1031 DST Guy

1031 Delaware Statutory Trust. Sharing trends, data, and funny stories along the way. Tweets are opinions, not advice. DSTs are for Accredited Investors only.

[Real Estate Lawyer @SinaiLawFirm]

Tenant-union-owned apartment building sounds fun and empowering until the first slip and fall lawsuit

[Alex Weiss @AlTayWeiss]

I’m tired of hearing that Los Angeles has a housing “supply & demand” problem. That is the lazy answer.

There are currently over 13,000 units for rent under $2,500 in LA & 27,000 units all together.

Rents are unaffordable because owners are being forced to price in rising insurance, rising utilities, increased legal fees, unpaid rent, compliance costs, higher repair costs & nonstop regulations.

Council members & tenant rights groups have messed with the market factors. Rents will continue to rise until the market is freed back up.

I can fix the LA rental market in a week & the answer isn't to build more.

[1031 DST Guy @1031DST]

@jayparsons @bobbyfijan $500k too low. It’s dated. Should be adjusted and also localized like loan limits via Fannie. My two cents.

[1031 DST Guy @1031DST]

@KurtSupeCPA Hear this scenario often sadly.

[KyleMatthewsCEO @kylematthewsceo]

I finally got around to the Apartment REIT Earnings Calls.

The big takeaway: while passive observers wait for perfect conditions, smart capital is moving into the Sun Belt again. Why?

1. New supply is "falling like a knife."

2. Concessions are evaporating in REIT owned Sun Belt properties (typical higher-end stock)

3. Institutional operators are willing to sell coastal assets to double down on the South.

We’re entering a window where you can buy at 2025 suppressed NOI before Spring leasing surge resets the floor. Sun Belt multifamily is set to be a fast mover this cycle.

Apartment REITs: Concessions Are Easing, Here Comes the Pricing Shift https://t.co/MkRhFVu7hZ

[Jay Parsons @jayparsons]

Camden reportedly to exit California (which is only SoCal for them).

For the apartment REITs in recent years, no market has been more disappointing than Los Angeles. Camden (and others) have in past cited regulatory + demand-side challenges.

That said, there's still ample capital (though less institutional in past) willing to bet on SoCal finding its footing. Will be interesting to see how this portfolio sale plays out.

[Jay Parsons @jayparsons]

One sign of how rental affordability is more nuanced topic than most people realize:

Even amidst economic uncertainty, there's still more a flight to QUALITY than to affordability.

YTD apartment absorption (via CoStar):

Class A/B (pricier): +460k

Class C (cheaper): -38k

[1031 DST Guy @1031DST]

@realEstateTrent Swap until you drop.

[1031 DST Guy @1031DST]

@realEstateTrent Good dentist spot?

[1031 DST Guy @1031DST]

@LAMultiBroker Once you have kids, good clients will know not to contact during family time. Family is everything.

[1031 DST Guy @1031DST]

@KurtSupeCPA This is unfortunately very common.

[Jay Parsons @jayparsons]

Good chart from Avison Young showing institutions and REITs (better capitalized groups) represent 37% of multifamily acquisitions so far in 2025, the highest share since 2019.

[1031 DST Guy @1031DST]

@realEstateTrent Does the flight give me a 1099 or a K-1?

[1031 DST Guy @1031DST]

@jayparsons Very common and can lead to some very depressed people/landlords. Hopefully they find good tenants and life works out just fine.

[Jay Parsons @jayparsons]

For those who aren't allergic to good news:

Wage growth has outpaced apartment rent growth for 31 consecutive months -- widening the demand funnel through improved affordability, and likely helping explain some of the big absorption numbers of late.

[1031 DST Guy @1031DST]

@HealthcareREguy 🤞

[Michael Girdley @girdley]

If a Subaru dealership anywhere in Texas ran its sales process like Tesla does, it'd get all of my business.

The whole "let's talk to the finance manager" and "oh, did we not tell you about the $500 undercoat earlier?" thing is why I've always kept cars forever.

[1031 DST Guy @1031DST]

@realEstateTrent It does look beautiful when done correctly.

[1031 DST Guy @1031DST]

@shawngorham A myriad of possibilities. He should consult some good financial advisors and weigh out each option. What’s right for one person, may be wrong for the next.

[Jay Parsons @jayparsons]

Apartment starts PLUNGED in 2024. How deep? Here's the list among the nation's top 50 metro areas.

Apartment starts in 2024 were lowest since...

2006 in Baltimore!
2009 in Washington, DC and San Francisco!
2010 in Chicago, Denver, Houston, Los Angeles, Seattle (among others)
2013 in Austin
2014 in Dallas and Raleigh
2015 in Jacksonville and Orlando
2016 in Fort Worth and Miami
2017 in Atlanta and Tampa
2018 in Charlotte, Nashville, Northern New Jersey, Phoenix

And for just a handful of markets, you don't have to go back more than last year: Boston, Oakland, San Jose, West Palm Beach, etc.

Full list: See chart.

Just more evidence of significantly reduced apartment supply by 2026 in most parts of the country.

Note: I excluded 2020 from analysis due to COVID impacts on construction that year.