Alternative Measures for the Financial Condition of the Multifamily Housing Stock
نویسندگان
چکیده
Indicators of the financial condition of the multifamily housing stock can potentially inform several policy issues, such as the loss of affordable rental units, multifamily developers’ access to capital, and the emerging secondary mortgage market for multifamily properties. Several rules of thumb exist for assessing financial condition. This article uses the Residential Finance Survey to investigate whether it matters, from a practical standpoint, which one is employed. Specifically, we ascertain how five measures—loan-to-value, debt coverage, rent-to-value, net operating income–to-value, and vacancy loss ratios—relate to each other and rank properties. We found that Pearsonian correlations among the measures varied dramatically. Factor analysis produced two factors, one corresponding to a rent-flow measure and the other to a debt-burden measure. Spearman rank-order correlations revealed that with one exception, measures yielded noticeably dissimilar financial condition rankings. We conclude that single-dimensional measures of financial condition should not be used in isolation.
منابع مشابه
Marital Status and Crowding Intensity (The Case of Multifamily Apartments in Lagos, Nigeria)
In Nigeria, crowded housing is one of the housing stresses that bother policy-makers and housing authorities.This study examines the crowding levels in seven marital status categories among the occupants of Lagos State Development and Property Corporation’s apartments. The focus is on the capacity of an apartment’s internal spaces to meet the sleeping needs of households in different marital ar...
متن کاملThe Use Of Financial Ratios as Measures Of Risk In The Determination Of The Bid- Ask Spread In Tehran Stock Exchange
متن کامل
استخراج شاخص شرایط مالی برای ایران
In recent years “Financial Conditions Index" (herein FCI) has been used as a key indicator of the monetary policy condition. Considering the importance of this index, the purpose of the present research is to reach a comprehensive index that includes all the monetary transmission mechanisms based on the Iranian economy. To this aim, a weighted average of the banking interest, real ex...
متن کاملEnergy Efficiency and its Relationship to Household Income in Multifamily Rental Housing
This paper examines the energy efficiency of multifamily rentals in comparison to other housing types and its relationship to household income. It analyzes 2005 and just‐released 2009 data from the U.S. Residential Energy Consumption Survey and finds that multifamily rentals were significantly less energy efficient than other types of housing, both nationwide and in every region of the country....
متن کاملMeasuring Wealth Effects Using U.S. State Data∗
This paper describes a new panel dataset of financial wealth for U.S. states constructed from anonymous proprietary account-level records on geographic wealth holdings. The new data set is more comprehensive and representative than existing alternative measures. The paper also constructs significantly improved state-level consumption data, then combines these datasets to provide new estimates o...
متن کامل