Friday, January 15, 2021

Multifamily Permits and Starts Jump in November via RealPage

Despite the weakened economy and a resurgence in new COVID-19 cases, multifamily permitting and starts both experienced a significant jump in November.

According to the U.S. Census Bureau, multifamily permitting increased 22.8% from October’s annual rate to 441,000 units, while multifamily starts were up 8% over the same period to 352,000 units.

Read more...Multifamily Permits and Starts Jump in November via RealPage

Builders tapping the brakes on apartment construction in DFW via Dallas Morning News

North Texas apartment builders are tapping the brakes on construction.

Permits for new multifamily residential construction are down more than 40% in Dallas-Fort Worth. And the number of D-FW apartments under construction fell below 40,000 units at the end of 2020 for the first time in five years.

But North Texas still leads the country in apartment construction. And it’s unclear whether the slowdown in new rental community development is a temporary pause or will last longer due to the pandemic.

Read more...Builders tapping the brakes on apartment construction in Dallas-Fort Worth via Dallas Morning News

Thursday, January 14, 2021

ALN Monthly Market Stats January 2021 via ALN Apartment Data

ALN Data just released their December 2020 market stats on occupancy and rents for over 80 markets. In Texas, it includes DFW, Austin, Houston, San Antonio, Lubbock, Amarillo, Abilene, Corpus Christi and more. It is a must read from a great provider of apartment data.

Read more...ALN Monthly Market Stats January 2021 via ALN Apartment Data

Wednesday, January 13, 2021

Eleventh District Beige Book 1/13/21 via Dallas Fed

The Eleventh District economy expanded at a moderate pace, but activity in most industries remained below normal levels. Recovery in the manufacturing and service sectors picked up, while retail activity remained weak. The housing market continued to be a bright spot, with robust home sales and strengthening apartment demand. Overall loan volume increased, led by real estate lending. Energy activity showed mounting signs of improvement after a prolonged contraction. Employment rose moderately, though wage growth remained subdued. Input cost increases continued to outpace growth in selling prices. Outlooks were generally positive, but uncertainty remained high. Several contacts voiced concern about rising COVID-19 infection rates impacting their short-term business prospects, though there was optimism about the vaccine paving the way to a resumption of more normal activity this year.

Read more...Eleventh District Beige Book 1/13/21 via Dallas Fed

Millions of Renters Are In a Deep Financial Hole via GlobeSt

The recent stimulus will help millions of renters.

The additional stimulus payments will bring their typical rent burdens from more than 80% of their income to less than half of that percentage, according to a Zillow analysis. But even with this help, millions of people are behind on their rent payments and face an incredible challenge catching up.

At least three million renters who were employed last March lost their jobs and were still out of work in November, according to Zillow.

Read more...Millions of Renters Are In a Deep Financial Hole via GlobeSt

Multifamily Properties Are Positioned for a Strong 2021 via WMRE

The multifamily sector weathered the storm in 2020, living up to its reputation as one of the most stable commercial real estate asset classes. The forecast for apartments in the new year is also bright. And even with where things sit today with the still raging pandemic and the terrifying scene that unfolded in the nation’s capital last week, observers point to the continued rollout of vaccines and the likelihood of new COVID-19 relief measures with the new administration and Democratic control of Congress as reasons for high hopes for the balance of 2021.

Read more...Multifamily Properties Are Positioned for a Strong 2021 via WMRE

Tuesday, January 12, 2021

Austin Economic Indicators January 2021 via Dallas Fed

The Austin economy slowed in November as the Austin Business-Cycle Index decelerated due to an increase in the unemployment rate. Nonetheless, job growth was positive in most industries, and regional consumer spending since mid-July continues to hold at pre-COVID-19 levels. Office space demand continued to weaken, and existing-home sales contracted slightly in November.

Read more...Austin Economic Indicators January 2021 via Dallas Fed

The Metrics You Should Be Watching in 2021 via GlobeSt

When the Bureau of Labor Statistics (BLS) publishes its monthly jobs numbers, the world takes notice. Markets move and politicians tweet. But for commercial real estate professionals, K.C. Conway, chief economist for CCIM Institute, thinks there are more insightful indicators that, taken together, would provide a better understanding of what’s ahead for the CRE industry.

Read more...The Metrics You Should Be Watching in 2021 via GlobeSt

Renters are Flocking to These Suburbs via GlobeSt

With the pandemic translating to a work-from-home shift for countless companies, the suburbs have a new-found appeal for renters with their abundance of space, larger apartments and homes and often lower rents compared to big cities.

With thousands of new suburban apartments opening in recent years, renters have many popular locations from which to choose. And if work-from-home becomes the new normal, a significant reversal of recent homebuilding patterns may emerge, according to a housing study by Harvard University.

Read more...Renters are Flocking to These Suburbs via GlobeSt

Renting Has Become More Affordable Than Owning in Many Counties via GlobeSt

Renting remains more affordable than homeownership in nearly three-quarters of the most populated counties in the United States, according to ATTOM Data Solutions’ 2021 Rental Affordability Report.

Renting is more affordable than buying a home in 18 of the country’s 25 most populated counties, and in 29 of 44 counties with a population of 1 million or more, including Los Angeles, Houston, San Diego, Chicago, and Orange County, Calif. It’s also more affordable to rent than buy in counties in the New York City, Seattle, Dallas, San Francisco, San Jose, Boston, and Riverside, Calif., areas.

Read more...Renting Has Become More Affordable Than Owning in Many Counties via GlobeSt