Appreciation  of  Multifamily  Housing  By  Giro  Katsimbrakis  February  12,  2014    Appreciation  of  multifamily  housing  has  returned  with  upward  spikes.  However,  the  market  can  swing  and  it  is  important  to  consider  and  forecast  a  baseline  for  real  estate  construction  

levels.  One  reason  for  the  upward  spike  in  appreciation  and  home  prices  is  that  construction  has  slowed  while  population  numbers  continue  to  rise.  In  addition  to  construction  it  is  important  to  consider  job  growth  and  personal  income  growth  to  find  an  accurate  level  of  future  appreciation.  Probability  suggests  that  appreciation  will  go  up  in  markets  where  there  is  job  growth.  Another  thing  to  consider  is  that  job  growth  is  uneven  in  varying  sectors.  While  some  industry  may  be  booming  with  job  growth,  other  areas  may  be  laying  off  employees  due  to  changing  markets  

and  demands.    So,  that  leaves  the  best  long-­‐term  indicator  of  appreciation,  personal  income.  Income  growth  is  not  helpful  for  short-­‐term  numbers  but  will  give  clear  indications  of  appreciation  with  long-­‐term  analysis.  To  figure  out  real  estate  appreciation  using  income  growth,  follow  these  steps.  First,  select  your  market  and  separate  it  by  income.  The  next  step  is  to  overlay  that  with  income  growth.  After  that,  the  following  analysis  will  give  you  a  great  correlation  between  increases  in  personal  income  and  property  appreciation.    Additionally,  there  are  two  other  factors  that  will  lessen  appreciation.  These  are  mortgage  under-­‐writing  standards  and  rising  interest  rates.  This  is  the  reason  multifamily  real  estate  appreciation  is  in  flux.  As  interest  rates  rise,  prices  shrink  and  as  personal  incomes  rises  so  do  prices.  Despite  this,  personal  income  can  still  help  as  a  long-­‐term  indicator  of  multifamily  housing  appreciation.      Giro  Katsimbrakis  has  twenty  years  worth  of  real  estate  industry  experience.  He  began  as  a  leasing  agent  for  Kiska  Developers  in  New  York  City,  and  quickly  worked  his  way  up  the  company  ladder  to  Director  of  Sales.  After  bringing  the  company  out  of  the  red  and  expanding  its  office  to  over  twenty  agents,  he  started  his  own  commercial  and  residential  real  estate  company,  East  River  Properties.  After  taking  over  the  Las  Vegas  and  Arizona  markets,  Giro  Katsimbrakis  relocated  to  the  Dallas/Fort  Worth  area  and  founded  DPW  Properties,  which  he  is  currently  in  the  process  of  expanding  nationwide.  Throughout  his  long  and  successful  career,  Giro  has  rehabbed  over  four  hundred  properties,  and  bought  and  sold  millions  of  dollars  worth  of  real  estate.