Wednesday, September 30, 2015

Matrix Monthly Documents Sizzling September Apartment Rent Growth via Multi-Housing News Online

This year’s trend of ever-increasing U.S. multifamily rents continues unabated. Rents increased by $5 in September to mark a new record high of $1,167, according to the latest edition of Matrix Monthly, a survey of the 108 markets covered by Yardi® Matrix.

September’s year-over-year increase of 6.8 percent was 30 basis points higher than the previous two months and the highest growth in the post-recession cycle. Rents have risen every month in 2015.

Read more...Matrix Monthly Documents Sizzling September Apartment Rent Growth | Multi-Housing News Online

September Rent Increases Marks New Record High via Commercial Property Executive

U.S. multi-family rents continue climbing this year with the September increase of $5 marking a new record of $1,167, according to the September edition of Matrix Monthly, a report on apartment market trends from Yardi Matrix released today.

September’s year-over-year increase of 6.8 percent was 30 basis points higher than the previous two months and the highest growth in the post-recession cycle.

In August, average nationwide rents rose $7 to $1,162, an increase of 6.5 percent year over year, according to Yardi Matrix data. That was the same percentage increase for July, when the average U.S. apartment rent rose to $1,155.

Read more...September Rent Increases Marks New Record High | Commercial Property Executive

August 2015 U.S. Renter Retention, Renewals Rise via Property Management Insider

Last month, MPF research reported renter retention and renewals were on the rise. In fact, retention continues its 20-month run above 50% as renewal rates rise 5.4%. MPF Research provides data and insights into reasons why residents are renewing their leases despite rents increasing:

Read more...August 2015 U.S. Renter Retention, Renewals Rise | Property Management Insider

Friday, September 25, 2015

San Antonio Economic Update September 2015 via Dallas Fed

Economic growth in San Antonio held steady in August. Jobs grew at an annualized 1.5 percent, contrasting with a 0.4 percent contraction in the state. The unemployment rate was unchanged at a low 3.5 percent, and indicators of labor demand suggest a continued tight labor market across many industries in the short term. While weakening growth in Texas due to a renewed fall in oil prices is likely to indirectly dampen growth in San Antonio, the metro area should maintain its growth advantage over the state.

San Antonio Business-Cycle Index growth decelerated slightly to a 5.6 percent annualized rate in August. Moderation in the month’s job growth and the steady unemployment rate contributed to this decline, although index growth remains over 2 percentage points above its long-term average.

Read more...San Antonio Economic Update September 2015 via Dallas Fed

DFW Economic Indicators September 2015 via Dallas Fed

The Dallas–Fort Worth economy expanded modestly in August. Year to date, the metroplex has created jobs at a 2.1 percent pace, outperforming both the state’s 1.1 percent and the nation’s 1.8 percent rate. Home prices rose further in the second quarter, and residential construction remained strong. Unemployment in Dallas held steady but ticked down in Fort Worth in August. Dallas Fed business-cycle indexes point to continued growth for the metroplex.

DFW employment grew an annualized 0.5 percent in August, following a 2.8 percent increase in July. The weakness in August was due to a 5.3 percent (annualized) drop in Fort Worth metro-area employment, while Dallas job gains remained strong at a 3 percent annual rate. Employment losses in Fort Worth have been concentrated in the goods-producing sector, which has been hemorrhaging jobs since the beginning of the year—down 10.2 percent (annualized) through August. Payrolls in the Fort Worth service sector have registered net gains of 1.7 percent (annualized) over the same period. Year to date, Dallas has added 48,700 jobs while Fort Worth has shed 2,300.

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

Texas Economic Indicators September 2015 via Dallas Fed

The Texas economy weakened in August. Although unemployment ticked down, employment growth dipped during the month, and exports were flat. Home prices climbed further in the second quarter, and the Texas Leading Index fell in July and August, which resulted in a slight downward revision to the employment forecast.

Texas employment fell an annualized 0.4 percent in August, in contrast with the nation’s 1.5 percent increase. Texas lost 3,600 jobs in August after adding 31,900 in July. Current Texas employment stands at 11.8 million, according to the Current Employment Statistics payroll survey.

Read more...Texas Economic Indicators September 2015 via Dallas Fed

Tuesday, September 22, 2015

U.S. Multifamily, Commercial Debt Hits $1 Trillion in Q2 via World Property Journal

According to the Mortgage Bankers Association, the level of commercial-multifamily mortgage debt outstanding in the U.S. increased by $38.5 billion in the second quarter of 2015, as three of the four major investor groups increased their holdings. That is a 1.4 percent increase over the first quarter of 2015.

Total commercial-multifamily debt outstanding stood at $2.72 trillion at the end of the second quarter. Multifamily mortgage debt outstanding rose to $1.0 trillion, an increase of $23.6 billion, or 2.4 percent, from the first quarter.

Read more...U.S. Multifamily, Commercial Debt Hits $1 Trillion in Q2 - WORLD PROPERTY JOURNAL Global News Center

Are Low Oil Prices Impacting Apartment Performance in Houston? via Property Management Insider

Not long ago, Houston was everyone’s can’t-miss market. Now, it’s the market everyone is worried about. Has apartment performance started to wane due to low oil prices?

Watch video...Are Low Oil Prices Impacting Apartment Performance in Houston? | Property Management Insider

Rent-Growth and Occupancy Rate Hits Another Record High According to Axiometrics Market Report via MultifamilyBiz.com

The national apartment market's effective rent growth rate of 5.1% in August represented the seventh straight month in which the metric was 5.0% or higher -- the longest such streak since Axiometrics, the leader in apartment and student housing market research, began monthly reporting of annual metrics in April 2009.

August's rate, though an 8-basis-point decrease from July's figure, was 104 basis points (bps) higher than the 4.1% of August 2014.

In only five months between April 2009 and February 2015 had the market achieved 5% annual rent growth, Axiometrics' apartment market research shows.

Read more...Rent-Growth and Occupancy Rate Hits Another Record High According to Axiometrics Market Report | MultifamilyBiz.com

Monday, September 21, 2015

In Some Cities, Even Landlords Think Rents Are Getting Out of Hand via Bloomberg Business

It’s tough to be a renter. Housing costs, in many markets, are rising faster than wages, and there is good reason to think that trend will continue for years to come.

For renters in Austin, Boston, San Francisco, and Houston, however, there may be a slightly less depressing future, a new report shows. Periodically, commercial real estate firm CBRE polls brokers on the rent-growth expectations that apartment landlords are baking into property transactions. And for prime properties in those four cities, those expectations are coming down, according to its most recent report.

Read more...In Some Cities, Even Landlords Think Rents Are Getting Out of Hand - Bloomberg Business

Occupancy Hits Record Levels in August via Multifamily Executive Magazine

The dog days of summer seem to have brought more of the same for the rental industry as occupancy hit another high, according to the latest analysis from Dallas-based research firm Axiometrics.

August tallied an effective rent growth rate of 5.1%, which was the seventh straight month that rent increases came in above 5%. That growth rate was an eight basis-point decline from July, but well above the August 2014 mark of 4.1%.

Read more...Occupancy Hits Record Levels in August | Multifamily Executive Magazine | Rents, Rent Trends, Occupancy and Vacancy Rate, Effective Rents, Cristina Sullivan, Axiometrics, Gables Residential

Texas reports its second monthly job loss of 2015 via Dallas Business Journal

Texas, often seen as an economic bellwether for the United States, shed jobs for the second time this year, the Texas Workforce Commission reported Friday.

After four consecutive months of monthly job increases, the state lost 13,700 positions in August, the TWC said. The contraction comes after four straight months of employment increases, including a revised gain of 25,800 jobs in July.

Read more...Texas reports its second monthly job loss of 2015 - Dallas Business Journal

Wednesday, September 16, 2015

ALN Monthly Newsletter September 2015 via ALN Apartment Data

ALN Data just released their August 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 September 2015 via ALN Apartment Data

Monday, September 14, 2015

More Apt. Tenants Opt to Renew via GlobeSt.com

Even as apartment rents continue to climb, so do owners’ retention rates. MPF Research said 51.1% of renters whose leases were set to expire last month chose to renew rather than move out, a 300-basis point increase from August 2014. Those renewals included an average 5.4% increase in monthly rent, according to Carrollton, TX-based MPF, based on an analysis of data from parent company RealPage Inc.

The August rent increase was the largest for renewals in nearly 10 years, MPF says. More than 50% of apartment tenants have chosen to renew over the past 20 months. Prior to 2010, the renewal rate tended to fall within the mid-40% range.

Read more...More Apt. Tenants Opt to Renew - Daily News Article - GlobeSt.com

Friday, September 11, 2015

Houston Economic Indicators September 2015 via Dallas Fed

The Houston Business-Cycle Index accelerated to a growth rate of 5.9 percent in July from a June growth rate of 2.7 percent due to very strong job growth. Goods-producing sectors continued to underperform relative to private services. The two have largely offset each other year to date. Leading indicators are pointing toward a moderating of losses in industries tied to the oilfield and sustained growth elsewhere. On balance, the outlook for growth in Houston remains weak and uncertain.

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

Thursday, September 10, 2015

Sizzle Factor: Apartment Developers Try to 'Out-Amenity' Rivals In Crowded Markets via CoStar Group

Apartment builders have long targeted renters with the latest amenities and fancy luxury features like gyms, business centers, and concierge and dry cleaning service.

But rooftop dog parks?

With tens of thousands of new units coming on line each month across the country in New York City, Washington, D.C., Seattle, Los Angeles, Atlanta, Dallas and other large markets across the country, developers are venturing further onto the risk curve, bringing luxury offerings and amenities to a wider range of neighborhoods and locations. They're also amping up the amenities with creative and sometimes offbeat features and marketing events to build buzz and push pre-leasing.


Read more...Sizzle Factor: Apartment Developers Try to 'Out-Amenity' Rivals In Crowded Markets - CoStar Group

Despite Investor Concerns of Overheating, Market Indicators Support CRE Pricing via CoStar Group

As commercial real estate prices have continued to surge, some have become concerned that valuations may be overheating or even reaching bubble levels as a combination of high demand, low interest rates and loosening loan underwriting standards contribute to a record spike in deal activity and price paid per square foot for trophy properties in top U.S. and global markets.

But while investors and analysts agree the surging demand for commercial property should be closely scrutinized for signs of overheating, several market indicators appear to reflect solid justification for the upswing in prices. So while peaking prices are a concern, analysts said it is premature to characterize the recent valuation increases as a 'bubble' that will inevitably lead to a market correction.

Read more...Despite Investor Concerns of Overheating, Market Indicators Support CRE Pricing - CoStar Group

Multifamily Investment in U.S. Hits Record High Over Last Year via World Property Journal

According to research from CBRE, investment in U.S. multifamily reached $127 billion for the year ending Q2 2015 - the highest four-quarter total in history and growth of 36% over the 12-month period. The total surpasses the mid-2000s peak of $100 billion achieved in the year ending Q2 2006.

Investment in multifamily communities has been robust for several years and this trend continued during Q2 2015, with $30 billion flowing into the sector. The quarter's total reflects a 35% gain over Q2 2014, although a slight decline from Q1 2015 (-3%). Multifamily acquisitions represented 27% of the total $110 billion invested in U.S. commercial real estate in Q2 2015.

Read more...Multifamily Investment in U.S. Hits Record High Over Last Year - WORLD PROPERTY JOURNAL Global News Center

Housing Demand Expected to Surge Over Next 10 Years According to MBA Report via CoStar Group

In what it projects would be one of the strongest housing markets in U.S. history, the Mortgage Bankers Association (MBA) expects between 13.9 million and 15.9 million of additional households will be formed by 2024.

The MBA report, titled "Housing Demand: Demographics and the Numbers Behind the Coming Multi-Million Increase in Households," finds that surge in household formation, and expected related housing demand, will be driven largely by hispanics, baby boomers and millennials.

"Household formation has been depressed in recent years by a long, jobless recovery and by a lull in the growth of the working age population," said Lynn Fisher, MBA's vice president of research and economics. "(However,) improving employment markets will build on major demographic trends - including maturing of Baby Boomers, Hispanics and Millennials - to create strong growth in both owner and rental housing markets over the next decade."

Read more...Housing Demand Expected to Surge Over Next 10 Years According to MBA Report - CoStar Group

Wednesday, September 9, 2015

Apartment Rents Grow Faster than Incomes via National Real Estate Investor

The average employee isn’t getting a big raise this year—but apartment rents are growing more quickly than ever.

“Across most markets, renters are paying a higher percentage of their incomes in rent,” says Luis Mejia, director of U.S. multifamily research with the portfolio strategy division of research firm CoStar.

That’s not stopping apartment rents from going up. That’s partly because the average income is surprisingly high for households living in rental housing with unrestricted rents. These households can, on average, afford to pay and they don’t have that many attractive alternatives.

Read more...Apartment Rents Grow Faster than Incomes | Multifamily content from National Real Estate Investor

Houston apartment permits second to one in U.S.via Real Estate Center at Texas A&M

Houston retained its No. 2 ranking on a monthly list of major metros across the country with the highest number of apartment units permitted.

New York ranked No. 1 while Dallas, Los Angeles and Seattle rounded out the top five.

Builders had 26,486 units permitted over the 12 months ending in July, 29 percent higher than a year earlier and 3 percent higher than in June.

Read more...Houston apartment permits second to one in U.S.via Real Estate Center at Texas A&M

MF Will See ‘Above-Trend’ Demand via GlobeSt.com

For those wondering whether multifamily’s growth will be sustainable, Yardi Matrix sees plenty of reason for bullishness. The sector is being buoyed by a series of tailwinds, including report an improving national economy, above-trend household formations by the Millennial generation and the movement of Baby Boomers into urban apartments.

“Our forecast at the beginning of the year for solid 5% rent growth seems almost too conservative now, as rents have grown by 6.2% over the first half with no slowdown in sight,” according to Yardi Matrix researchers who prepared the summer 2015 edition of the Matrix National Outlook, an analysis of market conditions. “In our view, demand for apartments will continue to be above-trend for at least the next couple of years.”

Read more...MF Will See ‘Above-Trend’ Demand - Daily News Article - GlobeSt.com

Austin Economic Indicators September 2015 via Dallas Fed

The Austin economy continued to expand rapidly in July. The metro business-cycle index grew at a brisk pace, while job growth picked up after decelerating markedly in June. The unemployment rate ticked up slightly but remains indicative of a very tight labor market. With annualized job growth of 4.5 percent so far this year—more than triple the state rate—the overall Austin economy shows few signs of slowing even as labor constraints and the strong value of the dollar weigh down certain

The business-cycle index grew at a 9.8 percent annualized rate in July after reaching a postrecession peak of 10.2 percent in May. Growth so far this year has averaged 10 percent, outperforming 2014 growth by 0.6 percentage points. A small exposure to the oil and gas sector and a bright outlook for sectors such as high-tech, health care and tourism suggest continued strength in the Austin economy in the second half of the year.

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

Wednesday, September 2, 2015

Dallas Beige Book - 9/2/2015 via Dallas Fed

The Eleventh District economy grew at a modest pace over the past six weeks. Manufacturing demand was mixed. Retail sales were weak, with the exception of strong auto sales. Demand for nonfinancial services held steady or improved, except for railroads which saw decreased cargo volumes. Real estate activity remained solid overall, and loan demand rose slightly. Demand for oil field services remained depressed, and lower oil prices dampened outlooks. Price pressures remained subdued and employment held steady or increased. Outlooks were mostly positive, except in the energy sector.

Read more...Dallas Beige Book - Dallas Fed