Thursday, September 24, 2020

Landlords Report a 75% Rise in Evictions Since the Start of COVID-19 via Multifamily Executive Magazine

More than half of residential tenants are currently struggling to pay their rent, largely as a result of the COVID-19 pandemic, according to a new survey of property managers released by real estate technology company Snappt. One-quarter of these residents are paying late, while 17% pay less than full rent and 11% have stopped paying altogether.

Respondents to the 2020 Effects of the COVID-19 Pandemic on Residential Rentals Survey reported that evictions have risen by 75% since the start of the COVID-19 pandemic, with a current eviction rate of 21%.

Read more...Landlords Report a 75% Rise in Evictions Since the Start of COVID-19 via Multifamily Executive Magazine

Texas Economy Improves Despite Lagging Sectors as COVID-19 Cases Decline via Dallas Fed

Continued growth is projected for the rest of the year, but it may be somewhat restrained by the expiration of federal stimulus programs and election uncertainty. Small-business closures may accelerate if the economy doesn’t strengthen sufficiently.

Risks to the outlook are to the downside and include a possible resurgence of the virus and sustained lower oil prices. Early arrival of a safe and effective COVID-19 vaccine would be a game changer, although it would take time for broad dissemination and administration.

Read more...Texas Economy Improves Despite Lagging Sectors as COVID-19 Cases Decline via Dallas Fed

Renters more pessimistic than homeowners during economic downturn via Real Estate Center

The Census Bureau has released phase two of its Household Pulse Survey (HPS) after a month-long hiatus. This round includes new questions regarding respondent sentiments on the likelihood of either eviction or foreclosure.

Throughout the summer, the HPS revealed a stark difference in optimism between homeowners and renters. Texas homeowners typically felt more likely to be able to make their next housing payment than renters.

Read more...Renters more pessimistic than homeowners during economic downturn via Real Estate Center

Wednesday, September 23, 2020

Apartment Leasing Rebounds to Normal Levels via GlobeSt

The pandemic immediately impacted apartment leasing activity, but about six-weeks into the pandemic, leasing activity rebounded to normal levels. Quarantine, distance learning and work-from-home policies encouraged people to move to more accommodating homes, driving leasing demand. However, the leasing process has changed since the onset of the pandemic, and those changes—virtual leasing—will take longer to return to normal.

Read more...Apartment Leasing Rebounds to Normal Levels via GlobeSt

How Some Multifamily Metrics Can Mislead in This Current Environment via GlobeSt

As a provider of joint venture and general partner equity, real estate investment firm RanchHarbor has been seeing an influx lately of multifamily investment opportunities presented by sponsors as value-add. However, upon a closer look at the underwriting, these deals do not actually fit the typical value-add investment profile, says Adam Deermount, co-founder and managing director of the company. Instead, these opportunities end up being cap rate compression plays under the guise of value-add and are priced to perfection in today’s market.

“Most of the return on investment is generated by rent inflation buoyed in the early years of the investment by positive debt service arbitrage due to interest only terms,” Deermount tells GlobeSt.com.

Read more...How Some Multifamily Metrics Can Mislead in This Current Environment via GlobeSt

We Are Living in the Weirdest Real Estate Market Ever via D Magazine

Nothing is normal in this year of the pandemic. That includes Dallas’ housing market, which is hot in a really strange way. One real estate agent describes the situation as “a near frenzy.” Another calls it simply “weird.”

Back in early March, it was neither. It was normal. Houses were selling at a brisk pace. The market wasn’t as hot as it was in, say, 2016, but sellers were still making a buck and buyers had to work to find a deal. Then the coronavirus arrived.

Read more...We Are Living in the Weirdest Real Estate Market Ever via D Magazine

Tuesday, September 22, 2020

Top Texas Metros for Multifamily Development in 2020 via Multi-Housing News Online

The Texas job market performed strongly before the onset of the pandemic, with all three of its major markets showing up across rankings related to economic and demographic development. This created substantial demand for apartments, pressuring developers to keep up. Land availability, a friendly business climate, good weather and a high quality of life, all contributed to the rapid expansion of the state’s rental market.

Read more...Top Texas Metros for Multifamily Development in 2020 via Multi-Housing News Online

The Strain on Apartment Renters Intensifies as Pandemic Wears On via GlobeSt

The strain on apartment renters is increasing as the pandemic continues. Research from Apartment List found that more than 30% of apartment renters in the US owed back rent payment in September. The number was nearly unchanged compared from August. About half of renters owe less than $1,000 and only 5% owe more than $2,000; however, the report suggests that another round of stimulus checks would be helpful if not necessary to help renters settled these debts and to help landlords recoup losses.

Read more...The Strain on Apartment Renters Intensifies as Pandemic Wears On via GlobeSt

Freddie Mac Multifamily Index Turns Negative via GlobeSt

The Freddie Mac Multifamily Apartment Investment Market Index fell by 0.3% in the second quarter, after posting a quarterly increase of 1.8% in the first quarter of 2020. NOI also fell, by 1.2%, marking the first time in index history where AIMI and NOI were negative together in the second quarter.

AIMI combines multifamily rental income growth, property price growth and mortgage rates to provide a single index that measures multifamily market investment conditions.

Read more...Freddie Mac Multifamily Index Turns Negative via GlobeSt

Adjustments in Pricing Lag a Decline in Property Values via NREI

One thing that buyers and sellers can agree on these days is that there has been a reset in property values across many sectors and geographic markets. Yet the sticking point that continues to stall transactions is determining exactly how much of a discount should be applied.

Pricing is relatively transparent when the market is gliding along with stable conditions, which makes it which makes it easy to gauge values.

Read more...Adjustments in Pricing Lag a Decline in Property Values via NREI