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Please refer to the end of the slide presentation for disclosure information.
Ivy Zelman Dennis McGill, CFA Alan Ratner, CFA Dave Bragg212-993-5831 212-993-5833 212-993-5834 212-993-5835ivy@zelmanassociates.com dennis@zelmanassociates.com alan@zelmanassociates.com bragg@zelmanassociates.com
Scott Rednor Ryan McKeveny Kevin Rate212-993-5842 212-993-5837 212-993-5830scott@zelmanassociates.com ryan@zelmanassociates.com kevin@zelmanassociates.com
Zelman & AssociatesNARPM Broker / Owner Retreat
February 2012
Ivy Zelman Dennis McGill, CFA Alan Ratner, CFA Dave Bragg212-993-5831 212-993-5833 212-993-5834 212-993-5835ivy@zelmanassociates.com dennis@zelmanassociates.com alan@zelmanassociates.com bragg@zelmanassociates.com
Scott Rednor Ryan McKeveny Kevin Rate Matt Miller212-993-5842 212-993-5837 212-993-5830 212-993-5849scott@zelmanassociates.com ryan@zelmanassociates.com kevin@zelmanassociates.com matt@zelmanassociates.com
A Deep Dive into Housing
Demographics2
Rounding Out the Housing Mosaic
3Source: Census Bureau, Zelman & Associates analysis Note: Total households = 116.7 million
4
An All-Encompassing View of the Housing Market
Source: Census Bureau, Zelman & Associates analysis
2010 Census - Units in Millions Single-Family2-4 Unit Multi-
Family5-Plus Multi-
FamilyManufactured
Housing TotalTotal Housing Units 88.8 10.9 23.5 8.6 131.7
% of Total Housing Units 67% 8% 18% 7% 100%
Households 80.4 9.2 20.0 7.1 116.7% of Households 69% 8% 17% 6% 100%
Population 221.7 21.9 39.1 18.1 300.8% of Total Population 74% 7% 13% 6% 100%Persons / Households 2.76 2.37 1.96 2.55 2.58
Owner-Occupied Households 66.8 1.6 2.4 5.2 76.0% of Owner-Occupied Households 88% 2% 3% 7% 100%
Owner-Occupied Population 180.4 3.9 4.2 12.8 201.3% of Owned Population 90% 2% 2% 6% 100%
Renter-Occupied Households 13.7 7.6 17.5 1.9 40.7% of Renter-Occupied Households 34% 19% 43% 5% 100%
Renter-Occupied Population 41.3 18.0 34.9 5.2 99.5% of Rental Population 41% 18% 35% 5% 100%
Depressed Household Formation Temporarily Reducing Requirement for New Housing Stock
0
500
1,000
1,500
2,000
2,500
Jan-
00
May
-00
Sep-
00
Jan-
01
May
-01
Sep-
01
Jan-
02
May
-02
Sep-
02
Jan-
03
May
-03
Sep-
03
Jan-
04
May
-04
Sep-
04
Jan-
05
May
-05
Sep-
05
Jan-
06
May
-06
Sep-
06
Jan-
07
May
-07
Sep-
07
Jan-
08
May
-08
Sep-
08
Jan-
09
May
-09
Sep-
09
Jan-
10
May
-10
Sep-
10
Jan-
11
May
-11
Sep-
11
6-Month Average Household Growth
2000-09 Average
2010-19 Estimate
Note: Monthly household estimates are highly volatile and should be viewed in that context
5Source: Census Bureau, Zelman & Associates analysis
Economic Environment Has Temporarily Stunted Household Formation
62.3%
33.4%
15.4%
7.8%5.9%
62.6%
37.7%
19.0%
9.1%
5.7%
0%
10%
20%
30%
40%
50%
60%
70%
18-21 22-24 25-29 30-34 35-39
20-Year Average 1Q11
Percentage of Adult Children Living With Parents
Above-Average Share of 22-34 Year Olds Indicative of Doubling Up
6Source: Census Bureau, Zelman & Associates analysis
Job Growth Was Strongest Since 2006, Positive for Household Formation
7Source: BLS, Zelman & Associates analysis
311
(857)
1,152
2,791
3,851
2,150
2,794
3,357 3,001
3,173
1,953
(1,762)
(540)
87
2,047
2,496
2,069
1,100
(3,603)
(5,060)
1,027
1,820
(6,000)
(5,000)
(4,000)
(3,000)
(2,000)
(1,000)
0
1,000
2,000
3,000
4,000
5,00019
90
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Absolute Annual Change in Nonfarm PayrollsUnits in Thousands
Recent Job Growth Has Been Driven by Younger, Household-Forming Ages
8Source: BLS, Zelman & Associates analysis
35%
73%
-31%
10%
31%
12%
23%
-12%
38% 37%
65%
56%
-40%
-20%
0%
20%
40%
60%
80%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
20-34 Year Olds as % of Change in Payrolls
Age of Households Typically Dictate the Types of Housing Needed to Shelter Population
43%
57%
69%
75%
79%
81% 82%83% 82% 82%
81%80%
74%
34%
50%
64%
73%
76%78%
80% 80% 80% 79%78%
75%
68%
30%
40%
50%
60%
70%
80%
90%
20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-Plus
Max
Median
MinSingle-Family / Manufactured Housing Share of Households
1992-2010
Lifestyle changes of marriage and children impact early housing decisions; death and health impact later housing choices
9Source: Census Bureau, Zelman & Associates analysis
10Source: Census Bureau, Zelman & Associates analysis
$86,
690
$80,
630
$74,
040
$71,
670
$73,
500
$87,
340
$109
,620
$40,
800
$47,
180
$47,
970
$38,
370
$37,
790
$39,
980
$39,
960
$45,
520
$29,
160
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
SFD SFA 2-4 Apt 5-9 Apt 10-19Apt
20-49Apt
50+Apt
MH SFD SFA 2-4 Apt 5-9 Apt 10-19Apt
20-49Apt
50+Apt
MH
Owner-Occupied Household Income Renter-Occupied Household Income
Choice of Shelter Driven By Lifestyle,Owning Driven By Financial Situation
11
The Single-Family Rental Market
The Single-Family Rental Market
12Source: Census Bureau, Zelman & Associates analysis
In Fact, Single-Family Rentals Have Been The Biggest Beneficiary of Foreclosures
-0.7%
26.7%
3.8%
9.1%
12.5%
8.6%
0.1%
14.9%
4.6%
-5%
0%
5%
10%
15%
20%
25%
30%
Single-FamilyOwned
Single-FamilyRented
2-4 UnitOwned
2-4 UnitRented
5-Plus UnitOwned
5-Plus UnitRented
TotalOwned
TotalRented
Total
Change in Households2011 versus 2005
Foreclosures are primarily shifting occupants to single-family rentals, not apartments
13Source: Census Bureau, Zelman & Associates analysis
Apartments Seeing Virtually No Boost in Most Distressed Markets
0.2%
66.8%
9.4% 10.5%
1.2%
30.9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Single-FamilyOwned
Single-FamilyRented
5-Plus UnitOwned
5-Plus UnitRented
Total Owned Total Rented
Change in Households in AZ, FL and NV2011 versus 2005
Foreclosures are primarily shifting occupants to single-family rentals, not apartments
14Source: Census Bureau, Zelman & Associates analysis
15
Single-Family Renters More Likely to Have Owned Home, Been Foreclosed On
Source: Zelman & Associates Renter Survey
32%
42%
35%
16%
31%
22%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Multi-Family Renter Single-Family Renter All Renters
Owned A Home Foreclosure Victim
Have you ever owned a home? If you previously owned a home were you foreclosed on?
Foreclosures Are More Beneficial to Single-Family Rental Operators
31
60
0
10
20
30
40
50
60
70
80
90
100
Apartment Operators Single-Family Property Managers
Rate the benefit to your business from former homeowners that fell victim to foreclosure.
On a scale of 0-1000 = No benefit
100 = Great benefit
16Note: Figures represent trailing six-month averageSource: Zelman & Associates Single-Family Rental Survey
Only 16% of Single-Family Renters Come from Apartments
17Source: Zelman & Associates Single-Family Rental Survey
The Majority of Single-Family Renters Leave to Rent Another House
18Source: Zelman & Associates Single-Family Rental Survey
Current Move-Out to Buy Activity is Well Below Long-Term Average Level
12.5%
20.4%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Last Twelve Month Average Long-Term Average
What percentage of your departing tenants buy homes when they depart one of your rentals?
19Source: Zelman & Associates Single-Family Rental Survey
On Average, Contacts Estimate that 25% of Residents are Below Market Rents
20Source: Zelman & Associates Single-Family Rental Survey
Single-Family Rental Managers Raising Renewals By Average of 3%
1.7%
2.1%
1.8%
2.1% 2.0%
2.2%
3.0%2.9%
2.9%
3.2%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
Apr-11 May-11 July-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12
By approximately how much are you raising rents on renewing residents?
21Source: Zelman & Associates Single-Family Rental Survey
Contacts Remain Optimistic on Rent Growth Outlook
5.0%
6.2%
7.8%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Current Next Twelve Months Months 13-24
Current New Move-In Pricing and Rent Growth Outlook
22Source: Zelman & Associates Single-Family Rental Survey
‘Reluctant Landlords’ Wait from Home Price Appreciation
20
23
21
0
5
10
15
20
25
30
35
Dec-11 Jan-12 Feb-12
Please rate the appetite of your investor clients to sell their rental properties within the next year:
0 = Very Little Interest100 = Very Strong Interest
23Source: Zelman & Associates Single-Family Rental Survey
Majority of Contacts Expect to Grow Through Transfer to Professional Management
24Source: Zelman & Associates Single-Family Rental Survey
25
Single-Family For-Sale Market and
Housing Affordability
Homeownership Rate Expected to Remain Under Pressure During First Half of the Decade
69.2%
67.0%
64.5%65.1%
67.2%
60%
62%
64%
66%
68%
70%
72%20
00 R
ate
Age
Prop
ensi
ty
Rac
e
2005
Rat
e
Age
Prop
ensi
ty
Rac
e
2010
Rat
e
Age
Prop
ensi
ty
Rac
e
2015
Rat
e
Age
Prop
ensi
ty
Rac
e
2020
Rat
e
Expected pipeline of delinquencies and
foreclosures
Modest benefit as housing downturn fades from memory, mortgage
availability normalizes
Foreclosures and recession
Healthy economy, favorable consumer
view of housing, home price
appreciation and easy mortgage credit
Drivers of Homeownership RateData Based on Housing Vacancy Survey
26Source: Census Bureau, Zelman & Associates analysis
Home Prices Have Never Been Cheaper Over Last 30 Years, Per Consumers
40
50
60
70
80
90
100
110
120
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,0001Q
80
1Q81
1Q82
1Q83
1Q84
1Q85
1Q86
1Q87
1Q88
1Q89
1Q90
1Q91
1Q92
1Q93
1Q94
1Q95
1Q96
1Q97
1Q98
1Q99
1Q00
1Q01
1Q02
1Q03
1Q04
1Q05
1Q06
1Q07
1Q08
1Q09
1Q10
1Q11
Single-Family Housing Starts Home Price Optimism Index - 5 Quarter Lead
Note: Consumers' Views of Home Prices Lead New Home Construction by 4-6 Quarters; High Values of Home Price Optimism Index Imply Housing is Cheap, According to Consumers
27Source: University of Michigan Surveys of Consumers, Zelman & Associates analysis
Mortgage Payment Implies Homes Are Affordable But Lack of Down Payment a Major Impediment
28Source: CoreLogic, Mortgage Bankers Association, Zelman & Associates analysis
$812
$1,168
$796$787
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
1Q00
Pay
men
t
Hom
e P
rice
Mor
tgag
e R
ate
2Q03
Pay
men
t
Hom
e P
rice
Mor
tgag
e R
ate
2Q06
Pay
men
t
Hom
e P
rice
Mor
tgag
e R
ate
1Q11
Pay
men
t
Monthly Payment on 3.5% FHA Down Payment Mortgage
29
Few Households Can Afford Down Payment Today
32%
37%
40%
27%
33%
46%
50%
36%
30%
36%
50%
33%
41%
32%33%32%
0%
10%
20%
30%
40%
50%
60%
18-24 25-34 35-44 45-54 55-64 65-74 75 - Plus All Ages
Multi-Family Renters Single-Family Renters
Percent of Renters that Have Savings Equal to 3.5% of Median Existing Home Price
Source: Zelman & Associates Renter Survey
Low P&I as Percent of Income Ignores Down Payment Hurdle, Maintenance Expenses
39%
46%
43%
35% 36%
32%
27%
27%
27%
27%
26%
25%
24%
22% 24
%
23%
22%
22%
21% 21
% 23%
22%
22%
22% 23
% 25% 26
%
24%
20%
16%
16%
14%
22% 24
%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%19
80
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Oct
-11
Ave
r…
Med
ian
Monthly Principal & Interest on a 30-Year FRM as % of Income (assumes 10% down payment and median existing home price)
30Source: NAR, Zelman & Associates analysis
The Simplistic Comparison of P&I-to-Rent Will Look Increasingly Favorable
1.07 1.06
1.01
1.071.13
1.04
1.11 1.12
1.19
1.301.33
1.25
1.09
0.910.86
0.810.78 0.76
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011E 2012E 2013E
Monthly Principal & Interest Cost Versus Rent CostAssumes Median Home Price and 10% Downpayment
31Source: Moody’s Economy.com, Axiometrics, Zelman & Associates analysis
Collapse in Home Prices and Low Rates Put Carrying Costs in Favorable Light
32Source: Axiometrics, MBA, NAR, Zelman & Associates Single-Family Rental Manager Survey, Zelman & Associates analysis
$1,065 $1,056
$1,374
$819
$1,023 $1,100
$977
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
3Q00 3Q03 3Q06 3Q11 With Insurance,Taxes
Single-FamilyRent
Apartment Rent
Principal and Interest Payment on 3.5% FHA Down Payment Mortgage for Median Existing Home Note: Monthly ownership cost
assumes 1% for taxes and $750 per year of insurance and
excludes benefit of interest deduction. Both ownership and
rental cost excludes maintenance expenditures
Note: Apartment Rent Represents Unit Size of 917 Square FeetAccording to Z&A Survey, Average Square Footage of a Single-Family Rental is 1,509 feet
Market Comparison of Monthly Cost to Rent an Apartment and Own a Single-Family Home
1.82
1.82
1.78
1.69
1.64
1.55
1.49
1.48
1.47
1.38
1.32
1.29
1.26
1.23
1.13
1.13
1.11
1.10
1.09
1.02
1.01
1.00
0.99
0.96
0.96
0.92
0.92
0.73
1.06
0.50
0.75
1.00
1.25
1.50
1.75
2.00
Ora
nge
Cou
nty
San
Fra
ncis
co B
ay A
rea
Ral
eigh
San
Jos
e
Cha
rlotte
San
Die
go
Den
ver
Sea
ttle
Aus
tin
Ric
hmon
d
Hou
ston
Bal
timor
e
Nas
hvill
e
Was
hing
ton
DC
Dal
las
New
Yor
k M
etro
Bos
ton
Phi
lade
lphi
a
Los
Ange
les
Chi
cago
Pho
enix
Jack
sonv
ille
Mem
phis
Sou
th F
L
Tam
pa
Orla
ndo
Inla
nd E
mpi
re
Atla
nta
Uni
ted
Sta
tes
All-In Monthly Cost to Own (Conventional Mortage) Relative to Total Apartment Rent Costs
33Source: NAR, Axiometrics, Tax Foundation, Zelman & Associates analysis
34
The American Dream is Still Alive82% of 25-34 Year Old Renters Want to Own in Next Five Years
Source: Zelman & Associates Renter Survey
69%
83%
69%
60%
50%
21%
8%
73%
82%
72%
61%
41%
82%
0%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
18-24 25-34 35-44 45-54 55-64 65-74 75 - Plus
Multi-Family Renters Single-Family Renters
Share of Renters that want to Own a Single-Family Home in the Next Five Years
35
Renters Choose Dwelling First, Then Decide Whether to Rent or Buy
59.9% 57.3%
16.2%20.7%
16.4% 18.5%
49.8% 42.0%
18.0% 19.8%
27.7%30.7%
5.6% 4.4% 6.4% 6.7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mult-Family Renters 25-34 Multi-FamilyRenters
Single-Family Renters 25-34 Single-FamilyRenters
Move in with Family or Friend
Buy A House
Rent a Single-Family Home
Rent an Apartment
If you were to move from your current rental, which choice would you likely make?
Source: Zelman & Associates Renter Survey
Not Surprisingly, Married Couples More Likely to Desire Homeownership
94%
89%
83% 82% 81%
78%76%
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
Married ApartmentRenter
Married Single-Family Renter
All ApartmentRenters
All Respondents All Single-FamilyRenters
Single Single-Family Renter
Single ApartmentRenter
Percentage of 25-34 Year Old Householders that Want to Own a Single-Family Home in Next Five Years
36Source: Zelman & Associates Renter Survey
What Percentage of Renters that Want to Own Could Pull the Trigger?
50%
43% 42%39%
36%
33%
24%
0%
10%
20%
30%
40%
50%
60%
Married ApartmentRenter
Married Single-Family Renter
All ApartmentRenters
All Respondents Single ApartmentRenter
All Single-FamilyRenters
Single Single-Family Renter
Percentage of 25-34 Year Old Householders that Want to Own a Single-Family Home in Next Five Years AND Have
Savings Equal to 3.5% Down Payment
37Source: Zelman & Associates Renter Survey
38
Higher Income and Low Mortgage Rates Expected to Drive Decision Making
84
7572 72
66
62
69
86
7775
79
66
5956
0
10
20
30
40
50
60
70
80
90
100
Higher Income Lower mortgagerates
A further decline inhome prices
Improved JobSecurity
Greater ConfidenceHome is Good
Investment
Rent increases Plans to start a family
25-34 Year Old Multi-Family Renters 25-34 Year Old Single-Family Renters
Most Important Catalyst to Buying a Single-Family Home in Next Five Years (0 = Not Important; 100 = Very Important)
Source: Zelman & Associates Renter Survey
Many Homeowners are Hindered by Negative Equity, But Many Also Own or Have Robust Equity
39Source: CoreLogic, Census Bureau, Zelman & Associates analysis
Negative Equity in Depressed Housing Markets to Keep Housing Turnover Low
58%
47%
44%
35%
30% 30%
23%22%
15%14%
12% 11%10%
7%6%
0%
10%
20%
30%
40%
50%
60%
70%
NV AZ FL MI CA GA ID US SC TN NC IN TX PA NY
Share of Mortgage Holders With Negative Equity in Key StatesAs of 3Q11
Note: 22 states covering 40% of households average less than 15% whilesix states covering 25% of households average more than 25%.
40Source: CoreLogic, Zelman & Associates analysis
We Forecast Modest Home Price Deflation in 2012
10%
14%
15%
6%
-4%
-13%
-11%
0%
-4%
-2%
11%
14% 14%
1%
-8%
-16%
-3% -3%-4%
-2%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%20
03
2004
2005
2006
2007
2008
2009
2010
2011
E
2012
E
2003
2004
2005
2006
2007
2008
2009
2010
2011
E
2012
E
Change in Existing Home Prices
Average Change Year-End Change
41Source: Zelman & Associates analysis
42
Apartment Fundamentals
New Move-in and Renewal Pricing Power Flattish in Seasonally Slow Month
2.3%
2.9%
2.8%
3.5%
3.3% 3.
5%
4.3% 4.
4%
5.6% 5.
8%
5.6% 5.
7%
5.6%
4.8%
4.7% 4.
8% 4.9%
1.7%
2.1%
2.6% 2.
7%
2.7%
3.2%
4.2%
4.0%
4.7% 5.
0% 5.1%
5.1%
4.8%
4.4% 4.
6%
4.4%
4.4%
0%
1%
2%
3%
4%
5%
6%
7%
Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12
New move-in Renewal
What level of change are you achieving today on new move-in and renewal rents?
43Source: Zelman & Associates Apartment Survey
Survey Contacts Forecast Moderate Rent Growth Deceleration
4.1%3.5%
3.1%
6.2%
-1.2%
-2.5%
-0.1%
1.9%
5.8%
3.8%
2.2%
-0.7%
-5.8%
4.4% 4.2% 4.2% 3.9%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E
Apartment Rent GrowthFourth Quarter versus Fourth Quarter
Note: Historical Figures per Axiometrics; Forecasts per Zelman Apartment Survey Axiometrics Forecasts 5.5% Growth in 2012 and 4.6% in 2013
44Source: Axiometrics, Zelman & Associates analysis
The Rent / Income Relationship Has Troughed, Supports Rent Growth Outlook
$35.5
$37.0
$38.9
$40.7
$42.0 $42.2 $42.4$43.3
$44.3
$46.3
$48.2
$50.2 $50.3$49.8 $49.8
$50.5$51.5
$52.8
20%
22%
24%
26%
28%
30%
$30.0
$35.0
$40.0
$45.0
$50.0
$55.0
$60.0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E
Median Household Income(in Thousands) - left
Annual Rent to MedianHousehold Income - right
Forecasted Rent to Median Household Income
1996-2011 Average: 23.9%
45Source: Moody’s Economy.com, Axiometrics, Zelman & Associates analysis
Rents in Las Vegas, Phoenix and Orlando are Farthest From Peak Levels
-18.
9%
-11.
5%
-9.3
%
-8.4
% -6.6
%
-5.9
%
-5.5
%
-5.3
% -4.1
%
-4.0
%
-3.6
%
-3.3
%
-2.6
%
-2.0
%
-1.0
%
-0.7
%
-0.5
%
0.3% 0.8% 1.4%
3.3% 3.6%
3.8% 4.
5%
4.6% 6.
1% 7.1%
7.3%
7.6%
1.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%La
s Ve
gas
Pho
enix
Orla
ndo
Jack
sonv
ille
Sea
ttle
Atla
nta
Los
Ange
les
Tam
pa
Inla
nd E
mpi
re
Sou
th F
L
Ora
nge
Cou
nty
San
Die
go
Hou
ston
Cha
rlotte
Ric
hmon
d
New
Yor
k M
etro
Are
a
Mem
phis
Nas
hvill
e
Ral
eigh
Dal
las
Aus
tin
Phi
lade
lphi
a
San
Jos
e
San
Fra
ncis
co B
ay A
rea
Chi
cago
Den
ver
Bal
timor
e
Bos
ton
Was
hing
ton
DC
Uni
ted
Sta
tes
4Q11 Market Rent Versus Peak Market Rent (2005-08)
46Source: Axiometrics, Zelman & Associates analysis
San Jose and Houston Lead Job Growth Through December
3.0%
3.0%
2.8%
2.6%
2.3%
2.2%
2.1%
2.0%
1.8%
1.8%
1.7%
1.6%
1.5%
1.5%
1.4%
1.2%
1.1%
0.9%
0.7%
0.6%
0.6%
0.5%
0.5%
0.4%
0.4%
0.3%
0.2%
0.0%
-0.1
%
-0.2
%
1.3%
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%S
an J
ose
Hou
ston
Mem
phis
Tam
pa
Sea
ttle
San
Die
go
Aus
tin
Inla
nd E
mpi
re
Jack
sonv
ille
Ora
nge
Cou
nty
Pho
enix
Dal
las
Bos
ton
Ral
eigh
Bal
timor
e
Sou
thea
st F
L
San
Fra
ncis
co B
ay A
rea
Orla
ndo
Den
ver
Las
Vega
s
New
Yor
k M
etro
Are
a
Nas
hvill
e
Was
hing
ton
DC
Ric
hmon
d
Chi
cago
Los
Ange
les
Cha
rlotte
Atla
nta
Phi
lade
lphi
a
Nor
folk
Uni
ted
Sta
tes
Last Twelve Month Job Growth
47Source: Moody’s Economy.com, Zelman & Associates analysis
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Dave BraggBragg@zelmanassociates.com
(212) 993-5835
48
49
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Zelman & Associates Distribution of Investment Ratings as of 12/31/2011:BUY: (33.3%; 0% Investment Banking Clients)HOLD: (63.7%; 0% Investment Banking Clients)SELL: (3.0%; 0% Investment Banking Clients)
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