January 2024

Principal's Corner

Will Remote Work Reshape Housing?

One trend we are watching in the multifamily landscape is the influence of “hybrid work models.” While we keep hearing about how this will negatively impact office investments, we think this fundamental shift could positively affect workforce multifamily. With the rise of hybrid and remote work, there's a growing preference for multifamily properties located in more suburban or less densely populated areas. This shift is due to people spending more time at home and desiring more space and a quieter environment, which is often found outside of traditional urban centers. With the adoption of hybrid work models, the necessity to live near the office is diminishing. This change impacts the rental demand in prime urban areas and may lead to a redistribution of rental hotspots.


We believe this will further support our garden style workforce housing model, as resident demand shifts to more affordable, quieter, and more spacious environments suitable for remote work. These shifts are causing us to look at adding more robust amenities like communal workspaces, and enhancing tech infrastructure like high-speed internet, as these will become more critical going forward and expected. Community building will also become a focus as residents increasingly want shared recreational spaces, social events and even wellness programs.


As we look forward, we believe that understanding and adapting to residents increasingly engaged in hybrid work models will be extremely important. The ability to anticipate and respond to real time market changes, including the evolving role of AI, will be critical for long term success in the housing markets. While the next 1-2 years may see some weakening of underlying fundamentals, as well as general geo-political concerns, we remain bullish on our long-term thesis of investment in workforce housing. 

Edward M. Aloe

President and CEO


Latest Headlines...

The U.S. rental market to gain in importance as the for-sale market remains challenging

Affordability challenges and increased flexibility will likely remain dominant trends in 2024

For agents, staying informed about these developments is essential for strategic decision-making and client guidance in the coming year and beyond. Plus, seeking the most efficient tools to service this segment and help create income while the for-sale market remains challenged and provides less opportunities. Continuously elevated mortgage rates coupled with inflated property prices have created a sort of stagnation in the for-sale segment. Around 49% of agents sold either zero homes or only one in the past year, according to a recent study by the Consumer Federation of America.

While the single-family home market remains rather stagnant, the U.S. rental segment has been quite fluid. Following a surge in rents during 2021 and early 2022, the sector experienced a notable cooling trend in rates last year, according to data by Apartment List. This development is crucial for agents, as it brings not just relief to tenants nationwide but also might create more movement as renters are looking for better deals. Year-over-year rent growth dipping by about 1% is a departure from the earlier upward trajectory. Notably, this downward trend marks a first since the early days of the global pandemic.

The decline in rents is not solely tied to economic factors but is also influenced by supply and demand dynamics. Higher housing costs, inflation concerns and economic uncertainties have led to stagnating household formations, contributing to the market’s deceleration. Simultaneously, a historic boom in multifamily construction has increased the supply side, resulting in a national vacancy index hovering around 6.4% — slightly higher than the 2019 average.

View Article Here

Renting Is Cheaper Than Owning in Nearly 90% of Local Markets

Despite rents growing faster than home prices, the trend of renting being more affordable than owning continues.

While both renting and owning a three-bedroom home continues to pose significant financial burdens taking up more than one-third of wages for average workers, median rental rates still require a smaller portion of average wages than major homeownership expenses on three-bedroom properties in 296 (88%) of the 338 U.S. counties with enough data to analyze.

A trend established before 2023, the gap in renting versus owning remains even as rents have risen faster than home prices over the past year, according to ATTOM.

"Finding an affordable home remains a daunting prospect around the country for average workers, regardless of whether they want to buy or rent. Continuously increasing home prices contribute to the escalation of rental costs, making both buying and renting properties a challenging endeavor across most of the United States," says Rob Barber, CEO at ATTOM. "But the latest data shows that even as rents are growing faster, they remain more affordable than owning."

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RealPage: Apartment Supply Surges to Highest Levels in Decades

Sun Belt and Mountain regions lead in new multifamily construction.

According to RealPage, nearly 440,000 multifamily units were completed last year, with even more—671,000 units—scheduled to deliver in 2024. However, completions are expected to dramatically decline after this year due to the recent slowdown in starts attributed to higher financing costs and softer fundamentals.

“High supply is great news for renters and a hurdle for investors,” said RealPage chief economist Jay Parsons. “Renters suddenly have far more options than they’ve had in recent years, and that’s putting downward pressure on rent growth.”

Rents flattened last year, inching up 0.3%, but apartment demand rebounded after a sluggish 2022. The fourth quarter, which typically is a seasonally slow leasing period, was a surprise bright spot, according to RealPage.

View Article Here

On the lighter side...

About CALCAP Advisors


California Capital Real Estate Advisors, Inc., and its affiliate entities (CALCAP Asset Management, CALCAP Properties, CALCAP Lending, CALCAP Senior Healthcare, and CALCAP Strategic Opportunities, collectively known as “CALCAP”), is a California-based investment company founded in 2008 and headquartered in Pasadena, California. The Company sponsors alternative real estate investment opportunities focused on demographically driven housing. CALCAP has been able to consistently provide both individual and institutional investors with outstanding returns over the last 14 years. The Company uses a highly selective and disciplined investment approach, focused on delivering superior risk-adjusted returns. CALCAP currently has over $650mm in Assets Under Management. To learn more visit

Social Mission

CALCAP CARES is a 501(c)(3) private foundation organized to encourage employees to find a way to give back to the neighborhoods where we invest. CALCAP has created "GiveTime4Autism" as its initial program which gives employees the opportunity to donate unused vacation and sick days for a very worthy cause.


The Sanborn House

65 N. Catalina Avenue   

Pasadena, CA 91106


12626 High Bluff Drive, Suite 360

San Diego, CA 92130 


740 N. 52nd Street

Phoenix, AZ 85008 


1309 State Street, Suite A

Santa Barbara, CA 93101

Edward M. Aloe, Founder & CEO

(626) 229-9057

Patrick A. Wakeman, Principal

(858) 764-4890

Drew Buccino, Principal and COO

(602) 419-3381

Greg Blix,Dir. of Investor Relations

(805) 896-8500

Mark A. Mozilo, Principal
(626) 229-9056

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