1. Rental Housing – Apartment Markets
William Ktsanes Director of Research RealFacts

2. Outline Sources of private vendor apartment data RealFacts
History, scope, methodology and clients
California’s apartment markets
Southern MSAs vs. Northern MSAs
Bay Area’s apartment markets
San Francisco, San Clara, Alameda and San Mateo County rents
Two Interesting trends
Single-family home prices vs. apartment rents
Condo Conversions

3. Words of Wisdom for Housing Data Users…
“As we know, there are known knowns. There are things we know we know. We also know there are known unknowns. That is to say we know there are some things we do not know. But there are also unknown unknowns, the ones we don't know we don't know.”

4. Words of Wisdom for Housing Data Users…
“As we know, there are known knowns. There are things we know we know. We also know there are known unknowns. That is to say we know there are some things we do not know. But there are also unknown unknowns, the ones we don't know we don't know.”
- Donald Rumsfeld, Secretary of Defense

5. Private Data Providers
National Multifamily Housing Council publishes on their website ( > Research and Statistics > Sources of Apartment Data) an extensive list of private sources of apartment data.
Their Directory of Private Data Providers identifies companies providing information on apartment market conditions and demographics in local areas throughout the country.
Some private data providers “recycle” government-collected “pubic” data from sources such as the US Census Bureau, Bureau of Labor Statistics and HUD; others conduct their own surveys and collect proprietary data.

6. A few Private-Sector Apartment Data Providers
National Vendors/Providers
Claritas
CB Richard Ellis
Clayton-Fillmore
First-American Real Estate Solutions
M/PF Research
Marcus & Millichap
National Real Estate Index
NPA Data Services
Real Capital Analytics
Reis
Torto Wheaton Research
Regional Vendors/Providers
Delta Associates (Washington DC and Baltimore)
Dupre + Scott Apartment Advisors (Western Washington state)
Monarch Data (Texas)
Pierce Eislen (Southern California)
RealFacts (Western US)
Tracy Cross and Associates (Chicago)
Triad Research and Consulting (Florida)

7. RealFacts has been collecting, analyzing and publishing data relevant to multifamily housing markets for fifteen years. 
We are a leading source of timely, property-specific data for the multifamily industry.
Each quarter we survey the individual rents, occupancy and ownership of over 10,000 properties in primarily Western states.
Clients include investors, owners, property managers, brokers, lenders and government officials.
A subscription to our quarterly data and web-based software RealFactsonline provide tools to quickly produce market overviews, market comparisons, rental trends, rental comps, sales trends, sales comps, property profiles, and ownership information, as well as customized reports and analyses for user-defined submarkets and property groups. 

8. MSAs with Greatest Changes 2nd Quarter 2004 - Western US

9. California Overview San Diego MSA Average 2Q04 rents – $1,197
Year-over-year change in rents - up 3.3%
Over last four years – up 21.2%
Los Angeles-Orange MSA
Average 2Q04 rents – $1,336
Year-over-year change in rents - up 3.7%
Over last four years – up 19.3%
Inland Empire (Riverside MSA)
Average 2Q04 rents – $978
Year-over-year change in rents - up 5.9%
Over last four years – up 29.0%
Sacramento MSA
Average 2Q04 rents – $902
Year-over-year change in rents - up 2.6%
Over last four years – up 22.4%
San Francisco-Oakland MSA
Average 2Q04 rents – $1,310
Year-over-year change in rents - down 1.0%
Over last four years – down 12.5%
San Jose-Sunnyvale MSA
Average 2Q04 rents – $1,271
Year-over-year change in rents - down 2.8%
Over last four years – down 27.1%

10. Bay Area Overview San Francisco County
Average 2nd quarter 2004 rents – $1,790
Last quarter change in rents – up 1.9%
Year-over-year change in rents - up 1.5%
Over last four years – down 18.8%
Alameda County
Average 2nd quarter 2004 rents – $1,201
Last quarter change in rents – down 0.8%
Year-over-year change – down 1.9%
Over last four years – down 10.8%
Santa Clara County
Average 2nd quarter 2004 rents – $1,271
Last quarter change in rents – 0.6%
Year-over-year change - down 1.8%
Over last four years – down 27.2%
San Mateo County
Average 2nd quarter 2004 rents – $1,378
Last quarter change in rents – none
Year-over-year change – down 2.0%
Over last four years – down 20.8%

11. Apartment Rents vs. Home Prices
Market
Median Single-Family Home Price
Year/Year Price Increase
Mean Multi-family Apartment Rent
Year/Year Rent Increase
Las Vegas, NV
$269,900
52.4%
$757
2.6%
Orange County, CA
$655,300
38.7%
$1,297
3.5%
Riverside, CA
$294,500
38.5%
$978
6.0%
San Diego, CA
$559,700
37.5%
$1,197
3.3%
Los Angeles- Long Beach, CA
$438,400
30.4%
$1,336
3.7%
Reno, NV
$270,000
28.0%
$766
3.4%
Sacramento, CA
$308,600
27.0%
$902
2.5%
San Francisco, CA
$647,000
15.5%
$1,790
1.5%
* Data from RealFacts 2nd Quarter 2003 Survey and National Association of Realtors

12. Condo Conversions “Rondos” – Rental units converted into condominiums
Mostly happening in San Diego and Las Vegas (estimated to be about 4,000 units in San Diego)
Starting to occur in Los Angeles
Essex on Lake Merritt is a high-profile, high-end example in the Bay Area
Not yet a big impact on apartment markets
Buyers are largely coming out of the ranks of renters
Likely to slow down considerably as interest rates rise
“Condo Craze” is shaping current development
In some hot markets condos pencil-out where rental apartments do not