Yardi: Multifamily Housing Wraps 2019 with 3.1% YOY Rent Growth in November via Multifamily Executive

The average U.S. multifamily rent fell $3 to $1,473 in November, according to the latest National Multifamily Report by Yardi Matrix. Year-over-rent growth fell by 20 basis points, down to 3.1% for the month.

National rent growth has held at 3% or above since spring 2018, demonstrating the strength and consistency of multifamily demand, according to Yardi. More than 320,000 new multifamily units have been absorbed so far in 2019, marking the sixth straight year with at least 250,000 new multifamily units absorbed. Seattle, Denver, and Dallas have had the highest multifamily absorption, followed by Houston, Austin, Texas, and Washington, D.C.

Read more...Yardi: Multifamily Housing Wraps 2019 with 3.1% YOY Rent Growth in November via Multifamily Executive

ALN Monthly Market Stats December 2019 via ALN Apartment Data

ALN Data just released their November 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 December 2019 via ALN Apartment Data

It Will Be a Buyer’s Market for Multifamily Next Year via GlobeSt

It will be a buyers’ market for apartment investors next year, according to a recent survey from Capital One. It found that 74% of multifamily professionals expect they will primarily be buyers rather than sellers while just 19% saw themselves primarily being sellers in the year ahead. Respondents also indicated that rent control and continued legislative pushes around affordable housing would significantly alter their investment strategies.

Read more...It Will Be a Buyer’s Market for Multifamily Next Year via GlobeSt

Pricing Continues its Downfall into October via CPExecutive

U.S. commercial real estate prices are flat according to the Ten-X Commercial Real Estate Nowcast, as aggregate pricing held constant in October from a month ago, but declined on a year-over-year basis for a third straight month. All five major property segments were listless yet again in October, showing only minor changes from a month ago as the late-cycle plateau persists.

Read more...Pricing Continues its Downfall into October via CPExecutive

Texas Economic Indicators November 2019 via Dallas Fed

The Texas economy continues to grow at a moderate pace. Job growth ticked up in October, and the September growth rate was revised up. The unemployment rate remained at a record low, indicating continued tightness in the labor market. The Texas Leading Index edged up, and firms responding to the Texas Business Outlook Surveys reported increases in capital expenditures on net. September existing-home sales were steady. Electricity generated in Texas perked up in August, though electricity generated from renewable resources slipped.

Read more... Texas Economic Indicators November 2019 via Dallas Fed

Eleventh District Beige Book November 2019 via Dallas Fed

Moderate expansion continued in the Eleventh District economy. Growth held fairly steady in services and retail but decelerated slightly in manufacturing. Home sales remained on the rise while energy activity continued to decline. The agriculture picture was mixed, with continued drought conditions but rising prices and decent production prospects. Employment growth was solid and upward wage pressures continued. Selling prices were largely flat, as firms' ability to pass through increased costs remained limited. Outlooks generally improved, except in energy and financial services. Uncertainty generally remained elevated, driven by trade tensions, the political climate, and weaker global growth.

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

Dallas-Fort Worth Economic Indicators November 2019 via Dallas Fed

Dallas–Fort Worth’s economic expansion slowed in October as payroll employment contracted after 17 straight months of growth. Unemployment edged up but remained near historical lows. The Dallas Business-Cycle Index expanded, and the Fort Worth index contracted. Apartment leasing and construction remained solid, and housing affordability improved in the third quarter.

Read more...Dallas-Fort Worth Economic Indicators November 2019 via Dallas Fed

Urban Core Areas See Improved Rent Growth Momentum via RealPage

he nation’s downtown neighborhoods have generally underperformed their suburban counterparts for rent growth in the past few years. Recently, however, urban core areas have made notable progress, and that performance gap is closing.

Across the country’s 50 largest markets, apartments in downtown locales averaged year-over-year new-lease rent growth of 2.3% in 3rd quarter. This was the fourth consecutive quarter annual rent growth has hovered near the 2% mark, after the pace of increases averaged at only about half that level between late 2016 and fall 2018. While rent growth in the nation’s urban core submarkets is still not fantastic, this recent momentum is encouraging.

Read more...Urban Core Areas See Improved Rent Growth Momentum via RealPage

Several Markets See Best-Ever Prime Leasing Season in 2019 via RealPage

This year’s prime leasing season proved strong across the U.S. as several individual markets posted all-time high apartment demand.

Seasonality plays a big role in apartment leasing as renters prefer to move in 2nd quarter and 3rd quarter when the weather warms, and they tend to stay put in the colder months. While seasonality is more extreme in some especially cold-winter apartment markets, most experience at least a slight bump during this peak time frame from April through September.

Read more...Several Markets See Best-Ever Prime Leasing Season in 2019 via RealPage

A Recession Is Multifamily Investors’ Top 2020 Concern via GlobeSt

A recession is among the biggest concerns for apartment investors in 2020, but recent interest rates cuts could have stopped a recession from hitting in 2020. However, there are still expectations that the economy could slow next year, and investors are preparing to hedge against increased risk.

Read more...A Recession Is Multifamily Investors’ Top 2020 Concern via GlobeSt

Breaking Down CBRE’s 2020 Market Outlook via NREI

CBRE provided NREI with an exclusive sneak peek at its 2020 Real Estate Market Outlook report.

CBRE sees more growth ahead for the U.S. commercial real estate industry in 2020, although the pace of expansion could slow thanks to already strong fundamentals that will be tough to improve upon combined with some broader economic headwinds as part of its 2020 Real Estate Market Outlook. Specifically, uncertainty surrounding trade negotiations, weakness in manufacturing and the approach of the presidential election season will hang over the industry in 2020.

Read more...Breaking Down CBRE’s 2020 Market Outlook via NREI

Apartment Sector Likely to Experience Continued Rent Growth, Albeit at a Slower Pace via NREI

Apartment rents are likely to keep rising, even if the economy continues to slow over the next year, according to industry experts.

“The occupancy outlook probably will allow rents to continue to grow, although at a pace a little under the increases recorded of late,” says Greg Willett, chief economist with RealPage Inc., a provider of property management software and services.

Read more...Apartment Sector Likely to Experience Continued Rent Growth, Albeit at a Slower Pace via NREI

Multifamily Building Permits Retreat from Recent High via RealPage

After reaching a four-year high in August, multifamily permit levels fell in September, according to U.S. Census figures.

Multifamily permits fell about 7.5% from August but remain up about 20.8% from a year ago. The seasonally adjusted annual rate (SAAR) for annual multifamily (of projects with five-plus units) starts fell by more than 28% from August and by 5.8% from September 2018.

Read more...Multifamily Building Permits Retreat from Recent High via RealPage

Austin Economic Indicators November 2019 via Dallas Fed

The Austin economy continued to expand in September. The Austin Business-Cycle Index expanded near its long-term growth average. During the third quarter, the labor market remained tight with the jobless rate near historic lows, and jobs grew slightly. Demand for office space remained strong. Housing prices in the metro swelled, while residential construction permits and home sales contracted slightly.

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

What Apartment Renters Really Want via GlobeSt

Smart technology. Green space. Sustainability. For years apartment owners have been in search of the ideal mix of amenities and building features to attract the best renters. In return, they have been met with an avalanche of suggestions, some of which have hit the mark and others washing out.

For example, while virtual tours of apartments have been heavily marketed by vendors as the next big thing, research has found that the majority of renters still prefer an in-person tour with a community representative.

Read more...What Apartment Renters Really Want via GlobeSt

This Year Could Break a Record for Multifamily Sales Volume via NREI

Despite concerns about potentially slowing economic growth and new rent control laws around the country, investors continue to go after apartment properties.

The volume of U.S. multifamily acquisitions in the first nine months of 2019 was higher than during any other comparable period since this expansion cycle began a decade ago. In fact, this year might set a record for multifamily sales volume, says Alexis Maltin, manager of analytics with New York City-based research firm Real Capital Analytics (RCA). Investors spent $130.6 billion on multifamily acquisitions in the first three quarters of 2019, according to RCA.

Read more...This Year Could Break a Record for Multifamily Sales Volume via NREI

Strong Demand for Apartments Leads Mixed CRE Markets in Q3 via Nareit

Apartment markets led commercial real estate in the third quarter, with solid demand that outpaced an elevated level of construction. Vacancy rates declined to 5.8%, the lowest since 2014, and rent growth accelerated a bit.

Other sectors were mixed, however. There was little or no excess demand (net absorption minus completions, as a percent of existing stock) in the office and retail property sectors. Leasing and construction activity were slow and vacancy rates were flat, while rent growth decelerated.

Read more...Strong Demand for Apartments Leads Mixed CRE Markets in Q3 via Nareit

ALN Monthly Market Stats November 2019 via ALN Apartment Data

ALN Data just released their October 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 November 2019 via ALN Apartment Data

Texas Economy Still Growing, Though Pace Slows via Dallas Fed

The regional economy is growing at a slower pace in recent months, with Texas labor markets remaining tight. Energy activity has declined, and export growth has slowed this year. Initial unemployment claims increased slightly in early October, indicative of labor market cooling. Apartment rental markets continue to be strong, and inflation has ticked up since dipping in June.

Read more... Texas Economy Still Growing, Though Pace Slows via dallasfed.org

Multifamily vacancies haven’t been this low since 2000 via HousingWire

It’s getting harder and harder to find an available unit in multifamily real estate.

In the third quarter of this year, multifamily vacancy fell to 3.6%, down 40 basis points from 2018, to the lowest level since 2000, according to a report from CBRE.

On average, rent rose 2.9% year over year, slightly higher than the historical average of 2.6%.

Read more...Multifamily vacancies haven’t been this low since 2000 via HousingWire

Dallas-area led the country in summer apartment leasing via Dallas Morning News

Net apartment leasing in the Dallas-area during the last six months has hit the highest volume in almost two decades.

The more than 16,500 apartments leased in the Dallas-area during the second and third quarters was the greatest rental demand of any major metro area in the country, according to RealPage.

Read more...Dallas-area led the country in summer apartment leasing via Dallas Morning News

DFW apartment rents, occupancy expected to rise in 2020 via Dallas Morning News

Despite widespread construction, Dallas-Fort Worth apartment vacancy rates will dip during the year ahead, according to a new 2020 forecast.

With fewer empty apartments, rents should rise about 3% in North Texas, according to the new report from the Real Estate Center at Texas A&M University.

The forecast looked at apartment conditions in all of Texas’ major markets.

Read more...D-FW apartment rents, occupancy expected to rise in 2020 via Dallas Morning News

Texas Quarterly Apartment Report 2Q2019 via Real Estate Center

The Texas economy remained strong in the midst of the longest U.S. expansion. Payroll employment grew at a steady pace, and unemployment remained historically low. Headline wage growth rate levels were sluggish despite labor-market tightness and decreased inflationary pressure. Low interest rates and job growth supported commercial investments and pushed housing sales to a record high. Total commodity exports stalled in the first quarter and could continue to struggle amid the ongoing U.S.-China trade spat. Political tension, trade uncertainty, and a slowdown in the global economy present the greatest challenges to extending the current expansion.

Read more...Texas Quarterly Apartment Report 2Q2019 via Real Estate Center

2019 Rent Growth via Multi-Housing News Online

After months of continued increases, multifamily rent growth has now hit a wall—dropping $1 to $1,471 for the month of September. Despite year-over-year growth falling 20 basis points to 3.2 percent, the market remains healthy as 2019 has shown another year of above-average rents, according to a Yardi Matrix survey of 127 markets.

Nationally, rents are up 2.9 percent year-to-date, raising 0.3 percent in the third quarter alone. Although this has been one of the weaker performing quarters, rents are on track to reach 3 percent for the sixth time in the last seven years, notes the report.

Read more...2019 Rent Growth via Multi-Housing News Online

Class C Occupancy Rules in All but a Handful of Apartment Markets via RealPage

In the past 10 years, a heavy stream of high-priced new apartment supply and steadily rising rental rates in existing stock have led to vanishing vacancies at the bottom end of the product spectrum. While the more affordable Class C apartments rank as the tightest asset class on a national scale, however, a handful of local markets are defying this trend.

Read more...Class C Occupancy Rules in All but a Handful of Apartment Markets via RealPage

Economic Outlook Remains Healthy for Multifamily Industry via Multifamily Executive Magazine

While economic growth is starting to slow, fundamentals for the multifamily industry remain strong, according to John Sebree, first vice president and national director at Marcus & Millichap, and Ryan Severino, chief economist at JLL.

The two industry leaders were part of the annual Economic Outlook session at the Multifamily Executive Conference in early October in Las Vegas.

Read more...Economic Outlook Remains Healthy for Multifamily Industry via Multifamily Executive Magazine

Eleventh District Beige Book October 2019 via Dallas Fed

Moderate expansion continued in the Eleventh District economy. Growth continued in manufacturing and nonfinancial services and resumed in retail after flat sales in the previous period. Home sales increased and loan demand accelerated. Energy activity declined and agricultural conditions deteriorated due to hot and dry weather. Employment growth was solid while wage pressures continued. Selling prices were largely flat, as firms' ability to pass through cost increases remained limited. Outlooks improved in manufacturing and nonfinancial services, were unchanged in retail and financial services, and softened in energy. Uncertainty generally remained elevated, driven by trade tensions, the political climate, recession concerns, and weaker global growth.

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

ALN Monthly Market Stats October 2019 via ALN Apartment Data

ALN Data just released their September 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 October 2019 via ALN Apartment Data

Houston Economic Indicators October 2019 via Dallas Fed

The Houston economy continued to hum along in August, but there are signs of slowing ahead. Jobs continue to grow at a healthy pace, and unemployment remains low. Construction job growth continues at a fast clip, driven in part by ongoing demand from the energy industry. However, drilling activity is slowing, and the support activities sector shed jobs in recent months. Weekly retail fuel prices remain low in the region despite an uptick due to the attack on Saudi Arabian oil infrastructure.

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

DFW Economic Indicators September 2019 via Dallas Fed

Dallas–Fort Worth’s economic expansion remains on track. Payroll employment rose slightly faster than its long-term average rate in August, and unemployment stayed low. The Dallas and Fort Worth business-cycle indexes expanded further. Home sales rose and inventories remained tight, particularly at the lower price points. Home prices continued to appreciate at a moderate pace.

Read more...Dallas-Fort Worth Economic Indicators September 2019 via Dallas Fed

Austin Economic Indicators October 2019 via Dallas Fed

The Austin economy posted a strong performance in August. The Austin Business-Cycle Index expanded at a solid pace, and most job sectors experienced payroll gains, although health and private education services continued to decline. Hourly wages climbed in August. Housing construction permits continued to increase, and home sales grew.

Read more...Austin Economic Indicators October 2019 via Dallas Fed

Texas Economic Indicators September 2019 via Dallas Fed

The regional economy is growing at a moderate pace, and labor markets remain tight. Construction activity is rising, and the housing industry remains a bright spot, with higher sales and a pickup in prices. Against this robust backdrop, however, the outlook among Texas firms has deteriorated due to concern about tariffs, trade policy uncertainty and slowing global growth.

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

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

The rental market continues to be a positive performer, showcasing August rental growth of another $2 to $1,472. Despite the monthly increase, year-over-year growth declined to 3.3 percent, according to a Yardi Matrix survey of 127 markets. This, however, has not hindered market performance, as the long-term rent growth amount has been steady at more than 3 percent for the past 12 months and has surpassed the long-term average for the past two years.

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

ULI, PwC Emerging Trends Report Forecasts Continued Strength in CRE in 2020 via NREI

The commercial real estate market remains strong, despite talk of an approaching recession, according to an Emerging Trends in Real Estate 2020 report produced by the Urban Land Institute (ULI) and consulting firm PwC and released at this week’s ULI fall meeting.

“Real estate is in a very good space,” said Mitch Roschelle, partner and business development leader with PwC, at the event. “The real estate community caused two recessions: it caused it in housing, and it caused it in the savings and loan crisis. This go-around, whatever happens, it ain’t going to be [real estate’s] fault.”

Read more...ULI, PwC Emerging Trends Report Forecasts Continued Strength in CRE in 2020 via NREI

ALN Monthly Market Stats September 2019 via ALN Apartment Data

ALN Data just released their August 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 September 2019 via ALN Apartment Data

Domestic Migration to Texas Slows as National Labor Markets Tighten via Dallas Fed

Has Texas lost its edge, or is there something else going on that has reduced the incentive for people to pack up their belongings and head to the Lone Star State?

“With nearly half its workers born outside of the state, Texas depends on—and is shaped by—migration,” an article in Southwest Economy noted in first quarter 2018. State population growth is about double that of the nation, due primarily to strong international and domestic migration, the authors wrote. Also, since 2010, Texas has ranked second after Florida in the net number of domestic migrants, and surveys show that just over half of cross-state movers to Texas relocated for a job.

Read more...Domestic Migration to Texas Slows as National Labor Markets Tighten via Dallas Fed

Still building: Housing shortage will be with us for years to come via Dallas Morning News

Nationwide home mortgage rates are near record lows. Employment rates are near record highs. And demand for housing is strong in most U.S. metro areas.

You'd think homebuilding would be booming.

But you'd be wrong.

Single-family home construction across the country and in North Texas is nowhere close to reaching the levels we saw before the Great Recession.

Read more...Still building: Housing shortage will be with us for years to come via Dallas Morning News

Austin Economic Indicators September 2019 via Dallas Fed

The Austin economy posted a solid performance in July. The Austin Business-Cycle Index has increased strongly in recent months due to rapid job growth and a lower unemployment rate. Jobs were added in most industries, although health and education services continued to contract. Hourly wages fell in July, while housing construction permits picked up and home sales increased.

Read more...Austin Economic Indicators September 2019 via Dallas Fed

New apartments add billions to the D-FW economy while raising the ire of suburban homeowners via Dallas Morning News

Apartments may be the bane of many suburban homeowners.

But the rental housing units are a big contributor to local economies around the country, including the Dallas-Fort Worth area.

Apartment construction, operation, management and so forth adds more than $3.4 trillion a year to the national economy, according to a study by Hoyt Advisory Services for the rental housing industry.

In North Texas, the apartment industry contributed more than $98 billion a year to the economy, the study shows.

Read more...New apartments add billions to the D-FW economy while raising the ire of suburban homeowners via Dallas Morning News

Multifamily Cap Rates Rise as Rent Control Gains Momentum via GlobeSt

Rent control has become a highly-charged issue in many cities and states. Oregon and New York have passed measures placing caps on rent increases; California is considering a similar measure to name a few examples.

Indeed, housing affordability is a serious issue but rent control may not be the best way to address this concern, concludes an analysis by Real Capital Analytics. Already, writes Jim Costello, new demands for rent control are repricing assets in a way that may lead to loan defaults and lower housing availability over the long run. Namely, he writes, “Investors and lenders are repricing assets in markets where rent control exists or is being introduced.”

Read more...Multifamily Cap Rates Rise as Rent Control Gains Momentum via GlobeSt

Eleventh District Beige Book September 2019 via Dallas Fed

Moderate expansion continued in the Eleventh District economy. Output growth in manufacturing strengthened, and expansion in the service sector was strong in July but eased in August. Home sales rose, and loan volumes expanded albeit at a slower pace. Retail sales were flat and drilling activity continued to decline. Agricultural conditions deteriorated due to hot and dry weather. Employment growth was solid and wage pressures remained elevated. Selling prices rose modestly, as firms’ ability to pass through cost increases remained limited. Outlooks improved slightly in manufacturing but softened in the service, energy, and agricultural sectors, with uncertainty surrounding trade policy, tariffs, stock market volatility, and slowing global growth weighing on business sentiment.

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

DFW Economic Indicators August 2019 via Dallas Fed

Dallas–Fort Worth economic growth strengthened in July. Payroll employment grew at a rapid clip, and unemployment stayed low. The Dallas and Fort Worth business-cycle indexes expanded further. Housing market indicators suggest a cooling in home price appreciation and homebuilding activity, and inventories remained tight, particularly at the lower price points. Revised (benchmarked) data indicate that DFW employment grew 2.6 percent in the first seven months of 2019—slightly above its long-term trend rate.

Read more...Dallas-Fort Worth Economic Indicators August 2019 via Dallas Fed

Why Now is the Ideal Time to Invest in Multifamily via GlobeSt

It’s the end of the cycle and there are fears that supply may be catching up with demand in some markets. But Burns, managing director at Walker & Dunlop, insists that now is the ideal time to invest in the multifamily asset class—especially if you are also seeking financing. “10-year Treasury rates are low which has made for a busy first half of the year,” he tells GlobeSt. “The market is experiencing steady rent growth and an active acquisition environment which makes deals easy to finance. Bottom line, dropping rates and rising rents make for a great combo.”

Read more...Why Now is the Ideal Time to Invest in Multifamily via GlobeSt

Multifamily borrowing surges 10% in Q2 via HousingWire

Mortgage originations in commercial and multifamily surged 10% annually in the second quarter, according to the Mortgage Banker Association’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

Not only did multifamily and commercial originations increase from the previous year, they also rose by 29% from the first quarter of 2019.

Read more...Multifamily borrowing surges 10% in Q2 via HousingWire

Chicago and Dallas Most Improved for Resident Satisfaction via Multifamily Executive Magazine

National renter satisfaction has increased again in the second quarter, with 78.6% of residents reporting “good” or “excellent” satisfaction with their overall renting experience. This quarter’s increase continues the upward national trend that began in the last quarter of 2017.

Similar to the first quarter, every market except Atlanta saw a year-over-year increase in satisfaction this quarter. Boston has the highest overall satisfaction with 83.8%, followed by Chicago with 83.6% of residents satisfied with their living experience. Dallas once again topped out the markets for improvement from the prior year with a 3.5 percentage point increase from this time last year. Chicago and Miami are close behind with 2.5 and 2.4 percentage point increases, respectively. Both Dallas and Chicago also saw the largest year-over-year increases in residents’ likelihood to renew this quarter.

Read more...Chicago and Dallas Most Improved for Resident Satisfaction via Multifamily Executive Magazine

Apartment Occupancy Rate Hits a New High via NREI

Despite more than a decade of strong growth under its belt, the apartment sector occupancy rate continues to hit new highs.

"Terrific absorption has pushed occupancy upward to highs for this economic cycle," say Greg Willett, chief economist for RealPage Inc., a provider of property management software and services.

That might seem strange. The occupancy rate in the U.S. has already been high for a very long time.

Read more...Apartment Occupancy Rate Hits a New High via NREI

Texas Economic Indicators August 19, 2019 via Dallas Fed

Texas’ economic performance remains solid. The state saw robust job growth in July, and the unemployment rate held steady at a record low, indicating continued tightness in labor markets. The state’s business-cycle index grew strongly. Texas exports dipped in June, as did permits for single-family housing construction.

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

HUD proposes changes to fair housing rules via HousingWire

The Department of Housing and Urban Development on Friday proposed making changes to the nation’s fair housing rules, a move that fair housing advocates claim is part of a Trump administration effort to “gut” federal protections against housing discrimination.

HUD announced Friday that it is proposing changes to its interpretation of the Fair Housing Act’s disparate impact standard, a rule enacted by HUD during the Obama administration and used as a way to enforce the Fair Housing Act.

Read more...HUD proposes changes to fair housing rules via HousingWire

DFW Apartment Dwellers Catching Up to Homeowners When it Comes to Property Taxes via CandysDirt.com

Allen Gwinn is a number cruncher. Or a gadfly. Or a muckraker/local political analyst. By day, he teaches at SMU School of Business as a Professor of Practice.

Basically a detailed data miner, he has taught information technology at SMU Cox School of Business for 30 years. For years, Gwinn also ran a popular website called Dallas.org, which was 18,000 registered users rich, as large as many local media sites. As he puts it, “I had lots of bandwidth.”

Now Gwinn is gearing up a reboot of Dallas.org, because he believes that taxpayers need a constant stream of data about government spending. An informed citizenry, he feels, makes better voting decisions, which is why he analyzes public data.

Read more...DFW Apartment Dwellers Catching Up to Homeowners When it Comes to Property Taxes via CandysDirt.com

U.S. Rent Concessions Near 20-Year Lows, But Still Extensive in Some Markets via RealPage

Nationwide, the percentage of units offering rental concessions is at some of its lowest levels in nearly two decades. Still, some markets – mostly the country’s big construction centers – are offering concessions at notably higher rates.

After peaking at 65.8% in 4th quarter 2009, the percentage of stabilized apartments in the U.S. offering concessions has been on a steady downward trajectory. As of 2nd quarter 2019, concessions were available in only 14.1% of apartments, one of the lowest rates the market has seen since mid-2002.

Read more...U.S. Rent Concessions Near 20-Year Lows, But Still Extensive in Some Markets via RealPage

Multifamily occupancy rates keep rising via HousingWire

Apartment occupancy rates climbed in July to their highest level since in since 2000, according to a report from RealPage, which revealed that occupancy rates rose 0.4% from last year to reach 96.2% last month.

Meanwhile, rent growth held firm in July at 3.1%, as average rent prices across the U.S. rose to $1,414.

Read more...Multifamily occupancy rates keep rising via HousingWire

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

The multifamily market continues to perform positively as we head into the third quarter of 2019. Much like what was predicted back in January, the sector’s rent growth percentages keep increasing. At mid-year, growth has stabilized at more than 3 percent and according to Yardi Matrix’s Summer 2019 U.S. Multifamily Outlook, rents are expected to increase 2.6 percent for the full year. This would be the seventh year in a row that surpasses the 2.5 percent long-term average.

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

ALN Monthly Market Stats August 2019 via ALN Apartment Data

ALN Data just released their July 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 August 2019 via ALN Apartment Data

Multifamily Continues to Rule CRE via GlobeSt

The multifamily sector showed the most robust growth amongst all CRE sectors—multifamily, office, industrial, retail and hotel—in the first quarter of 2019, according to Ten-X Commercial’s Multifamily Market Outlook.

The first quarter of 2019 marked the first time in five years there was a decline in the number of new rental properties coming to market, according to the report. This decrease helped the multifamily market vacancy rate hold steady in the upper-4% range, the level it’s been since Q3 2018. Yet these figures are relative as the actual number of vacant apartment units remains at its highest since mid-2012, Ten-X reported. As the number of new apartments begins to decline, those on the market will be rented faster.

Read more...Multifamily Continues to Rule CRE via GlobeSt

How Rising Temperatures Impact Real Estate via Multi-Housing News Online

A new Urban Land Institute report delved into the effects of extreme heat and how it will change real estate in the U.S.

Extreme heat is becoming a growing concern for U.S. cities due to a combination of climate change and continuing urban development. By the end of the century, a majority of states will experience average summer temps of at least 80 degrees with some areas in California, Nevada and Texas experiencing an average of 100 degrees for summer, the report noted. Another report released earlier this year by GeoPhy also focused on climate change and pointed out how it would shape real estate.

Read more...How Rising Temperatures Impact Real Estate via Multi-Housing News Online

AMLI Report: Most Renters Worry About Climate Change via Multi-Housing News Online

Multifamily developer and owner AMLI Residential has released the findings of its third annual Sustainable Living Index, a survey of more than 3,500 residents of the company’s communities nationwide. The 2019 survey found that the vast majority of residents are concerned about climate change and a majority of renters would pay more to live in a community with sustainable features.

Read more...AMLI Report: Most Renters Worry About Climate Change via Multi-Housing News Online

Freddie Mac Foresees 4 Percent Rent Growth in 2019 via Multi-Housing News Online

Multifamily projects are being built at an elevated pace across the U.S., but leasing demand is robust and the nation’s housing shortage isn’t going away anytime soon, according to a report by Freddie Mac.

The government-sponsored enterprise’s midyear outlook report notes that multifamily completions have reached an annualized 365,000 units as of June—up from 345,000 units in each of the two prior years, according to U.S. Census Bureau data. At the same time, the industry is still struggling to build enough housing, as total households have increased by an average of 1.4 million each year during the past three years, while only 1.1 million units of housing per annum have been added.

Read more...Freddie Mac Foresees 4 Percent Rent Growth in 2019 via Multi-Housing News Online

DFW leads the country in apartment construction and leasing via Dallas Morning News

Dallas-Fort Worth is hanging on to its ranking as the country's top market for new apartments.

And the outlook for next year is that more new rental units will open their doors in North Texas, according to a new report by RealPage.

This year, developers are expected to add 19,632 new apartments in the D-FW area.

Read more...D-FW leads the country in apartment construction and leasing via Dallas Morning News

CRE Lending Activity Increases in Q2 via GlobeSt

After a slow start in Q1, lending activity gained traction in Q2, according to the CBRE Lending Momentum Index, which closed at a value of 244 in June, up by 2.3% from March’s close. Compared with a year ago, the index is up 20.8%.

Read more...CRE Lending Activity Increases in Q2 via GlobeSt

Texas Economic Indicators August 2019 via Dallas Fed

The Texas economy continues its expansion, paced by robust job gains in construction and services. Sluggish growth in manufacturing is attributable to softening demand for durables, which appears tied to a slowing energy sector. Unemployment is at a record low, keeping wage pressures elevated.

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

Apartment Rent Growth Accelerates Despite Slow Deliveries via Mortgage Bankers Association

Multifamily rents grew for the ninth straight month and are now up 3 percent year-over-year, reported Zillow, Seattle. The median monthly rent now equals $1,483.

Rents are up year-over-year in 49 of the nation's 50 largest markets with Milwaukee as the only exception, the Zillow Real Estate Market Report said. "Nationally, rent growth has not been this strong since 2016 when pressure in the rental market spurred record numbers of multifamily permits," the report said.

Read more...Apartment Rent Growth Accelerates Despite Slow Deliveries via Mortgage Bankers Association

Economy and CRE Markets Slowing Back to Trend in Second Half of 2019 via Nareit

One of the biggest challenges when interpreting macroeconomic data and news on the commercial real estate market is distinguishing between short-term moves and longer-term trends. Today that is manifest in a recent GDP report showing the economy slowed in the second quarter, as well as data showing that demand for some real estate sectors fell short in the spring. Are these harbingers of a coming downturn?

Read more...Economy and CRE Markets Slowing Back to Trend in Second Half of 2019 via Nareit

Dallas and U.S. apartment renters are more likely staying put instead of move via Dallas Morning News

Dallas-Fort Worth apartment renters are staying put longer in their homes.

The turnover rate for apartment renters in the D-FW area and nationwide is now at its lowest level in decades.

Nationwide, about 47.5% of apartment renters move when their lease is up.

Read more...Dallas and U.S. apartment renters are more likely staying put instead of move via Dallas Morning News

Freddie Mac: Multifamily Market Still Going Strong via Multi-Housing News Online

The multifamily market is still strong for investment, according to Freddie Mac’s market index that rose slightly in the first quarter of 2019.

Their Multifamily Apartment Investment Market Index (AIMI) combines several factors like rental income, property prices and mortgage rates to offer investors a holistic view of the sector.

Read more...Freddie Mac: Multifamily Market Still Going Strong via Multi-Housing News Online

DFW Economic Indicators July 2019 via Dallas Fed

Dallas–Fort Worth economic growth strengthened in June. Payroll employment in the second quarter expanded at its fastest rate in over two years. Unemployment remains low, and the Dallas and Fort Worth business-cycle indexes expanded further. Office leasing activity and industrial demand remained solid in the second quarter.

Read more...Dallas-Fort Worth Economic Indicators July 2019 via Dallas Fed

More DFW residents are renters as homeownership rate declines via Dallas Morning News

Fewer Dallas-Fort Worth residents are living in their own home.

In the second quarter less than 60% of North Texas residents were homeowners, according to the latest data from the U.S. Census Bureau.

More than four out of 10 area residents are renters.

Read more...More D-FW residents are renters as homeownership rate declines via Dallas Morning News

Focus Investing On Existing Multifamily Properties To Advance The American Dream via Forbes

With the real estate development industry struggling to profitably deliver new multifamily product in a price range that more people can afford, an answer to affordability may be found by looking to the past — specifically Class B and C properties built 20, 30 or even 50 years ago. I have focused almost exclusively on non-Class A properties since founding what has become one of the leading multifamily real estate investment companies in Texas. Over the past 11 years, we've found ways to breathe new life into thousands of units in older buildings in great locations to deliver budget-conscious alternatives for working individuals and families. Here are a few reasons why carving quality, affordable “new” inventory out of existing or older multifamily properties is a smart move for investors.

Read more...Focus Investing On Existing Multifamily Properties To Advance The American Dream via Forbes

'Red-hot economy': Texas unemployment falls again to new historic low in June via Dallas Morning News

After breaking previous records in May, Texas' unemployment rate once again fell to a new historic low of 3.4% in June, according to the Texas Workforce Commission.

The then all-time low set in May was 3.5%, a number not seen in the state since it started keeping track in 1976.

"It's a red-hot economy," Federal Reserve Bank of Dallas senior economist Pia Orrenius said.

Read more...'Red-hot economy': Texas unemployment falls again to new historic low in June via Dallas Morning News

Millennial magnet: Dallas outranks all in attracting young professionals via Dallas Morning News

More millennials are moving to Dallas than any other city in the U.S., a new analysis of Census Bureau data shows.

Personal finance website SmartAsset analyzed net migration rates and found that 10,371 millennials moved to Dallas in 2017, the most recent data available. It defined millennials as those between the ages of 20 and 34.

Read more...Millennial magnet: Dallas outranks all in attracting young professionals via Dallas Morning News

San Antonio Multifamily Report – Summer 2019 via Multi-Housing News Online

The nation’s seventh-largest city is facing a sizable economic shift, which is spilling over into the multifamily market. Despite continued robust supply, year-over-year rent growth in San Antonio was on par with the U.S. average, at 2.5 percent through May, more than double the figure recorded at the same time last year. The surge in completions met healthy demand and the occupancy rate in stabilized assets actually inched up 20 basis points over 12 months, to 92.9 percent as of April.

Read more...San Antonio Multifamily Report – Summer 2019 via Multi-Housing News Online

Multifamily Rent Growth Gets Serious via GlobeSt

June was an inflection point for US multifamily rent growth, according to new figures by Yardi-Matrix. Following several months this year of slow rent growth, rents rose robustly in the second quarter by $12 to reach $1,465, the company says. Average rents increased by 2% in the second quarter of 2019, and they are up 2.6% so far this year. Year-over-year growth increased to 3.3%, up by 40 basis points from May.

Read more...Multifamily Rent Growth Gets Serious via GlobeSt

Austin Climbs to Second-Largest Rent Spot via GlobeSt

Average multifamily rents in Texas recorded slow changes compared to last month, but the most significant differences are observed when comparing today’s rents to June 2018 and the beginning of 2019. RentCafe’s mid-year rent report recently analyzed the evolution of monthly rents in 260 US cities.

In the top spot, Midland maintains its reign with rents averaging $1,591. However, it is the only city to record a rental cost cooldown compared to June last year, after a decrease of $22.

Read more...Austin Climbs to Second-Largest Rent Spot via GlobeSt

Eleventh District Beige Book July 2019 via Dallas Fed

Moderate expansion continued in the Eleventh District economy. Growth in nonfinancial services and manufacturing sectors picked up in June. Retail sales and drilling activity declined. Home sales continued to climb, buoyed by lower mortgage rates. Loan volumes rose at a faster pace, and crop and pasture conditions were mostly favorable. Employment expanded moderately and wage growth remained elevated. Input cost pressures rose in manufacturing, which multiple contacts attributed to the tariffs. Outlooks improved among service sector contacts but worsened among manufacturers and uncertainty increased due to growing concern over tariffs and trade tensions. About 28 percent of respondents to the supplemental questions in the June Texas Business Outlook Surveys indicated being negatively affected by the tariffs while only 5 percent noted a positive impact.

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

Apartment Buildings in the U.S. Keep Getting Bigger via NREI

Last year, developers in the U.S. completed 211,000 new housing units in buildings of 50 units or more, the biggest number on record. The total number of new apartments constructed didn’t come close to setting any records, though.

These numbers are from Characteristics of New Housing, an annual Census Bureau data release that is so chock-full of interesting information (for example: 88% of apartments completed in 2018 had in-unit laundry facilities) that I briefly contemplated interrupting my vacation to write about it when it came out two weeks ago.

Read more...Apartment Buildings in the U.S. Keep Getting Bigger via NREI

ALN Monthly Market Stats July 2019 via ALN Apartment Data

ALN Data just released their June 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 July 2019 via ALN Apartment Data

Cap Rates on Apartment Acquisitions Take a Slight Dip in the First Half of 2019 via NREI

For years, apartment experts predicted that yields on investments in apartment rental properties would rise. Years passed, but cap rates in the sector remain historically low, and are getting lower.

“Cap rates have not risen in the last five years,” says Chris Espenshade, managing director with real estate services firm JLL. “Why should we expect they would rise in the next five?”

New investors keep finding reasons to buy apartment properties, and prices for these assets keep rising. That strong demand from buyers seems likely to keep cap rates low.

Read more...Cap Rates on Apartment Acquisitions Take a Slight Dip in the First Half of 2019 via NREI

What Difference Does a Year Make to US Cap Rates? via Real Capital Analytics

What difference does a year make to cap rates? None. The answer is none.

This time a year ago we looked at how Federal Reserve moves to raise interest rates were impacting commercial real estate. The answer at the time was that the rate environment was affecting deal volume and not cap rates. The story is still the same a year later. Even though the direction of interest rates is now entirely opposite, commercial real estate markets are not moving as quickly.

Read more...What Difference Does a Year Make to US Cap Rates? via Real Capital Analytics

Houston's apartment market seeing demand surge via Houston Chronicle

In the first half of the year, renters occupied an additional 10,000 units in the Houston metro, exceeding so-called absorption during all of 2018, commercial real estate firm JLL said in a midyear report. Occupancy has inched up to 90.2 percent, compared with 89.6 percent at the beginning of the year.

Experts attribute the market's improvement to a growing economy.

This Houston market ranked No. 3 (after Dallas/Ft. Worth and Chicago) on a list of cities with the the most multifamily demand, a study from real estate data firm RealPage shows.

Read more...Houston's apartment market seeing demand surge - Houston Chronicle

Gary Shilling: The Recession May Have Already Begun via GlobeSt

A U.S. recession “may already be underway,” and the bond market rally that began in the early 1980s is still intact, says Gary Shilling, founder of the investment advisory firm A. Gary Shilling & Co.

In his latest Insight report released just before Friday’s stronger-than-expected jobs report, Shilling writes that the 10-year Treasury note yield will drop to 1% in a year and the 30-year Treasury bond will drop to 2% a year after the recession starts, delivering double-digit returns. In that case, the 10-year Treasury would gain close to 12%, and the 30-year Treasury bond 14%.

Read more...Gary Shilling: The Recession May Have Already Begun via GlobeSt

Apartment rental demand soars as more millennials believe it’s cheaper than owning a home via CNBC

n the D.C. suburb of Chevy Chase, Maryland, a massive apartment rental and condominium complex is going up, and apparently it can’t happen fast enough. Demand for rental apartments in and near cities across America is soaring, just when most thought it wouldn’t be. The expectation was that rental demand would fall as millennials aged into their homebuying years.

Apartment demand in the second quarter of 2019 spiked 11% from a year ago. That, in turn, pushed rents up an average 3% nationally to $1,390 per month, according to RealPage, a real estate software and analytics company.

Read more... Apartment rental demand soars as more millennials believe it’s cheaper than owning a home via CNBC

Austin Multifamily Report – Summer 2019 via Multi-Housing News Online

Austin’s multifamily market is poised for a stable 2019, with rent growth rising 3.7 percent year-over-year through April, outperforming the national rate by 70 basis points. Developers are struggling to keep up with demand, and the labor shortage is not helping: The occupancy rate in stabilized properties rose 50 basis points over 12 months, to 94.4 percent as of March

Read more...Austin Multifamily Report – Summer 2019 via Multi-Housing News Online

Houston Economic Indicators July 2019 via Dallas Fed

Houston business-cycle and leading indexes pointed to a growing economy in May. Employment, particularly mining-related jobs, accelerated, but the U.S. rig count and oil prices have fallen in recent months. Manufacturers reported negative impacts from tariffs, while measures of global manufacturing showed signs of slowing—including for Houston trade partners. Taken together, the outlook for the region remains positive.

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

Austin Economic Indicators July 2019 via Dallas Fed

The Austin economy remained healthy in May. The Austin Business-Cycle Index accelerated and remained above its long-term trend. Labor force growth remained restricted, though recent job growth was strong, particularly in the construction and mining and information sectors. Hourly wages declined further in May, while total construction permits rose.

Read more...Austin Economic Indicators July 2019 via Dallas Fed

Pricing Continues its Monthly Decline via Multi-Housing News Online

The Ten-X Commercial Nowcast shows that commercial real estate pricing continued to languish in May, posting its second consecutive monthly decline. The Ten-X Commercial All-Property Nowcast fell 0.2 percent from the month prior, bringing the annual growth rate to just 0.4 percent.

Read more...Pricing Continues its Monthly Decline via Multi-Housing News Online

Looking for an apartment? Demand in Dallas-Fort Worth reaches 20-year high to lead all U.S. markets via Dallas Morning News

The Dallas-Fort Worth area is the top rental market in the country.

Net apartment leasing in the D-FW area grew by more than 10,400 rental units in the second quarter. That's more apartment demand than any other U.S. metro area and a near record for local rentals, according to new data from Richardson-based RealPage.

Read more...Looking for an apartment? Demand in Dallas-Fort Worth reaches 20-year high to lead all U.S. markets via Dallas Morning News

Gains for Multifamily Construction Starts via Multi-Housing News Online

According to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, starts of buildings with five or more units increased by 2.3 percent at a seasonally adjusted annual rate in April 2019 to 359,000 after a 0.3 percent drop in March. On a year-over-year basis, the April starts of buildings with five or more units were 1.4 percent above its April 2018 level.

Read more...Gains for Multifamily Construction Starts via Multi-Housing News Online

Austin Economic Indicators June 2019 via Dallas Fed

The Austin economy grew at a solid pace in April. The Austin Business-Cycle Index expanded and remained above its long-term trend. Job growth was brisk, with increases in the construction and mining and financial activities sectors but a sharp decline in retail jobs. Hourly wages continued to tick down in April, while housing affordability improved. Population growth in 2018 slowed from 2017.

Read more...Austin Economic Indicators June 2019 via Dallas Fed

DFW Economic Indicators June 2019 via Dallas Fed

Dallas–Fort Worth economic growth continued in May. Payroll employment rose, and unemployment remained at a 20-year low. The Dallas and Fort Worth business-cycle indexes expanded further. Home prices rose in the first quarter, and housing affordability improved, likely due to a drop in mortgage rates.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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