BIRMINGHAM MARKET REVIEW · as TechBirmingham, Sloss Tech,UAB Innovation Lab, and Innovation Depot – the largest technology incubator in the Southeast – to name a few. § There

BIRMINGHAM MARKET REVIEWINVESTMENT SALES TEAM

DASHBOARD

DEMOGRAPHICS

ECONOMICINDICATORS

OUTLOOK - 2017

HOUSINGMARKET

NATIONALSNAPSHOT

1981, 15.32%

Jun-17, 2.19%0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

1960

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

Source: Federal Reserve of St. Louis

INVESTMENT INDICATORS

HISTORICAL 10-YEAR TREASURY RATE | MONTHLY

M A RK E T RE VIE W BIRMI NG HAM

DASHBOARD

DEMOGRAPHICS

ECONOMICINDICATORS

OUTLOOK - 2017

HOUSINGMARKET

NATIONALSNAPSHOT

INVESTMENT INDICATORS

12-MONTH LIBOR U.S. DOLLAR

Source: Federal Reserve of St. Louis

M A RK E T RE VIE W BIRMI NG HAM

Jul - 1.75%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

DASHBOARD

DEMOGRAPHICS

ECONOMICINDICATORS

OUTLOOK - 2017

HOUSINGMARKET

NATIONALSNAPSHOT

Average U.S. Rent $1,339Up 3.6% from 2Q16

Occupancy Rate 95.0%

Down 30 bps from 2Q16

$500

$750

$1,000

$1,250

$1,500

90.0%

92.0%

94.0%

96.0%

2011 2012 2013 2014 2015 2016 2Q17Avg. Rent Occupancy

U.S. MULTIFAMILY MARKET

BY THE NUMBERS

Source: Axiometrics

M A RK E T RE VIE W BIRMINGHAM

DASHBOARD

DEMOGRAPHICS

ECONOMICINDICATORS

OUTLOOK - 2017

HOUSINGMARKET

NATIONALSNAPSHOT

Units delivered through 2Q17

174.6k 235.2k

Units absorbed through 2Q17

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*

New Supply Demand

U.S. MULTIFAMILY MARKET

BY THE NUMBERS

Source: Axiometrics*Projected


DASHBOARD

NATIONALSNAPSHOT

ECONOMICINDICATORS

OUTLOOK - 2017

HOUSINGMARKET

DEMOGRAPHICS

Birmingham MSA is the Most populated metro in Alabama and the 49th largest metropolitan area in the country.

1.16mEstimated 2017 population

MARKET SNAPSHOT

2Q 2017

Source: U.S. Census Bureau; Bureau of Labor and Statistics; Sitewise Tetrad; Moody’s Analytics* Seasonally Adjusted


$50.8kEstimated median income

38.7Median Age

542.3kLabor force (Jun ’17)*

$69.5bGross metro product

3.9%Unemployment rate (May ‘17)*

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ECONOMICINDICATORS

OUTLOOK - 2017

HOUSINGMARKET

DEMOGRAPHICS

Population2000

Census2010

Census2017

Estimate2022

ProjectedGROWTH 2017-2022

Birmingham MSA 1.05 M 1.13 M 1.15 M 1.16 M 0.9%

Alabama 4.45 M 4.78 M 4.91 M 5.06 M 2.8%

United States 281.4 M 312.4 M 329.6 M 342.6 M 4.0%

POPULATION GROWTH

Source: U.S. Census, Moody’s Analytics


DASHBOARD

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ECONOMICINDICATORS

OUTLOOK - 2017

HOUSINGMARKET

DEMOGRAPHICS

Rank Metro Area2000

Census2010

Census2017

Estimate2022

Projected

1 Atlanta 4.29 M 5.3 M 5.9 M 6.55 M

2 Charlotte 1.73 M 2.22 M 2.52 M 2.85 M

3 Nashville 1.39 M 1.68 M 1.9 M 2.05 M

4 Memphis 1.22 M 1.33 M 1.35 M 1.38 M

5 Louisville 1.12 M 1.24 M 1.29 M 1.32 M

6 Birmingham 1.05 M 1.13 M 1.15 M 1.16 M

7 Columbia .65 M .77 M .83 M .88 M

8 Greensboro .65 M .73 M .76 M .82 M

9 Little Rock .61 M .7 M .74 M .77 M

10 Mobile .4 M .41 M .42 M .42 M

REGIONAL POPULATION COMPARISON



DASHBOARD

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ECONOMICINDICATORS

OUTLOOK - 2017

HOUSINGMARKET

DEMOGRAPHICS

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

Tota

l Pop

ulat

ion

in M

illion

s

Population Forecast

Population Growth Forecast1990 - 2000: 9.9% growth2000 - 2010: 7.2% growth2010 - 2020: 2.5% growth2020 - 2030: 4.8% growth

POPULATION GROWTH | 1990 - 2030



Birmingham’s population is projected to grow by 6.0%, adding nearly 69,000residents between 2015 – 2030.

DASHBOARD

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ECONOMICINDICATORS

OUTLOOK - 2017

HOUSINGMARKET

DEMOGRAPHICS

0.93

0.94 0.96 1.

01 1.05 1.

09 1.13 1.14 1.16 1.18 1.21

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

Tota

l Pop

ulat

ion

in M

illion

s

Population Forecast

Between 2005 and 2015 the Birmingham MSA has grown by 58,126 people,equating to an increase of 5.4%.

POPULATION GROWTH | 1980 - 2030

FIVE YEAR INTERVALS



DASHBOARD

NATIONALSNAPSHOT

ECONOMICINDICATORS

OUTLOOK - 2017

HOUSINGMARKET

DEMOGRAPHICS

AGE TRENDS

HISTORICAL / PROJECTED AGE TRENDS

Source: Moody’s Analytics


26.5%

20.2%27.9%

25.4%

Age Trends 2010

0-19

20-34

35-54

55+

25.5%

19.9%26.5%

28.1%

Age Trends 2015

0-19

20-34

35-54

55+

24.4%

19.9%25.3%

30.4%

Age Trends 2020

0-19

20-34

35-54

55+

23.7%

19.8%24.9%

31.6%

Age Trends 2025

0-19

20-34

35-54

55+

DASHBOARD

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ECONOMICINDICATORS

OUTLOOK - 2017

HOUSINGMARKET

DEMOGRAPHICS

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

Pop

ulat

ion

/ Tot

al E

mpl

oym

ent i

n M

illion

s

Total Population Total Employment

EMPLOYMENT AND POPULATION



DASHBOARD

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ECONOMICINDICATORS

OUTLOOK - 2017

HOUSINGMARKET

DEMOGRAPHICS

0.4%

0.6%

0.9%

1.0%

1.4%

1.5%

1.8%

2.5%

3.2%

3.4%

Mobile, AL

Columbia, SC

Birmingham, AL

Little Rock, AR

Memphis, TN

Greensboro, NC

Louisville, KY

Charlotte, NC

Atlanta, GA

Nashville, TN

EMPLOYMENT GROWTH RATE



Percent Change in Nonfarm Payroll Employment: June 2017* (Seasonally Adjusted)

* - Projected

DASHBOARD

NATIONALSNAPSHOT

ECONOMICINDICATORS

OUTLOOK - 2017

HOUSINGMARKET

DEMOGRAPHICS

700

700

(1,1

00)

1,40

0

(300

) (800

)

3,60

0

(100

) 0

(400

)

300

(400

)

1,60

0

(1,1

00)

300

800

2,20

0

(2,000)

(1,000)

0

1,000

2,000

3,000

4,000

MONTHLY JOB GROWTH

Source: Bureau of Labor Statistics


One-Month Net Change | Seasonally Adjusted

§ From January to May of 2017, employers have added approximately 3,800 new jobs.

DASHBOARD

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ECONOMICINDICATORS

OUTLOOK - 2017

HOUSINGMARKET

DEMOGRAPHICS

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Une

mpl

oym

ent R

ate

Birmingham-Hoover, AL Alabama USA

Monthly Unemployment RateUSA: 4.3%

Alabama: 4.9%Birmingham MSA: 4.9%

SEASONALLY ADJUSTED UNEMPLOYMENT: METRO, STATE, AND NATIONAL

Source: U.S. Census; Bureau of Labor Statistics; Moody’s Analytics


May 2017 | Seasonally Adjusted

DASHBOARD

NATIONALSNAPSHOT

ECONOMICINDICATORS

OUTLOOK - 2017

HOUSINGMARKET

DEMOGRAPHICS

§ May 2016 – May 2017 Job Growth: 2,200 Jobs (Seasonally Adjusted)§ The May 2017 not seasonally adjusted monthly unemployment rate is 3.9%; down

120 bps year over year

0%

2%

4%

6%

8%

10%

12%

(30)

(25)

(20)

(15)

(10)

(5)

0

5

10

15

Jobs

Add

ed /

Lost

in T

hous

ands

Jobs Added / Lost Unemployment Rate

JOB GROWTH AND UNEMPLOYMENT

Source: Bureau of Labor Statistics; Moody’s Analytics


* - Projected

DASHBOARD

NATIONALSNAPSHOT

ECONOMICINDICATORS

OUTLOOK - 2017

HOUSINGMARKET

DEMOGRAPHICS

2,282

7,664

24,125

25,484

37,772

42,483

51,207

66,794

73,810

83,557

109,839

Natural Resources & Mining

Information

Other Services

Construction

Manufacturing

Financial Activities

Leisure & Hospitality

Professional & Business Services

Education & Health Services

Government

Trade, Transportation & Utilities

SECTOR EMPLOYMENT



June 2017* | Seasonally Adjusted

* - Projected

DASHBOARD

NATIONALSNAPSHOT

ECONOMICINDICATORS

OUTLOOK - 2017

HOUSINGMARKET

DEMOGRAPHICS

Rank SectorJune 2017Employees

% of Total Employment

1 Trade, Transportation & Utilities 109,839 20.9%

2 Government 83,557 15.9%

3 Education & Health Services 73,810 14.1%

4 Professional & Business Services 66,794 12.7%

5 Leisure & Hospitality 51,207 9.8%

6 Financial Activities 42,483 8.1%

7 Manufacturing 37,772 7.2%

8 Construction 25,484 4.9%

9 Other Services 24,125 4.6%

10 Information 7,664 1.5%

11 Natural Resources & Mining 2,282 0.5%

Grand Total 525,017 100.0%

EMPLOYMENT SECTOR BREAKDOWN



June 2017* | Seasonally Adjusted

* - Projected

DASHBOARD

NATIONALSNAPSHOT

OUTLOOK - 2017

HOUSINGMARKET

ECONOMICINDICATORS

DEMOGRAPHICS

ECONOMIC DRIVERS



§ University of Alabama Birmingham (UAB) is the largest employer in the state with approximately 23,000 employees.

§ UAB supports over 61,000 jobs indirectly and generates an economic impact of $5 billion annually.

§ By 2020, UAB projects its economic impact to grow to $6.6 billion, and generate more than 72,500 jobs.

UNIVERSITY OF ALABAMA BIRMINGHAM

§ Birmingham companies employ roughly 38,000 residents in the manufacturing industry.

§ Birmingham has nearly 5x the employment concentration in the primary medals industries than the national average.

§ According to a recent study, Honda Motor Manufacturing employs roughly 4,800 in metro Birmingham, and indirectly created more than 43,000 jobs across the state, creating an economic impact of $6.8 billion; nearly 3.5% of the state’s total GDP.

MANUFACTURING

§ UAB Hospital is the top-ranked hospital in the state by U.S. News & World Report, and ranks in the top 50 hospitals in the country across nine medical specialties.

§ The health care sector employs more than 65,000 people and includes four of the top ten employers within the MSA.

§ The presence of the UAB Health System, along with nearly 20 other hospitals and medical centers, makes Birmingham a regional health care hub.

HEALTH CARE

§ With emerging sectors such as information technology and data security, Network World recently dubbed Birmingham the “Silicon Valley of the Southeast”.

§ Birmingham’s Innovation Depot is the largest technology incubator in the Southeast, and one of the top tech incubators in the U.S., according to the National Business Incubation Association.

TECHNOLOGY HUB

DASHBOARD

NATIONALSNAPSHOT

OUTLOOK - 2017

HOUSINGMARKET

ECONOMICINDICATORS

DEMOGRAPHICS

ü Greater than $1.25 Economic Impact

§ According to a recent survey, Birmingham was ranked the number one city for millennial entrepreneurs.

§ Birmingham has promoted several economic initiatives centered around the emerging technology sector, suchas Tech Birmingham, Sloss Tech, UAB Innovation Lab, and Innovation Depot – the largest technology incubatorin the Southeast – to name a few.

§ There are more than 700 technology-based companies doing business within the Birmingham MSA. Thesecompanies encumber sectors such as Information Technology (458), R&D (94), Analytical Services (81),Advanced Manufacturing (39), Medical Devices (39), and Life Sciences (33).

ü 650+ attendees from 15 states and 7 different countries

ü Within the last year, 400+ girls ages 8-17 graduated 100 Girls of Code workshop

ü Super Code Sunday: attracts as many 75 kids ages 7-17 monthly

ü 800+ Local Employees

ü Grown from 1 student CEO/Founderin 2014, to 19 in 2016 (student CEO’s are

supported by teams of peers)

ü 380+ Local Employeesü 7 FDA-approved drugs

on market

INNOVATION & TECHNOLOGY

Source: fastcompany.com


DASHBOARD

NATIONALSNAPSHOT

OUTLOOK - 2017

HOUSINGMARKET

ECONOMICINDICATORS

DEMOGRAPHICS

Rank EmployerNo. of

Employees1 University of Alabama at Birmingham 23,0002 Regions Financial Corp. 7,1343 Honda Manufacturing of Alabama 4,8004 St. Vincent’s Health System 4,7865 Baptist Health System, Inc. 4,6336 Children’s of Alabama 4,5437 AT&T 4,5178 Alabama Power Co. 3,9829 Blue Cross-Blue Shield of Alabama 3,57010 Mercedes-Benz U.S. International, Inc. 3,50011 U.S. Postal Service 2,80012 BBVA Compass 2,76513 Buffalo Rock Co. 2,20014 Southern Co. Services 2,11615 U.S. Steel 1,90016 Trinity Medical Center 1,89317 Social Security Administration 1,80018 Brookwood Medical Center 1,63619 American Cast Iron Pipe Co. 1,60020 Birmingham VA Medical Center 1,52521 Wells Fargo 1,46622 Protective Life Corp. 1,46423 McDonalds 1,30024 State Farm Insurance 1,11225 Golden Living (multiple locations) 1,100

Source: Birmingham Business Alliance, 2016

LARGEST EMPLOYERS


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OUTLOOK - 2017

HOUSINGMARKET

ECONOMICINDICATORS

DEMOGRAPHICS

Fortune 1000 Companies

(No. 619)

HealthSouth is one of the nation’s largest providers of

post-acute healthcare services

500 $3.71 Billion $247.6 Million

(No. 635)

Vulcan Materials Company is the nation’s largest producer of construction aggregates

250 $3.59 Billion $419.5 Million

§ Birmingham is home to the only Fortune 500 company headquartered in Alabama: Regions FinancialCorporation (No. 436).

§ Birmingham also hosts two companies whom made the Fortune 1000 list: HealthSouth Corporation (No. 619)and Vulcan Materials Company (No. 635)

§ Other major regional / corporate headquarters located in Birmingham include: AT&T, Wells Fargo, BlueCrossBlueShield of Alabama, BBVA Compass, State Farm Insurance.

Company Industry No. of Local Employees

Annual Revenues(2016)

Annual Profits(2016)

(No. 436)

Regions Financial is one of the largest full service

providers of consumer and commercial banking,

mortgage, wealth management, insurance products, and services.

7,100 $5.96 Billion $1.16 Billion

FORTUNE 500 COMPANIES

Source: Fortune Magazine; Geolounge; Tetrad


DASHBOARD

NATIONALSNAPSHOT

OUTLOOK - 2017

HOUSINGMARKET

ECONOMICINDICATORS

DEMOGRAPHICS

Company Industry Jobs CreatedCapital

Investment Year

Automotive Supplier 535 $27 Million 2017 - 2019

Health Care 400 $7.2 Million 2017

Automotive Supplier 350 $534 Million 2019

Auto Assembly Plant 300 $153 Million 2017

Automotive Supplier 300 $100 Million 2017

Automotive Supplier 225 $46.3 Million 2019

Pharmaceutical Manufacturing 200 $29 Million 2016 - 2020

BUSINESS EXPANSION AND RELOCATION

Source: Birmingham Business Alliance; Birmingham Business Journal


The Birmingham MSA has added more than 2,200 jobs over the 12-month period ending in May2017.

Birmingham boasts three major employment sectors which include Banking and Insurance, HealthCare Services, and Logistics and Transportation. Below we’ve highlighted a few of the majorexpansions and relocations within these core sectors.

DASHBOARD

NATIONALSNAPSHOT

HOUSINGMARKET

DEMOGRAPHICS

OUTLOOK -2017

ECONOMICINDICATORS

EMPLOYMENT OUTLOOK 2017



§ An estimated 4,450 jobs are projected to be created in Greater Birmingham during 2017

+ 980 Jobs

Financial Activities

Government

+ 830 Jobs

+ 800 Jobs

+ 330 Jobs

+ 130 Jobs

+ 3,640 Jobs Education &Health Care

Leisure & Hospitality

Professional & Business Services

Other Services

DASHBOARD

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HOUSINGMARKET

DEMOGRAPHICS

OUTLOOK -2017

ECONOMICINDICATORS

ECONOMIC DEVELOPMENT AND CONSTRUCTION


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DEMOGRAPHICS

OUTLOOK -2017

ECONOMICINDICATORS

JEFFERSON COUNTY


PROJECT SUNRISEConsidered the biggest economic development victory in years,Project Sunrise is anticipated to bring roughly 750 manufacturing jobsto the area with an average annual salary around $58,000. Localexperts expect the project to have a “multiplier effect” and can spuradditional job creation through suppliers wanting to locate around themanufacturing facility in years to follow. In October 2016, the projectin Jefferson County was sold for redevelopment by a holdingcompany out of Highland Park, IL, after the county agreed to providethe manufacturing company with nearly $1.5 million in incentives. Theproject is still in planning stages, but construction and development isexpected to involve a capital investment of approximately $120million.

DASHBOARD

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DEMOGRAPHICS

OUTLOOK -2017

ECONOMICINDICATORS

CRESCENT CORRIDOR

NORFOLK SOUTHERN RAILWAYSThe Birmingham Regional Intermodal Facility, completed in 2012, willmake Birmingham a key city along Norfolk Southern's CrescentCorridor Route. The $2.5 billion investment by Norfolk Southern isexpected to create over 8,600 jobs by 2020 and 13,000 jobs by 2030.The 2,500 mile route will provide one of the fastest, most directroutes from the Southeast to the Northeast, utilizing the 316-acreBirmingham facility as a project anchor. Upon completion in 2020, theproject is expected to create an economic impactof $4.08 billion.


DASHBOARD

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OUTLOOK -2017

ECONOMICINDICATORS


SOUTHEAST EXISTING & FUTURE TRANSIT OBJECTIVEConnecting the economic centers of Alabama and other regional resources with passenger rail1. Connecting Alabama

§ Birmingham – Montgomery – Mobile

Future Goals2. Connecting the Gulf Coast§ New Orleans – Mobile – Jacksonville3. Connecting the Southeast§ Atlanta – Birmingham – New Orleans

500 JOBS CREATED BY LINKING BIRMINGHAM TO MONTGOMERY

POTENTIAL 500,000 ANNUAL RIDERSHIP

60K ANNUAL SALARY

POTENTIAL TO GENERATE $10 MILLION IN ANNUAL PASSENGER REVENUE

3

CAPITAL INVESTMENT WILL BREAK EVEN AFTER FIVE YEARS

ALTERNATE NODE FOR WORKFORCE AND TOURISTS TO CASINOS, CONVENTIONS, AND OTHER ATTRACTIONS

DASHBOARD

NATIONALSNAPSHOT

DEMOGRAPHICS

ECONOMICINDICATORS

HOUSINGMARKET

OUTLOOK - 2017

2Q 2017Avg. Asking

RentAvg.

Occupancy

Market Average $913 93.4%

Class A $1,160 95.1%

Class B $952 94.5%

Class C $739 89.4%

YearAnnual

OccupancyAnnual

Absorption

2Q17 93.4% 909**

2016 92.8% 1,079

2015 93.0% 929

2014 92.5% 1,340

2013 92.3% (288)

2012 93.3% 2,443

2011 90.7% (761)

2010 91.8% 2,543

2009 88.1% (1,400)

2008 91.3% (1,704)

2007 94.5% 1,026* - Includes Properties w/ 50+ conventional units

Total UnitsTotal Units

Under Construction

73,587* 536*

MULTIFAMILY QUARTERLY SNAPSHOT

Source: Axiometrics; Yardi Matrix


§ Approximately 909 units have been absorbed in the first half of 2017.§ Average asking rent increased to $913 in 2Q17, 2.1% above the rate recorded one year prior.§ Average occupancy fell 10 basis points Y-o-Y settling at 93.4% in the second quarter of 2017.

**Year to Date

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DEMOGRAPHICS

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HOUSINGMARKET

OUTLOOK - 2017

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2Q17Class A 96.3% 95.7% 94.4% 95.8% 95.1% 95.3% 95.3% 94.7% 92.0% 93.3% 94.8% 95.1%Class B 95.9% 93.3% 93.1% 91.0% 92.1% 94.9% 94.0% 95.1% 93.5% 91.5% 94.3% 94.5%Class C 93.4% 95.1% 89.7% 87.0% 88.6% 92.2% 92.4% 92.2% 91.2% 88.8% 91.7% 89.4%

84%

86%

88%

90%

92%

94%

96%

98%

Occ

upan

cy R

ate

APARTMENT OCCUPANCY BY CLASS

Source: Axiometrics


DASHBOARD

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DEMOGRAPHICS

ECONOMICINDICATORS

HOUSINGMARKET

OUTLOOK - 2017

Rent Growth Rank

Submarket Effective Rent

AnnualChange

Concession Value Occupancy

1 St. Clair County $831 3.6% $0.00 97.3%

2 Central $949 3.3% ($3.80) 93.1%

3 East $965 3.2% ($13.51) 93.0%

4 South $907 2.8% (15.42) 92.6%

5 North $695 0.1% ($6.95) 93.1%

6 Shelby County / Other $861 (4.1%) ($9.47) 97.3%

Birmingham Market Average $868 1.5% ($8.00) 93.4%

QUARTERLY TRENDS BY SUBMARKET


Source: Axiometrics

2Q 2017

DASHBOARD

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DEMOGRAPHICS

ECONOMICINDICATORS

HOUSINGMARKET

OUTLOOK - 2017

AverageSF Permits2007-2016:

2,359

AverageMF Permits 2007-2016:

789

0

1,000

2,000

3,000

4,000

5,000

6,000

Single Family Permits Mulitfamily Permits*

PROJECTED

* - Multifamily Permits for Properties w/ 5+ Units

BUILDING PERMIT ISSUANCE


Source: U. S. Census Bureay; Moody’s Analytics

SF VS. MF

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DEMOGRAPHICS

ECONOMICINDICATORS

HOUSINGMARKET

OUTLOOK - 2017

566

1,18

4

444

912

60

0

708

439

1,29

9

618

1,27

4

689

84%

86%

88%

90%

92%

94%

96%

0

200

400

600

800

1,000

1,200

1,400

Completions Occupancy

COMPLETIONS VS. OCCUPANCY


Source: Axiometrics

DASHBOARD

NATIONALSNAPSHOT

DEMOGRAPHICS

ECONOMICINDICATORS

HOUSINGMARKET

OUTLOOK - 2017

566

1,18

4

444

912

60 0

708

439 1,29

9

618

1,27

4

689

(1,8

91)

1,02

6

(1,7

04)

(1,4

00)

2,54

3

(761

)

2,43

0

(305

)

1,32

8

917

975

909

-2,500

-2,000

-1,500

-1,000

-500

0

500

1,000

1,500

2,000

2,500

3,000

Completions Absorption

COMPLETIONS VS. ABSORPTION


Source: Axiometrics

§ Through the first half of 2017,net absorption has outpaced deliveries by 31.9%.

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ECONOMICINDICATORS

HOUSINGMARKET

OUTLOOK - 2017

1,24

2

940

725 75

8

484 51

9

1,00

5

1,39

6

829

1,32

1

845

103

0

200

400

600

800

1,000

1,200

1,400

1,600

2016 2017 2018 2019 2020 2021

No.

Uni

ts

New Supply Demand

PROJECTED SUPPLY AND DEMAND


Source: Axiometrics

FORECAST

MULTIFAMILY HOUSING

DASHBOARD

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ECONOMICINDICATORS

HOUSINGMARKET

OUTLOOK - 2017

$51,845

$54,431

$45,694

$51,506

$45,204

$50,826

$49,725

$56,790

$58,887

$59,267

$55,886

17.5%

19.6%

20.1%

20.6%

21.0%

21.6%

22.5%

22.5%

23.4%

23.5%

28.8%

$9,072

$10,656

$9,204

$10,596

$9,480

$10,956

$11,184

$12,780

$13,752

$13,944

$16,068

Little Rock

Louisville

Mobile

Columbia

Greensboro

Birmingham

Memphis

Charlotte

Nashville

Atlanta

United States

2017 Median Household Income Rent as % of Income 2Q17 Average Annual Rent

HOUSING AFFORDABILITY


Source: Tetrad; Axiometrics

MEDIAN INCOME VS. ANNUAL AVERAGE RENT

DASHBOARD

NATIONALSNAPSHOT

DEMOGRAPHICS

ECONOMICINDICATORS

HOUSINGMARKET

OUTLOOK - 2017

$161

.0

$151

.9

$144

.8

$142

.8

$138

.9

$150

.2 $163

.4

$167

.0

$176

.9

$185

.5

$197

.4

$200

.8

$202

.9

$206

.1

$212

.4

$220

.1

Average Home Price 2007-2016:

$158,773

$0

$50

$100

$150

$200

$250

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Med

ian

Hom

e P

rice

in T

hous

ands

Historical Forecasted 2007-2016 Avg.

EXISTING HOME PRICES



DASHBOARD

NATIONALSNAPSHOT

DEMOGRAPHICS

ECONOMICINDICATORS

HOUSINGMARKET

OUTLOOK - 2017

68.9

%

68.8

%

67.8

%

67.5

%

67.2

%

66.5

%

65.9

%

65.3

%

65.1

%

63.9

%

63.7

%

63.4

%

75.7

%

76.1

%

74.9

%

74.6

%

74.4

%

78.3

%

75.8

%

76.1

%

74.7

%

64.0

% 68.1

%

66.0

%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

U.S. Birmingham MSA Linear (Birmingham MSA)

HOMEOWNERSHIP RATE


Source: U. S. Census Bureau

§ According to the U.S. Census Bureau, the homeownership rate in the Birmingham MSA was 66.0% at the end of 2016; decreasing 210 bps over the previous 12-month period.

DASHBOARD

NATIONALSNAPSHOT

DEMOGRAPHICS

ECONOMICINDICATORS

HOUSINGMARKET

OUTLOOK - 2017$60.

9

$125

.1

$88.

4

$275

.0

$297

.9 $353

.5

$152

.7

$46.

4

$105

.3

$250

.9

$365

.6

$544

.8

$551

.8

$652

.4

$456

.7

$125

.3

$0

$100

$200

$300

$400

$500

$600

$700

Milli

ons

Birmingham MSA Volume

ANNUAL TRANSACTION VOLUME


Source: Real Capital Analytics

MULTIFAMILY ASSETS*

* Based on independent reports of properties and portfolios $2.5 million and greater.

DASHBOARD

NATIONALSNAPSHOT

DEMOGRAPHICS

ECONOMICINDICATORS

HOUSINGMARKET

OUTLOOK - 2017

$99.

0

$96.

6

$85.

1

$87.

1

$85.

4

$103

.4

$111

.3

$114

.9 $130

.5 $140

.9

$144

.4

$56.

3

$59.

9

$59.

8

$56.

7

$44.

3

$60.

5

$59.

6

$75.

5

$76.

3

$82.

2 $89.

9

U.S. Ten-Year Average: $105,425

Birmingham Ten-Year Average:

$63,125

$0

$40

$80

$120

$160

($) T

hous

ands

USA Birmingham U.S. Ten-Year Average Birmingham Ten-Year Average

ANNUAL AVERAGE PRICE PER UNIT


Source: Real Capital Analytics

MULTIFAMILY TRANSACTIONS*

* Based on independent reports of properties and portfolios $2.5 million and greater.

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