Monday, January 14, 2019

Here's Why the Multifamily Cycle Still Has Room to Run via GlobeSt

In its December 2018 multifamily report, Yardi Matrix theorizes that the multifamily asset class could be on a trajectory much like hotels, which have had nine consecutive years of above-trend revenue growth. “Hotels benefit from business profitability and travel, but also from lifestyle changes that lead individuals to spend more on experiences,” the report said.

So it goes with the multifamily sector, which just wrapped up its eighth straight year of robust performance. It is an impressive record but it also leads to the question of just how long this cycle can go.

Read more...Here's Why the Multifamily Cycle Still Has Room to Run via GlobeSt

Friday, January 11, 2019

Houston Economic Indicators January 2019 via Dallas Fed

Houston employment and the business-cycle index continue to register healthy growth, and drilling activity has flattened at a high level. However, oil prices have fallen significantly and the Houston leading index fell to near neutral. Stock indexes are also down. Overall, the outlook for Houston has weakened but remains positive.

Read more... Houston Economic Indicators January 2019 via dallasfed.org

Austin Economic Indicators January 2019 via Dallas Fed

The Austin economy grew at a strong pace in November. The Austin Business-Cycle Index expanded and remained above its long-term trend. Employment growth by sector was mixed, with the health and education services sector continuing its surge and financial activities declining. Hourly wages were unchanged, while home construction permits weakened and housing affordability improved.

Read more...Austin Economic Indicators January 2019 - Dallasfed.org

Thursday, January 10, 2019

Dallas apartment residents can expect higher rent increases in 2019 via Dallas News

Dallas-area apartment renters may have to dig a little deeper this year.

Dallas apartment rents are forecast to rise by more than 4 percent after a slowdown in 2018 cost increases.

The new forecast by Yardi Systems is one of several recent updates on the local apartment market.

Read more...Dallas apartment residents can expect higher rent increases in 2019 via Dallas News

High Level of New Construction Will Continue to Strain Apartment Demand in 2019 via NREI

Developers will keep adding pressure on the apartment sector in 2019, with plans to open hundreds of thousands of new luxury units in 2019.

New renters filled most of the new apartments delivered to the market in 2018, but not all of them. The percentage of apartments that will be occupied in 2019 is likely to keep falling.

Read more...High Level of New Construction Will Continue to Strain Apartment Demand in 2019 via NREI

Despite Fears of Overbuilding, Lenders Remain Willing to Fund Multifamily Development via NREI

Despite rising interest rates and the nagging anxiety that developers are already building too many apartments in some markets, banks remain active lenders for multifamily construction projects.

“There is certainly no shortage of capital,” says Danny Kaufman, managing director in the Chicago office of HFF.

Apartment developers are paying more interest on their construction loans—but that isn’t keeping developers from planning and financing new projects.

Read more...Despite Fears of Overbuilding, Lenders Remain Willing to Fund Multifamily Development via NREI

Wednesday, January 9, 2019

Are Apartments Still A Good Investment In 2019? via Forbes

Yes, apartments are still a good investment, but for more fundamental reasons than during the past eight years. What I mean by this is apartments have always been a good investment. Unlike other commercial real estate investments, apartments are tied much more to residential trends and demographics. Starting in 2010 and continuing through early 2018, the fallout from the crash and recession created an imbalance in homeownership that gave rise to an increase in apartment rental rates. The rent increase directly correlates to an increase in the value of apartment buildings. But apartments are still a good investment for traditional reasons versus heavy appreciation, even with changing circumstances such as rising interest rates, rising property taxes and a potential recession. If investors focus on property fundamentals, hone their investment strategy and conservatively underwrite for today’s market, apartments are still a high-performing investment in 2019.

Read more...Are Apartments Still A Good Investment In 2019? via Forbes

Wednesday, January 2, 2019

Texas Economic Indicators December 2018 via Dallas Fed

The Texas economy continues to grow at a solid but slightly slower pace, with job growth broad based across industries and regions. The Austin, Houston and San Antonio metro areas led the state in job growth during the three months ending in November. The Texas Business Outlook Surveys indicate that growth in the manufacturing sector has moderated from the highs seen earlier in the year. Wage pressures have eased somewhat in recent months as well but remain elevated. The Texas labor market will likely tighten further in the months ahead; however, if oil prices continue to linger around $50 per barrel, job growth in the state may begin to decelerate. Texas exports are also likely to weaken.

Read more...Texas Economic Indicators December 2018 via Dallasfed.org

Dallas-Fort Worth Economic Indicators December 2018 - Dallas Fed

The Dallas–Fort Worth economy expanded at a modest pace. Employment growth was subdued in November, with DFW adding jobs at the slowest pace in seven months. Overall, the DFW economy remains solid, with 2 percent annualized job growth year to date (nearly 68,000 jobs). Business-cycle indexes for both metros pointed to continued expansion. Home sales fell for the second straight month in November, and inventory ticked up but remains tight. House price appreciation has moderated, particularly in Dallas.

Read more...Dallas-Fort Worth Economic Indicators December 2018 - Dallasfed.org

Monday, December 31, 2018

Demand for apartment rentals surges unexpectedly as home sales slump via CNBC

Surging demand and strong occupancy in the nation's apartment market is "surprising" experts who say the continued strength is "unexpected."

Just a year ago, as dozens of cranes swarmed over major U.S. cities, there was concern that the rental apartment market was overheated and overbuilt.

Apartment absorption, which is the rate at which new units are rented out, is now at the highest level in three years, according to the U.S. Census. Apartment construction took off in 2012 and reached a 20-year high in 2017. It remained elevated this year, despite warnings that demand would slow as more millennials aged into their homebuying years.

Read more... Demand for apartment rentals surges unexpectedly as home sales slump via CNBC