Tuesday, June 19, 2018

Do Multifamily Concessions Point To Softening? via GlobeSt.com

Developers are experiencing continued demand with upward rent pressure in cities with job growth, especially on the coasts and in the Sunbelt. More than 1 million new apartments have been built across the country since 2015, the most in 30 years. Multifamily construction starts continue to be unusually high, at 452,000 units, up 14% in March, the largest seasonally adjusted rate since October 2016, according to Census Bureau reports.

Texas has been one of the most prolific in creating new housing. Houston and Dallas can lay claim to being among the most dynamic: Those markets produced roughly twice as many apartments since 2015, with 60,964 and 57,000 respectively, according to the National Apartment Association.

Read more...Do Multifamily Concessions Point To Softening?

Demographic and Generational Shifts Seen as Key Supply-and-Demand Drivers for Apartment Operators via Costar

Deeming them nearly as important as development constraints and rising prices, experts at the National Apartment Association’s Apartmentalize conference in San Diego pointed to demographic and generational shifts as key supply-and-demand drivers in the U.S. multifamily industry.

Those factors play major roles in when consumers decide to rent, how long they stay in their apartments, and when - or if - they eventually leave apartment life to buy homes of their own. They also impact how apartment operators attract and retain tenants, and what kinds of on-site amenities and services they must offer.

Read more...Demographic and Generational Shifts Seen as Key Supply-and-Demand Drivers for Apartment Operators

Monday, June 18, 2018

DFW investment property buys slowed in the first quarter via Dallas News

Dallas-Fort Worth's deal flow took a dip in the first quarter.

Cushman & Wakefield reports that the volume of investment property sales in North Texas fell by 17 percent from first quarter 2017. The decline follows years of big gains in D-FW real estate activity.

There were first quarter, year-over-year declines in almost every type of investment property sales.

Read more...D-FW investment property buys slowed in the first quarter

Friday, June 15, 2018

Reis: Investor Interest in Multifamily Remains High via Multifamily Executive

Both GDP growth and employment growth have remained steady over the past eight years, Reis senior economist Barbara Byrne Denham reported in the firm's Q1 Capital Markets Briefing, held May 31.

GDP growth was 2.2% in the first quarter of 2018, despite the expectations of some analysts that the recent tax reform bill would boost GDP right away. Denham attributes the quarter’s “sluggish” GDP growth to low consumption growth, at 1.0%, and a 2.0% drop in residential fixed investments, and notes that many believe the impact of the new tax code will be felt in later quarters.

Read more...Reis: Investor Interest in Multifamily Remains High

Thursday, June 14, 2018

Austin Economic Indicators 6/8/18 via Dallas Fed

Austin economic activity held steady in April. The Austin Business-Cycle Index continued to grow well above trend. Although job growth softened in April, the unemployment rate remained low. Wages continued to rise, aiding home affordability.

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

At long last, all Dallas apartments will have to offer recycling via Dallas News

Dallas apartment complexes with eight or more units will have to provide recycling for their residents by 2020.

The City Council voted unanimously Wednesday to approve the new recycling mandate, which is meant to help push Dallas toward its "zero-waste" goals and divert some materials from landfills. Council member Sandy Greyson said the new ordinance "is really going to move the needle considerably."

Read more...At long last, all Dallas apartments will have to offer recycling via Dallas News

Tuesday, June 5, 2018

Multifamily Investors Face a Cutback in Loan Size via National Real Estate Investor

Rising interest rates are already making a difference for apartment properties. Borrowers can no longer secure the large permanent loans that have become used to.

“Delivering full-leverage loans has become a challenge,” says Dustin Dulin, managing director in the capital markets platform of real estate services firm JLL. “It is not as easy to underwrite the deals… Back in 2015, almost every deal underwrote cleanly.”

The change is carving a hole in the budgets of borrowers who need to buy or refinance apartment properties.

Read more...Multifamily Investors Face a Cutback in Loan Size | National Real Estate Investor

Multifamily Rent Growth Stalls in Top Markets via National Real Estate Investor

While apartment rents are still growing nationally, in a few cities and submarkets rents are growing more slowly or even beginning to shrink.

“The only spots where you might find effective rents dropping are in locations affected by a large number of new developments leasing up,” says Ron Witten, founder of data firm Witten Advisors, based in Dallas. “The concessions which these projects offer during initial lease-up sometimes spread to nearby properties.”

Read more...Multifamily Rent Growth Stalls in Top Markets | National Real Estate Investor

Wednesday, May 30, 2018

Eleventh District Beige Book 5/30/18 via Dallas Fed

The Eleventh District economy expanded at a solid pace over the past six weeks. Growth in manufacturing increased. Expansion in the energy and service sectors continued at about the same pace, while retail spending was mixed. Home sales continued to rise but apartment markets softened slightly. Hiring was solid across most sectors, and widespread labor shortages continued. Wage and price pressures remained elevated, and several contacts noted a sharp rise in the cost of steel and aluminum. Outlooks remained fairly optimistic, but tariffs and trade-related concerns were creating uncertainty.

Eleventh District Beige Book - Dallasfed.org

Houston Economic Indicators 5/29/18 via Dallas Fed

Overall, the outlook for Houston remains positive. Recent job growth has been very strong and broad based, and the region is likely to receive a tailwind from continued strength in the U.S. and Texas economies. Local leading economic indicators suggest continued positive job gains the remainder of the year but at a somewhat slower pace.

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

Multifamily Rent Growth Stalls in Top Markets via National Real Estate Investor

While apartment rents are still growing nationally, in a few cities and submarkets rents are growing more slowly or even beginning to shrink.

“The only spots where you might find effective rents dropping are in locations affected by a large number of new developments leasing up,” says Ron Witten, founder of data firm Witten Advisors, based in Dallas. “The concessions which these projects offer during initial lease-up sometimes spread to nearby properties.”

Read more...Multifamily Rent Growth Stalls in Top Markets | National Real Estate Investor

Wednesday, May 23, 2018

Apartment Market Weathers the Storm of New Supply via National Real Estate Investor

Apartment landlords can no longer raise rents like they used to. So many new apartment units are opening that the percentage that vacancy is inching higher across the country.

This year “will likely remain challenging for many landlords and apartment investors," says Victor Calanog, chief economist and senior vice president in the New York City office of data firm Reis Inc.

Strong demand for apartments has helped limit the damage from new supply. Apartment rents are likely to keep growing on average through 2019, even though rents are not growing nearly as much as they used to.

Read more...Apartment Market Weathers the Storm of New Supply

Thursday, May 17, 2018

Yardi: Multifamily Rent Growth Stays Strong in April via Multifamily Executive Magazine

The national average U.S. multifamily rent rose by $4, to $1,377, in April 2018. This marks the second straight month of $4 growth and a $10 increase in the national average over the past two months, following a period of relatively flat rent growth from the summer of 2017 through February 2018.

On a year-over-year (YOY) basis, rents rose 2.4% through April, down 20 basis points (bps) from March but close to the market’s 2.5% average growth range. The "Renter by Necessity" (RBN) apartment market’s rents rose 3.0% YOY at the national level, maintaining a 140 bps rent-growth difference from the "Lifestyle" renter market's rent growth (1.6% YOY).

Read more...Yardi: Multifamily Rent Growth Stays Strong in April | Multifamily Executive Magazine

MBA Forecasts a Dip in Mortgage Originations via National Real Estate Investor

Lenders facing stiff competition to place capital may face an even tougher road ahead given the latest forecast from the Mortgage Bankers Association that is predicting a 2 percent decline in originations in 2018.

Last year was a record year for commercial and multifamily mortgage originations at $530 billion. “We’re anticipating that 2018 will be down just a little bit from 2017, but we are still expecting a strong year,” says Jamie Woodwell, vice president in the MBA’s Research and Economics group.

Read more...MBA Forecasts a Dip in Mortgage Originations

New report: Dallas' skyline has most room to grow of any U.S. city via Dallas News

Dallas' skyline has a lot more room to grow if researchers have it right.

When it comes to development sites, downtown Dallas has the greatest development potential, according to a new study.

Big D already has one of the busiest downtowns with new apartments and retail developments, office buildings opening and a program to build four new downtown parks.

But there's even more property available to ramp up construction in downtown Dallas, according to a new report by researchers at Yardi Systems Inc.

Read more...New report: Dallas' skyline has most room to grow of any U.S. city | Real Estate | Dallas News

ALN Monthly Market Stats May 2018 via ALN Apartment Data

ALN Data just released their April 2018 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 May 2018 via ALN Apartment Data

Tuesday, May 15, 2018

Commercial Vacancy Rates Remain Low, but Rent Growth Slowed in 2018:Q1 via Nareit

Vacancy rates remained low in the first quarter of 2018 for the major commercial property sectors. Vacancy rates were unchanged among national office, retail and industrial markets, and ticked down 10 basis points in apartment markets, according to recent data from CoStar.

Market conditions cooled a bit, however, as rent growth decelerated slightly for most property sectors. Industrial properties are outpacing the other sectors with rent growth of 6.0 percent over the past year, only slightly off the pace in 2016 and 2017. Rent growth of office and retail properties decelerated as well, to 1.7 percent and 1.8 percent, respectively. Apartments were the outlier again, with a 20 basis point pickup in rent growth, to 2.6 percent.

Read more...Commercial Vacancy Rates Remain Low, but Rent Growth Slowed in 2018:Q1 | Nareit

First Quarter Performance Shows US Apartment Market Coming Back to Earth via CoStar Group

The high-flying apartment sector, which led all other property types in the economic recovery and became the darling of investors, is coming back to earth.

CoStar’s first quarter multifamily review and forecast predicts apartment rents will still increase but at a much slower pace and, in some markets, occupancy rates for multifamily properties will stall.

One factor in the moderating demand for apartments has been a change in homeownership rates.

Read more...First Quarter Performance Shows US Apartment Market Coming Back to Earth - CoStar Group

Dallas apartments offer one of the country's largest shares of free rent via Dallas News

North Texas has had one of the busiest apartment-building markets in the country the last few years.

And, the construction of thousands of apartments in a short period is creating opportunities for local renters.

Dallas is now one of the top U.S. markets for apartment freebies because of all the building, according to a report from Richardson-based RealPage.

Read more...Dallas apartments offer one of the country's largest shares of free rent | Real Estate | Dallas News

Wednesday, May 9, 2018

Has Multifamily Turned a Corner? via GlobeSt.com

The multifamily market appears to have turned a corner, with demand outpacing deliveries by more than two-to-one, according to Berkadia’s first quarter 2018 Houston multifamily report. Renters newly occupied 2,971 apartment units during the first quarter of the year–more units by far than any other metro area, except Dallas-Fort Worth and New York City (with 4,340 and 3,148 units newly occupied respectively).

Rea more...Has Multifamily Turned a Corner? | GlobeSt.com

Houston Economic Indicators 4/30/18 via Dallas Fed

Overall, the outlook for Houston remains positive. Coincident and leading indicators continue to suggest healthy growth in activity in the region. Exports are expanding, while real estate and construction data are more mixed. The existing-home market remains tight and construction employment has been boosted by post-Hurricane Harvey demand, but office vacancy rates have increased.

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

Friday, May 4, 2018

Austin Economic Indicators 5/4/18 via Dallas Fed

Austin economic activity accelerated in March. The Austin Business-Cycle Index grew at its fastest pace since late 2015, bolstered by strong employment growth over the first quarter of this year. The unemployment rate increased slightly but remained near a two-decade low. Regional real estate indicators point to robust housing growth, while manufacturing indicators suggest positive but moderating activity.

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

Tuesday, May 1, 2018

Single-Asset Sales Pick Up in the First Quarter via National Real Estate Investor

Investment sales volume lagged in the first quarter, possibly as a result of investors’ concerns over the cost of financing.

Data from research firm CoStar indicates that investment sales dropped 10 percent year-over-year—or about $13 billion—continuing a trend from 2017. Experts had already anticipated that the first quarter might be slow. Compared to the fourth quarter, sales volume dropped 26.0 percent. The fourth quarter is typically the strongest for investment sales.

Read more...Single-Asset Sales Pick Up in the First Quarter

Monday, April 30, 2018

DFW Economic Indicators 4/24/18 via Dallas Fed

Dallas–Fort Worth economic growth continued to be healthy in March. Payroll employment in the first quarter expanded at its fastest rate in a year and a half. Unemployment remained near multiyear lows, and the Dallas and Fort Worth business-cycle indexes expanded further. Office leasing activity moderated in the first quarter, while industrial demand remained solid.

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

Wednesday, April 25, 2018

Economic, Supply Growth Remains High in Dallas via Multi-Housing News

Fueled by one of the country’s best-performing economies and rapid population growth, the Dallas–Fort Worth multifamily market has stayed in high gear. While many large coastal metros are reaching saturation, both development and investment in DFW remain relatively unfazed.

The metro added 91,700 jobs in 2017, and its demographic expansion was nearly three times the U.S. average. Continuing to be a business-friendly area and a magnet for talent and corporate relocations, North Texas is rapidly generating positions across employment sectors, pushing up housing demand.

Read more...Economic, Supply Growth Remains High in Dallas

Monday, April 23, 2018

Texas Employment Forecast 4/20/18 via Dallas Fed

Incorporating March employment growth of 2.3 percent and leading index data, the Texas Employment Forecast suggests jobs will grow 3.4 percent this year (December/December), with an 80 percent confidence band of 2.2 to 4.6 percent. Based on the forecast, 417,500 jobs will be added in the state this year, and employment in December 2018 will be 12.8 million (Chart 1).

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

Thursday, April 19, 2018

How to Find Continued Value in Apartment Acquisitions via National Real Estate Investor

The stability, durability and continued capital flows into multifamily investing permeate today’s headlines, with industry pundits believing apartments to be the most popular product type with real estate investors in 2018, second only to industrial. Mixed signals abound among varying markets, and it’s important to dissect and triangulate the real data as the analytics don’t always tell the full story.

Read more...How to Find Continued Value in Apartment Acquisitions

As Interest Rates Rise, Where Do Valuations and Transaction Volumes Go? via Multi-Housing News Online

ears of warnings that rising Treasury rates would depress commercial real estate prices—during an extended period when rates stayed low and acquisition yields fell to record lows—have given the concept a “boy who cries wolf” quality.

Those warnings, however, will be tested now that the 10-year Treasury seems poised to continue its growth of the past 18 months, and volatility has roiled the bond and equity markets. No longer can the market rely on the unusually large premium between Treasury rates and cap rates to buffer the impact of higher interest rates and the likely increase in mortgage coupons.

Read more...As Interest Rates Rise, Where Do Valuations and Transaction Volumes Go?

Wednesday, April 18, 2018

Eleventh District Beige Book 4/18/18 via Dallas Fed

he Eleventh District economy expanded at a moderate pace over the past six weeks. Growth in the nonfinancial services sector accelerated, and retail sales rebounded. Loan demand growth picked up. Robust expansion in the energy industry continued, while growth in manufacturing eased somewhat. Home sales continued to rise. Hiring was solid across most sectors, and widespread labor shortages continued. Wage and price growth remained elevated, and several contacts noted a marked rise in the cost of steel. Outlooks, while still optimistic, have become more uncertain due to new tariffs and trade concerns.

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

Tuesday, April 17, 2018

Competition Intensifies for Value-Add Assets via National Real Estate Investor

For the past several years, investors have turned to the value-add strategy when seeking outperformance in a competitive commercial real estate landscape.

And it appears the interest in these type of deals has only intensified lately, with competition becoming increasingly stiff as the industry faces the likely end of the cycle and rent growths have moderated for core assets.

Read more...Competition Intensifies for Value-Add Assets | National Real Estate Investor

Friday, April 13, 2018

ALN Monthly Market Stats April 2018 via ALN Apartment Data

ALN Data just released their March 2018 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 April 2018 via ALN Apartment Data

Wednesday, April 11, 2018

Austin Economic Indicators 4/5/18 via Dallas Fed

Austin economic activity accelerated in February. The Austin Business-Cycle Index grew at its fastest pace since late 2015, bolstered by strong employment growth over the first two months of this year. The unemployment rate increased slightly but remained near a two-decade low. Regional real estate indicators point to robust housing growth. Census data for 2017 suggest that Austin’s population growth was well above the state average.

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

Prices Keep Rising for Apartment Properties via National Real Estate Investor

Investors keep looking for apartment buildings to buy at good prices. The search is leading them to smaller properties in smaller markets.

“Things continue to be very good in multifamily,” says John Sebree, national director of the national multi housing group with brokerage firm Marcus & Millichap.

The amount of money multifamily investors are spending has stabilized at a high level. Investors continue to accept relatively low yields on their acquisitions, even though interest rates rose substantially in 2017 and are expected to rise further. Part of the reason is that apartment rents continue to rise across the country, attracting investors to bid for new properties.

Read more...Prices Keep Rising for Apartment Properties

Friday, April 6, 2018

March 2018 Shows Best Rent Growth Performance via Multi-Housing News Online

March multifamily rents had its best performance since last summer, with average U.S. rents increasing by $4 to $1,371. Despite this, growth dropped 10 basis points year-over-year to 2.5 percent, decelerating from its peak of 5.4 percent growth in early 2016. Major concerns for the industry included peaking supply, declining occupancy rates and affordability, which had led many to speculate if the flattening growth since last summer was a natural pattern or if rents would remain flat for an extended period of time.

Read more...March 2018 Shows Best Rent Growth Performance

Apartment Completions Are Booming, But So Are Rents via CandysDirt.com

There may be a lot of apartments being built in Texas, but that’s not necessarily translating to more affordable rents, one economist said at a recent conference on affordable housing held at the Federal Reserve Bank of Dallas.

Greg Willett, chief economist at RealPage, told the group assembled that the same affordable housing issues that have begun to block families from purchasing homes have begun to crop up in the rental sector as well.

“We are starting to see the same affordability challenges in rental housing,” he said, adding that this issue is occurring despite a boom in apartment completions across the country.

Read more...Apartment Completions Are Booming, But So Are Rents

Wednesday, April 4, 2018

Houston Economic Indicators 4/3/18 via Dallas Fed

The outlook for Houston remains positive. Houston has had a robust start to 2018 job growth, broad measures of output have expanded, energy-related activity and related imports have continued to improve, and oil prices remain in a healthy range for the energy industry. However, lagged data on wages and retail sales suggest that income and spending had not yet turned up by the third quarter of 2017.

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

Tuesday, April 3, 2018

Embracing Disruption: The Apartment of the Future via Property Management Insider

As stewards of the multifamily housing industry, we each have visions for the apartment of the future. Some may see it as a techno-eccentric unit, a place in a world unto itself that stimulates the imagination and promotes self-indulgence in urban playgrounds. Others could argue it supports sophistication, lifestyle and basic essentials and redefines the old real estate axiom of location, location, location.

Talk to any developer or apartment operator and they’ll agree that the shape of multifamily now is likely to morph into something far beyond the traditional, even by today’s standards.

Read more...Embracing Disruption: The Apartment of the Future

It’s Time to Solve the Workforce Housing Supply Problem via Multifamily Executive Magazine

Drive down the road in most U.S. cities and it seems like every new multifamily development is billed as a luxury living experience. This situation is more than just clever marketing; it belies a growing problem: Many U.S. markets have a robust supply of high-end units but not much in the way of workforce housing.

According to the Urban Land Institute, workforce housing serves households making 60% to 120% of the area median income (AMI).

Read more...It’s Time to Solve the Workforce Housing Supply Problem | Multifamily Executive Magazine | Workforce Housing, Affordable Housing, Affordability, construction costs, Density, Land Costs, low-income housing tax credits, Urban Land Institute

RealPage: Rents Have Grown 28.5% This Cycle, Paced by Bay Area Metros via Multifamily Executive Magazine

Although the pace is slowing, apartment rental rates have been growing nationally for eight consecutive years, a new report from RealPage shows. And overall this cycle, which began in 2010, U.S. apartment rates have grown 28.5%.

On an individual basis, markets on the West Coast have led the way in terms of rent growth, including six of the top 10 leaders since 2010.

Read more...RealPage: Rents Have Grown 28.5% This Cycle, Paced by Bay Area Metros | Multifamily Executive Magazine | Rents, Rent Trends, Local Markets, Rent Growth, Markets, San Francisco-Oakland-Fremont, CA, San Jose-Sunnyvale-Santa Clara, CA

Monday, April 2, 2018

Texas Economic Indicators 3/26/18 via Dallas Fed

Texas economic growth remained robust in February. The state posted strong job gains, and unemployment remained low. The Texas Leading Index ticked down following several months of strong growth. Home inventories remained low, and home sales rose in the month, while indicators of residential construction were mixed.

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

Monthly Review of the Texas Economy 3/27/18 via Real Estate Center at Texas A&M

The Texas economy continues to outpace the U.S. economy in job creation. The state gained 285,200 nonagricultural jobs from February 2017 to February 2018, an annual growth rate of 2.3 percent, higher than the nation's employment growth rate of 1.6 percent (Table 1 and Figure 1). The nongovernment sector added 283,500 jobs, an annual growth rate of 2.8 percent, also higher than the nation's employment growth rate of 1.8 percent in the private sector (Table 1).

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

Houston Economic Indicators 3/21/18 via Dallas Fed

Recent economic data remain positive for Houston. January employment growth was healthy, and job growth in 2017 was stronger than initially estimated. Though business bankruptcy filings remain elevated, leading indicators of local employment growth have been improving and suggest Houston will receive a tailwind from the state and national economies.

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

Dallas-Fort Worth Economic Indicators 3/28/18 via Dallas Fed

DFW economic growth continued in February, with payroll employment expanding and unemployment staying low. Looking at the two-month period, employment growth has been strong at 3.0 percent. The Dallas and Fort Worth business-cycle indexes expanded last month. Housing affordability remained low in Dallas but improved slightly in Fort Worth in the fourth quarter. DFW house price gains outstripped those nationally last year, and home inventories remained very tight in February.

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

Friday, March 30, 2018

D-FW apartment rents inch up in first quarter as construction surges via Dallas News

North Texas apartment demand couldn't keep up with construction in the first quarter.

But residents still didn't escape a rent increase.

Average apartment rents in the Dallas-Fort Worth area were up 1.9 percent from the first quarter of 2017 to $1,081 a month, according to the latest data from RealPage. The Richardson-based apartment industry service firm estimates that net D-FW apartment leasing totaled 1,721 units in the first three months of 2018.

Read more...D-FW apartment rents inch up in first quarter as construction surges | Real Estate | Dallas News

Thursday, March 29, 2018

RealPage® Reports Cooling in U.S. Apartment Market Performance During the First Quarter’s Slow Leasing Period via RealPage

The U.S. apartment market’s performance stumbled during the first quarter of 2018. Occupancy backtracked to 94.5 percent in March, down from 95 percent a year earlier, according to real estate technology and analytics firm RealPage, Inc. (NASDAQ:RP). Annual rent growth cooled to 2.3 percent, the slowest pace of increase since the third quarter of 2010.

Read more...RealPage® Reports Cooling in U.S. Apartment Market Performance During the First Quarter’s Slow Leasing Period - News

Monday, March 26, 2018

Job Growth Strengthens Among Top 10 Metros in January via MPF Research

Hiring momentum experienced a slight pullback in January, with U.S. employers adding nearly 2.1 million jobs in the year-ending January 2018. That figure grew the nation’s job base 1.4%, according to preliminary data from the Bureau of Labor Statistics (BLS).

Among U.S. metropolitan areas, eight of the top 10 metros from December returned to the list for January, though in somewhat scrambled order. For the year-ending January 2018, New York retained its #1 spot with 91,000 jobs gained – up from 84,200 one month prior – and Los Angeles jumped three spots to #2. That move pushed Dallas to #3, despite the metro posting a job gain total roughly 2,600 greater than its December mark.

Read more...Job Growth Strengthens Among Top 10 Metros in January - MPF Research

Thursday, March 22, 2018

When will D-FW overtake Chicago to become the nation's 3rd largest metro area? via Dallas News

The Dallas-Fort Worth region, once again, added the most new residents of any metro area in the country -- roughly 400 per day, or a total of 146,238, over the year that ended in July, census data released Thursday shows.

That kept D-FW firmly in its spot as the nation’s fourth-largest metro, though the region is catching up to Chicago, whose population has been sliding as economic factors tip the scales in favor of Texas, experts say.

Read more...When will D-FW overtake Chicago to become the nation's 3rd largest metro area? | Demographics | Dallas News

ALN Monthly Market Stats March 2018 via ALN Apartment Data

ALN Data just released their February 2018 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 March 2018 via ALN Apartment Data

Monday, March 19, 2018

Dallas-Fort Worth Economic Indicators 3/14/18 via Dallas Fed

Dallas–Fort Worth economic growth was moderate in January. Revised data indicate that DFW employment expanded 2.4 percent in 2017—the second-fastest rate among Texas’ large metro areas, providing some momentum for continued sound growth in 2018. Unemployment remained low, and the Dallas and Fort Worth business-cycle indexes expanded in January following solid growth in 2017. Continued healthy job creation has been the driver for the DFW office and industrial markets.

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

Friday, March 16, 2018

February Rent Growth Hits Record Low via Multi-Housing News Online

U.S. multifamily rents barely changed within the last 30 days, according to Yardi Matrix’s monthly survey of 121 markets. Rents rose $1 to $1,364, an increase of 2.7 percent year-over-year through February. Down 10 basis points from the previous month, February’s growth was the weakest seasonal gain since the recovery started. According to the report, its been seven years since rents had increased any less than the current amount.

Read more...February Rent Growth Hits Record Low

Wednesday, March 14, 2018

U.S. Has Gap of Over 7.2 Million Affordable and Available Rental Homes via Housing Finance Magazine

The nation has a staggering shortage of 7.2 million affordable and available rental homes for extremely low-income (ELI) renter households, those with incomes at or below the poverty level or 30% of their area median income, according to the National Low Income Housing Coalition (NLIHC).

The organization’s new report, The Gap: A Shortage of Affordable Homes, calls for expanding investments in affordable housing programs that serve those with the lowest incomes.

Read more...U.S. Has Gap of Over 7.2 Million Affordable and Available Rental Homes | Housing Finance Magazine

Uncertainty is Taking a Toll on the EB-5 Program via National Real Estate Investor

The EB-5 Immigrant Investor program is approaching yet another critical extension deadline. If Congress sticks to its recent pattern, it is likely to make an 11th hour move to approve a short-term extension while it continues to negotiate reforms to the program. Yet that strategy of kicking the can down the road may be putting the program in jeopardy.

“Over the last few years, the EB-5 program has been plagued by these very short-term renewals,” says Jim Butler, chairman, global hospitality group, at the law firm Jeffer Mangels Butler & Mitchell LLP in Los Angeles. “That creates a lot of uncertainty and makes it very difficult for all the players in the industry to know what’s a sound move,” he adds.

Read more...Uncertainty is Taking a Toll on the EB-5 Program | National Real Estate Investor

Apartment Occupancy Rate Remains Strong, Though Down from its Peak via National Real Estate Investor

Developers opened a tremendous number of new apartment units in 2017. But the percentage of apartments that are occupied has barely shifted, despite competition for potential residents. Rents continue to grow in most markets.

“Occupancy is hovering around 95 percent, and that’s a healthy rate, especially with lots of product moving through initial lease-up,” says Greg Willett, chief economist with RealPage Inc., a provider of property management and software services.

Read more...Apartment Occupancy Rate Remains Strong, Though Down from its Peak | National Real Estate Investor

Preparing Multifamily Assets for Possible Market Correction via National Real Estate Investor

As the cycle matures, savvy multifamily investors are taking a look at the reality: a market correction could occur at any time. In advance of any downward movement, the best owners and managers are examining what can be done proactively to recession-proof properties.

Read more...Preparing Multifamily Assets for Possible Market Correction | National Real Estate Investor

Tuesday, March 13, 2018

Texas Employment Forecast 3/9/2018 via Dallas Fed

Incorporating January employment growth of 2.5 percent and leading index data, the Texas Employment Forecast suggests jobs will grow 3.3 percent this year (December/December), with an 80 percent confidence band of 1.8 to 4.8 percent. This is up from the previous estimate of 2.8 percent. Based on the forecast, 407,900 jobs will be added in the state this year, and employment in December 2018 will be 12.8 million (Chart 1).

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

Thursday, March 8, 2018

More Apartment Landlords Offer Free Rent to Lure Tenants via National Real Estate Investor

As the percentage of vacant apartments creeps higher in cities and towns across the country, more property managers are offering months of free rent to potential residents to get them to sign leases.

Not all segments of the market are afflicted equally, however. Managers of apartments at newly constructed properties and those that compete with new construction for renters are the most likely to have to offer something extra to close the deal.

Read more...More Apartment Landlords Offer Free Rent to Lure Tenants

Austin Metro Report: March 2018 via Zumper

The Zumper Austin Metro Report analyzed active listings in February across 13 metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Texas state median rent was $921 last month.

Read more...Austin Metro Report: March 2018

Eleventh District Beige Book 3/7/18 via Dallas Fed

The Eleventh District economy expanded at a moderate pace over the past six weeks. The manufacturing sector continued to expand robustly, energy activity increased, and home sales continued to rise. Growth slowed slightly in financial and nonfinancial services, while retail sales declined modestly. Hiring was strong across most sectors. Widespread reports of labor market tightness and difficulty finding qualified workers continued, and more firms responded by raising wages than in prior reporting periods. Price pressures remained elevated, and in some cases intensified. Outlooks remained broadly optimistic, although some uncertainty persisted.

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

Monday, March 5, 2018

Austin Economic Indicators 3-2-18 via Dallas Fed

Austin economic growth remained robust in January. According to revised data, employment grew 4.2 percent in 2017, the fastest rate among Texas’ large metro areas. Third-quarter data show high-tech services employment accelerated sharply and likely finished the year at a pace well above overall job growth. Housing affordability was steady in the fourth quarter, while survey data suggest manufacturing activity has flattened out in recent months.

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

Friday, March 2, 2018

Why do D-FW apartment rents vary so much, even within the same complex? via Dallas News

If you’re a renter in Dallas — particularly if you moved here from California, where combing through Craigslist posts is a rite of passage — you’ve likely experienced the disorientation that comes with apartment-hunting in one of the nation’s fastest-growing markets.

Plug in a few criteria on websites like Apartments.com, and you’ll get pulled down a rabbit hole full of vaguely enticing descriptions of pools, fitness centers and luxury interiors. Accompanying those descriptions, though, is a sometimes puzzling tangle of rental prices.

Read more...Why do D-FW apartment rents vary so much, even within the same complex? | Real Estate | Dallas News

Tuesday, February 27, 2018

Who pays the highest and lowest rents in the Dallas area? via Dallas News

Dallas-Fort Worth has one of the hottest economies in the country.

And it's bringing thousands of new residents to the area every year.

While many newcomers opt for apartments, there's also a huge demand for rental houses.

Read more...Who pays the highest and lowest rents in the Dallas area? | Real Estate | Dallas News

Job Growth Accelerates in December Data via MPF Research

Nationwide hiring picked up in December, with U.S. employers adding around 2.3 million jobs in 2017. That figure grew the country’s job base 1.6%, according to preliminary data from the Bureau of Labor Statistics (BLS).

Among U.S. metropolitan areas, nine of the top 10 metros from November returned to the list for December, but several changed places. New York, Dallas, Boston and Atlanta retained the top four spots, although Dallas and Atlanta experienced significant declines in total jobs gained compared to last year – down 41,600 and 34,700 positions, respectively. Those four markets, in addition to #5 Los Angeles, each made Amazon’s short list for HQ2. In an analysis of the remaining contenders, RealPage recently ranked Dallas and Atlanta among the three apartment markets best positioned for Amazon.

Read more...Job Growth Accelerates in December Data - MPF Research

Monday, February 26, 2018

Texas’ Fastest-Growing Apartment Market Cuts Rents in 2017 via MPF Research

Among the 50 largest U.S. apartment markets, only one suffered rent cuts in 2017 – Austin. Apartment operators in the Texas capital metro lowered rental rates 0.7% in the past year.

Pricing power has been pretty strong in Austin throughout much of the current cycle, despite heavy construction activity. In fact, 2017 marks the metro’s first annual rent decline in more than seven years. While it’s typical for Austin to lose pricing momentum toward the end of the year, the 4th quarter dive in 2017 was sharper than usual, with rents coming down 2.4%.

Read more...Texas’ Fastest-Growing Apartment Market Cuts Rents in 2017 - MPF Research

Rising mortgage rates hit new home sales hard, a bad sign for builders via CNBC

Sales of newly built homes are falling, and the culprit is clear. Homebuyers increasingly can't afford what they want. Higher mortgage rates, combined with the loss of homeowner tax breaks in some of the nation's most expensive markets, are taking away buying power.

Sales fell in December, when the new tax law was signed and then again in January, when mortgage rates moved higher. Sales are now at their lowest level since August of last year.

Read more...Rising mortgage rates hit new home sales hard, a bad sign for builders

Friday, February 23, 2018

Cap Rates’ Likely Direction is Up via GlobeSt.com

The general direction for cap rates this year will be up, CBRE says in its latest North America Cap Rate Survey. “The recent spike in inflation and anticipated higher interest rates this year will add upward pressure on cap rates, offsetting the downward forces of expected strong institutional and global capital flows,” says Spencer Levy, senior economic advisor and head of Americas research at CBRE.

This outlook follows a six-month period in which cap rates fell slightly overall, although they increased in the retail sector in last year’s second half, mainly on account of power centers. ”US cap rates were largely flat outside of the retail sector in H2 2017 though a shift from sale to refinance activity contributed to lower transaction volumes,” Levy says.

Read more...Cap Rates’ Likely Direction is Up | GlobeSt.com

Wednesday, February 21, 2018

ALN Monthly Market Stats February 2018 via ALN Apartment Data

ALN Data just released their January 2018 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 February 2018 via ALN Apartment Data

Tuesday, February 20, 2018

Apartment Completions Reach 30-Year High in 2017 via Multifamily Executive Magazine

Apartment completions reached a 30-year high in 2017 and beat the 2016 level by 30%, according to RealPage.

Last year, 364,713 units were completed in the 150 largest U.S. metros, more than doubling the long-term average and growing the U.S. apartment stock 2.1%.

The peak in completion volume was driven by 15 metros where construction has been particularly active in urban core areas, RealPage notes. Those 15 metros contributed roughly half of the nation’s new units in the past year.

Read more...Apartment Completions Reach 30-Year High in 2017 | Multifamily Executive Magazine

Friday, February 16, 2018

Major apartment developer: 'There is an acute crisis headed our way' via CNBC

Scan the downtowns of the nation's largest cities, and you are likely to see a staggering array of cranes.

Most of them are helping to build luxury apartment buildings. In fact, multifamily construction is now at a 40-year high; the trouble is, developers are putting up the wrong kinds of buildings. The luxury market is largely overbuilt, while there is a shortage of affordable rental housing, and developers are hamstrung by the now record-high cost of construction.

Read more...Major apartment developer: 'There is an acute crisis headed our way'

Tuesday, February 13, 2018

Dallas Metro Report: February 2018 via Zumper

The Zumper Dallas Metro Report analyzed active listings in January across 14 metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Texas state median rent was $913 last month.

Read more...Dallas Metro Report: February 2018

Why you're meeting more Chicago, Los Angeles and New York transplants in Texas via Dallas News

More than a half-million new residents move to Texas annually, according to the latest estimates by the Texas Association of Realtors.

And Dallas-Fort Worth captured the biggest metro share of the newcomers.

Texas had the second highest total of moves in the country, second only to Florida in 2016, according to the latest census data analysis by the Texas Association of Realtors.

Read more...Why you're meeting more Chicago, Los Angeles and New York transplants in Texas  | Real Estate | Dallas News

Wednesday, February 7, 2018

Thriving Texas Economy Expands Broadly via Dallas Fed

he Texas economy continues its broad expansion. Texas employment growth accelerated in the fourth quarter and was strong across most metros and industries. The Dallas Fed’s Texas Business Outlook Surveys (TBOS) showed notable strength in revenue and production in January, with the three-month moving averages of the headline indexes at levels well above their postrecession averages. However, labor markets continue to tighten, and price pressures are mounting.

Read more...Thriving Texas Economy Expands Broadly - Dallasfed.org

Tuesday, February 6, 2018

Houston Economic Indicators 1/30/18 via Dallas Fed

Economic data were mostly positive for Houston in December. Employment grew, and business-cycle and leading indexes were indicative of healthy economic output and future growth. Construction and real estate metrics were mixed but pointed to a tighter housing market and increased construction ahead. Overall, the outlook for Houston remains positive.

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

Where Are Multifamily Developers Going Next? via National Real Estate Investor

Multifamily developers are finding it more challenging to find new project sites in the current market.

“Because the cycle has run so long, finding individual development deals that make financial sense gets harder and harder, even with favorable overall market influences,” says Greg Willett, chief economist for RealPage Inc., a provider of property management software and services.

Read more...Where Are Multifamily Developers Going Next? | National Real Estate Investor

Austin Economic Indicators 2/1/18 via Dallas Fed

Austin economic growth remained robust in December. The Austin Business-Cycle Index accelerated as job growth remained above trend and the unemployment rate held at a very low level. Most indicators suggest that the regional real estate market picked up toward the end of last year, although multifamily activity appeared to cool after surging in the second quarter.

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

Friday, February 2, 2018

Kingsley: National Renter Satisfaction Steady Over Past 3 Years via Multifamily Executive Magazine

Over the past three years, national renter satisfaction has remained steady, with the rate fluctuating between 76.6% and 76.8%. However, for the first time since the end of 2014, renter satisfaction has surpassed that line, climbing to a high of 76.9% in Q4 2017. During the quarter, almost all of the top U.S. markets saw increases in renter satisfaction from 2016. The most significant increases over the past year occurred in Atlanta, Denver, and New York, with upticks of 1.6%, 1.8%, and 3.2%, respectively. Only one market, Dallas, experienced a significant decrease in renter satisfaction, with a 1.2% downturn compared with 2016.

Read more...Kingsley: National Renter Satisfaction Steady Over Past 3 Years | Multifamily Executive Magazine | Property Management, Economic Development, Economic Conditions, Economics, Customer Satisfaction, renter satisfaction, Renters, Kingsley Associates

Thursday, February 1, 2018

IRR Report: Cautious Optimism for Moderate, Steady Growth in 2018 via Commercial Property Executive

One month into the new year, Integra Realty Resources, the largest independent commercial real estate valuation services firm in North America, has issued its CRE forecast, Viewpoint 2018, with cautious optimism for moderate and steady growth as the main theme.

The firm’s 25th edition of the annual report provides a detailed look at the local and national commercial real estate market across five key property types—office, industrial, retail, hospitality and multifamily. It also examines economic trends and how they are affecting interest rates, capital markets and housing.

Read more...IRR Report: Cautious Optimism for Moderate, Steady Growth in 2018

Wednesday, January 31, 2018

LIHTC Market Faces “Mild Turbulence” Ahead via National Real Estate Investor

Investors and developers in the Low-Income Housing Tax Credit (LIHTC) market are adapting to a dramatic drop in pricing over the past year and expecting more uncertainty ahead.

The main concern is that demand for tax credits could diminish once institutional investors calculate the full impact from the Tax Cuts and Jobs Act. However, investors have not yet hit the pause button. They still have ample capital available and a desire to buy tax credits. That is good news considering the bumpy ride the sector has experienced over the past 15 months with pricing that has declined between 15 and 20 percent—effectively 15 to 20 cents per credit.

Read more...LIHTC Market Faces “Mild Turbulence” Ahead

Tuesday, January 30, 2018

Apt. Completions Hit 30-Year High via GlobeSt.com

Even as the construction pipeline has emptied out to a degree, new apartment supply reached a 30-year high in 2017. RealPage data show 395,777 completed units in the 150 largest US metro areas, a 46% increase over 2016 completions. However, on the whole demand continues to keep pace with the new supply.

Notwithstanding a fourth-quarter lull that’s characteristic of the season—albeit one that was accompanied by a rent decline at the deep end of the normal range—apartment demand remained strong for ’17 and kept occupancy levels steady at 95%. However, RealPage notes that operators have reined in their pricing strategies in an effort to fill all of those new units.

Read more...Apt. Completions Hit 30-Year High | GlobeSt.com

Apartment Renters Continue to Dominate Many of the Nation’s Cities via National Real Estate Investor

In close to half of the largest U.S. cities, the majority of households now rent rather than own their primary residence, according to a new report from RENTCafé, a Yardi company.

The share of households that own their homes has now declined to the level last seen in the1980s and early 1990s. That’s been great news for the multifamily sector, as those would-be homeowners have filled up apartments.

Read more...Apartment Renters Continue to Dominate Many of the Nation’s Cities | National Real Estate Investor

Friday, January 26, 2018

Dallas-Fort Worth Economic Indicators via Dallas Fed

The Dallas–Fort Worth economy expanded modestly in December. The Dallas and Fort Worth business-cycle indexes continued to grow at year end, posting solid growth in 2017. Employment growth in 2017 was slower than in 2016 but accelerated in the second half of the year, providing some momentum for continued sound growth in 2018. Through November, growth in DFW housing permits was well ahead of the state’s pace.

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

2017 Pricing Wariness Continues in New Year via GlobeSt.com

The Ten-X Commercial Real Estate Nowcast has now made it nine for nine, with the monthly pricing index—based on Google Trends and Ten-X’s own data—reflecting a further contraction in January and continuing an unbroken streak that began last May. Only office registered positive movement in values for the month, and overall CRE pricing is up just 1% from a year ago.

“The further declines in January demonstrate that commercial real estate investors continue to be wary,” says Peter Muoio, chief economist with Ten-X. “With pricing gains across all segments remaining at just 1% in 2017, we’ll be looking to see if recent tax cuts and strong economic fundamentals bring CRE pricing back up to positive gains throughout 2018.”

Read more...2017 Pricing Wariness Continues in New Year | GlobeSt.com

Wednesday, January 24, 2018

Texas Employment Forecast 1/19/18 via Dallas Fed

Incorporating December employment growth of 0.6 percent and leading index data, the Texas Employment Forecast suggests jobs will grow 2.8 percent this year (December/December), with an 80 percent confidence band of 1.2 to 4.4 percent. Based on the forecast, 349,900 jobs will be added in the state this year, and employment in December 2018 will be 12.7 million (Chart 1).

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

Texas Economic Indicators 1/22/18 via Dallas Fed

The Texas economy strengthened in 2017. Though Texas employment growth was slower than expected in December, the Texas Leading Index strengthened. Oil prices for the week ending Jan. 19 were 25 percent above their 2017 average. In November, exports rebounded to their pre-oil-bust levels. Median home prices appreciated less rapidly toward year end. Through November, year-to-date growth in single-family housing permits outpaced growth in multifamily permits.

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

Dallas had more new apartments than any U.S. metro in 2017 via Dallas News

Developers opened more new apartments in the Dallas area than any metro area in the country last year.

Almost 28,000 new rental units opened their doors last year, according to a new report by Richardson-based RealPage, a leading provider of property-management software.

New York City was second with 23,207 apartment completions, followed by third-place Houston with 21,404 apartments hitting the market in 2017.

Read more...Dallas had more new apartments than any U.S. metro in 2017 | Real Estate | Dallas News

Tuesday, January 23, 2018

ALN Monthly Market Stats January 2018 via ALN Apartment Data

ALN Data just released their December 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 January 2018 via ALN Apartment Data

Monday, January 22, 2018

Top Predictions for 2018 via Multi-Housing News

At the recent NMHC Apartment Strategies Outlook conference in Orlando, Doug Bibby, president of NMHC, opened the event by inviting the real estate professional in attendance to participate in a poll gauging their predictions for the year ahead. According to Bibby, the results gathered from last years’ poll ended up being 100 percent accurate, with predictions coming to fruition by the end of 2017. Last year’s poll questions had an emphasis on real estate fundamentals, drawing on topics commonly talked about in the multifamily market as of late, including new supply and absorption as well as moderating rent growth. While these topics continue to maintain their prevalence in the market, this year’s discussions had a heavier emphasis on tax reform and its implications.

So what do the biggest players in real estate believe is in store this year? Here are the poll results:

Read more...Top Predictions for 2018

Multifamily Market Outlook: Is There Fuel Left in the Tank? via MPF Research

As we move through the ninth year of our current cycle, I am often asked: when will the good times end for the U.S. multifamily market? And my answer continues to be cautiously upbeat. The best of times may be behind us, but the cycle likely still has legs.

Of course, there are some obligatory qualifiers for that optimism. Most economists continue to project sustained moderate growth; but if a national recession takes root, that changes everything. And gone are the days of a rising tide boosting all segments of the apartment market. Segmentation is the keyword going forward.

Read more...Multifamily Market Outlook: Is There Fuel Left in the Tank? - MPF Research

Friday, January 19, 2018

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

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

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

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

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

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

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

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

Thursday, January 18, 2018

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Tuesday, January 16, 2018

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

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

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

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

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

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

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

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

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

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

Friday, January 12, 2018

2018 D/FW State of Industry via Dimensions Online

What exactly is our state of the industry? Well, as of January 9, 2018, we have a insight of what to expect for the coming year as all those who attended our annual AAGD-AATC SOI Luncheon. If you want some insight into what to expect, then keep reading!

AAGD-AATC State of the Industry (SOI) economic forecast panelists Jay Denton, Senior Vice President with Axiomatics; Jeff Price, Managing Director with JLL Capital; and Brian O’Boyle, Vice Chairman of ARA foresee a strong 2018 for the DFW multifamily industry.

Read more...2018 D/FW State of Industry – Dimensions Online

Renting in Dallas Got More Expensive in 2017 via CandysDirt.com

Dallas rents grew 2.2 percent in 2017, bringing the median two-bedroom rent to $1,100. It’s not just in Dallas proper where rents are on the rise – rents increased in 2017 in all the major Dallas metro cities including Fort Worth (4.3 percent), Arlington (6.6 percent), Plano (2.9 percent), Garland (2.7 percent), and Irving (3.8 percent). There is some relief for Dallas renters — rents in Dallas proper have declined 0.3 percent over the past month, and are down 1.2 percent since their 2017 peak in August.

Read more...Renting in Dallas Got More Expensive in 2017 - CandysDirt.com

Investors Shift from Values to Income Stream via GlobeSt.com

The road ahead could lead to robust economic growth or to a slowdown, each with broad implications for commercial real estate values. In either case, investors should not look to asset appreciation as a given when calibrating their near-term strategies, CBRE’s Chris Ludeman tells GlobeSt.com.

Partly this is due to the age of the current cycle, in keeping with historical norms. “As we get longer in the cycle, where there’s less cap rate compression, investors rely more on property performance to drive value,” says Ludeman, global president, capital markets at CBRE. ‘And that’s what has happened.” The increasingly small share that price appreciation has had in the NCREIF Property Index’s quarterly returns lately is a case in point.

Read more...Investors Shift from Values to Income Stream | GlobeSt.com

Why Dallas-Fort Worth led the nation's top areas with over 100,000 new jobs via Dallas News

Dallas-Fort Worth’s job base grew the fastest of the nation’s dozen biggest metro areas over the year, the Bureau of Labor Statistics reported Thursday.

From November 2016 to November of last year, the D-FW metro added 100,400 jobs — a 2.8 percent increase. That was also the largest increase by sheer number.

Read more...Why Dallas-Fort Worth led the nation's top areas with over 100,000 new jobs | Economy | Dallas News

Thursday, January 11, 2018

Property Pricing Declines for 8th Consecutive Month in Ten-X CRE 'Nowcast' via Multifamily Executive Magazine

Annual commercial real estate pricing fell to a new low in December, according to the newest CRE Nowcast monthly pricing index by online commercial real estate marketplace Ten-X Commercial. Commercial pricing fell by 0.3% from November, marking the eighth consecutive month of decline and the lowest pricing-point growth in this cycle. The pricing gauge is now just 1.0% higher than it was one year ago.

“Despite positive economic news and a new tax law that should benefit CRE, investor sentiment has been quite weak, leading to a startling eighth straight month of pricing contraction for the sector,” says Peter Muoio, chief economist at Ten-X.

Read more...Property Pricing Declines for 8th Consecutive Month in Ten-X CRE 'Nowcast' | Multifamily Executive Magazine

Builders dialing back apartment starts across the country via Dallas News

After years of booming construction, America's apartment-building binge is cooling.

Nationwide apartment starts dropped by about 8 percent in 2017, with more declines forecast in 2018 and 2019.

"The cycle for apartments is leveling off," said Robert Dietz, chief economist with the National Association of Home Builders. "Rental vacancy rates are rising and rent increases are slowing.

Read more...Builders dialing back apartment starts across the country | Real Estate | Dallas News

Wednesday, January 10, 2018

Value-Add Opportunities in the Multifamily Sector Are Harder to Find via National Real Estate Investor

Investors are still looking for apartment properties that can be renovated to earn more rental income. But properties with value-add potential are becoming more difficult to find.

“There are very few properties left that are easily diagnosed as value-add opportunities,” says John Sebree, first vice president and director in the national multi housing group of brokerage firm Marcus & Millichap. “A lot of that product has already been upgraded.”

Read more...Value-Add Opportunities in the Multifamily Sector Are Harder to Find | National Real Estate Investor

Apartment Rents Unchanged in December via GlobeSt.com

Multifamily rents averaged $1,359 per month nationally at year’s end, the same dollar amount that Yardi Matrix’s monthly survey of 121 markets reported for November. On a year-over-year basis, rents in December were up 2.5%, an increase of 20 basis points from the previous month.

Although that’s a solid gain, it’s also the smallest annual increase recorded by Yardi Matrix since 2010, when annual rents fell 0.4%. Since then, rents have posted Y-O-Y gains of at least 3.3% per year—peaking at 5.4% in 2015—until 2017 broke the streak. Rents were down 0.3% for the fourth quarter, only the second quarter of negative growth since Q2 ’10.

Read more...Apartment Rents Unchanged in December | GlobeSt.com

Monday, January 8, 2018

Austin Economic Indicators 1-5-18 via Dallas Fed

Economic growth in Austin was robust in November. The Austin Business-Cycle Index accelerated as jobs remained strong and the unemployment rate held at a very low level. Employment and survey data suggest Austin’s manufacturing sector grew strongly in 2017.

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

CRE Pricing Flattens Out for 2017 via GlobeSt.com

Commercial property pricing looked much the same way at year’s end as it did at the start. Green Street Advisors said Friday its Green Street Commercial Property Price Index was essentially unchanged in December. The index, which measures values across five major property sectors, declined by less than 1% across the course of last year.

“Property pricing as a whole ended the year where it started it, but performance in 2017 really depended on the type of property,” says Peter Rothemund, senior analyst at Newport Beach, CA-based Green Street. “Industrial, life science, medical office, and manufactured home parks all were up big last year, while mall values fell more than 10%. Everything else was somewhere in between.”

Read more...CRE Pricing Flattens Out for 2017 | GlobeSt.com

Older, wealthier Americans are the new renters via CNBC

They can afford to buy homes. They just don't want to.

That is the growing sentiment among older, wealthier Americans, who are now downsizing from big suburban homes and increasingly turning to the rental market.

The number of higher-income rental households has doubled in the last decade, according to a new report from Harvard's Joint Center for Housing Studies, and that trend will likely increase in the coming years as more baby boomers downsize.

Read more...Older, wealthier Americans are the new renters

Friday, January 5, 2018

Coming in 2018: Smaller rent increases and slower home price growth via Dallas News

North Texas' booming real estate market has been a windfall for landlords.

The cost of renting all types of properties has jumped since the recession and are at an all-time high. But after years of gains, there are signs that 2018 will mean slower rent appreciation for some Dallas-Fort Worth real estate.

Read more...Coming in 2018: Smaller rent increases and slower home price growth | Commentary | Dallas News

Houston Economic Indicators 1/4/2018 via Dallas Fed

Houston economic activity continued to improve in November. The Houston Business-Cycle Index ticked up, employment totals surpassed pre-hurricane levels, and mining-related employment increased. A local leading index of economic indicators also increased strongly. Taken together, the outlook for Houston remains positive.

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

Investment Sales Took a Nose Dive before the End of the Year via National Real Estate Investor

Heading into 2018, there may be some bright spots for the investment sales market, even as total transactions dipped last year, according to a recent report from New York City-based research firm Real Capital Analytics (RCA) and figures from research firm CoStar.

Monthly deal volume for November 2017 was down 31 percent year-over-year, with $27.9 billion in transactions, according to RCA. Only the hotel sector saw a year-over-year increase in sales volume in November at 3 percent, while the remaining core property sectors experienced double-digit declines. Industrial was the only sector that posted growth in deal volume overall year-to-date through November.

Read more...Investment Sales Took a Nose Dive before the End of the Year

For 2018, Freddie Mac Expects Modest Growth After Year Of Innovation via GlobeSt.com

It is looking unlikely that either Freddie Mac or Fannie Mae will have used the 2017 multifamily lending caps of $36.5 billion that the Federal Housing Finance Agency set for the GSEs.

If so, it will be a telling development for a few reasons: one, it indicates that the uncapped businesses by the GSEs flourished for the year and two, it suggests that the reduced cap of $35 billion each that the FHFA set for 2018 should not hamper the multifamily finance market.

Read more...For 2018, Freddie Mac Expects Modest Growth After Year Of Innovation | GlobeSt.com

Thursday, January 4, 2018

It’s 8 Months Running for Price Declines via GlobeSt.com

Annual pricing gains have reached a new low for the current cycle, Ten-X Commercial said Wednesday in reporting its latest Commercial Real Estate Nowcast. Commercial pricing rose just 0.3% month-to-month in December, and is up just 1% from December 2016, marking the weakest appreciation pace since the downturn. “Despite positive economic news and a new tax law that should benefit CRE, investor sentiment has been quite weak, leading to a startling eighth straight month of pricing contraction for the sector,” says chief economist Peter Muoio.

Read more...It’s 8 Months Running for Price Declines | GlobeSt.com

Wednesday, January 3, 2018

Investors Expect 2018 to be Another Solid Year for Apartment Sales via National Real Estate Investor

Investors are looking forward to another strong year for apartment sales.

“Going forward, there is a bit of renewed optimism… and we are still at an elevated level when it comes to transaction volume,” says John Sebree, first vice president and national director of the national multi housing group for Marcus & Millichap.

Investors bought fewer apartment properties in 2017 than they had the year before—but 2016 was a record-breaking year for apartment sales. The total dollar volume of apartment sales in 2017 was still greater than the historical average. And with apartment properties still desirable and yields and interest rates still relatively attractive, 2018 seems poised to match it.

Read more...Investors Expect 2018 to be Another Solid Year for Apartment Sales | National Real Estate Investor

Can I Say ‘No Pot In My Apartments’ When It’s Legal? via Rental Housing Journal

Property managers are often confused and seeking to better understand how to handle the issues of legal marijuana and medical marijuana when it comes to tenants and rental housing in their states.

Laws are changing all the time in many states, just as California did on January 1, 2018, as voters approve different levels of permission when it comes to marijuana. This leaves property managers trying to figure out what should be in their leases around the issue.

You may be able to ban smoking, but do you really know what your tenants are eating or growing in their apartments? Do you really want to know if they are good paying tenants?

Read moe...Can I Say ‘No Pot In My Apartments’ When It’s Legal?

Tuesday, January 2, 2018

Texas Economy Finishes the Year Firing on All Cylinders via Dallas Fed

The Texas economy continues to expand at a steady pace as payroll employment rebounds strongly in the wake of Hurricane Harvey. The Texas Business Outlook Surveys suggest continued growth in the state’s manufacturing and service sectors. Early benchmark data for job growth in the first half of the year was revised down slightly from an annualized pace of 3.0 percent to 2.6 percent. When incorporating this data and adjusting for the hurricane effects, the Texas Employment Forecast projects 2.4 percent growth this year, slightly below the previous estimate of 2.6 percent. Job growth in 2018 is expected to stay on a similar pace and above the state’s long-term trend of 2.1 percent.

Read more...Texas Economy Finishes the Year Firing on All Cylinders - Dallasfed.org

Dallas-Fort Worth Economic Indicators Dec 2017 via Dallas Fed

The Dallas–Fort Worth economy expanded at a rapid clip in November. The Dallas and Fort Worth business-cycle indexes continued to post above-trend gains, as job growth was strong. Home affordability stayed low in Dallas in the third quarter and dipped in Fort Worth. Home prices rose further in both metros in part due to continued healthy job creation, which has been a driver for the DFW housing market.

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

Supply Catches Up With Demand in Austin via Multi-Housing News Online

Austin’s multifamily market shifted down a gear in 2017, due to 2016’s strong wave of supply. As a result, rents contracted 0.3 percent year-over-year through October, trailing the 2.3 percent U.S. average. Continued construction pushed the occupancy rate to 94.6 percent as of September, down 70 basis points in 12 months. This figure is likely to keep falling in the short term, while the metro absorbs the new stock.

Read more...Supply Catches Up With Demand in Austin

Housing Market Trends: 2017 Year in Review, 2018 Outlook via Multifamily Executive Magazine

Based on housing market research published throughout the year, the Apartment List Rentonomics team has analyzed the most important trends of 2017 and determined their potential impact on housing in 2018.

Homeownership
Following 12 years of negative growth, from 69.2% in 2004 to 62.9% in 2016, the U.S. homeownership rate appears to have hit its bottom and even increased slightly in 2017, up to 63.9% as of the third quarter. 2016’s homeownership rate was the lowest since 1965, while 2017’s homeownership rate was the highest since 2014.

Read more...Housing Market Trends: 2017 Year in Review, 2018 Outlook | Multifamily Executive Magazine | Market-Rate Housing, Rents, Rent Trends, Supply and Demand, Affordable Housing, Preservation of Affordability, Rent Growth, Renters, Rent vs. Own, Apartment List, Harvard Joint Center for Housing Studies