Thursday, August 13, 2020

How to Bolster Apartment NOI During COVID-19 via Multifamily Executive

It’s easy to hit your numbers when times are good.

But for multifamily pros navigating the fallout of COVID-19, 2020 has been about finding ways to maximize net operating income (NOI), even when times are tough.

Read more...How to Bolster Apartment NOI During COVID-19 via Multifamily Executive

COVID Hits Class C Apartments Hard via GlobeSt

So far, the apartment market has held up relatively well after COVID-19. But Jake Reiter, president of Verde Capital, does see some issues on the horizon.

“Maybe multifamily holds up better if it’s not C class,” Reiter says. “But C is not weathering the storm as well because its [renter] demographic is more likely to be unemployed and less likely to be able to make payments.”

Read more...COVID Hits Class C Apartments Hard via GlobeSt

Texas homeownership hits record high via Dallas Morning News

A summer surge in buying has pushed Texas’ homeownership rate to the highest level on record.

As of June, 67.5% of Texans owned their homes, according to a new report from the Real Estate Center at Texas A&M University.

In Dallas-Fort Worth, the homeownership rate rose to 64.7% at midyear.

Read more...Texas homeownership hits record high via Dallas Morning News

Wednesday, August 12, 2020

COVID-19 Downturn Fuels Q2 Falloff in Multifamily Demand via Multi-Housing News Online

The second quarter is usually strongest in demand for multifamily housing. But that was not the case this year, when net absorption plummeted to the lowest Q2 level in 11 years, only 21,100 units. This was among the findings of CBRE’s Multifamily Figures Report for Q2 2020, which termed the COVID-19 economic malaise a drag on apartment demand.

The fact net absorption in the quarter was positive indicated the multifamily market fared better than some anticipated, given headwinds exerted by the pandemic and the faltering economy, CBRE reported. Key to that performance were stimulus programs at the state and federal level, which assisted apartment residents in affording their rents. CBRE added net absorption is anticipated to trend negative for the remainder of this year.

Read more...COVID-19 Downturn Fuels Q2 Falloff in Multifamily Demand via Multi-Housing News Online

Austin Economic Indicators August 2020 via Dallas Fed

The Austin economy showed signs of improvement in June following the impact of COVID-19. The Austin Business-Cycle Index surged. While employment and the unemployment rate improved in June from May, both remain significantly below their February levels. Consumer spending has improved considerably since mid-April in Travis County. While existing-home sales increased sharply in June, building permits declined.

Read more...Austin Economic Indicators August 2020 via Dallas Fed

Texas Economy’s Rebound Stalls in July after Gains in May, June via Dallas Fed

The resurgence of COVID-19 in July appears to have reversed economic gains in Texas that emerged when the virus’ frequency abated in May and June. Employment and other activity had increased strongly from April lows during initial pandemic disruptions in the state.

As a result, the Texas Employment Forecast suggests that on net the number of jobs will decline 4.8 percent this year on a December-over-December basis.

Texas employment improved in June—though more slowly than May’s pace—after historic contractions in April. The state recovered about 522,000 jobs in May and June, about 40 percent of the 1.3 million jobs lost during March and April.

Read more... Texas Economy’s Rebound Stalls in July after Gains in May, June via Dallas Fed

Monthly rental payments continue to lag via Dallas Morning News

Less than 80% of U.S. apartment residents had made their August rent payments as of last week.

That’s a decline from a year ago but is about the same as this time in July, according to the latest update from the National Multifamily Housing Council.

The Washington, D.C.-based apartment industry trade group tracks 11.4 million professionally managed rental units for its monthly nationwide survey.

Read more...Monthly rental payments continue to lag via Dallas Morning News

Thursday, July 30, 2020

Houston Economic Indicators July 2020 via Dallas Fed

Pandemic-induced declines in economic activity for Houston slowed in May as the economy reopened, and some signs of recovery began. Leading and coincident indexes logged modest improvements, but Houston’s energy sector continued to shed jobs ahead of record-setting lows for drilling activity in the U.S. in June. Unfortunately, June also saw a return to sharp growth in COVID-19 hospitalizations. This increase has put a damper on the recovery as policy efforts to contain the virus and voluntary social distancing likely contributed to a reduction in area mobility and engagement.

Read more... Houston Economic Indicators July 2020 via Dallas Fed

Dallas-Fort Worth Economic Indicators July 2020 via Dallas Fed

The Dallas–Fort Worth economy saw further signs of a fledgling recovery in June. Payrolls expanded strongly, and the unemployment rate fell. However, high-frequency data point to a slowing in DFW economic activity since late June that is synchronous with rising new COVID-19 cases and hospitalizations. Apartment and office leasing activity was sluggish in the second quarter due to weak demand, while industrial leasing remained solid.

Read more...Dallas-Fort Worth Economic Indicators July 2020 via Dallas Fed

Tuesday, July 21, 2020

DFW still leads U.S. in apartment leasing via Dallas News

The COVID-19 pandemic fueled a plunge in second-quarter apartment leasing in North Texas, but Dallas-Fort Worth still topped the country in total apartment leasing at midyear.

D-FW net apartment leasing totaled only 3,832 units in the just-completed quarter — down from almost 13,000 units a year earlier, according to RealPage.

But that was enough to keep North Texas at the head of the list of the country’s fastest-growing apartment rental markets.

Read more...D-FW still leads U.S. in apartment leasing via Dallas Morning News