Monday, June 24, 2019

Texas, U.S. construction is headed for a slowdown via Dallas Morning News

Construction activity in Texas and the U.S. is headed into a decline.

But don't look for the kind of huge retreat we've seen at the end of previous cycles.

The building of projects including apartments and offices has already begun to slow in North Texas, said Robert Murray, chief economist at Dodge Data and Analytics.

Read more...Texas, U.S. construction is headed for a slowdown via Dallas Morning News

Almost 40 Percent of Dallas Apartment Hunters Hail From Elsewhere via Candys Dirt

According to a new report published by Apartment List, Dallas comes in 11th in the ranking of metropolitan areas that are attracting the most renters from elsewhere. The ranking was determined based on the share of inbound searches coming from outside the metro — 39.4 percent of those looking for a place to live in Dallas aren’t Dallas residents.

Read more...Almost 40 Percent of Dallas Apartment Hunters Hail From Elsewhere via CandysDirt.com

The Continuing Case for Apartment Rentals via NREI

Apartments have been the darling of real estate capital markets for the past seven-eight years. This deep into an outstanding run, some investors have begun to worry if the clock is approaching midnight for Cinderella. However, an examination of underlying demand dynamics suggests that the U.S. will require an extraordinary number of rental units over the next five to 10 years, even beyond. If supply remains in check, the following long-term lifestyle and demographic trends should allow apartments to remain the belle of the ball for some time to come:

Read more...The Continuing Case for Apartment Rentals via NREI

Texas jobless rate falls to all-time low since records started in 1976 via Dallas Morning News

Texas' jobless rate reached an all-time low last month at 3.5%, according to data released Friday by the Texas Workforce Commission.

May's unemployment rate is the lowest since the federal government started tracking state data in 1976. It's down from April, which matched a previous record at 3.7%.

Nationally, the jobless rate in May was 3.6%.

Read more...Texas jobless rate falls to all-time low since records started in 1976 via Dallas Morning News

Tuesday, June 18, 2019

National Multifamily Report – May 2019 via Multi-Housing News Online

Multifamily rent growth in 2019 continues to be positive, increasing by $5 to $1,442 in May, a $14 bump over the last three months. Although the numbers continue in an upwards projection, year-over-year rent growth has performed at a decreased level. Compared to 2018, rents fell 50 basis points from April to 2.5 percent, according to a Yardi Matrix survey of 127 markets.

Read more...National Multifamily Report – May 2019 via Multi-Housing News Online

DFW's May apartment leasing was the strongest in more than a decade via Dallas Morning News

An unexpected surge in May apartment leasing in North Texas has caused vacancies to fall.

Net apartment leasing last month totaled 7,960 units — one of the strongest monthly totals in decades.

"That demand total drastically surpasses the performance seen in any other single month since this economic cycle began in early 2010," said Greg Willett, chief economist with Richardson-based RealPage. "The previous high was about 4,200 units in March 2014."

Read more...D-FW's May apartment leasing was the strongest in more than a decade via Dallas Morning News

Monday, June 17, 2019

ALN Monthly Market Stats June 2019 via ALN Apartment Data

ALN Data just released their May 2019 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.

Read more...ALN Monthly Market Stats June 2019 via ALN Apartment Data

Thursday, June 6, 2019

Eleventh District Beige Book June 2019 via Dallas Fed

Moderate expansion continued in the Eleventh District economy, although there were scattered signs of deceleration later in the reporting period. Growth in the manufacturing, nonfinancial services, and retail sectors was solid in April but softened in early May. Home sales rose and loan volumes continued to increase, led by growth in residential real estate lending. Ample soil moisture boosted prospects in the agricultural sector, though prices for several commodity declined. Drilling activity weakened. Employment rose moderately, despite being constrained by a tight labor market. Wage growth remained elevated, while price growth was mixed. Outlooks were generally less positive than during the prior reporting period, with tariff and trade negotiations driving up uncertainty.

Read more...Eleventh District Beige Book June 2019 via Dallas Fed

Tuesday, May 28, 2019

Texas Economic Indicators May 2019 via Dallas Fed

Texas economic indicators point to solid expansion in April. The state posted strong job growth and record-low unemployment, indicating that labor markets remain tight. Oil prices increased in April but have ticked down in recent weeks. The state’s exports dipped in March, while building permits for single-family housing rose.

Read more... Texas Economic Indicators May 2019 via dallasfed.org

Dallas Fort Worth Economic Indicators May 2019 via Dallas Fed

Dallas–Fort Worth economic growth continued in April. Payroll employment rose in Dallas but contracted in Fort Worth. Unemployment fell to a 20-year low, and the Dallas and Fort Worth business-cycle indexes expanded further. Home sales rose in March, and inventories remained tight. Recently released data from the Census Bureau show that DFW ranked No. 1 among U.S. metros in net population increase in 2018.

Read more...Dallas-Fort Worth Economic Indicators May 2019 - Dallasfed.org

Tuesday, May 21, 2019

Multifamily, Industrial Are CRE Bright Spots, Economist Says via GlobeSt

Commercial real estate prices should even out by 2020, according to the chief economist of the National Association of Realtors.

Dr. Lawrence Yun was one of the speakers at the commercial economic issues and trends forum at the Realtors Legislative Meetings & Trade Expo.

“We may see commercial real estate prices rise for the next year, but I expect them to even out in 2020,” Yun said. “Capital gain returns have grown from 90% with the rise in property prices. We can attribute the growth in commercial building investment spending to job additions and rising occupancy of buildings.”

Read more...Multifamily, Industrial Are CRE Bright Spots, Economist Says via GlobeSt

Friday, May 17, 2019

More apartments are on the way in your Dallas-area neighborhood via Dallas Morning News

If you think there are a lot of apartments under construction in North Texas, well, you'd be right.

More than 37,000 new rental units are in the works in the Dallas-Fort Worth area — the top apartment building total in the country.

Unlike in previous building wave, when most of the apartment activity was concentrated in a few locations, this time around rental communities are being built in almost every section of the metro area. And more apartments are being built in the suburbs than in high-profile locations in Uptown and downtown Dallas.

Read more...More apartments are on the way in your Dallas-area neighborhood via Dallas Morning News

Tuesday, May 14, 2019

ALN Monthly Market Stats May 2019 via ALN Apartment Data

ALN Data just released their April 2019 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.

Read more...ALN Monthly Market Stats April 2019 via ALN Apartment Data

Thursday, May 9, 2019

Texas Economy Rebounds from Year-End Slowdown, Grows at Moderate Pace via Dallas Fed

Texas economic activity expanded moderately in the first quarter after downshifting markedly in November and December. Reflecting that trend, headline Texas Business Outlook Survey (TBOS) indexes—in which positive numbers indicate a greater share of firms reporting a positive result than a negative one—have moved toward their historical averages.

Read more...Texas Economy Rebounds from Year-End Slowdown, Grows at Moderate Pace via Dallas Fed

Wednesday, May 8, 2019

Austin Economic Indicators May 3, 2019 via Dallas Fed

The Austin economy grew slowly in the first quarter. Growth in the Austin Business-Cycle Index decreased slightly and continued to run below its long-term trend. Job growth was sluggish, with the construction and mining and financial activities sectors showing strength but manufacturing showing softness. Hourly wages ticked down in March, while home prices, sales and permits increased.

Read more...Austin Economic Indicators May 3, 2019 via Dallas Fed

Monday, May 6, 2019

Feeling crowded yet? Dallas-Fort Worth gained 1 million people in less than a decade via Dallas Morning News

Dallas-Fort Worth has gained more new residents than any metropolitan area in the country, adding more than 1 million people in an eight-year period.

The region's population now tops 7.5 million, solidifying North Texas' ranking as the nation's fourth-largest metro area. It trails only New York, Los Angeles and Chicago, all of which are losing residents.

Read more...Feeling crowded yet? Dallas-Fort Worth gained 1 million people in less than a decade via Dallas Morning News

Gross Domestic Product by State: Fourth Quarter and Annual 2018 via Bureau of Economic Analysis

Real gross domestic product (GDP) increased in 49 states and the District of Columbia in the fourth quarter of 2018, according to statistics released today by the U.S. Bureau of Economic Analysis. The percent change in real GDP in the fourth quarter ranged from 6.6 percent in Texas to 0.0 percent in Delaware.

Read more...Gross Domestic Product by State: Fourth Quarter and Annual 2018 via Bureau of Economic Analysis

Friday, May 3, 2019

Nine Takeaways from ULI’s Economic and CRE Forecast via NREI

At Urban Land Institute’s webinar “Is 2019 the Pivot Point for the Economy and Real Estate?” which took place earlier this week, four industry experts discussed the organization’s three-year forecast (2019 – 2021) for the U.S. economy and commercial real estate sector. Panelists included: moderator Jeanette Rice, Americas head of multifamily research at real estate services firm CBRE; Adam Ruggiero, head of real estate research at MetLife; Bill Maher, head of research and strategy at LaSalle Investment Management; and Stuart Hoffman, senior vice president and senior economic advisor at PNC.

The report, which was based on the median consensus of 45 economists/analysts at 33 major real estate investment, advisory and research firms, provides forecasts for major economic indicators, real estate capital markets, investment returns, vacancy rates and property prices.

Read more...Nine Takeaways from ULI’s Economic and CRE Forecast via NREI

Thursday, May 2, 2019

Houston Economic Indicators 4/29/19 via Dallas Fed

Recent data for Houston are mixed, but they continue to paint a moderately positive outlook for the region. Leading and coincident indexes for Houston improved, and job growth accelerated. Existing-home sales rose, but permits for single-family housing units were down. While the vacancy rate for apartments has recently increased, the number of permits to build new multifamily units has continued to surge. New census data show that Houston population growth slowed last year.

Read more... Houston Economic Indicators via dallasfed.org

CRE’s Numbers are Slipping via GlobeSt

The outlook for the US economy, real estate capital markets and real estate fundamentals is expected to moderate over the next three years, according to the latest forecast from the Urban Land Institute’s Center for Capital Markets and Real Estate. The forecast is based on a semi-annual survey of 45 economists and industry analysts. Responses to the most recent survey, conducted between March and April, suggest that while growth will continue, it will continue at a slower pace than previous years.

Read more...CRE’s Numbers are Slipping via GlobeSt

Wednesday, May 1, 2019

Investor Confidence Starts to Return as CRE Pricing Holds Steady via NREI

Annual growth in U.S. property prices slowed in March to the most modest rate since 2011, according to research firm Real Capital Analytics (RCA). But industry experts say commercial real estate pricing—and transaction volumes—could gain steam, or at least hold steady, as the year progresses.

Read more...Investor Confidence Starts to Return as CRE Pricing Holds Steady via NREI

Friday, April 26, 2019

DFW construction starts fall 16% in first three months of 2019 via Dallas Morning News

North Texas construction starts declined sharply in March.

Starts for both new commercial and residential building fell 25% from a year ago, according to Dodge Data & Analytics' tracking.

With March's data, Dallas-Fort Worth construction activity for the first quarter was down 16% from the first three months of 2018.

Read more...DFW construction starts fall 16% in first three months of 2019 via Dallas Morning News

Wednesday, April 24, 2019

Dallas-Fort Worth Economic Indicators April 2019 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 two and a half years. Unemployment fell to an 18-year low, and the Dallas and Fort Worth business-cycle indexes expanded further. Office leasing activity and industrial demand remained solid in the first quarter.

Read more...Dallas-Fort Worth Economic Indicators April 2019 - Dallasfed.org

Texas Employment Forecast April 2019 via Dallas Fed

Incorporating March job growth of 2.2 percent and a third consecutive increase in the leading index, the Texas Employment Forecast suggests jobs will grow 1.8 percent this year (December/December), with an 80 percent confidence band of 0.6 to 3.0 percent. Based on the forecast, 226,700 jobs will be added in the state this year, and employment in December 2019 will be 12.9 million.

Read more...Texas Employment Forecast April 2019 via Dallas Fed

Tuesday, April 23, 2019

What Features Do Apartment Renters Value Most? via NREI

To attract residents, apartment managers are mixing amenities like swimming pools with activities like fitness classes.

“It isn’t enough to have the fitness center, clubhouse, pool mix… Instead, provide these as services that busy millennials and active boomers want,” says Tara Jeffcoat, senior research analyst for research firm Yardi Matrix, based in Scottsdale, Ariz.

To get the right combination of apartment amenities, services and features, developers and property managers need to look at research on what their residents want, so that they can tailor the properties to their local apartment markets.

Read more...What Features Do Apartment Renters Value Most? via NREI

Kingsley: Boston and Chicago Tied for Most Satisfied Rental Markets via Multifamily Executive

National renter satisfaction spiked this past quarter with 78.5% of residents reporting “Good” or “Excellent” satisfaction with their renting experience, which is up significantly from the 77.9% of residents who were satisfied at the end of 2018. Another quarter of increasing resident satisfaction marks a total of six continuous quarters of resident satisfaction on the rise.

Read more...Kingsley: Boston and Chicago Tied for Most Satisfied Rental Markets via Multifamily Executive

Friday, April 19, 2019

More Americans are moving, mostly to Sun Belt suburbs via The Hill

A decade after the worst recession in modern history froze many Americans in place, the number of people with enough economic security to move is starting to rise once again, according to new population estimates from the U.S. Census Bureau.

Those estimates show more Americans are moving from Rust Belt and Northeastern cities, including some of the largest metropolitan areas in the country, in favor of booming cities and suburbs across the Sun Belt and the West Coast.

Read more...More Americans are moving, mostly to Sun Belt suburbs via The Hill

Multifamily Ramps Up As Relocations Mount via GlobeSt

Headquarter relocations, expansions and corporate moves have characterized the Texas market for the last decade. Every metro has experienced one or more major corporate move during that timeframe, according to a list by the HT Group.

Most notably, Apple announced it would nearly double its Austin-area workforce with 5,000 new jobs and potentially 10,000 more over time. The move is expected to make Apple the largest private employer in Austin and will be the company’s biggest corporate location outside of California.

Read more...Multifamily Ramps Up As Relocations Mount via GlobeSt

Thursday, April 18, 2019

ALN Monthly Market Stats April 2019 via ALN Apartment Data

ALN Data just released their March 2019 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.

Read more...ALN Monthly Market Stats April 2019 via ALN Apartment Data

Eleventh District Beige Book April 2019 via Dallas Fed

Moderate expansion continued in the Eleventh District economy. Manufacturing output increased. Retail sales were flat, and growth in the nonfinancial services sector softened. Loan volumes expanded led by growth in commercial real estate lending, and home sales rose, further boosting optimism in outlooks. Soil moisture was mostly adequate, though rains delayed crop planting in some areas. Activity in the energy sector expanded. Employment rose moderately, despite a tight labor market. Wage growth remained elevated, while price growth was mixed. Outlooks stayed positive or improved in most sectors with the exception of nonfinancial services.

Read more...Eleventh District Beige Book April 2019 via Dallas Fed

Monday, April 8, 2019

Houston Economic Indicators April 2019 via Dallas Fed

Houston job growth, leading and coincident indicators, and oil and fuel prices have improved over the past few months. Mining-related employment continued to grow, and bank lending expanded faster in the region than the nation. Taken together, the trends suggest the outlook for Houston remains positive.

Read more... Houston Economic Indicators April 2019 via dallasfed.org

Friday, April 5, 2019

Austin Economic Indicators April 5, 2019 via Dallas Fed

The Austin economy grew moderately in February. The Austin Business-Cycle Index expanded but remained below its long-term trend. Recent job growth was generally positive across sectors, outside of weakness in the health and private education industry. Hourly wages ticked down, while home prices declined and sales increased.

Read more...Austin Economic Indicators April 5, 2019 via Dallas Fed

Wednesday, April 3, 2019

Texas Economic Indicators March via Dallas Fed

Texas economic indicators pointed to moderate economic growth in February. Job growth was near its long-run average, and unemployment remained low. The Texas Leading Index improved. Oil prices have been gradually rising since the beginning of the year, though the rig count has been falling. Construction spending slumped in the month, but existing-home sales improved.

Read more... Texas Economic Indicators 3/25/19 via dallasfed.org

Friday, March 29, 2019

Record DFW apartment building hasn't stopped rent increases via Dallas Morning News

Dallas-Fort Worth apartment rents are inching higher, even though the percentage of empty rental units has risen a bit.

Average D-FW apartment rents rose 2.6 percent from a year ago in the first quarter to an all-time high of $1,131 a month.

Read more...Record DFW apartment building hasn't stopped rent increases via Dallas Morning News

Thursday, March 28, 2019

Multifamily Report – February 2019 via Multi-Housing News Online

Multifamily rent growth has increased steadily since its lowest level of 2.2 percent in the fall of 2017. In February, rents increased by $2 to $1,426, with year-over-year growth steady at 3.6 percent. Compared to January’s 3.3 percent growth, rents rates gained 30 basis points.

Read more...National Multifamily Report – February 2019 via Multi-Housing News Online

Dallas-Fort Worth Economic Indicators March 2019 via Dallas Fed

Dallas–Fort Worth economic growth continued in February, with payroll employment expanding and unemployment staying low. Looking at the two-month period, employment performance has been healthy—above the metro’s long-run average. The Dallas Business-Cycle Index expanded, but the Fort Worth Business-Cycle Index fell for the second straight month. Home sales rose strongly and home inventories remained tight in February.

Read more...Dallas-Fort Worth Economic Indicators March 2019 - Dallasfed.org

Thursday, March 21, 2019

ALN Monthly Market Stats March 2019 via ALN Apartment Data

ALN Data just released their February 2019 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.

Read more...ALN Monthly Market Stats March 2019 via ALN Apartment Data

Wednesday, March 20, 2019

Hot markets: Investors say LA and DFW will be the places to buy property in 2019 via Dallas Morning News

Dallas-Fort Worth is again near the top of a shopping list for commercial property investors — behind only Los Angeles in a new survey.

For the third year in a row, commercial real estate firm CBRE ranked D-FW second nationally in its survey of property investors.

Houston also made the top 10 list.

Read more...Hot markets: Investors say LA and D-FW will be the places to buy property in 2019 via Dallas Morning News

Tuesday, March 19, 2019

Dallas-Fort Worth Economic Indicators February 2019 via Dallas Fed

The Dallas–Fort Worth economy continued its expansion in January. Job growth was moderate, and the Dallas Business-Cycle Index rose. However, the Fort Worth Business-Cycle Index fell following robust growth in 2018. Revised data indicate that DFW employment grew 2.5 percent in 2018—above its long-term average rate. Home-price appreciation has decelerated, and housing affordability remains low in Dallas. Home inventories ticked up in January.

Read more...Dallas-Fort Worth Economic Indicators February 2019 - Dallasfed.org

Have Upscale DFW Multifamily Developments Worn Out Their Welcome? Not Yet, But Wall Street Is Watching Supply Closely via Bisnow

The Dallas-Fort Worth market continues to absorb luxury apartments with rents above the $1K/month price point, but the capital side of the industry is beginning to sound the alarm on the prospect of oversaturation.

The multifamily market remains solid and in demand, but Wall Street is definitely watching closely for signs of too much supply, Mag Mile Capital CEO Rushi Shah said.

Read more...Have Upscale DFW Multifamily Developments Worn Out Their Welcome? Not Yet, But Wall Street Is Watching Supply Closely via Bisnow

Austin Economic Indicators March 15, 2019 via Dallas Fed

The Austin economy saw mixed performance in January. The Austin Business-Cycle Index decelerated and remained below its long-term trend. Job growth by sector was mixed; the information and financial activities sectors posted strong growth, while government jobs continued to decline. Hourly wages increased, and residential construction permits contracted slightly.

Read more...Austin Economic Indicators March 15, 2019 via Dallas Fed

Monday, March 18, 2019

Study says Dallas home price spikes are turning buyers into renters via Dallas Morning News

Dallas is one of the U.S. metro areas where rising home prices have hurt homeownership the most.

Dallas, Denver and Houston were identified as the markets where there is the most downward pressure on homeownership, according to a new report by Florida Atlantic University and Florida International University faculty.

The study ranked areas where the markets have tilted in favor of renting over buying homes. Researchers traced housing conditions in 23 markets for the report.

Read more...Study says Dallas home price spikes are turning buyers into renters via Dallas Morning News

Get ready to pay more rent, even as home prices cool off via CNBC

Home prices may be cooling off right now, but rents are heating up yet again.

After taking a breather in 2018, due to new supply on the market, rents for both single-family homes and multifamily apartments are now rising at the fastest pace in nearly a year, according to Zillow.

Read more... Get ready to pay more rent, even as home prices cool off via CNBC

DFW second only to New York in January job growth via Dallas Morning News

Dallas-Fort Worth added 100,100 jobs year-over-year in January, making it the second-largest driver of job growth in the U.S. behind New York, which added 141,000 jobs.

D-FW's January unemployment rate was 3.9 percent, down slightly from the year before, when it was at 4.1 percent.

Read more...D-FW second only to New York in January job growth via Dallas Morning News

Where Are Cap Rates Going in the Four Core Property Sectors? via NREI

With late 2018 jitters gone and investor optimism returning, the commercial real estate market should experience mostly steady cap rates through the first half of 2019, although there are particular market segments and geographies that could experience some bumps.

“On the interest rate side, I think everybody has dismissed, at least for the time being, the inflation threat so that kind of stress on pushing cap rates higher isn’t there right now,” says Manus Clancy, senior managing director of applied data, research and pricing with Trepp. “We went through a tough period in December when people were jittery. Now everybody has taken a deep breath; they don’t feel like the wheels are falling off either the U.S. or the global economy.”

Read more...Where Are Cap Rates Going in the Four Core Property Sectors? via NREI

Friday, March 15, 2019

Charting the Growth of Renters Over the Age of 60 via NREI

Recent research from RentCafe illustrates that with the average age of Americans creeping upward, the share of renters aged 60 or older has risen dramatically in the past decade in many cities.

According to RentCafe:

Our top 30 oldest cities all have a median age over 39.6 and are mostly retirement cities in Florida, California, or Arizona. In fact, Florida is home to 12 of the oldest cities, with Cape Coral, first in our top, boasting a median age of 47.9, followed by Hialeah, with 46.5. Sunny Scottsdale, AZ is third in our top, with a median age of 46, proving once more its high popularity among retirees in search of warm days and entertainment.

Read more...Charting the Growth of Renters Over the Age of 60 via NREI

Thursday, March 14, 2019

Texas Economic Indicators 3/11/19 via Dallas Fed

Texas economic indicators improved in January. The state posted solid job growth that was broad based across metros but mixed among sectors. Growth in the business-cycle index continued to decelerate but remained above its long-term trend. The Texas Business Outlook Surveys’ headline indexes suggested continued output growth in January and February, and the surveys’ general business activity indexes and company outlook indexes improved in both months. However, exports dipped in December. Home inventories edged up in January, and existing-home sales dipped, suggesting some easing in the tight housing market.

Read more... Texas Economic Indicators 3/1/19 via dallasfed.org

How To Invest In Multifamily With A Recession Ahead via Forbes

While no one holds a crystal ball, it is no secret that real estate investors are playing in the ninth inning. With a recession on the horizon, what do you do? Do you choose to stop buying so that brokers forget about you? Or, even worse, do you stop buying so investors find other syndicators to invest with? It’s a lose-lose situation, right? Well, not quite. Apply these principals to your underwriting and market analysis to give yourself the best opportunity to buy at the top of the market and survive, or even thrive, during a downturn.

Read more...How To Invest In Multifamily With A Recession Ahead via Forbes

Monday, March 11, 2019

Texas Employment Forecast March 8, 2019 via Dallas Fed

Incorporating January job growth of 2.6 percent and a rebound in the leading index, the Texas Employment Forecast suggests jobs will grow 1.5 percent this year (December/December), with an 80 percent confidence band of 0.1 to 2.9 percent. Based on the forecast, 191,000 jobs will be added in the state this year, and employment in December 2019 will be 12.8 million.

Read more...Texas Employment Forecast March 8, 2019 via Dallas Fed

Thursday, March 7, 2019

CRE Investors More Wary of Risk in 2019, But Prefer Secondary Markets Because of Higher Yields, CBRE Survey Finds via National Real Estate Investor

As investors consider their allocations plans for this year, commercial real estate’s stability of income stream is their top reason for investing in the property type, according to the Americas Investor Intentions Survey 2019 put together by real estate services firm CBRE.

Stability of income stream came out on top among the reasons its survey participants listed for continuing to invest in real estate (with 32 percent of respondents picking it,) followed by expectation of better capital value growth compared to other assets and higher yield compared to other assets (both at 20 percent).

Read more...CRE Investors More Wary of Risk in 2019, But Prefer Secondary Markets Because of Higher Yields, CBRE Survey Finds via National Real Estate Investor

Eleventh District Beige Book March 2019 via Dallas Fed

The Eleventh District economy expanded at a moderate pace. Activity in the manufacturing, housing, and nonfinancial services sectors improved. Loan volumes ticked up, and retail sales grew modestly. Abundant soil moisture boosted outlooks in the agricultural sector. Drilling activity declined. Employment expanded moderately, despite a tight labor market. Wage growth remained elevated, while price growth eased. Outlooks improved; however, some contacts reported weaker-than-expected output/revenue growth over the reporting period and mentioned factors such as tariffs, slower activity in the energy sector, increased uncertainty, weaker global economy, and labor constraints.

Read more...Eleventh District Beige Book March 2019 via Dallas Fed

Tuesday, March 5, 2019

Why Investors Should Stay in Buy Mode via GlobeSt

Economic sentiment is shifting, and while there is a debate over whether or not the end of the cycle is nigh, few real estate professionals are predicting a market boom in the next few years. According to the most recent sentiment report from Real Capital Markets, the majority of investors are predicting a flat market ahead—but despite the shift in sentiment, most are planning to remain in buy mode. The reason? Market fundamentals are strong, especially in multifamily and industrial asset classes.

Read more...Why Investors Should Stay in Buy Mode via GlobeSt

Thursday, February 28, 2019

Promoting Inclusive Urban Growth in Three U.S. Cities via Urban Land Magazine

The booming economy in the Dallas/Fort Worth metropolitan area, fueled by corporate relocations, business expansions, and in-migration, can mask some of the region’s heady challenges: rising home prices, a high poverty rate, and long-term racial and economic segregation. A new study of three U.S. cities looks at mitigating inequality without stalling development.

Read more...Promoting Inclusive Urban Growth in Three U.S. Cities via Urban Land Magazine

Wednesday, February 27, 2019

What’s Ahead for Cap Rates and Interest Rates? via Nareit

One of the most critical issues for real estate investors in the year ahead is the outlook for cap rates and property prices, especially with Federal Reserve policy in the spotlights. In addition to the future path for their target for short-term interest rates, Fed officials have also been discussing policy options concerning their securities holdings. Any decision to slow the run-off of their $2 trillion holdings of long-term Treasury securities and $1.6 trillion holdings of Agency MBS may have a direct impact on long-term Treasury yields and mortgage rates—and commercial real estate

Read more...What’s Ahead for Cap Rates and Interest Rates? via Nareit

Thursday, February 21, 2019

CRE Investor Sentiment Remains Optimistic, But We Are No Longer in the “Boom” Phase, New Survey Finds via NREI

The commercial real estate market isn’t in a boom or a bust phase, but somewhere in the middle, where words like “flattening” and “plateau” have entered the lexicon, but are mixed in with optimism as investors seek ways to deploy abundant capital. That’s some of the investor sentiment expressed via a survey administered by Real Capital Markets (RCM), a global marketplace for commercial real estate transactions) and in interviews conducted by NREI.

Read more...CRE Investor Sentiment Remains Optimistic, But We Are No Longer in the “Boom” Phase, New Survey Finds via NREI

Multifamily Sector, Energizer Bunny Share Common Trait, Says MBA’s Woodwell via Rebusiness Online

The multifamily sector is like the Energizer Bunny, says Jamie Woodwell, vice president of commercial and multifamily research for the Mortgage Bankers Association (MBA). “It just keeps going and going and going.”

The product type remains an investment darling. Although 600,000 units are currently under construction nationally — maintaining an elevated level of building activity that is the highest since the mid-1970s — consumer demand remains strong.

Read more...Multifamily Sector, Energizer Bunny Share Common Trait, Says MBA’s Woodwell via Rebusiness Online

Tuesday, February 19, 2019

ALN Monthly Market Stats February 2019 via ALN Apartment Data

ALN Data just released their January 2019 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.

Read more...ALN Monthly Market Stats February 2019 via ALN Apartment Data

Monday, February 18, 2019

Yardi: National Rent Remains Flat, YOY Growth Rises to 3.3% via Multifamily Executive

The national average multifamily rent remained at $1,420 in January 2019 while the year-over-year (YOY) rent-growth rate rose 10 basis points (bps), to 3.3%, according to the Matrix Monthly report by Yardi Matrix.

The annual rent-growth rate has remained above 3% for the past six months. While U.S. rents have remained flat since August, Yardi notes that this lack of growth is a normal winter seasonal pattern. Overall, Yardi notes that multifamily continues to run strong, especially compared with other real estate and nonreal estate investment sectors as the cycle continues.

Read more...Yardi: National Rent Remains Flat, YOY Growth Rises to 3.3% via Multifamily Executive

Friday, February 15, 2019

Fannie Mae Increases Multifamily Small-Loan Limits via Multifamily Executive

Fannie Mae will increase the loan limit of small mortgage loans to $6 million from $3 million or less nationwide and $5 million or less in high-cost markets, effective immediately.

The aim, says the organization, is to "ensure an adequate supply of affordable housing for working families" and provide more opportunities for borrowers to realize the benefits of streamlined third-party report, underwriting, and asset-management requirements.

Read more...Fannie Mae Increases Multifamily Small-Loan Limits via Multifamily Executive

CRE Investors Start Putting Money Behind Defensive Strategies via NREI

Investors appear to be keeping the foot on the gas in terms of acquisitions. According to research firm Real Capital Analytics (RCA), investment sales volume jumped 15 percent year-over-year in 2018 to reach $562.1 billion. But some investors are clearly retooling strategies to account for slowing growth and late-cycle risks.

Investors have been talking about shifting gears to “defensive strategies” for quite some time in the near record-breaking growth cycle. Those strategies are becoming more visible as even the optimists acknowledge the likelihood of slower growth ahead in the next 12 to 24 months.

Read more...CRE Investors Start Putting Money Behind Defensive Strategies via NREI

Tuesday, February 12, 2019

MBA Predicts Originations to Hold at $530M via Multi-Housing News Online

Mortgage origination volume this year will most likely be steady with 2018 and 2017, according to the Mortgage Bankers Association’s 2019 Economic Outlook & CREF Forecast, which was released at its conference in San Diego.

“The overall expectation is, all things being equal, we be at this plateau for the next couple of years,” said Jamie Woodwell, MBA’s vice president of commercial-multifamily research.

Read more... MBA Predicts Originations to Hold at $530M via Multi-Housing News Online

Monday, February 11, 2019

Kingsley: Renewal Intent Rises in Q4 2018 With 55.6% of Tenants Likely to Re-up via Multifamily Executive Magazine

National renter satisfaction continued its steady upward climb in the final quarter of 2018, which marked a full year of increases in the metric. Before the fourth quarter of 2017, national resident satisfaction had held steady since 2015. This past quarter, however, 77.9% of residents reported “good” or “excellent” satisfaction with their renting experience, which is up only slightly from the third quarter of 2018, when 77.8% of residents were satisfied.

Read more...Kingsley: Renewal Intent Rises in Q4 2018 With 55.6% of Tenants Likely to Re-up via Multifamily Executive Magazine

DFW home sales down 7.6 percent in 4Q 2018 via Real Estate Center

North Texas home sales fell 7.6 percent to 22,402 transactions at the end of the year, according to a fourth quarter 2018 report by the Real Estate Center.

According to the report, the median home price grew 2.4 percent over the year to $260,000.

Read more...REC: DFW home sales down 7.6 percent in 4Q 2018 via Real Estate Center

Houston Economic Indicators February 2019 via Dallas Fed

Growth in Houston leading and coincident economic indicators weakened in December. Job growth slowed, but the local labor force expanded. Heavy and civil construction posted stellar job growth last year, and the existing-home market ended the year on healthy footing despite rising mortgage rates.

Read more... Houston Economic Indicators February 2019 via dallasfed.org

Austin Economic Indicators February 2019 via Dallas Fed

The Austin economy expanded at a healthy pace in December. The Austin Business-Cycle Index accelerated and remained above its long-term trend. Job growth by sector was mixed, with the health and education services sector continuing to accelerate and government jobs declining. Hourly wages increased, and median home prices and existing-home sales dipped slightly.

Read more...Austin Economic Indicators February 2019 - Dallasfed.org

Wednesday, February 6, 2019

The U.S. Apartment Sector Would Continue to Remain Strong Even in a Recession via NREI

Even if there is an economic downturn in the near future, the apartment sector is likely to hold up, according to industry experts.

“Apartments are still resilient against a possible recession,” says Andrew Rybczynski, senior consultant for CoStar Group Portfolio Strategy.

Though the high end of the market may be feeling the strain of overbuilding, the sector overall is benefitting from long-term trends that should continue to fill apartment units for the foreseeable future.

Read more...The U.S. Apartment Sector Would Continue to Remain Strong Even in a Recession via NREI

Tuesday, February 5, 2019

Survey: Multifamily Metrics Will Cool in 2019 via Rebusiness Online

Multifamily properties have produced strong returns for commercial developers and investors over the past few years. But the apartment supply wave appears to have crested, suggesting 2019 will bring a slower pace of rent growth. Consequently, pricing levels should come down, cap rates should creep upward and returns on investment should cool.

Read more...Survey: Multifamily Metrics Will Cool in 2019 via Rebusiness Online

Texas Economic Update February 1, 2019 via Dallas Fed

The Texas economy experienced another downshift in growth over the last two months, although the level of activity remains strong. Job growth decelerated slightly in the fourth quarter, and the Dallas Fed’s Texas Business Outlook Surveys (TBOS) suggest a slowing in output growth in December and January.

Expectations have also slumped; the 2019 job growth forecast for Texas is now between 1 and 2 percent, and survey contacts’ outlooks have notably deteriorated since November. Headwinds include lower oil prices, a strong dollar, tariffs, higher interest rates, labor constraints and increased uncertainty. Wage and price inflation may also be moderating; survey data point to softer growth in the second half of 2018 and expectations for slower growth in 2019.

Read more... Texas Economic Update February 1, 2019 via dallasfed.org

Monday, February 4, 2019

Multifamily real estate just had its best year since 2000 via HousingWire

By just about any way you look at it, 2018 was the best year for multifamily real estate this century: Renters paid more for housing than they ever have before, Freddie Mac and Fannie Mae both had banner years, commercial and multifamily debt hit an all-time high, all while delinquencies remained at historic lows.

Read more...Multifamily real estate just had its best year since 2000 via HousingWire

Thursday, January 31, 2019

Job Growth and Millennials Driving Multifamily Demand via GlobeSt

During the digging deeper multifamily market outlook panel at the 2019 NMHC Apartment Strategies Outlook Conference here in San Diego, a panel of expert industry analysts, moderated by Mark Obrinsky, chief economist and SVP of research at NMHC, examined multifamily housing trends leading in to 2019. Topics discussed included which markets are experiencing supply constraints, Millennials, and where there opportunities still are for growth.

Read more...Job Growth and Millennials Driving Multifamily Demand via GlobeSt

Houston Economic Indicators January 28, 2019 via Dallas Fed

Growth in Houston leading and coincident economic indicators weakened in December. Job growth slowed, but the local labor force expanded. Heavy and civil construction posted stellar job growth last year, and the existing-home market ended the year on healthy footing despite rising mortgage rates.

Read more... Houston Economic Indicators January 28, 2019 via dallasfed.org

Dallas-Fort Worth led nation in jobs growth in 2018, topping New York and Houston via Dallas News

Dallas-Fort Worth led the nation's metro areas in job growth in 2018, according to new data from the Bureau of Labor Statistics.

The Dallas-Fort Worth region added 116,400 jobs over the course of the year. New York and Houston followed closely behind, with 115,500 and 108,300 new jobs, respectively.

Read more...Dallas-Fort Worth led nation in jobs growth in 2018, topping New York and Houston via Dallas News

Wednesday, January 30, 2019

Texas Economic Indicators January 2019 via Dallas Fed

Texas economic indicators were mixed in December. The state finished 2018 with strong job growth and continued labor market tightness, but forward-looking indicators suggest that the state’s economic outlook has softened. The leading index dipped for the third month, and the Dallas Fed’s 2019 employment forecast shows slower growth than the state’s long-run average. The Texas Business Outlook Surveys suggest that current output growth slowed, and firm sentiment about broader economic conditions and company outlooks deteriorated.

Read more...Texas Economic Indicators January 2019 via Dallasfed.org

Tuesday, January 29, 2019

Dallas-Fort Worth Economic Indicators January 2019 via Dallas Fed

The Dallas–Fort Worth economy ended 2018 on a solid note. Employment growth was robust in December, with DFW adding jobs at its fastest pace in 13 months, and unemployment remained near multiyear lows. The Dallas and Fort Worth business-cycle indexes strengthened at year end, providing some momentum for continued growth in 2019. The DFW apartment market saw healthy absorption in 2018, but rent growth and construction activity moderated.

Read more...Dallas-Fort Worth Economic Indicators January 2019 - Dallasfed.org

Tuesday, January 22, 2019

Houston only major U.S. market to lose renters in 2018 via Houston Chronicle

Houston-area apartment occupancy spiked after Hurricane Harvey as thousands of displaced homeowners sought temporary rentals. That bounce came and went, new data show.

Houston was the only major U.S. market to lose renters in 2018, according to RealPage, a software and data analytics firm based in Richardson. The company ranked Houston last among major markets in several key apartment performance metrics.

Read more...Houston only major U.S. market to lose renters in 2018 - Houston Chronicle

2019 Multifamily Outlook via Multi-Housing News Online

After a positive performance throughout 2018, the multifamily industry shows no means of slowing down. Demand is expected to stay healthy, according to Yardi Matrix’s Winter 2019 U.S. Multifamily Outlook, as long as job growth remains positive and more people turn to renting instead of homeownership.

Read more... 2019 Multifamily Outlook

Friday, January 18, 2019

Eleventh District Beige Book Jan 2019 via Dallas Fed

Expansion in the Eleventh District economy slowed to a more modest pace over the reporting period. While the level of activity generally remained healthy, growth decelerated broadly across the manufacturing, services, retail, and energy sectors. Loan volumes declined slightly and new home sales fell modestly. Conversely, ample soil moisture has boosted crop conditions and improved prospects for the agricultural sector this year. Employment expanded, albeit at a slightly slower pace, despite continued widespread labor shortages. Wage growth remained elevated, while price growth abated to more normal levels. Outlooks were notably less optimistic than in the previous report due to declining oil prices, political and trade uncertainty, higher interest rates, and stock market volatility.

Read more...Eleventh District Beige Book Jan 2019 via Dallas Fed

Thursday, January 17, 2019

ALN Monthly Market Stats January 2019 via ALN Apartment Data

ALN Data just released their December 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.

Read more...ALN Monthly Market Stats January 2019 via ALN Apartment Data

Wednesday, January 16, 2019

Apartment Rents Expected to Rise Faster Than Inflation in 2019 via NREI

Rents are likely to rise faster for older, class-B apartments in 2019 than for any other class of apartment property.

“We expect Class-B to continue to have the strongest average rent growth, as it has through recent history,” says Andrew Rybczynski, senior consultant at research firm the CoStar Group.

Rents continue to rise for new class-A luxury apartments as well.

Read more...Apartment Rents Expected to Rise Faster Than Inflation in 2019 via NREI

2018 Multifamily Rent Growth Ends Strong via Multi-Housing News Online

The multifamily market continues to perform strongly, with an increase in national rent growth of 31 percent over the last eight years. According to a survey of 127 markets by Yardi Matrix, annual rent growth has risen at least 2.9 percent every year and has surpassed 3 percent in six of the last eight years. December year-over-year rent growth was at 3.2 percent, but rents remained at $1,419 from the previous month.

Read more... 2018 Multifamily Rent Growth Ends Strong

Monday, January 14, 2019

Here's Why the Multifamily Cycle Still Has Room to Run via GlobeSt

In its December 2018 multifamily report, Yardi Matrix theorizes that the multifamily asset class could be on a trajectory much like hotels, which have had nine consecutive years of above-trend revenue growth. “Hotels benefit from business profitability and travel, but also from lifestyle changes that lead individuals to spend more on experiences,” the report said.

So it goes with the multifamily sector, which just wrapped up its eighth straight year of robust performance. It is an impressive record but it also leads to the question of just how long this cycle can go.

Read more...Here's Why the Multifamily Cycle Still Has Room to Run via GlobeSt

Friday, January 11, 2019

Houston Economic Indicators January 9, 2019 via Dallas Fed

Houston employment and the business-cycle index continue to register healthy growth, and drilling activity has flattened at a high level. However, oil prices have fallen significantly and the Houston leading index fell to near neutral. Stock indexes are also down. Overall, the outlook for Houston has weakened but remains positive.

Read more... Houston Economic Indicators January 2019 via dallasfed.org

Austin Economic Indicators January 2019 via Dallas Fed

The Austin economy grew at a strong pace in November. The Austin Business-Cycle Index expanded and remained above its long-term trend. Employment growth by sector was mixed, with the health and education services sector continuing its surge and financial activities declining. Hourly wages were unchanged, while home construction permits weakened and housing affordability improved.

Read more...Austin Economic Indicators January 2019 - Dallasfed.org

Thursday, January 10, 2019

Dallas apartment residents can expect higher rent increases in 2019 via Dallas News

Dallas-area apartment renters may have to dig a little deeper this year.

Dallas apartment rents are forecast to rise by more than 4 percent after a slowdown in 2018 cost increases.

The new forecast by Yardi Systems is one of several recent updates on the local apartment market.

Read more...Dallas apartment residents can expect higher rent increases in 2019 via Dallas News

High Level of New Construction Will Continue to Strain Apartment Demand in 2019 via NREI

Developers will keep adding pressure on the apartment sector in 2019, with plans to open hundreds of thousands of new luxury units in 2019.

New renters filled most of the new apartments delivered to the market in 2018, but not all of them. The percentage of apartments that will be occupied in 2019 is likely to keep falling.

Read more...High Level of New Construction Will Continue to Strain Apartment Demand in 2019 via NREI

Despite Fears of Overbuilding, Lenders Remain Willing to Fund Multifamily Development via NREI

Despite rising interest rates and the nagging anxiety that developers are already building too many apartments in some markets, banks remain active lenders for multifamily construction projects.

“There is certainly no shortage of capital,” says Danny Kaufman, managing director in the Chicago office of HFF.

Apartment developers are paying more interest on their construction loans—but that isn’t keeping developers from planning and financing new projects.

Read more...Despite Fears of Overbuilding, Lenders Remain Willing to Fund Multifamily Development via NREI

Wednesday, January 9, 2019

Are Apartments Still A Good Investment In 2019? via Forbes

Yes, apartments are still a good investment, but for more fundamental reasons than during the past eight years. What I mean by this is apartments have always been a good investment. Unlike other commercial real estate investments, apartments are tied much more to residential trends and demographics. Starting in 2010 and continuing through early 2018, the fallout from the crash and recession created an imbalance in homeownership that gave rise to an increase in apartment rental rates. The rent increase directly correlates to an increase in the value of apartment buildings. But apartments are still a good investment for traditional reasons versus heavy appreciation, even with changing circumstances such as rising interest rates, rising property taxes and a potential recession. If investors focus on property fundamentals, hone their investment strategy and conservatively underwrite for today’s market, apartments are still a high-performing investment in 2019.

Read more...Are Apartments Still A Good Investment In 2019? via Forbes

Wednesday, January 2, 2019

Texas Economic Indicators December 2018 via Dallas Fed

The Texas economy continues to grow at a solid but slightly slower pace, with job growth broad based across industries and regions. The Austin, Houston and San Antonio metro areas led the state in job growth during the three months ending in November. The Texas Business Outlook Surveys indicate that growth in the manufacturing sector has moderated from the highs seen earlier in the year. Wage pressures have eased somewhat in recent months as well but remain elevated. The Texas labor market will likely tighten further in the months ahead; however, if oil prices continue to linger around $50 per barrel, job growth in the state may begin to decelerate. Texas exports are also likely to weaken.

Read more...Texas Economic Indicators December 2018 via Dallasfed.org

Dallas-Fort Worth Economic Indicators December 2018 - Dallas Fed

The Dallas–Fort Worth economy expanded at a modest pace. Employment growth was subdued in November, with DFW adding jobs at the slowest pace in seven months. Overall, the DFW economy remains solid, with 2 percent annualized job growth year to date (nearly 68,000 jobs). Business-cycle indexes for both metros pointed to continued expansion. Home sales fell for the second straight month in November, and inventory ticked up but remains tight. House price appreciation has moderated, particularly in Dallas.

Read more...Dallas-Fort Worth Economic Indicators December 2018 - Dallasfed.org