October 2022

Principal's Corner

Apartment Rental Demand Slightly Dips in Q3 

Apartment rental demand fell unexpectedly in Q3, due to a slowdown in leasing traffic, according to RealPage. This decline marked the first time in RealPage’s 30 years of tracking the data that demand registered negative during Q3—a historically strong leasing quarter. Effective asking rents fell month-over-month by 0.2% in September. The reason cited was a “freezing of household formations”—which had been strongly growing since COVID. RealPage cites low consumer confidence and economic uncertainty causing tenants to get in a “wait and see” mode.

 Greg Willet, National Director of Research for IPA added, “most thought vacancy would climb, getting back to roughly the historical norm, everybody knew the double-digit rent growth pace seen in 2021 wasn’t sustainable.” He went on to add, “any panic that’s registering as rents flatten or even decline a little is an overreaction. Limited pricing power as we move toward the end of the year is the normal seasonal pattern. We just didn’t see that routine seasonal slowing in 2020 and 2021.” Interestingly, Class A buildings were the most impacted, with asking rents down an average of 0.15% month-over-month nationally, according to Yardi Matrix. In contrast, workforce housing (the product that CALCAP primarily invests in) showed a 0.23% increase in asking rents during the same period.


Apartment vacancy jumped 1% in September but remains very strong at 4.4%. Household incomes used to qualify tenants increased 13% from one year earlier, keeping rent-to-income ratios relatively low at 23%. Rent collections were 95.4% nationally, up from 94.9% last year.

Edward M. Aloe
Founder and CEO
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The Midwest Is Attracting Record-High Capital. Here’s Why

The U.S. multifamily market has seen record-breaking rent growth so far this year, backed by correspondingly high demand. The currently volatile state of the economy—with rising inflation and escalating interest rates—will most likely start to take its toll on the sector’s high-paced expansion soon.

But the Midwest multifamily market poses some distinct advantages compared to other U.S. regions. The lack of excess supply has kept vacancy rates stable in all the Midwest’s major cities, according to a recent Northmarq report. And despite the slow start in 2022, experts expect an acceleration of construction starts in the second half of the year.

View Article Here 

Top 5 Markets for Multifamily Deliveries

New product in these metros surpassed 38,000 units in the first half of 2022, according to Yardi Matrix data.

Multifamily demand still runs hot despite major economic headwinds and experts predict that the sector will continue to outperform throughout 2022. According to Yardi Matrix data, 153,314 units came online nationwide between January and June 2022, representing 1.0 percent of total stock. The volume of units delivered accounts for a 21.3 percent decrease from the 194,885 units that were delivered last year during the same period.

In the ranking below, we showcase the top five markets for deliveries in the first half of 2022 by the number of units, based on Yardi Matrix data. Combined, a little over 38,000 units came online in these metros, accounting for a quarter of the national volume.

View Article Here

Homebuilders say housing starts will fall even further in 2023

NAHB HMI hits lowest level since August 2012

Homebuilder confidence continued its downward spiral in October, hitting its lowest level since August 2012, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) report, released Tuesday.

In October, builder sentiment in the market for newly built single-family homes fell eight points from September to a reading of 38 points, half the level it was six months ago. This latest drop marks the 10th consecutive month of declines. 

The NAHB/ HMI report is based on a monthly survey of NAHB members, in which respondents are asked to rate both current market conditions for the sale of new homes and expected conditions for the next six months, as well as traffic of prospective buyers of new homes. Scores for each component of the survey are then used to calculate an index, in which any number greater than 50 indicates more homebuilders view conditions as favorable than not.

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 and 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 $500mm 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.

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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

Tim Landwehr
Executive VP, CALCAP Lending, LLC
Mark A. Mozilo, Principal
(626) 229-9056
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