Friday, January 19, 2018

Turning the Page: Houston’s Multifamily Market Poised for Growth in 2018 via REBusinessOnline

Houston’s resilient multifamily market has turned a corner and is poised for growth this year, according to experts across a range of industries.

While the city faced significant headwinds in 2017, mainly a sluggish energy sector and a major hurricane that damaged thousands of homes and apartments, Houston’s strong fundamentals have paved the way for the multifamily market to post its strongest performance since 2015.

Read more...Turning the Page: Houston’s Multifamily Market Poised for Growth in 2018 | REBusinessOnline

Tax Overhaul Is a Blow to Affordable Housing Efforts via The New York Times

The last time that Congress approved a sweeping overhaul of the federal tax code, in 1986, it created a tax credit meant to encourage the private sector to invest in affordable housing. It has grown into a $9 billion-a-year social program that has funded the construction of some three million apartments for low-income residents.

But the Republican tax plan approved last month amounts to a vast cutback, making it much less likely that such construction will continue apace. Because the tax rate for corporations has been lowered, the value of the credits — which corporations get in return for their investments — is also lower.

Read more...Tax Overhaul Is a Blow to Affordable Housing Efforts - The New York Times

Thursday, January 18, 2018

Texas Tops the List of Renter Majority Cities via Texas Comptroller of Public Accounts

With Texas’ population growing by roughly 1,200 people per day, you may wonder – where are all those newcomers living? In rental housing, most likely.

According to a recent Census Bureau report on “predominately renter” cities, College Station is at number one nationally, with nearly 60 percent of its residents in rental housing. Killeen ranks third at 56 percent.

“Texas is a young state in terms of demographics,” says Dr. Jim Gaines, chief economist at Texas A&M Real Estate Center. “During the last five to six years, a record number of young people have moved here looking for work. More than 50 percent of the state’s population is 34 years old or younger.”

Read more...Texas Tops the List of Renter Majority Cities

Six Takeaways from the NMHC Apartment Strategies Outlook Conference via National Real Estate Investor

For the multifamily sector, 2018 should be a healthy year. Demand is strong—and it will be for some time. That was largely the message at the National Multifamily Housing Council’s annual Apartment Strategies Outlook Conference, held this week in Orlando. However, the optimism at the conference was somewhat tempered by the prospects of increasing supply, rising interest rates and an eventual downturn in the not-too-distant future. Here are some key takeaways from the event.

Read more...Six Takeaways from the NMHC Apartment Strategies Outlook Conference | National Real Estate Investor

Bid-Ask Gap Persists Even as Price Appreciation Slows via National Real Estate Investor

The investment sales market should be riding high along with healthy liquidity and strong investor demand to buy commercial real estate assets. Yet signs of stagnant, and even falling, property prices are putting a damper on enthusiasm.

“2017 was definitely a flat or down year for property prices,” says Ten-X Chief Economist Peter Muoio. The Ten-X Commercial Real Estate Nowcast has been signally pricing weakness for much of 2017. According to the December index, commercial prices increased 1 percent over the past year, which is the weakest appreciation pace in this cycle.

Read more...Bid-Ask Gap Persists Even as Price Appreciation Slows | National Real Estate Investor

US housing starts down sharply on drop in single-family units via CNBC

U.S. homebuilding fell more than expected in December, recording its biggest drop in just over a year, amid a steep decline in the construction of single-family housing units following two months of hefty gains.

Housing starts decreased 8.2 percent to a seasonally adjusted annual rate of 1.192 million units, the Commerce Department said on Thursday. November's sales pace was revised up to 1.299 million units from the previously reported 1.297 million units.

Read more...US housing starts down sharply on drop in single-family units

Eleventh District Beige Book 1/17/2018 via Dallas Fed

The Eleventh District economy expanded at a robust pace over the past six weeks. A broad-based acceleration in growth was seen across the manufacturing, retail, nonfinancial services and energy sectors. Home sales continued to increase over the reporting period, and loan demand grew. Hiring picked up, and wage and price pressures remained elevated. Outlooks improved, although some uncertainty remained, and numerous contacts were optimistic that tax reform would provide a tailwind to business growth.

Read more,,,Eleventh District Beige Book - Dallasfed.org

Tuesday, January 16, 2018

Seven Predictions for the Multifamily Sector in 2018 via National Real Estate Investor

“Stable.” That’s the one word that encapsulates the anticipated state of the multifamily sector this year, according to Greg Willett, chief economist at RealPage, a Richardson, Texas-based firm which provides property management software solutions. That was also the sentiment expressed by other industry experts as well, when asked for their forecasts for the upcoming year. “The reality is multifamily going into 2018 is going to be a lot of the same,” says John Sebree, first vice president and national director of the national multi housing group at Marcus & Millichap, a real estate services firm. Here are those predictions broken down.

Read more...Seven Predictions for the Multifamily Sector in 2018

Economy Watch: Apartments Rents Falling in Some Major Markets via Multi-Housing News

Apartment rents were still going up nationwide in 2017, according to a new report by RentCafé. The national average apartment rent in 2017 increased by 2.5 percent year-over-year, reaching $1,359 per month at the end of 2017, according to Rent Cafe, citing Yardi Matrix data. Not only is that up for the year, but considerably higher than before the recession: in December 2007, the national average was just below $1,100.

Read more...Economy Watch: Apartments Rents Falling in Some Major Markets

In Booming North Texas, Dallas Fed Chair Sees Demographic, Financial Challenges Down the Road via Urban Land Magazine

With the Texas economy firing on all cylinders, 2018 looks to be another good year for many industries, including residential real estate and both the energy and industrial sectors. But key demographic changes could challenge the future prosperity of Texas and other states.

“In the context of a strong U.S. economy, DFW [Dallas/Fort Worth] is extremely strong,” said Robert Kaplan, president of the Federal Reserve Bank of Dallas. Kaplan spoke on a wide range of economic issues in January at the Urban Land Institute’s sold-out Emerging Trends event in Dallas.

Read more...In Booming North Texas, Dallas Fed Chair Sees Demographic, Financial Challenges Down the Road - Urban Land Magazine