Friday, September 22, 2017

Renters Looking to Live Green: AMLI Survey via Multi-Housing News Online

Green living has quickly gone from a recommendation to a requirement in most multifamily communities. With residents becoming more aware of the lasting benefits of sustainability, many renters are searching for green apartments and communities that incorporate environmentally conscious elements. AMLI’s Sustainable Living Index shows that 84 percent of 2,800 residents surveyed say living in a sustainable or green home is important to them, while 85 percent say it is beneficial to their long-term health.

Read more...Renters Looking to Live Green: AMLI Survey

ALN Monthly Market Stats September 2017 via ALN Apartment Data

ALN Data just released their August 2017 market stats on occupancy and rents for over 80 markets. In Texas, it includes DFW, Austin, Houston, San Antonio, Lubbock, Amarillo, Abilene, Corpus Christi and more. It is a must read from a great provider of apartment data. Check out their new website.

Read more...ALN Monthly Market Stats September 2017 via ALN Apartment Data

Thursday, September 21, 2017

Dallas-Fort Worth Economic Indicators Sept 2017 via Dallas Fed

The Dallas–Fort Worth (DFW) economy continued to expand in August. Job growth was modest, and the unemployment rate edged up in both metros. While recent job growth has been below last year’s strong pace, labor market indicators suggest this is likely due to continued tightness in labor markets rather than an underlying weakness in the local economy.

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

Tuesday, September 19, 2017

Affordable Housing Developers Face New Challenges via National Real Estate Investor

Affordable housing developers are facing more obstacles to building new projects, even though the need for affordable housing seems to grow stronger every year.

“We believe affordable housing production, that is, the development or preservation of projects financed with Low Income Housing Tax Credits (LIHTCs), will be at best flat to last year,” says Richard Gerwitz, co-head of Citi Community Capital, a community lending and investment arm of Citi.

Read more...Affordable Housing Developers Face New Challenges | National Real Estate Investor

August 2017 Market Trends via Axiometrics

Effective rent growth dips from the previous month in 29 out of the 50 major apartment markets led to a decrease in the national rate in August, which has been typical in August in all but the most booming years.

August’s rate of 2.2% was down 19 basis points (bps) from July’s 2.4% and was 66 bps lower than the 2.9% of August 2016. Despite, the decline, apartment market performance remained remarkably stable this year, with rent-growth rates staying within a 41-bps range since November 2016.

Read more...Axiometrics.com | August 2017 Market Trends

Texas Multifamily Investors Focused on Dallas, Tertiary Markets via Urban Land Magazine

Texas markets are meeting a healthy demand for multifamily housing from millennials who are reaching renting age and baby boomers who are downsizing, while attracting investment from around the United States.

“The millennial cohort is just coming into the rental pool,” said Gary Goodman, senior vice president of Passco Cos., an Irvine, California–based acquirer of Class A multifamily properties. “That’s a huge demand factor.” Millennials, unlike previous generations, are delaying marriage, children, and homebuying while showing a penchant for living in an urban, multifamily setting.

Read more...Texas Multifamily Investors Focused on Dallas, Tertiary Markets - Urban Land Magazine

Yardi: Rent Growth Decelerates as New Completions Slow via Multifamily Executive Magazine

The average U.S. monthly rent rose by $1, to $1,352, in August, remaining essentially flat as apartment completions begin to slow across many of the 121 markets in Yardi Matrix’s Matrix Monthly survey. Meanwhile, the national rent-growth rate fell to 2.4%, down 20 basis points (bps) from July. (Despite these slowdowns, rents have increased every month this year.) Economic conditions and multifamily demand remain strong.

Read more...Yardi: Rent Growth Decelerates as New Completions Slow | Multifamily Executive Magazine

Friday, September 15, 2017

What Can Texas CRE Owners Expect from the Insurance Process? via National Real Estate Investor

It’s been nearly three weeks since Hurricane Harvey made landfall in Rockport, which lies along the southeastern coast of Texas. While emergency response efforts in the wake of the massive storm, which dumped a record-setting 51 inches of rain on the region, may be winding down, the insurance process for commercial and residential property owners is just getting under way.

The question yet to be definitively answered is: Just how much damage did the storm inflict on the region’s real estate, and how much will insurance cover the claims?

Read more...What Can Texas CRE Owners Expect from the Insurance Process? | National Real Estate Investor

Wednesday, September 13, 2017

5 Ways to Help Residents Calculate Renters Insurance Coverage via Property Management Insider

Property managers have probably heard over and over the reasons why residents or applicants don’t want renters insurance. “Renters insurance is too expensive,” “My stuff isn’t worth that much anyway,” and “The apartment is already insured, right?”

These are some of the common misconceptions, according to the National Association of Insurance Commissioners (NAIC). While including renters insurance in leases is an effective way to cover everybody in the event of an apartment loss, the concept can at times be hard for residents to swallow. For some prospects, the mere mention of mandatory renters insurance could be enough to lose a potential lease.

Read more...5 Ways to Help Residents Calculate Renters Insurance Coverage

Dallas apartment permits dip 20 percent in the first real sign of a building slowdown via Dallas News

The long-predicted slowdown in North Texas apartment construction may finally be in the works.

With over 50,000 rental units under construction, Dallas-Fort Worth has been the top apartment building market in the country in recent years. But a significant slowdown in permits for new apartments this year may herald a decline in building cranes on our horizon.

Read more...Dallas apartment permits dip 20 percent in the first real sign of a building slowdown | Real Estate | Dallas News

Tuesday, September 12, 2017

Weighing the CMBS Impact of Harvey and Irma via GlobeSt.com

A pair of back-to-back hurricanes in the space of a week may cause a near-term rise in CMBS delinquencies, according to Fitch Ratings and S&P Global Ratings. The exposure of billions of dollars in securitized commercial mortgages to the effects of Hurricanes Harvey and Irma comes as maturity performance is largely in line with expectations and the delinquency rate continues to decline.

Exactly how much property has been stricken by flooding, wind damage and other effects of Harvey and Irma isn’t yet clear.

Read more...Weighing the CMBS Impact of Harvey and Irma | GlobeSt.com

Rents are collapsing in some of America's biggest cities via Business Insider

An inconvenient math for housing is beginning to dog Chicago: The third largest city in the US has been losing population for years. Not huge numbers, but it adds up… In 2016, according to the Census estimate, the population dropped by about 9,000 people. Since 2014, the population has dropped by about 14,000 people. Chicago’s fiscal woes, junk credit rating, and the threat of bankruptcy hanging over it don’t help.

Since 2012, nearly 26,000 multifamily rental units have been completed in the city, according to Fannie Mae, which for 2017 sees “elevated volume of new supply, particularly in the Loop/River North/Gold Coast submarkets.” This does not include condos and single-family homes that were bought by investors and have reappeared on the rental market. Over the same five-year period, Chicago’s population has dropped by 9,000 people.

Read more...Rents are collapsing in some of America's biggest cities - Business Insider

Friday, September 8, 2017

Hurricane Harvey’s Multifamily Impact via Multi-Housing News Online

The devastation of Hurricane Harvey has destroyed around 100,000 homes, with 15 percent of the multifamily stock being wiped out. With many families being displaced and in need of shelter, the multifamily community is working on assessing damage, beginning reconstruction and getting operations back in working order.

Read more...Hurricane Harvey’s Multifamily Impact

Austin Economic Indicators September 2017 via Dallas Fed

The Austin economy expanded at a moderate pace in July. The Austin Business-Cycle Index continued to grow near its long-term trend, with declining jobs in July offset to some degree by a further fall in the area jobless rate. High-tech jobs continued to grow but at a subdued pace compared with the last several years. Austin’s residential real estate market remains tight, and home affordability declined in the second quarter to a post-recession low.

Houston's apartment surplus will come in handy after Harvey via Houston Chronicle

Houston has one of the highest apartment vacancy rates in the nation, and that's a good thing in the wake of Hurricane Harvey.

With 47,000 vacant units spread across the metro area, Houston is in a good position to meet the upcoming demand for apartments by people displaced by the storm. Another 21,000 units are in the process of being built, although some may have been destroyed, according to real estate information firm RealPage.

Read more...Houston's apartment surplus will come in handy after Harvey - Houston Chronicle

Thursday, September 7, 2017

Investment Sales Volume Is Slowing Down via National Real Estate Investor

Investment sales volume continued to fall in July, the most recent month for which data is available, as property prices rose, according to recently released data.

The U.S. Capital Trends report from Real Capital Analytics (RCA), a New York City-based research company, showed that total deal volume for the month came in at $26.5 billion— down 28 percent year-over-year.

Read more...Investment Sales Volume Is Slowing Down | National Real Estate Investor

Wednesday, September 6, 2017

Eleventh District Beige Book 9/6/17 via Dallas Fed

The Eleventh District economy continued to expand at a moderate pace over the past six weeks. Manufacturing output strengthened, and activity in nonfinancial services increased. Growth in retail sales accelerated, in part due to a rebound in auto sales. Home sales rose slightly, but office leasing activity was mixed. Loan volumes expanded, while demand for oilfield services was flat. Crop conditions remained mostly favorable. Employment, wages and prices increased. Outlooks remained positive, although several contacts expressed concern that policy-related uncertainty would impact the broader economy.

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

Texas Multifamily Investors Focused on Dallas, Tertiary Markets via Urban Land Magazine

Texas markets are meeting a healthy demand for multifamily housing from millennials who are reaching renting age and baby boomers who are downsizing, while attracting investment from around the United States.

“The millennial cohort is just coming into the rental pool,” said Gary Goodman, senior vice president of Passco Cos., an Irvine, California–based acquirer of Class A multifamily properties. “That’s a huge demand factor.” Millennials, unlike previous generations, are delaying marriage, children, and homebuying while showing a penchant for living in an urban, multifamily setting.

Read more...Texas Multifamily Investors Focused on Dallas, Tertiary Markets - Urban Land Magazine

Tuesday, September 5, 2017

High Construction Volume Softens Multifamily Investor Sentiment via Multifamily Executive Magazine

Investors in the overall commercial real estate market are proceeding with more caution on new investments in the third quarter of 2017, according to real estate investment and advisory firm Marcus & Millichap. The third-quarter NREI/Marcus & Millichap Investor Sentiment Survey shows a gradual cooling trend in commercial investor sentiment. The investor sentiment index fell to 150 this quarter, down from 153 in the fourth quarter of 2016.

In the multifamily sector, sentiment about apartments has eased among investors in the past year, despite strong demand for multifamily units and strong fundamentals.

Read more...High Construction Volume Softens Multifamily Investor Sentiment | Multifamily Executive Magazine

Friday, September 1, 2017

Apartment Completions Shift Downward via GlobeSt.com

Completions of new apartment builds have slowed this year, and so have annual rent gains, according to the August Yardi Matrix report, issued Thursday. Multifamily operators eked out an average $1 increase in rents this month, bringing the national average across 121 markets to $1,352 and maintaining a streak of monthly rent gains during 2017.

Read more...Apartment Completions Shift Downward | GlobeSt.com

Thursday, August 31, 2017

Large Number of Vacant Apartments Will Help Houston in Harvey Aftermath via Multifamily Executive Magazine

It still remains to be seen how much property damage and economic loss Hurricane Harvey will have caused in and around Houston once the storm has finally left the metro. The region is still focused on getting people to safety and finding shelter for displaced residents.

Houston, the fourth-most populous city in the country, has roughly 6.5 million people living in its metro area. It also has a huge supply of apartments—about 662,400 units as of mid-2017, according to RealPage calculations.

Read more...Large Number of Vacant Apartments Will Help Houston in Harvey Aftermath | Multifamily Executive Magazine

How Hurricane Harvey Will Affect Texas Apartments, Hotels And Labor via Bisnow

It has been one week since Hurricane Harvey first hit Texas (and mere days since it left), so it is hard to say with any certainty how the Texas economy will respond over the next six months to a year. What we can do is look at the past, and that tells us DFW may see some spillover activity, but also some spillover pain.

“What we have seen in other markets after a big natural disaster is … you do get a bump in apartment leasing,” RealPage Chief Economist Greg Willet said.

Read more...How Hurricane Harvey Will Affect Texas Apartments, Hotels And Labor - Economy

Harvey Hurts Houston Mortgage Bonds Already Feeling Oil Pain via Bloomberg

Declining energy prices have already battered Houston’s real estate market. Now, Hurricane Harvey is making it even worse.

Some $8.9 billion of loans packaged into commercial mortgage-backed securities since the financial crisis are supported by Houston-area offices, malls and hotels, Morgan Stanley analyst Richard Hill said in a note Monday. And, across Texas, almost $30 billion of these loans have exposure to official disaster areas, according to Trepp, a specialist firm that tracks such debt.

Read more...Harvey Hurts Houston Mortgage Bonds Already Feeling Oil Pain - Bloomberg

Houston Economic Indicators August 29, 2017 - Dallas Fed

Note: The data and analysis in this report are based on information available prior to Hurricane Harvey making landfall in Texas.

The Houston economy continued to expand at a moderate pace through July. Bankruptcy filings, which are a lagging indicator of business conditions, increased markedly in the first half of the year. Leading indicators continue to suggest modest to moderate job growth going forward. Overall, the outlook for the Houston economy remains positive.

Read more...Houston Economic Indicators - Dallasfed.org

6 Ways to Prepare for and Recover from Natural Disasters via Property Management Insider

Hurricane Harvey slammed the South Texas coast this weekend, flooding cities with trillions of gallons of water and bringing tornadoes with damaging winds in its path. Harvey has quickly become one of the most catastrophic storms to date. Flooding in metro Houston will displace huge block of the metro’s population of about 6.5 million people, according to a study from RealPage’s data analytics team.

As Texas and the United States prepares for the recovery process, many will be tasked with making property decisions. We have rounded up a few articles for apartment residents, multifamily investors and owners as they recover from the storm—and those unaffected who are contemplating steps for future natural disasters.

Read more...6 Ways to Prepare for and Recover from Natural Disasters

Friday, August 25, 2017

Job Growth Decline + Peak Apartment Supply = Rent Growth Drop via Axiometrics

The correlation between job growth and effective rent growth is well-known. But if you needed further proof, it came in the most recent jobs numbers – not to mention the influx of new apartment supply, apartment rental data shows.

National year-over-year job growth was 1.6% in June, a moderation of 70 basis points (bps) since the cycle’s peak in February 2015. While job gains nationally and in several major metros are declining, only eight of the top 50 job-gain markets recorded slower annual job growth than the national average.

Read more...Axiometrics.com | Job Growth Decline + Peak Apartment Supply = Rent Growth Drop

Cap Rates: The Story’s in the Details via GlobeSt.com

The cap rate story for the first half of this year is in the details, rather than overarching trends. And that’s expected to be the case as well when transactions in the year’s second half are tallied up, going by the results of CBRE’s latest North America Cap Rate Survey.

The general outlook for cap rates and returns in the year’s second half is for stable pricing, according to the report accompanying this year’s survey. “However, the sentiment of survey respondents varied by property type, segment, class and metro-tier grouping. The consensus is that if rates do change in H2 2017, they are more likely to increase modestly.”

Read more...Cap Rates: The Story’s in the Details | GlobeSt.com

Thursday, August 24, 2017

Long-Term Outlook for Rental Apartments Remains Positive via National Real Estate Investor

Many of the markets where developers have been doubling down on building new apartment units are likely to have enough renters to fill those apartments over the next decade or so, according to the latest research commissioned by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA).

“The analysis suggests that 15 or so metros will lead the way on activity, and they are basically the same 15 or so spots that have accounted for about half of both demand and supply in the current economic cycle to date,” says Greg Willett, chief economist with real estate data firm RealPage Inc., which has reached similar conclusions to NHMC/NAA.

Read more...Long-Term Outlook for Rental Apartments Remains Positive

Dallas-Fort Worth Economic Indicators via Dallas Fed

The Dallas–Fort Worth economy strengthened in July. Job growth picked up, and expansion in the Dallas and Fort Worth business-cycle indexes accelerated. The unemployment rate fell in both metro areas. Home prices rose further in May, although the pace of appreciation decelerated. Existing-home sales increased in July, supported by an expanding DFW economy, and inventories remained tight at just above two months of supply.

Read moree...Dallas-Fort Worth Economic Indicators - Dallasfed.org

There are no more low-priced homes via CNBC

Sales of both newly built and existing homes fell unexpectedly in July, and while it's just one month's data, it may be a signal that the housing market has hit an insurmountable hurdle. It is just plain too expensive. Home prices are higher at virtually every price point, but the gains are biggest at the low end where demand is highest.

The median price of a home sold in July hit $258,300, the highest July price on record, according to the National Association of Realtors. The Realtors divide sales figures into six different price "buckets" in their monthly report. Sales in the range of $100,000 or below were down 14 percent compared with a year ago, while sales of million-dollar and higher homes jumped nearly 20 percent.

Read more...There are no more low-priced homes

Tuesday, August 22, 2017

A Close Look at Urban Core Apartment Market Performances via National Real Estate Investor

The U.S. apartment completion volume across the country’s 100 largest metros has accelerated to more than 80,000 units per quarter in 2017, up from around 60,000 units a quarter in the previous couple years. That aggressive new supply tally is creating a more competitive leasing environment for top-of-the-market product, especially in urban core settings where so many communities are coming on the market within blocks of each other.

Digging deeper into the story, urban core results obviously vary quite a bit from one spot to another due to factors that range from how many new apartments are being built to how many jobs are being added. Measuring health in terms of annual rent growth for new resident leases, results range all the way from spectacular—a 7 percent rent escalation in downtown Seattle—to dismal—a 5 percent rent loss in downtown Houston.

Read more...A Close Look at Urban Core Apartment Market Performances

Thursday, August 17, 2017

Yardi: YOY Rent Growth Slips in July, but Rents Have Risen Every Month of 2017 via Multifamily Executive Magazine

From June 2017 to July 2017, average U.S. monthly rents rose by $1, to $1,350, according to Yardi Matrix’s Matrix Monthly survey of 121 markets. At the same time, year-over-year (YOY) growth rates fell, to 2.6%, down 10 basis points (bps) from June 2017. Actual rents are up by 2.7% this year to date and have risen every month this year.

Despite virtually flat sequential rent growth and slowdowns still to be expected, the multifamily market remains healthy overall.

Read more...Yardi: YOY Rent Growth Slips in July, but Rents Have Risen Every Month of 2017 | Multifamily Executive Magazine

Commercial, Multifamily Starts Fall 9% in First Half of 2017 via Multifamily Executive Magazine

In eight of the top 10 metropolitan markets, the dollar volume of commercial and multifamily construction starts decreased on a year-over-year basis, according to the latest Dodge Data & Analytics report, covering the first half of 2017. At the same time, nine of the next 10 metro markets (ranked Nos. 11–20) experienced start growth, indicating that smaller metro areas are “picking up the slack” from the deceleration under way in larger cities.

On the national level, commercial and multifamily starts totaled $87.5 billion in the first half of 2017, down 9% from the first half of 2016 but up 1% from the first half of 2015.

Read more...Commercial, Multifamily Starts Fall 9% in First Half of 2017 | Multifamily Executive Magazine

Wednesday, August 16, 2017

US Home Construction Slumped in July via US News

Homebuilders pulled back sharply on construction of apartment complexes in July, causing housing starts to tumble to a three-month low.

The Commerce Department said Wednesday that housing starts fell 4.8 percent in July to a seasonally adjusted annual rate of 1.16 million. Groundbreakings for multi-family buildings such as apartments slumped 17.1 percent, while single-family house construction slipped 0.5 percent.

Read more...US Home Construction Slumped in July | Business News | US News

Tuesday, August 15, 2017

Some Apartment Markets Are Facing Challenges via National Real Estate Investor

In a few overbuilt downtowns, apartment rents are starting to fall. But experts claim that demand for apartment units continues to be so strong, the trend won’t last for long.

“The story in these markets is the apartment story writ large: the high levels of apartment construction are not enough to house the 1.2 million or so new households formed each year without increased single-family construction,” says John Affleck, research strategist with the CoStar Group.

Read more...Some Apartment Markets Are Facing Challenges

As housing affordability weakens, more buyers are left out in the cold via CNBC

The cost of housing is rising at a fast clip, and nowhere is it more apparent than in the market for newly built homes.

Sales there are rising, but only on the higher end, and that is leaving the majority of entry-level buyers out of luck and out of home ownership because there are so few cheaper, existing homes for sale. While homebuilders claim they are trying to target the high demand from entry-level buyers, the numbers simply don't show that.

Read more...As housing affordability weakens, more buyers are left out in the cold

Texas Markets: Rent Growth Receding via ALN Apartment Data

Texas has repeatedly been in the top handful of states for absorption and occupancy over the last decade. So far in 2017, the absorption numbers are still holding up. The Lone Star State ranked first in absorption from July 2015 to July 2016 with a net gain of 36,000 rented units. In addition, Texas markets rank second only behind California for rental absorption, with a net gain of over 41,000 rented units from this time last year.

Effective Rent

Despite these rankings, effective rent growth has tapered off significantly from the middle of the decade.

Read more...Texas Markets: Rent Growth Receding - ALN Apartment Data

When Will Valuations Begin to Rise Again? via GlobeSt.com

With a potential debt-ceiling debate looming in the fall and further tightening actions by the Fed on the horizon, Ten-X’s chief economist Peter Muoio would not be surprised if prices continue to meander, he tells GlobeSt.com. The firm recently reported in its Nowcast that the commercial real estate sector continued its pricing slump in July, with nationwide commercial pricing declining by 0.3%.

Read more...When Will Valuations Begin to Rise Again? | GlobeSt.com

ALN Monthly Market Stats August 2017 via ALN Apartment Data

ALN Data just released their July 2017 market stats on occupancy and rents for over 80 markets. In Texas, it includes DFW, Austin, Houston, San Antonio, Lubbock, Amarillo, Abilene, Corpus Christi and more. It is a must read from a great provider of apartment data. Check out their new website.

Read more...ALN Monthly Market Stats August 2017 via ALN Apartment Data

D-FW apartment rent increases slowing via Dallas News

Apartment rents in the Dallas area are still rising -- but at a slower pace than a year ago.

Average monthly apartment rent in the Dallas area in July was $1,156 -- up 2.4 percent from a year earlier, according to a new report from Axiometrics. That's about the same as the national year-over-year percentage increase in rents.

Read more...D-FW apartment rent increases slowing | Real Estate | Dallas News

Monday, August 14, 2017

Dallas-Fort Worth has top two spots in U.S. based on 5-year economic forecast via Dallas News

Denton and Collin counties are projected to be the nation's fastest growing economies over the next five years, according to an Oxford Economics forecast.

Of the top six U.S. counties, four are in Texas:

Read more...Dallas-Fort Worth has top two spots in U.S. based on 5-year economic forecast  | Economy | Dallas News

Friday, August 11, 2017

Why Recycling Remains A Luxury Amenity In Texas via Bisnow

Granite countertops, infinity pools, recycling bins. One of these luxury apartment amenities is not like the others. Although renters are increasingly demanding recycling options, few multifamily owners are offering it. In Texas, one of the lowest-ranked states for waste diversion and reduction, recycling is largely viewed as a Class-A amenity, leaving many renters unable to put their waste anywhere but a landfill.

Read more...Why Recycling Remains A Luxury Amenity In Texas - Sustainability

Three Factors That Influence Apartment Turnover via MPF Research

Renter turnover is inevitable. Unless rents are absurdly cheap, people are going to come and go. It’s the nature of the multifamily industry.

But what does the turnover ratio tell us?

Turnover is a measure that defines whether a resident chooses to renew their lease or to move out. The terms “turnover” and “retention,” while opposing concepts, are often used interchangeably. Low resident retention indicates high turnover, and vice versa. All other things equal, the rent roll of an asset with high turnover will churn more often. But that’s not necessarily a bad thing.

Read more...Three Factors That Influence Apartment Turnover - MPF Research

Thursday, August 10, 2017

More Real Estate Players Say the Peak Is Now via National Real Estate Investor

More than half of respondents to an NREI survey conducted in July said the real estate cycle has reached its peak. The percentage of survey respondents who believe we are currently at the peak of the market totaled 52 percent, up 500 basis points since the results in May of 2017 and 600 basis points since March results. The only time the figure was higher in the past two years was in October 2016, when it reached 55 percent

Read more...More Real Estate Players Say the Peak Is Now

Tuesday, August 8, 2017

Z Report: Revenue Growth to Continue Decelerating via Multifamily Executive Magazine

For the most part, this century’s multifamily revenue activity has moved in cycles as employment levels and new supply have fluctuated from year to year.

National multifamily revenue growth averaged 2.3% from 2000 to 2016, according to Axiometrics, with a recent low of -6.4% growth in 2009 and a recent high of 5.9% in 2006.

In the post-recovery period, the steady climb of employment growth has been the main driver of strong multifamily market fundamentals, which led to the strong levels of annual revenue growth recorded from 2010 to 2015. At that point, however, oversupply placed more pressure on rents, dropping growth down to 3.2% in 2016, reports Zelman & Associates in The Z Report.

Read more...Z Report: Revenue Growth to Continue Decelerating | Multifamily Executive Magazine

Apartment Slowdown Has Yet to Arrive via Multifamily Executive Magazine

The predicted apartment slowdown still has yet to impact the market. So proclaims Ten-X Commercial’s latest US Multifamily Outlook.

As GlobeSt.com's Paul Bubny reports, however, some aspects of the market are faltering—vacancies nationwide rose 10 basis points during the first quarter, to 4.3%, after remaining flat over the past year, and 330,000 new apartment units will be added to the inventory by the end of this year, which will have a negative impact on vacancies as the absorption rate lags the influx of new supply. The report's author predicts an economic downturn by 2020 as vacancies hit a forecasted 6.2%.

Read more...Apartment Slowdown Has Yet to Arrive | Multifamily Executive Magazine

If You Rent, Your Troubles Are Coming to an End via Bloomberg

Renters can finally breathe a sigh of relief: The nation's decade-long shift away from homeownership -- which had made renting exorbitantly expensive -- appears to be over. This will be great for builders and real-estate agents, but not so much for prospective home buyers.

Why do I think we've witnessed a generational peak in renting?

Read more...If You Rent, Your Troubles Are Coming to an End - Bloomberg

NAA and RealPage Release the 2017 Market Momentum Q2 Report via Property Management Insider

The hottest markets for investing, rent performance and resident retention have been announced in the National Apartment Association’s Market Momentum Report, produced in partnership with RealPage. The Market Momentum Report is a survey of industry decision-makers about business plans, expectations and trends in the apartment housing industry.

Read more...NAA and RealPage Release the 2017 Market Momentum Q2 Report

Monday, August 7, 2017

Houston Economic Indicators August 2017 via Dallas Fed

June data were generally positive for Houston, pointing toward a healthy economy. The metro business-cycle index expanded at its historical average pace, employment growth was very strong and job ads continued to climb. Construction data were less optimistic. Single-family housing activity was steady, but commercial activity and construction employment were down.

D-FW commercial building starts slid in first half of 2017 via Dallas News

New commercial building starts in Dallas-Fort Worth took a plunge in the first half of the year.

During the first six months of 2017, D-FW ranked eighth nationally among the biggest commercial building markets.

D-FW developers started $3.2 billion in commercial projects in the first half of the year, compared with $10.5 billion in New York and $4.4 billion in LA -- the top two U.S. markets.

Read more...D-FW commercial building starts slid in first half of 2017 | Real Estate | Dallas News

Austin Economic Indicators August 2017 via Dallas Fed

Growth in the Austin economy remained moderate in June. The Austin Business-Cycle index continued to grow near its long-term trend, as jobs were weak, but the unemployment rate fell to its lowest level since the end of the tech boom in 2001. Housing-market indicators were strong, and manufacturing activity continued to expand at a healthy pace.

Texas Economy Improves Further via Dallas Fed

The Texas economy is continuing to grow at a solid pace. Employment rose in June, and both manufacturing and service activity expanded, exceeding last year’s index averages, according to the Dallas Fed’s Texas Business Outlook Surveys (TBOS). However, growth in the energy sector slowed as oil prices fell. Nevertheless, increased activity in export-related manufacturing firms mitigated some of the deceleration in energy-related manufacturing.

Read more...Texas Economy Improves Further - Dallasfed.org

Apartment Vacancy Rates Expected To Increase More Slowly Than Expected via GlobeSt.com

Nothing, it seems, can dent the growth story that is multifamily. Despite a pipeline that is expected to peak in the second half of this year and remain elevated into 2018, Freddie Mac believes that while vacancy rates will increase, they will do so more slowly than expected. “Employment growth is expected to remain near 2016 growth levels and demand for multifamily units to stay strong due to lifestyle preferences and demographic trends,” it explains in its mid-year outlook for the category.

Indeed, forecasts of higher wage growth is expected to spur even more housing demand, it said.

Read more...Apartment Vacancy Rates Expected To Increase More Slowly Than Expected | GlobeSt.com

Wednesday, August 2, 2017

Monthly Review of the Texas Economy July 2017 via Real Estate Center

The Texas economy is recovering from the 2014–16 oil price collapse and is leading the U.S. in job creation.

According to the Real Estate Center's latest Monthly Review of the Texas Economy, Texas gained 319,300 nonagricultural jobs from June 2016 to June 2017, an annual growth rate of 2.7 percent, higher than the nation's employment growth rate of 1.6 percent. The nongovernment sector added 283,800 jobs, an annual growth rate of 2.8 percent, higher than the nation's employment growth rate of 1.7 percent in the private sector.

Read more...Monthly Review of the Texas Economy - Real Estate Center

CRE Loan Volume Up 20% Year-Over-Year via GlobeSt.com

Second-quarter commercial and multifamily mortgage loan originations were 20% higher than during the same period last year and up 28% over Q1 of 2017, the Mortgage Bankers Association said Tuesdays. The results of MBA’s latest Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations compared favorably with Q2 results over the past few years.

Read more...CRE Loan Volume Up 20% Year-Over-Year | GlobeSt.com

Tuesday, August 1, 2017

Dallas-Fort Worth construction is slowing from recent highs via Dallas News

here are more signs that the building boom is peaking in North Texas.

A new report by construction analyst Dodge Data & Analytics showed plans for most types of building projects were down significantly at midyear in the Dallas-Fort Worth area.

Read more...Dallas-Fort Worth construction is slowing from recent highs | Real Estate | Dallas News

Pullback Continues in the Investment Sales Market for Apartment Properties via National Real Estate Investor

Investors spent a lot less money on apartment properties so far this year compared to 2016, but prices in the sector keep rising anyway.

Prices for mid-rise and high-rise properties inched up 1.0 percent year-over-year, and prices for garden-style apartment properties grew 10.0 percent in the second quarter of 2017, according to the Real Capital Analytics Commercial Property Price Index (RCA CPPI).

Read more...Pullback Continues in the Investment Sales Market for Apartment Proper

Monday, July 31, 2017

In Volume Dropoff, It’s 2017, Not 2007 via GlobeSt.com

Second-quarter investment sales volume was predictably off on a year-over-year basis in the Q2 US Capital Trends report from Real Capital Analytics. However, RCA cautions industry members not to make too much of the 5% Y-O-Y drop.

Read more...In Volume Dropoff, It’s 2017, Not 2007 | GlobeSt.com

NAA and RealPage Release the 2017 Market Momentum Q2 Report via Property Management Insider

The hottest markets for investing, rent performance and resident retention have been announced in the National Apartment Association’s Market Momentum Report, produced in partnership with RealPage. The Market Momentum Report is a survey of industry decision-makers about business plans, expectations and trends in the apartment housing industry.

Read more...NAA and RealPage Release the 2017 Market Momentum Q2 Report

Friday, July 28, 2017

ALN Monthly Market Stats July 2017 via ALN Apartment Data

ALN Data just released their June 2017 market stats on occupancy and rents for over 80 markets. In Texas, it includes DFW, Austin, Houston, San Antonio, Lubbock, Amarillo, Abilene, Corpus Christi and more. It is a must read from a great provider of apartment data. Check out their new website.

Read more...ALN Monthly Market Stats July 2017 via ALN Apartment Data

Apt. Rent Growth Breaks Slowdown Streak via GlobeSt.com

After decelerating for more than a year, US multifamily rents stepped on the gas in June, according to Yardi Matrix’s latest monthly survey of 121 US metro areas. Rents nationwide were up by an average of $12 last month, marking the biggest monthly increase in several years and the first time since January 2016 in which the rate of year-over-year growth increased from the prior month.

Read more...Apt. Rent Growth Breaks Slowdown Streak | GlobeSt.com

Thursday, July 27, 2017

Apartment Pricing Gains Take a Pause via GlobeSt.com

The key takeaway from Ten-X’s latest Commercial Real Estate Nowcast may be not so much “how the mighty have fallen,” but rather that the mighty fell in the first place. “The mighty,” in this case, is multifamily, which posted its first monthly pricing decline since late 2015, suggesting that although the sector has been the strongest and most consistent performer among property types, it’s not invulnerable.

Read more...Apartment Pricing Gains Take a Pause | GlobeSt.com

Wednesday, July 26, 2017

Dallas-Fort Worth Economic Indicators July 2017 - Dallas Fed

The Dallas–Fort Worth economy continued its expansion in June, albeit at a slower pace than in May. Job growth was nearly flat, and expansion in the Dallas and Fort Worth business-cycle indexes moderated. The unemployment rate held steady in Dallas but dipped in Fort Worth. Residential construction rose in May, in part driven by the expanding DFW economy.

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

Monday, July 24, 2017

Dallas-area apartment rent growth slowed in June via Dallas News

The run up in Dallas-area apartment rents may be easing.

During June Dallas-area rents were just 2.4 percent ahead of where they were a year ago, according to new numbers from Richardson-based apartment researcher Axiometrics.

That's the smallest annual increase in the Dallas area in seven years and the first time in recently that the rise in Dallas rents was less than the national average.

Rad more...Dallas-area apartment rent growth slowed in June | Real Estate | Dallas News

How Hot is the Multifamily Market? via GlobeSt.com

The US apartment market is recording new highs in apartment deliveries. More than 345,000 new apartments are scheduled to be completed this year in large-scale developments. In other words, more units are set for 2017 than in the last 20 years.

According to Yardi Matrix senior analyst Doug Ressler, all this new construction may work in the renters’ favor, at least in the near future.

Read more...How Hot is the Multifamily Market? | GlobeSt.com

Renter Households Reach 50-Year High via GlobeSt.com

The percentage as well as number of US households led by renters is at the highest level in more than 50 years, the Pew Research Center reported this week. The research organization’s analysis of Census Bureau housing data found that growth in the percentage of renters extends across a variety of demographic factors, including age, education level and ethnicity.

Read more...Renter Households Reach 50-Year High | GlobeSt.com

Texas Employment Forecast via Dallas Fed

Incorporating June employment growth of 3.6 percent and new leading index data into the Texas Employment Forecast suggests jobs will grow 2.8 percent this year (December/December), with an 80 percent confidence band of 2.0 to 3.6 percent.

The forecast increased from the Dallas Fed’s previous estimate of 2.6 percent. Based on the forecast, 336,000 jobs will be added in the state this year, and employment in December 2017 will be 12.4 million (Chart 1).

Read more...Texas Employment Forecast - Dallasfed.org

Texas Economy Adds 40,200 Jobs in June via Texas Workforce Commission

The Texas economy expanded in June for the 12th consecutive month with the addition of 40,200 seasonally adjusted nonfarm jobs. Texas’ seasonally adjusted unemployment rate fell to 4.6 percent, down from 4.8 percent in May. Texas’ annual employment growth outperformed the previous two years with 319,300 jobs added over the year, bringing the state’s annual growth rate up by 0.4 percentage points to 2.7 percent.

Read more...Texas Economy Adds 40,200 Jobs in June | Texas Workforce Commission

Wednesday, July 19, 2017

Urban Core Performance Diverges in High-Development Metros via MPF Research

Apartment construction activity among the nation’s largest and most active apartment markets during this part of the cycle has been disproportionately focused in urban core areas. The total number of apartment units completed in central business districts make up a small share of the total completion volumes of the most active metros. New urban units, however, have yielded high inventory growth rates for these downtown areas. Rapid inventory growth has affected performance in urban core submarkets to varying degrees.

Rad more...Urban Core Performance Diverges in High-Development Metros - MPF Research

Thursday, July 13, 2017

Eleventh District Beige Book 7/13/2017 via Dallas Fed

The Eleventh District economy continued to expand at a moderate pace over the past six weeks. Manufacturing output rose, and activity in nonfinancial services increased. Growth in retail sales slowed, while auto sales dipped. Housing demand grew, lending activity increased, and the energy sector saw continued improvement. Crop conditions were mostly favorable. Employment and wages rose, as did prices. Outlooks remained positive, although some contacts noted uncertainty regarding changes in trade and healthcare policy as well as tax reform.

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

Wednesday, July 12, 2017

From Macro to Micro: The Economy Going Forward via GlobeSt.com

Tired of hearing of the Great Wait-and-See as the industry taps its collective foot in preparation for coming regulation? Making long-range acquisition or development decisions can be dicey in such an atmosphere.

In this exclusive Q&A, locally-based research director for RED Capital Group, Dan Hogan takes us through the landscape and provides us with some sure bets–and not so sure bets–all of which can help owners and developers alike navigate the current choppy waters.

Read more...From Macro to Micro: The Economy Going Forward | GlobeSt.com

Monday, July 10, 2017

Renter Interest in Homeownership Rises in Q1 2017 via Multifamily Executive Magazine

According to a new analysis by multifamily data firm TransUnion, 55% of mortgage shoppers in the first quarter of 2017 were identified as “nonhomeowners,” a category that consists largely of renters. This represents a significant shift in the mortgage market over time, up from 50% of mortgage shoppers in the first quarter of 2016 and 45% in Q1 2015.

At the same time, a rising number of potential home buyers are millennials, who have traditionally shown a preference for rental units.

Read more...Renter Interest in Homeownership Rises in Q1 2017 | Multifamily Executive Magazine

Renters Find It Pays to Stay Put via GlobeSt.com

For apartment renters, it can literally pay to renew their existing leases. Zillow said Friday that market-rate rents increased at a faster pace year over year than did rents for tenants who renewed. The firm analyzed 2015 rent data from the US Census American Community Survey, the most recent data available.

The Y-O-Y increase for renters who renewed in ’15 was 3.6%, compared to a 5.6% rise in rent for beginning a new lease. Dollar-wise, that means a renter who had moved in the past year paid an average of $329 more each month than a renter who had lived in the same place for five years or longer.

Read more...Renters Find It Pays to Stay Put | GlobeSt.com

You think DFW apartment rents are too high? You ain't seen nothing yet via Dallas News

Dallas-Fort Worth apartment renters who've been pining for a slowdown in rent increases are going to have to keep waiting.

Despite near-record building activity, apartment landlords continue to dial up monthly rents in the area. During the second quarter, average D-FW apartment rents hit a new high of $1,082 a month, according to the latest data from Richardson-based RealPage.

Read more...You think D-FW apartment rents are too high? You ain't seen nothing yet | Real Estate | Dallas News

Friday, July 7, 2017

Austin Economic Indicators July 6, 2017 via Dallas Fed

Growth in the Austin economy remained soft in May. Following the release of updated retail sales and wage data, growth in the Austin Business-Cycle Index year to date was revised down and remained weak relative to the past several years. Jobs declined slightly and the unemployment rate remained near its 15-year low.

Monday, July 3, 2017

REIS: Effective Rent Rises 1.1% in Q2 2017 via Multifamily Executive Magazine

In all but two of the 79 primary apartment markets covered in Reis’s Apartment Sector Preliminary Trends Release, average effective rents either increased or remained flat in the second quarter of 2017, demonstrating a marked improvement over the previous quarter. Nationwide, the average effective rent grew by 1.1% between Q1 and Q2 2017, and by 3.0% year over year.

Read more...REIS: Effective Rent Rises 1.1% in Q2 2017 | Multifamily Executive Magazine

Houston Economic Indicators June 2017 via Dallas Fed

May data were mixed for the Houston metro area. The business-cycle index continued to signal a moderate expansion. Labor market data indicated job growth, the energy sector improved significantly and low fuel prices helped consumers. However, retail sales and wage and salary data suggest that Houston exited 2016 less robustly than initially believed. Overall, the outlook for Houston is guardedly optimistic.

Renter Demand at Near-Record Levels via GlobeSt.com

Apartment rent growth may have slowed compared to its pace earlier in the cycle, but renter demand is very nearly off the charts. RealPage Inc. on Thursday reported demand for 175,645 apartments across the US in the second quarter, a one-third increase year over year.

Meanwhile, occupancy stood at 95.0% at midyear, essentially full, according to RealPage’s Axiometrics division. Mid-2017 occupancy topped Q1’s 94.5% but slightly lagged the year-ago level of 95.3%, according to Axiometrics data.

Read more...Renter Demand at Near-Record Levels | GlobeSt.com

Friday, June 30, 2017

ALN Monthly Newsletter June 2017 via ALN Apartment Data

ALN Data just released their May 2017 stats on occupancy and rents for over 80 markets. In Texas, it includes DFW, Austin, Houston, San Antonio, Lubbock, Amarillo, Abilene, Corpus Christi and more. It is a must read from a great provider of apartment data. Check out their new website.

Read more...ALN Monthly Newsletter June 2017 via ALN Apartment Data

DFW apartment leasing at the highest level in more than a decade via Dallas News

The booming local economy propelled second-quarter Dallas-Fort Worth apartment leasing to the highest level in more than a decade.

Net apartment leasing for the last three months totaled 11,311 units — the strongest quarterly performance since 2005, according to preliminary statistics from Richardson-based RealPage, which makes software for managing residential and commercial property leasing.

Apartment demand was strong enough to easily outpace the 7,086 new rental units coming on the market in the second quarter.

Read more...D-FW apartment leasing at the highest level in more than a decade | Real Estate | Dallas News

Thursday, June 29, 2017

RealPage® and Axiometrics® Report Robust Apartment Demand in Q2 via Property Management Insider

Apartment demand surged to a near-record volume in the second quarter, according to real estate technology and analytics firm RealPage, Inc.

“Today’s strong demand for apartments reflects the combination of solid job formation, continued limited loss of renters to home purchase, and widespread availability of appealing new apartments,” said Greg Willett, chief economist for RealPage.

Read more...RealPage® and Axiometrics® Report Robust Apartment Demand in Q2

Tuesday, June 27, 2017

Dallas Builders Can't Keep Up With Demand for Apartments via Bloomberg

Demand for apartments in Dallas is getting out of hand. Between 2000 and 2015, New York added 212,000 rental units in buildings with at least five units, according to the National Multifamily Housing Council and the National Apartment Association. While less than what the city needs, it’s at least in the ballpark. Dallas, however, has built 144,000 such units, so the metro will have to almost double the pace of construction to meet estimated demand.

Read more...Dallas Builders Can't Keep Up With Demand for Apartments - Bloomberg

U.S. apartment vacancy rate edges up in second quarter: Reis via Reuters

The U.S. apartment vacancy rate increased in the second quarter and rents were higher, according to a report from Reis Inc (REIS.O).

The national vacancy rate rose slightly to 4.4 percent in the second quarter from 4.3 percent in the first quarter, the real estate research firm said.

Read more...U.S. apartment vacancy rate edges up in second quarter: Reis | Reuters

Monday, June 26, 2017

Texas Manufacturing Outlook Survey June 2017 via Dallas Fed

Texas factory activity increased in June, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, fell 11 points to 12.3, indicating output grew but at a slower pace than in May.

Other measures of current manufacturing activity also indicated that growth moderated. The new orders and growth rate of orders indexes fell several points each, coming in at 9.6 and 4.7, respectively. The capacity utilization index moved down to 12.3, and the shipments index retreated to 8.5 after surging last month.

Read more...Texas Manufacturing Outlook Survey - Dallasfed.org

DFW Economic Indicators, June 2017 via Dallas Fed

The Dallas–Fort Worth economy expanded in May, with payroll employment rising and growth in the Dallas and Fort Worth business-cycle indexes accelerating during the month. The unemployment rate dipped in Dallas and held steady in Fort Worth. Home prices climbed in the first quarter, while housing demand remained healthy and inventories tight.

2017–2018 Forecast: Class B and C Apartments Will Rule via Multifamily Executive Magazine

Domestic and global investment in multifamily housing is on the rise throughout the United States—especially for Class B and C properties. Several contributing factors have fostered this development, including an oversupply of Class A communities in combination with a drop in demand, the rising cost of homeownership, and millennials entering the market by the millions. In the midst of this trend, foreign investors have begun to take notice and make their own plays on U.S. multifamily real estate.

The end result: Unless we see a drastic shift in the economic climate, Class B and C multifamily housing will have the greatest potential for high returns in 2017 and well into 2018.

Read more...2017–2018 Forecast: Class B and C Apartments Will Rule | Multifamily Executive Magazine

Tuesday, June 20, 2017

Deal Volume Slips to 3-Year Low via GlobeSt.com

Commercial real estate investment activity reached a three-year quarterly low in the year’s first three months, falling below $100 billion for the first time since early 2014, Ten-X said Monday. The firm’s latest Commercial Real Estate Capital Trends report shows that at $90.9 billion, quarterly volume in the first quarter was 43% lower than its late-2015 peak, and 18% lower than the year-ago period.

Read more...Deal Volume Slips to 3-Year Low | GlobeSt.com

Monday, June 19, 2017

Dallas Metro Report: June 2017 via The Zumper Blog

The Zumper Dallas Metro Report analyzed active listings in May across 14 metro cities to show the most and least expensive cities and cities with the fastest growing rents.

Read more...Dallas Metro Report: June 2017 | The Zumper Blog

Texas Employment Forecast via Dallas Fed

Incorporating May employment growth of 2.4 percent and revised April leading index data into the Texas Employment Forecast suggests jobs will grow 2.6 percent this year (Dec/Dec), with an 80 percent confidence band of 1.6 to 3.6 percent.

The forecast increased from the Dallas Fed’s previous estimate of 2.4 percent. Based on the forecast, 309,200 jobs will be added in the state this year, and employment in December 2017 will be 12.4 million (Chart 1).

Read more...Texas Employment Forecast - Dallasfed.org

Wednesday, June 14, 2017

CRE Opinion: The Maturation of The North Dallas Multifamily Market via D Magazine

I have lived in North Dallas—aside from college in Austin—for nearly 50 years. In fact, we moved to Dallas when LBJ Freeway was under construction and anything north of LBJ was considered the boondocks. We hunted birds just east of what is now CityLine in Richardson. The growth in North Dallas, in every respect, has been nothing less than spectacular. What once was a relatively young area has matured into one of the more dynamic areas of the country.

The northern Dallas communities offer a high quality of life and are an ideal venue for raising families. There are probably more golf courses in North Dallas than any area in Dallas-Fort Worth. Schools are one of the primary calling cards for this area as most districts are rated exemplary or outstanding.

Read more...CRE Opinion: The Maturation of The North Dallas Multifamily Market - D Magazine

Tuesday, June 13, 2017

Few Cracks Showing in the Apartment Sector via National Real Estate Investor

Average apartment rents are increasing across the country. And despite all the new units that have become available, renters keep showing up to leasing offices, keeping the average vacancy rate in the sector relatively low.

“Stabilization is a word that comes up over and over,” says Greg Willett, chief economist for RealPage and its subsidiary MPF Research.

Read more...Few Cracks Showing in the Apartment Sector

Friday, June 9, 2017

Three Strikes: Multifamily Growth Slows for Third Consecutive Month via Multi-Housing News Online

While multifamily rents increased during the month of May, the rate of growth decelerated for the third month in a row, Yardi Matrix reported in its monthly rent survey. Average U.S. rents increased $4 to $1,316, the survey of 121 markets revealed, while on a year-over-year basis, rents increased 1.5 percent, a 40-basis-point decrease from April. May’s growth rate is 90 points less than March’s was and a considerable deceleration from the 5.3 percent rate seen during the same time last year.

Read more...Three Strikes: Multifamily Growth Slows for Third Consecutive Month

Friday, June 2, 2017

Apt. Rents Maintain 13-Month Streak of Slowing Growth via GlobeSt.com

Although multifamily rents nationwide increased in May for the third month in a row, Yardi Matrix is continuing to chart a deceleration in the growth rate. Average US monthly rents rose $4 to $1,316, according to Yardi Matrix’s monthly survey of 121 markets.

On a year-over-year basis, rents were up 1.5% nationwide in May. The Y-O-Y growth rate was down 40 basis points from April, 90 bps from March and well below the 5.3% growth rate of a year ago.

Read more...Apt. Rents Maintain 13-Month Streak of Slowing Growth | GlobeSt.com

Wednesday, May 31, 2017

Eleventh District Beige Book 5/31/17 via Dallas Fed

The Eleventh District economy continued to expand at a moderate pace over the past six weeks. Manufacturing output rose, and activity in nonfinancial services increased. Retail sales strengthened slightly, despite some reports of softening in auto sales. Housing demand grew, lending activity increased, and the energy sector saw further improvement. Production prospects for crops were mostly favorable. Employment and wages rose, as did prices. Outlooks generally improved, although a few firms noted they were in wait-and-see mode due to uncertainty surrounding U.S. trade policies.

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

Houston Economic Indicators May 30, 2017 via Dallas Fed

Data were positive for Houston in April. The business-cycle index continues to signal a modest expansion is underway. Labor market data were healthy, and several leading indicators suggest that employment growth is likely to accelerate. However, recent revisions to data from the end of 2016 suggest that job growth was overestimated at that time. Overall, the outlook for Houston remains cautiously optimistic.

Friday, May 26, 2017

ALN Monthly Newsletter May 2017 via ALN Apartment Data

ALN Data just released their April 2017 stats on occupancy and rents for over 80 markets. In Texas, it includes DFW, Austin, Houston, San Antonio, Lubbock, Amarillo, Abilene, Corpus Christi and more. It is a must read from a great provider of apartment data.

Read more...ALN Monthly Newsletter May 2017 via ALN Apartment Data

Thursday, May 25, 2017

The 15 Top Markets for Apartment Construction in 2017 via National Real Estate Investor

Developers will bring 371,000 units to the multifamily market in 2017, according to data from commercial real estate services firm Marcus & Millichap’s 2017 National Multifamily Investment Outlook. If that figure hits, it means apartment construction this year will reach a record high – its highest level in 30 years. The firm predicts that national apartment vacancy will reach 4.0 percent at the end of 2017, based on the expectation that unemployment should hold at 5.0 percent and hiring will remain “sound,” prompting the millennial generation to bolster new household formation.

Read more...The 15 Top Markets for Apartment Construction in 2017

Tuesday, May 23, 2017

Texas Economic Indicators May 2017 via Dallas Fed

The Texas economy expanded at a moderate pace in April. While employment growth accelerated, it was mixed across major Texas metros. Exports expanded in the first quarter. The rig count rose further in April, while the Texas Leading Index dipped.

Texas employment expanded an annualized 2.1 percent in April, and year to date it has grown 2.5 percent.

Thursday, May 18, 2017

Real estate CEO: Record low housing inventory is 'freaking us out' via CNBC

The number of homes for sale in America has been falling steadily for the past year, but the situation is apparently getting much worse as spring demand heats up.

"The inventory is reaching historic lows. It's never declined faster than it did last month. It's freaking us out — it's affecting our business; it's limiting our sales," said Glenn Kelman, CEO of Seattle-based Redfin, a real estate firm. "We're going to be fine in terms of market share, but I think the overall industry for the first time is seeing sales volume really limited by the inventory crunch."

Read more...Real estate CEO: Record low housing inventory is 'freaking us out'

Wednesday, May 17, 2017

Ouch! D-FW apartment rents set record in April via Dallas News

Dallas-area apartment renters had to dig a little deeper in April to keep a roof over their heads.

The average rent for a Dallas-area apartment hit a new high of $1,141 a month, according to analysts at consulting firm Axiometrics.

That represents about a 3 percent rise in average rents from April 2016. It means renters are paying about $32 a month more than a year ago.

Read more...Ouch! D-FW apartment rents set record in April | Real Estate | Dallas News

Tuesday, May 9, 2017

Texas Economy Expanding at a Moderate Pace via Dallas Fed

Recent data signal moderate growth in Texas economic activity. While payroll employment growth in the first quarter decelerated slightly from the third and fourth quarters, Texas continued to exceed the U.S. rate. The state unemployment rate edged up to 5 percent in March but remained below its natural rate. Texas Business Outlook Survey (TBOS) headline indexes in April pointed to somewhat slower growth in manufacturing and services but a pickup in retail.

Read more...Texas Economy Expanding at a Moderate Pace - Dallasfed.org

Zumper 2017 rent report for Texas cities via Real Estate Center

May's 2017 edition of Zumper's National Rent Report brought another month of mixed changes.

Overall, the Zumper National Rent Index showed that one bedroom median rent increased slightly by half a percentage point to $1,169 and two-bedroom median rent increased 1 percent to $1,390.

Read more...NewsTalk Texas - Real Estate Center

Friday, May 5, 2017

Austin Economic Indicators May 2017 via Dallas Fed

The Austin economy continued to expand in March. Growth in the Austin Business-Cycle Index held steady at slightly below its long-term average. Jobs grew at an accelerated rate, while the unemployment rate was stable at a low level compared with other large Texas metros. Average wages have grown at a rapid pace, and residential real estate markets, though softening somewhat in recent months, remain tight.

Yardi: Rent Growth Drops to 2.0% YOY in April via Multifamily Executive Magazine

The average U.S. multifamily rent rose by $3 in April, reaching $1,314, according to Yardi Matrix’s monthly survey of apartment markets. At the same time, the national rent-growth rate has slowed to below long-term growth trends. Rents rose by 2.0% in April on a year-over-year (YOY) basis, down 50 basis points (bps) from March. This represents a significant drop from the 5.5% rent growth seen a year ago.

Read more...Yardi: Rent Growth Drops to 2.0% YOY in April | Multifamily Executive Magazine

Thursday, May 4, 2017

Houston Economic Indicators May 1 2017 via Dallas Fed

Economic data were mostly positive for Houston in the first quarter of 2017. Labor market data were strong, international trade flows through the port expanded, the housing market firmed and the business-cycle index indicated a modest expansion. However, the office market is still softening, and job ads continue to send a contrary signal. Taken together, the data suggest a cautiously optimistic outlook for Houston.

Wednesday, May 3, 2017

Dallas-Fort Worth Shows America's Evolving Multi-Family Housing Market via Forbes

This March, I wrote here about the three major U.S. metros that have stood above the rest for housing permits: Houston, Dallas and New York City. Between 2010 and 2016, each of these three metros have approved 273,000 units or greater, while Los Angeles was a distant 4th at 160,000. Perhaps more notably is that many of their units have been multi-family apartments. While that isn't surprising for New York City, it may defy stereotypes about the underlying built pattern of the two great Texas metros. And while Houston has suffered a recent slowdown in multi-family construction, Dallas-Fort Worth (D-FW) continues to be an instructive case study in the market evolution of this built form.

Read more...Dallas-Fort Worth Shows America's Evolving Multi-Family Housing Market

Dallas Job Stats Point to Continued Growth via Multi-Housing News Online

Job growth continues to be led by metros in the South and West, according to March data from the Bureau of Labor Statistics, with Dallas as a prime example of the trend.

Of the top 20 fastest-growing metros in job growth in the 12 months ending in March, six were in Florida and three each were in Utah and Texas. The top Midwestern metro was Grand Rapids, Mich. (ranking 22nd at 2.9 percent), while the top Northeastern metro was Philadelphia (49th at 2 percent). The U.S. added 2.2 million jobs in the 12-month period ending in March, a growth rate of 1.5 percent.

Read more...Dallas Job Stats Point to Continued Growth

Here’s the first sign that America may be pivoting from renting back to owning homes via MarketWatch

The homeownership rate has been on the decline ever since the peak of the housing bubble a decade ago.

Now it’s making a comeback, of sorts.

Overall American homeownership stood at 63.6% in the first quarter, the Census Department said Thursday. That’s down a tick from 63.7% in the fourth quarter, but up from a year ago, which is economists’ preferred way to gauge the data.

Read more...Here’s the first sign that America may be pivoting from renting back to owning homes - MarketWatch

Friday, April 28, 2017

RCA: Apartment Deal Volume Falls 35% in 1Q via Multifamily Executive Magazine

Apartment deal volume fell by 35% year over year (YOY), on sales of $26.0 billion, in the first quarter of 2017, according to the latest U.S. Capital Trends report by RCA Capital Analytics. This drop is the sharpest YOY decline this quarter across all property market sectors. As of this report, the multifamily market is the nation’s No. 2 real estate investment market, behind the office sector.

Despite this drop in volume, apartment investment activity is still ahead of the $17.0 billion average pace set in the first quarters of 2001 through 2016, and prices remain tight.

Read more...RCA: Apartment Deal Volume Falls 35% in 1Q | Multifamily Executive Magazine

Thursday, April 27, 2017

DFW Economic Indicators, April 2017 via Dallas Fed

The Dallas–Fort Worth economy expanded in March, with payroll employment rising an annualized 2.0 percent. In the first quarter, DFW employment gains outpaced the state and national growth rates. Dallas and Fort Worth business-cycle indexes also posted strong growth in March, and unemployment edged down in both metros. Single-family housing permits rose further, in part supported by strong job and population growth in the metroplex.

Garden Style Apartment Communities Outperform the Market via National Real Estate Investor

In garden apartment communities across the country, the average rents are rising quickly and occupancy rates are high.

“It’s a really attractive type of development to own and operate,” says Greg Willett, chief economist for MPF Research, a division of RealPage Inc.

But developers are building far fewer garden apartment complexes than they used to. The large sites used to build these low-density rental communities are getting harder to find. As a result, garden apartment complexes have relatively little competition in their price range. So even though they are often based in locations that are far from the walkable, urban neighborhoods where renters say they want to live, garden apartments communities are often fully occupied and are experiencing rent growth.

Read more...Garden Style Apartment Communities Outperform the Market

ULI Forecast Calls for Moderate Growth for Most U.S. Real Estate Sectors via Urban Land Magazine

While the growth of e-commerce and the shifting needs for open and smaller office spaces are having a marginal impact, most of these disruptive forces are still years away from having a substantive negative impact on the retail, office, and other industry sectors, said panelists discussing the latest ULI Real Estate Consensus Forecast during a webinar. While each sector faces its own challenges, “real estate remains an attractive play,” said K.C. Conway, senior vice president of credit risk management for SunTrust Bank.

The forecast, which polled 53 economists and analysts, reflected a distinct “restrained optimism,” ULI leader and survey participant William Maher, director of North American strategy and research at LaSalle Investment Management, noted in a statement. Despite concerns, most markets will continue to grow at a moderate rate for the next two years, respondents said.

Read more...ULI Forecast Calls for Moderate Growth for Most U.S. Real Estate Sectors - Urban Land Magazine

Tuesday, April 25, 2017

ALN Monthly Newsletter April 2017 via ALN Apartment Data

ALN Data just released their March 2017 stats on occupancy and rents for over 80 markets. In Texas, it includes DFW, Austin, Houston, San Antonio, Lubbock, Amarillo, Abilene, Corpus Christi and more. It is a must read from a great provider of apartment data.

Read more...ALN Monthly Newsletter April 2017 via ALN Apartment Data

Thursday, April 20, 2017

Renters Say Down Payment Costs Prevent Home Purchases via Multifamily Executive Magazine

Nearly 70% of renters say they can’t buy a home due to the expensive down payment, despite the fact that a monthly mortgage payment might be cheaper than rent, according to the first Zillow Housing Aspirations Report, released Wednesday.

Two-thirds (67.9%) of renters nationwide cite saving for a down payment as the biggest hurdle to buying a home; 53.2% also mention qualifying for a mortgage as an obstacle; 50% say debt is holding them back; and 38.5% call out job security.

Read more...Renters Say Down Payment Costs Prevent Home Purchases | Multifamily Executive Magazine | Rent Trends, Home Prices, Rent vs. Own

Wednesday, April 19, 2017

Eleventh District Beige Book 4-19-17 via Dallas Fed

Economic activity in the Eleventh District expanded moderately over the past six weeks, with a slight acceleration from the prior reporting period. Manufacturing output strengthened further, and activity among nonfinancial services firms increased. Retail sales rose at a somewhat faster clip, including a pickup in auto sales. Home sales rose during the reporting period, although apartment demand slowed slightly. Loan demand strengthened and the energy and agricultural sectors improved. Employment and wages increased moderately, as did prices. Outlooks generally improved, with most contacts expecting 2017 to be stronger than 2016.

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

Tuesday, April 18, 2017

What Could Throw Apts. Off Course? via GlobeSt.com

Like all commercial real estate, the apartment market is vulnerable to a rise in interest rates. Cap rate spreads have fallen in the last few months to offset the gains in rates, but that cannot last forever, Ten-X’s senior quantitative strategist. Chris Muoio tells GlobeSt.com. As we previously reported, according to the firm’s March Commercial Real Estate Nowcast. the apartment sector posting a 1.2% gain in pricing during March—the strongest growth among any of the five CRE sectors.

We spoke with Muoio about the factors that make apartment investment so strong and whether or not the sector is iron-clad at this point.

Read more...What Could Throw Apts. Off Course? | GlobeSt.com

Apartment Vacancy Rate “Wobbling,” But Not Rising via National Real Estate Investor

Construction cranes crowd the skies over cities like New York and Los Angeles, as apartment developers build as many new units as they can. But strong demand for apartments continues to fill most new properties.

“New apartment construction has been robust across the U.S., yet occupancy growth has moved in step with supply growth,” says Barbara Byrne Denham, senior economist with research firm Reis Inc. “Construction is expected to be higher this year, but thus far, absorption has kept pace.”

Overall, the percentage of vacant apartments continues to wobble in the 4.0 percent range.

Read more...Apartment Vacancy Rate “Wobbling,” But Not Rising

Friday, April 14, 2017

D-FW apartment boom shows no sign of a slowdown with 50,000 plus units on the way via Dallas News

Dallas-Fort Worth was already the top apartment building market in the country before starts increased by more than 95 percent in the first two months of 2017.

Thousands more apartments are on the way in North Texas.

While analysts say that the spike in apartment construction in the early months was a fluke, don't look for a halt of apartment building in the D-FW area.

Read more...D-FW apartment boom shows no sign of a slowdown with 50,000 plus units on the way | Real Estate | Dallas News

Wednesday, April 12, 2017

South, West Metros Lead for Population Growth in 2016 via MPF Research

Spring is in the air, and that can mean only one thing: new Census population estimates, of course. The Census Bureau just released their eagerly anticipated (among a certain set) population estimates for 2016. Of particular interest is the year-over-year population change among U.S. metros, which helps shed some light on a few apartment market trends over the last year.

Read more...South, West Metros Lead for Population Growth in 2016 - MPF Research

More Renters Expect to Keep On Renting via GlobeSt.com

Trading a rental for the dream of homeownership? Not so fast, according to the latest Freddie Mac survey of renters. An even larger majority of those surveyed said they expect to rent their next home: 59%, up from 55% six months ago.

Not surprisingly, the biggest gains in this cohort were seen among younger Millennials, for whom homeownership may be a foreign concept. Seventy-three percent of those surveyed said they planned to rent their next home, compared to 64% in September 2016. Another group that registered a preference for staying in the renter pool was suburban households, up from 48% six months ago to 57% in the most recent Freddie survey.

Read more...More Renters Expect to Keep On Renting | GlobeSt.com

Tuesday, April 11, 2017

New from MPF Research: Apartment Occupancy, Employment Growth via Property Management Insider

Multifamily occupancy dropped, especially in the luxury product segment, with a wave of new supply coming online during the colder months, when leasing activity is seasonally slow.

A 1st quarter 2017 report draws on data from RealPage’s Axiometrics and MPF Research to evaluate those supply-demand fundamentals.

The new findings also reveal the top 12 metros for pricing power. Sacramento and Seattle lead the regionally diverse rankings, registering respective annual rent growth of 9.8% and 7.9% for the period.

Read more...New from MPF Research: Apartment Occupancy, Employment Growth

Austin Economic Indicators April 2017 via Dallas Fed

Austin continued its economic expansion in February, albeit at a slower pace. The Austin Business-Cycle Index softened and grew below its long-term average. Job growth slipped, and the unemployment rate rose notably, although it remains the lowest among Texas’ major metro areas. Population growth remains strong in Austin, suggesting that despite a very low unemployment rate, the metro is likely to continue to have the workers to support healthy job growth in 2017.

D-FW apartment starts soar more than 95 percent in first two months via Dallas News

Seems like forever I've been quoting folks that the pace of apartment building in North Texas is sure to slow soon.

I wouldn't count on that.

During the first two months of 2017, developers started building almost twice as many apartments in the Dallas-Fort Worth area as they did in the same period of last year, according to data from MPF Research and the U.S. Census Bureau.

Read more...D-FW apartment starts soar more than 95 percent in first two months | Real Estate | Dallas News

Yardi: Rent Gains Return in March, but Growth Continues to Moderate via Multifamily Executive Magazine

March’s $6 gain marked the first positive change in the average U.S. monthly rent in five months and the most significant gain since last June, according to Yardi Matrix’s Matrix Monthly rent survey report. The average U.S. monthly rent is now $1,312, according to the firm's monthly survey of 121 metro markets.

On a year-over-year (YOY) basis, rents rose 2.7% in March, down 10 basis points (bps) from February and 270 bps from one year ago, when the YOY rent-growth rate was twice as high, at 5.4%.

Read more...Yardi: Rent Gains Return in March, but Growth Continues to Moderate | Multifamily Executive Magazine

Friday, April 7, 2017

Reis: Rent-Growth Deceleration Continues in 1Q '17 via Multifamily Executive Magazine

The average U.S. apartment asking rent grew 0.4% in the first quarter of 2017, up to $1,315, and by 3.3% on a year-over-year (YOY) basis since the first quarter of 2016, according to Reis’1Q 2017 Apartment Sector Preliminary Trends Release. The research firm’s findings mark a significant deceleration in rent growth from the pace seen one year ago, when YOY rent growth exceeded 5%.

Effective rents, meanwhile, have grown 0.3% in the past quarter and 3.1% YOY. Reis’ Barbara Denham attributes the growing divide between asking and effective rents to the increasing use of concessions to attract and secure occupants.

Read more...Reis: Rent-Growth Deceleration Continues in 1Q '17 | Multifamily Executive Magazine