily Starts Increased in Each of Past 5 Years New Multifamily Starts in 2014 Exceeded Pre-recession Levels

Regional Comparison – Residential Building Permits Each of the four regional states had increased building permit activity between 2011 and 2013 North Carolina experienced the greatest increase since 2011 W. Virginia experienced nominal increase over past 5 years

Regional Comparison – LIHTC Vacancy Rates State Surveyed UnitsVacancy N. Carolina10,9231.8% S. Carolina5,2871.1% Virginia16,0212.2% W. Virginia1,4922.2% Region33,7231.9%

Regional Comparison – Median LIHTC Rental 60% AMHI State Surveyed Units1-Br.2-Br.3-Br. N. Carolina10,923$538$627$736 S. Carolina5,287$550$650$740 Virginia16,021$721$833$940 W. Virginia1,492$506$585$668 Region 33,723 $605$688$777 Note: Median Rents for LIHTC projects are generally 15% to 20% below market-rate levels

North Carolina – Residential Building Permits Source: SOCDS Building Permits Database at Housing Unit Building Permits for North Carolina: Permits Multifamily Permits12,93517,30715,43815,5708,4127,8427,94118,74715,97414,860 Single-Family Permits84,97582,71070,33939,08225,38826,04724,86329,94535,31635,051 Total Units97, ,01 785,77754,65233,80033,88932,80448,69251,29049,911

North Carolina – Renter Household Growth Projected Low-Income ($10k-$40k) Renter Household Growth by County – 2014 to 2019

North Carolina - LIHTC Vacancy Rates CitySurveyed UnitsVacantVacancy Asheville % Charlotte2, % Concord % Durham1, % Fayetteville % Greensboro % Greenville % High Point % Kannapolis % Raleigh1, % Wilmington %

North Carolina – Median 60% AMHI City Surveyed Units1-Br.2-Br.3-Br. Asheville785$484$546$659 Charlotte2,921$589$720$800 Concord694$575$685$780 Durham1,436$671$790$911 Fayetteville800$461$515$582 Greensboro650$566$653$722 Greenville624$470$546$595 High Point418$506$615$725 Kannapolis220$560$685$758 Raleigh1,421$650$675$830 Wilmington954$534$617$707

N. Carolina – LIHTC Allocations

N. Carolina – 2015 LIHTC Applications

South Carolina – Residential Building Permits Source: SOCDS Building Permits Database at Housing Unit Building Permits for South Carolina: Permits Multifamily Permits10,8169,1017,8146,1402,0881,3332,6903,4204,4786,073 Single-Family Permits43,34941,68032,81719,78213,44512,69312,85215,29020,25021,470 Total Units54,16550,78140,63125,92215,53314,02615,54218,71024,72827,543

Projected Low-Income ($10k-$40k) Renter Household Growth by County – South Carolina – Renter Household Growth

City Surveyed UnitsVacantVacancy Aiken % Charleston % Columbia1, % Greenville % Hartsville % N. Charleston % Rock Hill % Spartanburg % Sumter % South Carolina - LIHTC Vacancy Rates

City Surveyed Units1-Br.2-Br.3-Br. Aiken154$400$485$565 Charleston385$607$717$740 Columbia1,493$633$730$830 Greenville971$550$650$750 Hartsville112$520$580$543 N. Charleston826$565$720$828 Rock Hill531$615$670$753 Spartanburg446$540$616$690 Sumter369$461$542$575 South Carolina – Median 60% AMHI

S. Carolina – LIHTC Allocations

S. Carolina – 2015 LIHTC Applications

Virginia – Residential Building Permits Source: SOCDS Building Permits Database at Housing Unit Building Permits for Virginia: Permits Multifamily Permits11,5598,7277,4187,6385,1844,8437,6729,78211,0499,848 Single-Family Permits49,95938,97730,94419,93916,26816,14915,62517,49620,89318,832 Total Units61,51847,70438,36227,57721,45220,99223,29727,27831,94228,680

Virginia – Renter Household Growth Projected Low-Income ($10k-$40k) Renter Household Growth by County –

City Surveyed Units VacantVacancy Alexandria1, % Chesapeake2, % Hampton1, % Newport News % Norfolk1, % Petersburg % Portsmouth1, % Richmond3, % Suffolk % Virginia Beach1, % Virginia - LIHTC Vacancy Rates

Virginia – Median 60% AMHI City Surveyed Units 1-Br.2-Br.3-Br. Alexandria1,664$1,103$1,340$1,564 Chesapeake2,395$698$827$903 Hampton1,089$746$889$1,005 Newport News669$721$849$978 Norfolk1,811$714$830$930 Petersburg774$668$680$730 Portsmouth1,474$714$793$913 Richmond3,753$625$795$910 Suffolk488$714$756$835 Virginia Beach1,904$750$890$1,005

Virginia – LIHTC Allocations

Virginia – 2015 LIHTC Applications

West Virginia – Residential Building Permits Source: SOCDS Building Permits Database at Housing Unit Building Permits for West Virginia: Permits Multifamily Permits Single-Family Permits5,4835,1603,9182,5601,9661,7961,5881,7631,9661,933 Total Units6,1405,6454,7953,4812,2352,3952,2202,7182,6242,707

Projected Low-Income ($10k-$40k) Renter Household Growth by County – West Virginia – Renter Household Growth

West Virginia - LIHTC Vacancy Rates City Surveyed Units VacantVacancy Beckley % Charleston % Fairmont7800.0% Martinsburg % Morgantown % Parkersburg % Weirton8200.0% Wheeling %* * Includes project in initial lease-up, all other properties full

West Virginia – Median 60% AMHI City Surveyed Units 1-Br.2-Br.3-Br. Beckley138$470$570 Charleston103$480$555$630 Fairmont78--$618$677 Martinsburg554$597$745$875 Morgantown169$545$638$720 Parkersburg141$507$570$645 Weirton82$473$513$595 Wheeling227$475$533$650

West Virginia – LIHTC Allocations Designation Unknown

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