Monday, August 31, 2015

DFW Economic Indicators August 2015 via Dallas Fed

The Dallas–Fort Worth economy expanded strongly in July. Year to date, the metroplex has created jobs at a 2.4 percent annualized pace, outperforming both the state’s 1.3 percent and the nation’s 1.8 percent rate. Home sales rose at a solid pace in July, and demand for office space remained strong in the second quarter. Unemployment in Dallas and Fort Worth held steady in July. Dallas Fed business-cycle indexes point to continued growth for the metroplex.

DFW employment grew at a rapid clip of 3.7 percent in July, following a 5.6 percent increase in June. DFW employment growth has moderated to a 2.4 percent annualized rate year to date, slower than the brisk 4.1 percent pace seen last year. Currently, area employment stands at 3.39 million, according to the Bureau of Labor Statistics’ payroll survey. Through July, Dallas added 44,000 jobs and Fort Worth gained 3,300.

Read more...DFW Economic Indicators August 2015 via Dallas Fed

Go Green: Rebates Available For Energy and Water-Saving Projects via Property Management Insider

Money that’s available to offset costs of energy-saving upgrades for apartments is getting more plentiful, plus it’s easier to find.

Utility companies and municipalities in many states offer rebates, incentives and demand-response programs to the tune of billions each year to encourage federal facilities and consumers to cut energy use and demand.

Incentives range from free energy audits to discounts or money back on energy-efficient equipment like HVAC systems, toilets and light bulbs. Participating in offering programs is a win-win for users. Often the cost of supplies or fixtures is heavily discounted or even free, plus users enjoy lower utility bills.

Read more...Go Green: Rebates Available For Energy and Water-Saving Projects | Property Management Insider

Rental Rate Overtakes Location as Top Renewal Decision Factor According to Latest Kingsley Report via MultifamilyBiz.com

Kingsley Associates' latest analysis reveals that renter renewal intent and value for amount paid have continued to decline since Q4 2013. Only 52.3 percent of residents responded that they "probably would" or "definitely would" renew their lease, down 0.9 percent from one year ago. Similarly, only 53.9 percent of renters feel their apartments are worthy of their current rental rate, down 0.6 percent over the same period.

According to John Falco, a principal in Kingsley Associates' Atlanta office, “When we look at time trend analysis, it is quite evident that renters are feeling the effects of sharp rent increases. Three years ago, only one out of every three renters cited rental rate as a top decision factor.

Read more...Rental Rate Overtakes Location as Top Renewal Decision Factor According to Latest Kingsley Report | MultifamilyBiz.com

Matrix Monthly Reports Steady Rent Growth, Solid Fundamentals via Multi-Housing News Online

U.S. apartment rent growth remained strong in August 2015, according to the latest edition of Matrix Monthly, a report on U.S. multifamily market trends from Yardi®. Nationwide, rents rose by $7 to a record high of $1,162, matching the 6.5 percent year-over-year increase in July.

Read more...Matrix Monthly Reports Steady Rent Growth, Solid Fundamentals | Multi-Housing News Online

Tuesday, August 25, 2015

Apartment Markets Survive New Construction, So Far via National Real Estate Investor

The cities where developers are opening the most new apartments are handling the new supply pretty well, at least for now.

“Looking at rent growth performances, there’s really only one spot [major metro apartment market] that is having trouble digesting new supply,” says Greg Willett, chief economist for RealPage Inc. “That’s Houston.”

But developers aren’t finished. Even as they race through an incredibly busy year for new construction, apartment developers are now planning even more new projects.

Read more...Apartment Markets Survive New Construction, So Far | Multifamily content from National Real Estate Investor

Monday, August 24, 2015

Texas Added 35,800 Jobs in July; State Employment Forecast Rises to 1.3 Percent via Dallas Fed

Texas added 35,800 jobs in July, according to seasonally adjusted and benchmarked payroll employment numbers released today by the Federal Reserve Bank of Dallas. This was the largest monthly gain so far this year.

The state added a revised 10,300 jobs in June. Through July, jobs have grown at an annualized pace of 1.3 percent after growing 3.6 percent in 2014.

Read more...Dallas Fed: Texas Added 35,800 Jobs in July; State Employment Forecast Rises to 1.3 Percent - Dallas Fed

Top Cities for Multifamily Rentals via Commercial Property Executive

The demand for rental housing is increasing nationwide, with more and more people turning to renting in America’s largest cities. A combination of factors – including limited inventory levels, declining vacancy rates and continued job growth – have pushed rental prices up by 6.5 percent over the past year, to reach a record high of $1,155 in July 2015.

The number of renter households has also seen a robust increase across the country, with Philadelphia recording the largest renter population growth between 2006 and 2013, a whopping 28.2 percent. In fact, the renter population increased by double-digit percentages in nine of the country’s largest metros, according to a recent study by NYU Furman Center and Capital One. The study examined the housing landscape and market trends in the central cities of the 11 biggest U.S. metropolitan areas (by population) – namely, Atlanta, Boston, Chicago, Dallas, Houston, Los Angeles, Miami, New York City, Philadelphia, San Francisco and Washington, D.C.

Read more...Top Cities for Multifamily Rentals | Commercial Property Executive

Friday, August 21, 2015

Multifamily Sales Prices to Continue Rising? via GlobeSt.com

“The market will continue to grow, pending the tide of interest rates. Due to stronger financial safeguards in place from the federal government and lenders, interest rates may remain low for a longer period of time.” That is according to Janet Neman, senior managing director of Charles Dunn Co. in the Century City, CA office.

With this in mind, she says, as well as the compressed supply in developed metropolitan areas, “we can expect sale prices to keep rising for the foreseeable future.”

We chatted with Neman and other key industry sources on what is in store for multifamily’s future as part of GlobeSt.com’s 15th anniversary celebration.

Read more...Multifamily Sales Prices to Continue Rising? - Daily News Article - GlobeSt.com

Texas adds 31,400 jobs in July; Dallas-Fort Worth's jobless rate up slightly from June via Dallas Business Journal

For the fourth straight month, Texas added jobs in July, recording 31,400 new seasonally adjusted nonagricultural jobs, the Texas Workforce Commission reported on Friday.

The Dallas-Fort Worth-Arlington metro area saw an employment rate in July of 4.1 percent, down from 5.4 percent in July 2014. The July rate rose slightly from June’s 4.0 percent.

The DFW rate is slightly better than the state as a whole, which had a 4.2 percent rate in July. The state has been at 4.2 percent for four of the first seven months of the year, the TWC said.

Read more...Texas adds 31,400 jobs in July; Dallas-Fort Worth's jobless rate up slightly from June - Dallas Business Journal

Rent rising but still reasonable via Dallas Morning News

Slide into any of the watering holes in Dallas’ hot Uptown neighborhood and you can expect to hear some whining at just the mention of rising apartment rents.

Dallas-area apartment rents are at an all-time high — up more than 5 percent in the last year.

A new place to rent in Uptown will set you back more than $1,800 a month on average.

But the Dallas-Fort Worth area still lags other big-city markets in how much folks are paying to rent the roof over their heads.

Read more...Even with recent increases, Dallas’ apartment rents are middle-of-the-road compared with other big markets | Dallas Morning News

Tuesday, August 18, 2015

More millennials stuck renting for years before buying home via US News

Home ownership, that celebrated hallmark of the American dream, is increasingly on hold for younger Americans.

Short of cash, burdened by student debt and unsettled in their careers, young adults are biding time in apartments for longer periods and buying their first homes later in life.

The typical first-timer now rents for six years before buying, up from 2.6 years in the early 1970s, according to a new analysis by the real estate data firm Zillow. The median first-time buyer is age 33 — in the upper range of the millennial generation, which roughly spans ages 18 to 34. A generation ago, the median first-timer was about three years younger.

Read more...More millennials stuck renting for years before buying home - US News

Where apartment construction is hottest via CNBC

Single-family home construction made a strong move higher in July, but it was not enough to reverse a new dynamic in today's housing market; multifamily construction and demand are leading the recovery. After a decade of underbuilding apartments, cranes are scattering city skylines, and the numbers are truly staggering.

Multifamily construction activity is above historical averages in more than one-quarter of the nation's largest metropolitan housing markets, according to a new report from Trulia, a real estate listing and analytics company. In New York, activity is four times the normal average, in Boston, triple the average, and in Newark, New Jersey, double the average. This, as single-family home construction is running at half its normal pace.

Read more...Where apartment construction is hottest via CNBC

Monday, August 17, 2015

Multifamily Residents Expect More via GlobeSt.com

“In the past, the relationship between property ownership and residents was more one-dimensional; you leased a unit and your work was done.” That is according to Darcy Miramontes, EVP of JLL capital markets, multifamily.Nowadays, she says, residents expect more in terms of the services and the lifestyle that a community offers.

“Square footage is not as important as amenities, allowing projects with an appealing lifestyle to charge more for smaller units,” notes Miramontes. “Residents today are looking for amenities like pet services (including shared community pets), package delivery rooms, community and collaborative spaces, bike rental and repair shops, rooftop decks, smaller and smarter appliances, and an emphasis on storage space.”

Read more...Multifamily Residents Expect More - Daily News Article - GlobeSt.com

Why Americans wait longer than ever to buy first homes via CNBC

Short of cash and unsettled in their careers, young Americans are waiting longer than ever to buy their first homes.

The typical first-timer now rents for six years before buying a home, up from 2.6 years in the early 1970s, according to a new analysis by the real estate data firm Zillow. The median first-time buyer is age 33—in the upper range of the millennial generation, which roughly spans ages 18 to 34. A generation ago, the median first-timer was about three years younger.

Read more...Why Americans wait longer than ever to buy first homes

Rents Rise Faster for Midtier Apartments Than Luxury Ones via WSJ

The Verona apartment complex in suburban Denver doesn’t have the flashy amenities some tenants covet. No infinity pool. No rooftop lounge. No concierge service. Still, demand at the 1980s-era complex is so strong that the landlord has raised the rent 72% on some apartments in just two years, after renovations.

Modest apartment buildings like the Verona that cater to middle-class and working-class families are becoming scarcer as fewer are built nationwide and older ones are demolished. That has resulted in a severe shortage of midtier apartments, causing rents for these units to rise at a faster pace than for luxury ones.

Read more...Rents Rise Faster for Midtier Apartments Than Luxury Ones - WSJ

Hidden Gems Await in Distressed Property Market for Multifamily Sector via Property Management Insider

Amid the new, glass high-rises and trendy podiums going up in the urban core and beyond are still some hidden gems. Bank distressed homes or apartments that need repairs await the right kind of owner who can add polish and create a comfortable, safe residential experience.

The playing field for distressed property landlords doesn’t include new construction or spruce-ups of recently built properties. Instead, communities that bear the long-term effects of poor maintenance and management practices or those that are ridden with crime can be good investment opportunities. It’s not uncommon for some to be heavily discounted and sell for far less than current value.

Read more...Hidden Gems Await in Distressed Property Market for Multifamily Sector | Property Management Insider

CMBS Maturities Face Refi Hurdles via GlobeSt.com

As one measure of the volume of CMBS due to mature between now and 2017, consider that Fitch Ratings says about one-third, or 35%, of its rated universe is coming due over the next three years. The ratings agency anticipates that many of the peak-vintage loans face the prospect of being unable able to refinance at their respective maturity dates without additional capital. Furthermore, “potential higher interest rates later this year may put additional stress on their ability to refinance,” according to a Fitch report.

With approximately $20 billion of Fitch-rated loans with scheduled maturities already paid up through July of this year, the balance of 2015 will see another $10.8 billion in maturities across 1,215 loans. In addition, approximately $1.3 billion of loans due this year and $6 billion of loans scheduled to mature next year have defaulted.

Read more...CMBS Maturities Face Refi Hurdles - Daily News Article - GlobeSt.com

Friday, August 14, 2015

Houston Economic Indicators August 2015 via Dallas Fed

The Houston Business-Cycle Index was essentially unchanged from May to June, contracting an annualized 0.1 percent. Exports and housing activity proved resilient in recent months even as oil and gas industries suppressed the region’s outlook. Job losses in construction and other goods-producing industries have continued to mount since April, while overall employment managed to increase. On the whole, indicators for the region point to further weakness in employment and output.

Read more...Houston Economic Indicators August 2015 via Dallas Fed

Multifamily Demand Continues to Rise, But How Will We Keep Up? via National Real Estate Investor

With homeownership levels at their lowest point in 50 years, the demand for multifamily rental homes is booming. Recently, the Urban Institute released a study that suggests 59 percent of new household formation over the next 15 years will be renters, which will cause an even bigger surge in the demand for rental housing. But are we prepared to meet this increased need?

To meet the growing demand for rental housing, we must address both the availability and affordability of supply. While the pace of new construction has picked up in recent years, it’s not yet at a level to meet new household demand. Also, it’s important to consider the simultaneous loss of inventory occurring.

Read more...Multifamily Demand Continues to Rise, But How Will We Keep Up? | Multifamily content from National Real Estate Investor

Oil Prices Make a Difference in Performance of Texas Apartments via Axiometrics

Texas has consistently been ahead of the curve when it comes to the ability to maintain steady employment. The only time in the last 40 years when Texas’ economy declined faster than the nation’s was during the mid-'80s, when the oil market fell flatter than it has ever been since.

Currently, as oil prices have plummeted from $102.59 a barrel in March 2014 to $45.36 in August 2015, the market for Texas apartments in certain areas throughout the state have been hit hard, even though the state’s job market continues to grow, according to Axiometrics’ apartment market research.

Read more...Oil Prices Make a Difference in Performance of Texas Apartments

ALN Monthly Newsletter August 2015 via ALN Apartment Data

ALN Data just released their July 2015 stats on occupancy and rents for 23 markets. In Texas, it includes DFW, Austin, Houston, San Antonio, Lubbock, Amarillo, Abilene and Corpus Christi. It is a must read from a great provider of apartment data.

Read more...ALN Monthly Newsletter August 2015 via ALN Apartment Data

Wednesday, August 12, 2015

Austin Economic Indicators August 2015 via Dallas Fed

The Austin economy maintained a steady pace of growth in June. Job growth moderated to an annualized 2.4 percent rate but remained above the state’s 1.8 percent. The unemployment rate declined for the third month in a row, to 3.1 percent. In the first half of the year, Austin job growth accelerated to 4.5 percent even as growth in the rest of the state fell below the national average. While goods-producing industries continue to face headwinds, service sector jobs appear poised to grow strongly in the second half of the year.

The Austin Business-Cycle Index accelerated again, and growth for the first half of the year came in at an annualized 9.9 percent. Employment growth of 4.5 percent over the past six months, coupled with a fall in the unemployment rate from 3.6 percent in December 2014 to 3.1 percent in June 2015, has propelled recent growth in the index.

Read more...Austin Economic Indicators August 2015 via Dallas Fed

Downtown Austin: flood of multifamily units in forecast via Real Estate Center at Texas A&M

The latest apartment survey published by Austin Investors Interests LLC indicates vacancies are growing substantially in that particular market segment.

New deliveries have pushed occupancy to 82 percent in the urban core, compared to 90 percent last quarter.

Consider this — in the past 12 months about 2,341 luxury units have delivered in a four-mile radius of downtown and more than double that are under construction in the same area.

Read more...Downtown Austin: flood of multifamily units in forecast via Real Estate Center at Texas A&M

Friday, August 7, 2015

Apartment Demand Stays Hot, but Lending Tightens via CoStar Group

Consumer demand for rental apartments remained strong while the market for apartment properties stayed relatively unchanged in the latest National Multifamily Housing Council (NMHC) Quarterly Survey of Apartment Market Conditions.

The market tightness, sales volume and equity finance indexes all remained near or above the break-even level of 50, according to NMHC. However, its debt financing index declined significantly to 35 from 60. The index fell below 50 for the first time since January 2014.

"The decline in the debt financing index is significant," said Mark Obrinsky, NMHC’s senior vice president of research and chief economist.

Read more...Apartment Demand Stays Hot, but Lending Tightens - CoStar Group

The new millennial mystery: why young people with jobs are still living at home via The Washington Post

Several years ago, when the economy was still looking grisly, it was easy to explain the single most popular trope about millennials — that an unusually high number of them were still living in their parents' basements. Obviously, they didn't have jobs. Where were they supposed to go?

"The standard explanation was, 'it’s a crummy job market,'" says Richard Fry, a senior researcher at the Pew Research Center. He reasoned, as just about everyone did, that as the job market improved, Millennials would move out. A new Pew analysis this week muddles that picture: The unemployment rate has fallen significantly since the recession for 18-to-34-year-olds. But the number of them heading their own households has not budged at all.

Read more...The new millennial mystery: why young people with jobs are still living at home - The Washington Post