Monday, July 6, 2020

Austin Economic Indicators July 2020 via Dallas Fed

The Austin economy continued to contract in May due to the impact of COVID-19. The Austin Business-Cycle Index continued to decline. While jobs and the unemployment rate improved in May, both remain significantly worse than in February. Consumer spending improved significantly from mid-April to mid-June in Travis County. Existing-home sales declined further in May, while building permits held steady.

Read more...Austin Economic Indicators July 2020 - Dallas Fed

Thursday, July 2, 2020

Dallas-Fort Worth Economic Indicators June 2020 via Dallas Fed

The Dallas–Fort Worth economy showed some signs of recovery in May following epic declines in April. The unemployment rate dipped and payrolls rebounded, although employment stayed significantly below levels seen in February, before COVID-19 measures took effect. Initial jobless claims continued to be elevated in mid-June, though they have come down from the highs seen in late March and early April. Movements in the Dallas and Fort Worth business-cycle indexes were mixed in May. Home sales slumped again across most price points, though inventories remained tight. Apartment leasing remained sluggish in May.

Read more...Dallas-Fort Worth Economic Indicators June 2020 via Dallas Fed

Texas Service Sector Outlook Survey June 2020 via Dallas Fed

Following three months of steep decline, the Texas service sector showed signs of growth in June, according to business executives responding to the Texas Service Sector Outlook Survey. The revenue index, a key measure of state service sector conditions, rebounded to positive territory, advancing from -28.1 in May to 5.7 in June.

Labor market indicators reflected mostly stable employment and workweek length in June. The employment index rose over eight points to -1.9, suggesting little net change in jobs compared with May. The hours worked index ticked up over nine points to -0.2.

Read more...Texas Service Sector Outlook Survey June 2020 via Dallas Fed

Texas Manufacturing Outlook Survey June 2020 via Dallas Fed

Texas factory activity rebounded strongly in June, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, climbed from -28.0 to 13.6, indicating moderate expansion in output following three months of record or near-record declines.

Other measures of manufacturing activity also pointed to a rebound in growth this month.

Read more...Texas Manufacturing Outlook Survey June 2020 via Dallas Fed

Wednesday, July 1, 2020

A Hard Time for Homebuyers Might Be a Boon for Multifamily via Multi-Housing News

Landlords may be able to keep their residents longer than they might have prior to the COVID-19 pandemic, according to a new report.

A report from Realtor.com, the National Association of Realtors listing site, says renters who had to dip into their savings to cover their everyday expenses during the scourge are highly likely to delay purchasing a house.

Read more...A Hard Time for Homebuyers Might Be a Boon for Multifamily via Multi-Housing News

Freddie Mac Augments Multifamily Forbearance Program via Multi-Housing News Online

Freddie Mac Multifamily has expanded its COVID-19 forbearance program, creating supplemental forbearance relief options for landlords who are still facing economic hardship. The new changes also extend several protections for renters including a ban on evictions solely for nonpayment of rent, which was a feature of the original program when it was rolled out in March.

The mortgage relief options are geared towards borrowers who need further assistance as they may be approaching the end of the 90-day forbearance period granted in the first iteration of the program.

Read more...Freddie Mac Augments Multifamily Forbearance Program via Multi-Housing News Online

Texas Multifamily Owners File Lawsuit Against CARES Act Eviction Moratorium via Bisnow

Two small multifamily owners in Texas have filed a lawsuit against the U.S. government, challenging the legality of a moratorium on certain eviction proceedings under the Coronavirus Aid, Relief and Economic Security Act.

The lawsuit, filed in the U.S. District Court, Northern District of Texas, Fort Worth Division on June 24, is seeking a declaratory judgment that Section 4024 of the CARES Act cannot be legally enforced.

Read more...Texas Multifamily Owners File Lawsuit Against CARES Act Eviction Moratorium via Bisnow

Tuesday, June 30, 2020

Multifamily Remains Strong Amid Health And Economic Uncertainty via Forbes

As cities and businesses begin to reopen following weeks or months of stay-at-home orders, many sectors of the economy face the reality of a downturn. Amid that climate of uncertainty, multifamily remains strong as an investment opportunity.

Multifamily real estate has a long history of weathering economic storms. Last year, CBRE analyzed the effects of the past two recessions on the commercial real estate market and found that “multifamily outperformed office and industrial in the 2001 recession and all major property sectors (office, industrial, retail) during the 2008-2009 recession. Multifamily generally had lower total rent decline and more rapid post-recession rent recovery.”

Read more...Multifamily Remains Strong Amid Health And Economic Uncertainty via Forbes

Wednesday, June 24, 2020

What Rent Collection Data Is Really Telling You via GlobeSt

These days, rent collection data is among the most highly reviewed monthly reports. However, the strength of rent payments during the pandemic really depends on what outlet you’re reading. For June, Lease Lock has reported rents are down 6% compared to pre-COVID levels; the National Multifamily Housing Council is reporting that June rents are on par with 2019 collections to date; and Apartment List reports that 30% of tenants are not able to make a complete rent payment.

The inconsistencies come down to two factors:

Read more...What Rent Collection Data Is Really Telling You via GlobeSt

NMHC Rent Payment Tracker JUNE 1-20, 2020 via NMHC

The National Multifamily Housing Council (NMHC)’s Rent Payment Tracker found 92.2 percent of apartment households made a full or partial rent payment by June 20 in its survey of 11.4 million units of professionally managed apartment units across the country.

This is unchanged from the share who paid rent through June 20, 2019 and compares to 90.8 percent that had paid by May 20, 2020. These data encompass a wide variety of market-rate rental properties across the United States, which can vary by size, type and average rental price.

Read more...NMHC Rent Payment Tracker JUNE 1-20, 2020 via National Multifamily Housing Council

Monday, June 22, 2020

Texas apartment markets will slowly rebound via Dallas Morning News

Texas apartment markets have suffered setbacks due to the COVID-19 pandemic.

But the rental business is expected to recover over the next 18 months as the impact of the coronavirus subsides, according to a new forecast from CBRE.

Researchers with the commercial real estate firm looked at major apartment markets across the state.

Read more...Texas apartment markets will slowly rebound via Dallas Morning News

Thursday, June 18, 2020

ALN Monthly Market Stats June 2020 via ALN Apartment Data

ALN Data just released their May 2020 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 2020 via ALN Apartment Data

Tuesday, June 16, 2020

Rent Payments Reach 89 Percent via Multi-Housing News Online

Rental payments in the U.S. hit 89 percent as of June 13, a jump of more than 8 percent from the previous week, according to the latest report from the National Multifamily Housing Council.

By comparison, during the same time period last year, 88 percent of renters paid full or partial rent payments by June 13, 2019. The figure is a 1.3 percent increase from the share of rental payments tracked during the same time period last month.

Read more...Rent Payments Reach 89 Percent via Multi-Housing News Online

Thursday, June 11, 2020

When Benefits Run Out, What Happens to Rent Relief? via Multi-Housing News Online

As multifamily owners and landlord groups wait on the Senate to pass more rent relief legislation for those financially impacted by the ongoing coronavirus pandemic, some cities and states have wasted no time launching their own relief efforts to help renters make ends meet.

But with the extra $600 in weekly unemployment benefits for eligible individuals poised to run out soon, many in the industry are worried that more support may not come soon enough to prevent big problems for landlords and renters alike.

Read more...When Benefits Run Out, What Happens to Rent Relief? via Multi-Housing News Online

Is It Time To Buy A Multifamily Investment Property? via Forbes

Yes, now is the time. We were already moving into a recession at the beginning of 2020. Multifamily has historically been a very good investment during a recession. Now, with the pandemic creating volatility in office, retail, industrial and other sectors, the capital usually directed toward those investments will most likely seek the stability and predictability of multifamily. But it has not happened yet. Everyone’s too shell-shocked. This creates a perfect window to buy.

Read more...Is It Time To Buy A Multifamily Investment Property? via Forbes

Wednesday, June 10, 2020

Most apartment renters keeping up with payments via Dallas Morning News

More renters are falling behind in their payments due to the pandemic.

About 19% of apartment renters nationwide hadn’t made this month’s payment as of June 6, according to the latest data from the National Multifamily Housing Council, which represents major apartment landlords.

Read more...Most apartment renters keeping up with payments via Dallas Morning News

Tuesday, June 9, 2020

NMHC Rent Payment Tracker June 1-6, 2020 via National Multifamily Housing Council

The National Multifamily Housing Council (NMHC)’s Rent Payment Tracker found 80.8 percent of apartment households made a full or partial rent payment by June 6 in its survey of 11.5 million units of professionally managed apartment units across the country.

This is a 0.7-percentage point decrease in the share who paid rent through June 6, 2019 and compares to 80.2 percent that had paid by May 6, 2020. These data encompass a wide variety of professionally managed market-rate rental properties across the United States, which can vary by size, type and average rental price.

Read more...NMHC Rent Payment Tracker June 1-6, 2020 via National Multifamily Housing Council

Apartment New Lease Signings Surge in Late May via RealPage

U.S. market-rate apartments signed more new leases in May 2020 compared to May 2019, fueled by a surge in leasing activity over the second half of the month. The results are remarkable given a backdrop of double-digit unemployment and tens of millions of job losses.

Read more...Apartment New Lease Signings Surge in Late May via RealPage

Monday, June 8, 2020

Austin Economic Indicators May 2020 via Dallas Fed

The Austin economy slowed in March as the impacts of the coronavirus (COVID-19) began to surface. The Austin Business-Cycle Index grew well below trend. Jobs declined, the unemployment rate increased and initial unemployment claims surged. Real estate activity in the metro slowed, home sales prices increased and building permits fell.

Read more...Austin Economic Indicators May 2020 - Dallas Fed

Report: Turnover Drops to Levels Not Seen In Decades via GlobeSt

A commercial real estate services company is reporting seeing that landlords of multifamily property are seeing turnover fall to the lower levels in more than 20 years.

According to a report by CBRE, turnover, which is the percentage of total rented units that are not renewed each year, fell from 47.5 % in 2019 to 42.1 % in April. The report attributes the decline to historical trends that have been exacerbated due to the coronavirus pandemic.

Read more...Report: Turnover Drops to Levels Not Seen In Decades via GlobeSt

Houston Economic Indicators June 2020 via Dallas Fed

The Houston economy declined at a dramatic pace in April as the impact of COVID-19 and efforts to contain it swept through the region. While employment and unemployment showed record-breaking deterioration, there are already some early signs of economic recovery. Daily measures for mobility and engagement and the number of hourly employees working at small firms show that Houstonians are beginning to leave home and return to work. Taken together, the data imply that declines in the economy were slowing in May. A protracted recovery and a great deal of uncertainty remain ahead.

Read more... Houston Economic Indicators June 2020 via Dallas Fed

Hotel, Retail Lead Late Loans—Will Other Assets Follow? via CPExecutive

The number of commercial mortgages in arrears continued to grow in May, with problems concentrated in hotels and retail centers. Although delinquencies remain low in other property types, signs of stress are beginning to appear.

The percentage of delinquent CMBS loans rose in May to 7.4 percent, and the rate has more than tripled from 2.3 percent in December 2019, according to Trepp.

Read more...Hotel, Retail Lead Late Loans—Will Other Assets Follow? via CPExecutive

Dallas-Fort Worth Economic Indicators May 2020 via Dallas Fed

The DFW economy contracted at an unprecedented pace in April due to the ongoing economic distress caused by the COVID-19 pandemic. Payroll employment saw its steepest decline on record, and unemployment spiked to a historical high as business closures led to layoffs spanning most industries. The Dallas and Fort Worth business-cycle indexes—broad measures of economic activity in the metro area—slumped further. Single-family permits fell for the second month in a row, and apartment absorption slowed notably in April relative to year-ago levels.

Read more...Dallas-Fort Worth Economic Indicators May 2020 via Dallas Fed

Dallas-Fort Worth construction starts plunged as COVID-19 spread via Dallas Morning News

Dallas-Fort Worth building starts took a dive in April as the COVID-19 pandemic took hold.

Nonresidential building starts plunged by more than 40% from a year ago, according to a new report from Dodge Data & Analytics.

Residential building activity was also down 14% year-over-year in April as the coronavirus shut down the economy.

Read more...Dallas-Fort Worth construction starts plunged as COVID-19 spread via Dallas Morning News

Apartment Rent Payments Begin to Waver in Early June via GlobeSt

Apartment rent payments started to waver in early June, illustrating signs of growing economic disruption. April and May rent payments fell nominally—by about 4% for first-of-the-month payments—held up by landlord rent deferral programs and government assistance. In June, first-of-the-month payments fell another 2%, a 6% decrease compared to pre-COVID rent collections, according to research from LeaseLock.

Read more...Apartment Rent Payments Begin to Waver in Early June via GlobeSt

Wednesday, June 3, 2020

Distress Investors May Have to Wait as Long as 3 Years for Non-performing Loans to Come to Market via GlobeSt

Distress investors have been racing to the market in anticipation of snapping up deals. For the most part they are finding, to some chagrin, that there are little properties and loans available at deep discounts. There has been much positing about when these transactions will come to market—the end of summer and the fourth quarter are two popular timelines—but a better question might be to ask, why are there no distress deals available now? That answer in turn becomes a straight line to the question of when.

Read more...Distress Investors May Have to Wait as Long as 3 Years for Non-performing Loans to Come to Market via GlobeSt

Wednesday, May 27, 2020

Eleventh District Beige Book 5/27/2020 via Dallas Fed

Eleventh District economic activity contracted sharply in April, while preliminary data from May point to a notable easing in the pace of decline as restrictions on businesses were gradually lifted. Activity in the energy and service sectors remained the hardest hit. Manufacturing output and new orders fell further, though food manufacturing continued to increase. Loan volumes contracted broadly, with the exception of residential mortgages and SBA's PPP funds. Home sales fell sharply from mid-March through mid-April but have been improving from low levels since then. Employment and hours worked continued to plummet, pressuring wages. While input costs were flat to slightly up, food processors noted a large increase in meat prices. Selling prices dipped further. Preliminary results from a May Dallas Fed Survey of Texas manufacturing and service firms indicated that current revenue levels for most respondents were down markedly compared with a typical May, and about a fifth said they would not be able to survive past six months if revenues did not improve. Outlooks remained weak due to uncertainty surrounding the pace and scope of the reopening of the District economy.

Read more...Eleventh District Beige Book 5/27/2020 via Dallas Fed

Tuesday, May 26, 2020

May Rent Payments Hit 91 Percent via Multi-Housing News Online

Three weeks into May, 90.8 percent of rental households have made full or partial rent payments, according to just-released data from the National Multifamily Housing Council.

By comparison, by the same time last month, 89.2 percent of renters had made a payment, while 93 percent of rental households had made a payment through the same time period last year.

Read more...May Rent Payments Hit 91 Percent via Multi-Housing News Online

Coronavirus Dents Multifamily Development via Multi-Housing News Online

This was supposed to be a year marked by a healthy amount of new multifamily supply, as some 300,000 units were on pace to open by the end of 2020. But federal, state and local stay-at-home orders and other responses to the coronavirus pandemic will likely reduce that to around 250,000 units, according to projections by commercial real estate brokerage Marcus & Millichap and REIS, the property research arm of Moody’s Analytics.

Read more...Coronavirus Dents Multifamily Development via Multi-Housing News Online

CRE Economists Think Current Recession Won't Be as Bad as the 2008 Crisis via GlobeSt

Nearly 40 real estate economists and analysts feel the COVID-19 recession will impact real estate markets and values less severely than the 2008 financial crisis—except for retail and hotel real estate.

The economists predicted there will be a $275 billion decrease in real estate transaction volumes in 2020, according to a survey in May by the Urban Land Institute. But they expected transaction volumes to rise over the next two years, which would create a healthier capital market compared to the 2008 Great Recession.

Read more...CRE Economists Think Current Recession Won't Be as Bad as the 2008 Crisis via GlobeSt

Wednesday, May 20, 2020

Why Multifamily Rents are Holding Up Better than Expected via NREI

Despite mass unemployment and underemployment, multifamily rental payments have held up far better than many industry experts expected amid the economic wreckage caused by the spread of the novel coronavirus.

More than 36 million people have filed for unemployment in recent weeks and millions of others working fewer hours and taking reduced pay. That’s amid new estimates that real GDP growth for the second quarter will come in at -42.8 percent. Toss in a backdrop in which, as of December, 69 percent of Americans had less than $1,000 in savings accounts, and it would seem to paint a bleak picture on the ability of renters to meet their obligations.

Read more...Why Multifamily Rents are Holding Up Better than Expected via NREI

Tuesday, May 19, 2020

What Lenders Look for in New Loans: Q&A via Multi-Housing News Online

Pandemic-fueled uneasiness has forced lenders to realign underwriting strategies. Anthony Delfre, managing director of the Real Estate Advisors Group at Brown Gibbons Lang & Co., spoke to Multi-Housing News about the multifamily debt market amid the lingering global health crisis. What deals are lenders focusing on and who is still active in the mortgage industry?

Read more...What Lenders Look for in New Loans: Q&A via Multi-Housing News Online

Monday, May 18, 2020

Almost 88% of renters nationwide have made their May payments via Dallas Morning News

Apartment renters are continuing to make their monthly payments in the face of the pandemic.

Almost 88% of renters nationwide had made their May rents as of this week, according to the latest report from the National Multifamily Housing Council.

Read more...Almost 88% of renters nationwide have made their May payments via Dallas Morning News

Multifamily Loan Maturities Expected to Rise as Net Operating Incomes Drop via GlobeSt

Maturities for multifamily loans will be up this year by double-digits during the disruption of capital markets by the COVID-19 pandemic, according to a new report from CBRE.

The rise in multifamily maturities—up 11.9% to $72.9 billion in the main lender categories—is expected, writes report author Jeanette Rice, CBRE’s head of multifamily research for the Americas. It’s part of “a new ‘wall of maturities’ that is building for the 2022-2026 period.”

Read more...Multifamily Loan Maturities Expected to Rise as Net Operating Incomes Drop via GlobeSt

ALN Monthly Market Stats May 2020 via ALN Apartment Data

ALN Data just released their April 2020 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 May 2020 via ALN Apartment Data

Tuesday, May 12, 2020

Waiting Out Multifamily Opportunities in the Aftermath via GlobeSt

Like nearly every industry, the multifamily real estate market has taken a hit during the COVID-19 pandemic, but it may have one advantage that some industries don’t. People always need a place to live, especially during stay at home orders.

For investors or potential investors in multifamily real estate, that means waiting for opportune moments to arise once the worst of the crisis has passed.

Read more...Waiting Out Multifamily Opportunities in the Aftermath via GlobeSt

Friday, May 8, 2020

Most DFW apartment residents are still paying rent via Dallas Morning News

More than 80% of America’s apartment renters have made their May payments. And in the Dallas-Fort Worth area, about 87% of apartment residents so far have paid their rent for the month.

That’s better than some forecasters had expected in a month with record unemployment and pay cuts caused by the pandemic.

Read more...Most DFW apartment residents are still paying rent via Dallas Morning News

Thursday, May 7, 2020

What Historic Unemployment Could Mean for Multifamily via Multi-Housing News Online

Jobless claims in the U.S. have hit record levels since nationwide stay-at-home-orders went into effect and businesses shut their doors in mid-March. As the Bureau of Labor Statistics prepares to release its monthly report on employment figures, multifamily leaders and experts discussed what the numbers could mean for the industry.

Read more...What Historic Unemployment Could Mean for Multifamily via Multi-Housing News Online

Texas Economic Activity Sharply Falls in Wake of COVID-19 via Dallas Fed

Economic distress caused by the COVID-19 pandemic has sent the Texas economy into a tailspin. Virus containment measures have prompted unprecedented declines in demand and triggered mass layoffs, shaking business and consumer confidence.

Activity in the service sector has been more severely affected than in manufacturing, precipitating downward pressures on wages and prices. The state’s oil and gas sector has been decimated. The housing market has slowed, too, as sellers and buyers take a wait-and-see approach.

Read more...Texas Economic Activity Sharply Falls in Wake of COVID-19 via Dallas Fed

Wednesday, May 6, 2020

What $100B in Rent Relief Could Look Like When it Hits the Market via GlobeSt

On Monday Sen. Sherrod Brown (D-Ohio) tweeted the news that he was planning to introduce a $100 billion rent relief bill, surprising many in the industry that had begun to wonder if the federal government had forgotten about them.

Even with the tweet, Washington observers could have been forgiven for feeling jaded about the measure’s prospects: Republicans and Democrats are at odds on what future federal assistance will look like while President Trump has his own ideas about what the next steps should be.

Read more...What $100B in Rent Relief Could Look Like When it Hits the Market via GlobeSt

Tuesday, May 5, 2020

Senator to Introduce $100B Emergency Rental Assistance Bill via GlobeSt

To date, the multifamily industry has received little assistance from Washington, DC, even as 30 million people have been thrown into unemployment over the last six weeks. While the majority of renters paid their April rents, it is widely believed that fewer will be able to meet their monthly rent obligation for May.

A bill that will be introduced in the Senate could provide relief to both tenants and their landlords.

Read more...Senator to Introduce $100B Emergency Rental Assistance Bill via GlobeSt

Suddenly Apartment Landlords Have Become the Enemy via GlobeSt

So many renters are scared these days. May 1 has come and gone and it is expected that a significant number were not able to come up with the money for their rent. Without a doubt, their stories are heartbreaking: Families that have lost their jobs, have little savings as fallback and in some cases are terrified they won’t be able to feed and properly house and educate their children.

Some renters, though, are also angry and on the first of the month they demonstrated that anger by participating in a rent strike held across several cities in the US. A quick perusal on Twitter (#rentstrike and #cancelrent will do the trick) illustrates just how much ill will these renters hold towards their landlords.

Read more...Suddenly Apartment Landlords Have Become the Enemy via GlobeSt

Friday, May 1, 2020

Weekly New Apartment Lease Signings Match 2019 Levels, While Rents Decline via RealPage

We continue to monitor daily leasing activity for the U.S. apartment market, and the most recent numbers were a shocker: Last week, executed new lease volumes came in nearly on par with the 2019 totals for the same period, based on analysis of RealPage’s rent roll data.

The results marked a continued upward trend in traffic and leasing activity since bottoming in late March, when total lease new signings were down nearly 50% year-over-year. As of April 26, total new lease signings over the trailing seven days were down only 1.6%.

Read more...Weekly New Apartment Lease Signings Match 2019 Levels, While Rents Decline via RealPage

More Apartment Residents Say They Can’t Pay Rent for May via GlobeSt

There is little doubt that apartment renters are hurting from the coronavirus, according to a new survey by Grace Hill, a software company that surveys the multifamily industry.

It found that Covid-19-related related income losses have impacted nearly two-thirds, or 63%, of all renters surveyed. Furthermore 52% indicated they would be able to pay the May rent in full, compared to 69% who said they paid April’s rent in full.

Read more...More Apartment Residents Say They Can’t Pay Rent for May via GlobeSt

COVID-19 Shutdowns Impacted CRE Markets Right Away via Nareit

The business closures and social distancing designed to slow the spread of COVID-19 did not take affect until the final few weeks of the first quarter, but they had a significant impact on demand for commercial real estate, vacancies and rent growth across the major property sectors.

Newly-released data from CoStar show that net absorption of apartments was 65,000 units in the first quarter, the weakest start to a year since 2014 (chart 1 shows four-quarter sums due to seasonal patterns in demand, in dark blue bars. Completions, or new supply, are shown with the sign reversed in the light blue bars). There has been a high level of construction of new apartments, which leaves this sector particularly exposed to slowing demand.

Read more...COVID-19 Shutdowns Impacted CRE Markets Right Away via Nareit

Thursday, April 30, 2020

Houston Economic Indicators April 2020 via Dallas Fed

Data for March in Houston have begun to show the effects of efforts to contain the coronavirus (COVID-19) pandemic. Employment contracted, the business-cycle index slowed, leading indicators were broadly negative, and the unemployment rate rose sharply for March. Weekly initial claims for unemployment insurance in April remained elevated. Existing-home sales contracted but remain at a healthy level. Taken together, the data paint a sobering picture of further declines ahead.

Read more... Houston Economic Indicators April 2020 via Dallas Fed

While Resilient, Multifamily is Not Immune to COVID-19 via GlobeSt

COVID-19 has wreaked havoc on many commercial real estate segments. While the multifamily sector is a resilient one, it is not immune to the wrath of this global pandemic.

But despite the many challenges, there are some positive signs that support the ongoing resilience of the multifamily sector during this health crisis, says Zain Jaffer, founder and CEO of Zain Ventures. There are opportunities facing economic subsectors and the market as a whole along with key factors that will determine the severity of the pandemic’s impact on the sector.

Read more...While Resilient, Multifamily is Not Immune to COVID-19 via GlobeSt

Wednesday, April 29, 2020

Dallas-Fort Worth Economic Indicators April 2020 via Dallas Fed

The Dallas–Fort Worth economy contracted in March. Payroll employment posted its largest drop since the series began in 1990, and unemployment rose as containment measures related to the COVID-19 pandemic triggered mass layoffs, particularly in the leisure and hospitality sector. The Dallas and Fort Worth business-cycle indexes fell. Home sales dipped in March, and pending home sales, a forward-looking indicator, fell as well. Office leasing activity softened in the first quarter.

Read more...Dallas-Fort Worth Economic Indicators April 2020 via Dallas Fed

DFW apartment demand bounces back via Dallas Morning News

So far, North Texas’ apartment market has shrugged off the worst impacts of the COVID-19 pandemic.

Leasing activity in the Dallas-Fort Worth area is up from a year ago, according to a survey last week by Richardson-based RealPage.

“Apartment leasing activity is suddenly back in a big way, at least for the moment,” RealPage chief economist Greg Willett said. “U.S. apartment leasing activity is roughly back to year-ago levels, after demand dropped drastically in late March to early April.”

Read more...DFW apartment demand bounces back via Dallas Morning News

More Apartment Residents Say They Can’t Pay Rent for May via GlobeSt

There is little doubt that apartment renters are hurting from the coronavirus, according to a new survey by Grace Hill, a software company that surveys the multifamily industry.

It found that Covid-19-related related income losses have impacted nearly two-thirds, or 63%, of all renters surveyed. Furthermore 52% indicated they would be able to pay the May rent in full, compared to 69% who said they paid April’s rent in full.

Read more...More Apartment Residents Say They Can’t Pay Rent for May via GlobeSt

Friday, April 24, 2020

The Outlook for Class-C Apartments Is Muddied by Tenants' Loss of Income via NREI

Class-C apartment tenants have been badly hurt by the economic shutdown precipitated by the novel coronavirus, crushing their ability to pay rents, thereby putting strain on those properties’ owners to continue to cover costs and mortgage payments.

More than 22 million Americans have filed for unemployment in recent weeks. Others are working on reduced hours. Large parts of the U.S. economy remain shut down as states have ordered non-essential businesses to keep closed.

Read more...The Outlook for Class-C Apartments Is Muddied by Tenants' Loss of Income via NREI

Rental Market Slowdown Could Hit Class A Hardest via Multi-Housing News Online

After a decade of growth in the number of high-earning renter households, the impact of the coronavirus outbreak could cause that number to stall, leaving owners of luxury rental properties struggling to lease apartments.

According to research from the Joint Center for Housing Studies at Harvard University, while the length of the pandemic is still uncertain, there are early signs that point to a slowdown in demand in the U.S. rental market. Leasing activity is down at a time when apartment completions are approaching a 30-year high and the growth of renter households has slowed.

Read more...Rental Market Slowdown Could Hit Class A Hardest via Multi-Housing News Online

Thursday, April 23, 2020

Apartment Market Conditions Dramatically Weaken Amid Coronavirus via GlobeSt

Apartment market conditions significantly weakened in the National Multifamily Housing Council’s Quarterly Survey of Apartment Market Conditions for April 2020. The survey found that indexes tracking Market Tightness (12), Sales Volume (6), Equity Financing (13), and Debt Financing (20) all came in well below the breakeven level of 50.

The reason for these declines, of course, is the economic havoc brought on by the coronavirus.

Read more...Apartment Market Conditions Dramatically Weaken Amid Coronavirus via GlobeSt

Multifamily Executives Worry That Strong Rent Performance Won’t Last via Multi-Housing News Online

Apartment owners were happy with April’s rent payment results—which found that 89 percent of renters made rent payments through the 19th of the month, down only 5 percent compared to the same period a year ago, according to the National Multifamily Housing Council’s latest weekly survey. But industry leaders know that it is too soon to breathe easy.

Read more...Multifamily Executives Worry That Strong Rent Performance Won’t Last via Multi-Housing News Online

Wednesday, April 22, 2020

NMHC Rent Payment Tracker APRIL 1-19, 2020 via NMHC

The National Multifamily Housing Council (NMHC) found that 89 percent of apartment households made a full or partial rent payment by April 19 in its survey of 11.5 million units of professionally managed apartment units across the country, up 5 percentage points from April 12.

NMHC’s Rent Payment Tracker numbers also examined historical numbers and found that 93 percent of renters made full or partial payments from April 1-19, 2019, and 93 percent of renters in March 1-19, 2020. The latest tracker numbers reflect a payment rate of 95 percent compared to the same time last month. These data encompass a wide variety of market-rate rental properties, which can vary by size, type and average rental price.

Read more...NMHC Rent Payment Tracker APRIL 1-19, 2020 via National Multifamily Housing Council

Friday, April 17, 2020

Freddie Mac Boosts Multifamily Forbearance Program via Multi-Housing News Online

Freddie Mac has updated its Multifamily COVID-19 forbearance program to enhance protections for borrowers and renters, as widespread job losses due to the public health emergency threaten many Americans’ ability to pay their bills. The revised rules extend the duration of the program and bar multifamily landlords from evicting renters or charging late fees for nonpayment during the program’s forbearance period.

Read more...Freddie Mac Boosts Multifamily Forbearance Program via Multi-Housing News Online

Thursday, April 16, 2020

April’s Apartment Rent Defaults Weren't That Bad After All via GlobeSt

When the National Multifamily Housing Council reported a drop in April rent payments last week, executives acknowledged the numbers could improve as they expected many tenants would be paying late.

Turns out, they were right.

In its weekly update to its rent tracker report, the association found that 84% of apartment households made a full or partial rent payment by April 12, up 15 percentage points from April 5.

Read more...April’s Apartment Rent Defaults Weren't That Bad After All via GlobeSt

ALN Monthly Market Stats April 2020 via ALN Apartment Data

ALN Data just released their March 2020 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 2020 via ALN Apartment Data

Wednesday, April 15, 2020

Eleventh District Beige Book 4/15/2020 via Dallas Fed

There was sudden and broad-based weakening of the Eleventh District economy during the reporting period. Many firms reported a sharp reduction in activity, resulting from business disruptions and closures due to the COVID-19 pandemic. Activity in the energy, retail, and service sectors was the hardest hit. Overall factory output and new orders plunged, though production in food and printing-related manufacturing increased. Loan demand contracted broadly and credit quality eroded slightly, except in residential real estate lending. Housing demand held up through mid-March but has declined notably since then. Employment and hours worked plummeted, resulting in downward wage pressures. Input costs were flat to down, and selling prices dipped amid declining demand for many products and services. Outlooks worsened markedly and uncertainty surged, as the economic impact of the COVID-19 pandemic and related containment measures intensified.

Read more...Eleventh District Beige Book 4/15/2020 via Dallas Fed

Thursday, April 9, 2020

A Look at Who Didn’t Pay Their Rent This Month via GlobeSt

In its debut rent tracker report, the National Multifamily Housing Council reported that 69% of households had paid their rent, either partially or in full, by April 5, compared to 81% that had paid by March 5, 2020. The rent tracker is based on data from 13.4 million rental apartments. The association has partnered with several firms to create this metric, including RealPage, Yardi and Entrata.

This increase in nonpayment comes as little surprise given the millions of people thrown out of work over the past month. With more layoffs and furloughs expected, the metric provides some insight into how the unfolding coronavirus crisis might affect the apartment industry on a wider scale.

Read more...A Look at Who Didn’t Pay Their Rent This Month via GlobeSt

Without Immigration, U.S. Economy Will Struggle to Grow via Dallas Fed

The coronavirus (COVID-19) pandemic has triggered dramatic, deteriorating economic conditions across the country. At some point, however, the effects of the shock will diminish. And the buffeted U.S. economy emerging from the health crisis will face some familiar structural challenges that predated the virus—among them, the slowing growth of its workforce.

Read more...Without Immigration, U.S. Economy Will Struggle to Grow via Dallas Fed

CRE’s Recovery Will Take At Least a Year, Trailing the Economic Rebound, CBRE Says via GlobeSt

In the space of just a few weeks the outlook for the US commercial real estate sector, to say nothing of the overall economy, has been utterly upended. Research firms are adjusting their initial expectations that the coronavirus would leave just a glancing blow on the industry.

A new report from CBRE finds that the US is in recession with GDP declines expected in the first and second quarter. It forecasts that the economy will stabilize in the third quarter, start to recover in the fourth, and grow at more than 5% in 2021 due to pent-up demand and major government stimulus.

Read more...CRE’s Recovery Will Take At Least a Year, Trailing the Economic Rebound, CBRE Says via GlobeSt

Wednesday, April 8, 2020

Building owners aren’t panicking yet about rent relief requests via Dallas Morning News

Commercial building owners are already facing a flood of pleas for rent forbearance.

Just dealing with tenants’ rent relief requests is going to be a challenge for the industry. Staggering numbers of businesses are suddenly struggling to pay their landlords as a result of the COVID-19 pandemic.

Prologis, one of the country’s largest industrial building owners, says it has gotten rent relief requests from almost one in four of its more than 5,000 nationwide tenants.

Read more...Building owners aren’t panicking yet about rent relief requests via Dallas Morning News

NMHC Rent Payment Tracker via National Multifamily Housing Council

The National Multifamily Housing Council (NMHC) found a 12-percentage point decrease in the share of apartment households that paid rent through April 5, in the first review of the effect of the COVID-19 outbreak on rent payments. The Tracker found 69 percent of households had paid their rent by April 5; this compares to 81 percent that had paid by March 5, 2020, and 82 percent that had paid by the same time last year.

Read more...NMHC Rent Payment Tracker via National Multifamily Housing Council

Tuesday, April 7, 2020

Multifamily Waits for Forbearance via GlobeSt

Last month Treasury Secretary Steven Mnuchin formed a task force of regulators to address how to ease the expected liquidity shortfall for mortgage firms. He asked the task force to offer recommendations by March 30. Since then little has been said about the task force other than a press release that it convened and that “Ginnie Mae and the Federal Housing Finance Agency will continue to monitor closely the markets and the condition of the nonbank entities that service Ginnie Mae, Fannie Mae and Freddie Mac MBS.”

Tired of waiting, this past weekend 15 real estate trade associations and affordable housing advocate groups called on the Federal Housing Finance Agency, the Federal Reserve and the Department of the Treasury to establish a liquidity facility for servicers that would support the foreclosure moratorium established in the CARES Act.

Read more...Multifamily Waits for Forbearance via GlobeSt

Supreme Court of Texas extends suspension on evictions until April 30 via Dallas Morning News

The Supreme Court of Texas extended its moratorium on evictions Monday, announcing that the suspension will continue until April 30.

The extension adds 11 days to its original moratorium, which began March 19.

Locally, some counties suspended evictions for a longer time period. Dallas County’s suspension of evictions runs through May 18. Tarrant County’s is indefinite, for the time being.

Read more...Supreme Court of Texas extends suspension on evictions until April 30 via Dallas Morning News

How to Price a Deal in Today’s Market via GlobeSt

Some investors have halted all acquisitions, but for those still trying to transact in this market, it can be challenging. Everything from underwriting in this uncertain market to completing due diligence with social distancing restrictions has made simply doing a deal difficult.

“This is not going to go on forever, but it is going to go on for a while,” Mark Weinstein, founder and president at MJW Investments, tells GlobeSt.com. “Now, we are just trying to figure out where the rents and occupancy will be a year from now. We are assuming that we will have to absorb everything for the next year, and we have to factor those carrying costs.

Read more...How to Price a Deal in Today’s Market via GlobeSt

Monday, April 6, 2020

Seven Rules for Lenders Navigating Workouts During Uncertain Times via NREI

It's time to go back to basics and adhere to some key guidelines to help navigate the choppy waters facing commercial real estate financing.

If the current coronavirus (COVID-19) situation persists, real estate lenders increasingly will be faced with the need to restructure loans in their portfolios. Lenders that held non-performing real estate loans during prior real estate downturns (e.g., 2008, 1990s) have no doubt embarked on the real estate workout process countless times before. However, with the passage of time, the lessons learned by real estate lenders of earlier eras may have faded from memory.

Read more...Seven Rules for Lenders Navigating Workouts During Uncertain Times via NREI

Missing: 20,000 DFW apartment renters to fill new units via Dallas Morning News

Not only home shoppers have hit the pause button. Prospective apartment renters are also sheltering in place in the face of the COVID-19 epidemic.

That’s bad news in North Texas, which has the most new apartment communities hunting for new tenants, according to a new report by RealPage.

“The drastic drop in renter mobility creates some real challenges for properties in the midst of initial lease-up - and D-FW has lots of those,” said Greg Willett chief economist at the Richardson-based apartment industry service firm.

Read more...Missing: 20,000 D-FW apartment renters to fill new units via Dallas Morning News

Multifamily market permits continue to decline via HousingWire

Prior to stay-at-home orders and businesses closing, the multifamily market was already seeing a decline in both permits and starts, a new report from RealPage said.

Permits fell to 415,000 units on a seasonally adjusted annual basis in February, marking the second-lowest annual rate in 17 months, down 20.2% from January and 5% from February 2019.

Now, due to the effects of the coronavirus, permits are more likely to decrease, although many local governments have deemed construction and real estate an essential industry.

Read more...Multifamily market permits continue to decline via HousingWire

Friday, April 3, 2020

Fannie, Freddie Raise Reserve Requirements as Loan Standards Tighten via Multi-Housing News Online

As lenders nationwide hunker down and prepare for an economic downturn, Fannie Mae and Freddie Mac are implementing stricter multifamily loan terms.

The GSEs remain open for business, but many borrowers will have to provide more equity and will be required to put 12 to 18 months of payments into a reserve account. That is a tough ask for all but the most well-capitalized borrowers.

Read more...Fannie, Freddie Raise Reserve Requirements as Loan Standards Tighten via Multi-Housing News Online

Thursday, April 2, 2020

Texas reeling into recession from double blows of coronavirus and oil slump, Comptroller Glenn Hegar says via Dallas Morning News

Texas’ usually buoyant economy has just run over two sharp nails — coronavirus and low oil prices — and the resulting slowdown is dramatic, Comptroller Glenn Hegar said Wednesday.

“There’s no doubt that Texas is going to be in a recession — just like pretty much the rest of the world,” he said.

While data showing the scope of the state’s economic contraction won’t be out for another few weeks, Hegar said early signs from counties that collect sales tax on motor vehicle purchases and rentals showed significant declines for a limited part of last month — all that’s been reported so far.

Read more...Texas reeling into recession from double blows of coronavirus and oil slump, Comptroller Glenn Hegar says via Dallas Morning News

The COVID-19 Economic Shutdown is Already Hitting Multifamily Rents via NREI

The average rents on apartments are already dropping, as the U.S. economy grinds to a halt and millions of workers have lost their jobs, been furloughed or have been asked to stay home to fight the rapid spread of COVID-19.

“Job losses are already affecting demand for apartments,” says Andrew Rybczynski, managing consultant for CoStar Group. “The evidence is apparent in daily rent changes.”

Read more...The COVID-19 Economic Shutdown is Already Hitting Multifamily Rents via NREI

Wednesday, April 1, 2020

COVID-19: What’s the Long-Term Impact of Moratoriums on Apartment Evictions? via RealPage

On Sunday, the National Multifamily Housing Council endorsed a number of unprecedented measures in response to the COVID-19 crisis. Among them is a 90-day moratorium on most evictions, meaning apartment owners and managers effectively stripped themselves the ability to remove residents delinquent on rent. The move comes after a wave of local and state governments across the country put similar bans in place.

The timing matches an expected increase in delinquency as job losses mount (particularly in the hotel and restaurant sectors) and unemployment claims surge.

Read more...COVID-19: What’s the Long-Term Impact of Moratoriums on Apartment Evictions? via RealPage

COVID-19 Hit on Multifamily Will Be ‘Modest’ via Multi-Housing News Online

If the numbers from China are accurate—and there’s no way to be certain about that—the COVID-19-induced recession should be a rather short one, according to RCLCO, the Bethesda, Md.-based real estate advisory firm. And the apartment sector won’t feel too much of a sting.

Charles Hewlett, a managing director at the company, said during a webinar late last week that the economic turndown should last a relatively quick two months.

Read more...COVID-19 Hit on Multifamily Will Be ‘Modest’ via Multi-Housing News Online

CRE Loan Defaults Soar Under Trepp Stress Test But Won’t Be as Bad as Great Recession via GlobeSt

To gauge the impact of the COVID-19 disruption, Trepp has applied an economic and real estate forecast scenario to a portfolio of 12,500 commercial real estate loans.

The findings were perhaps to be expected: defaults are expected to increase, in some cases significantly.

Under the scenario Trepp used, the cumulative default rate across commercial mortgages overall will rise to 8%, up significantly from the current 0.4% default rate. The impact will be most immediate and severe in the lodging sector, with a cumulative default rate approaching 35%.

Read more...CRE Loan Defaults Soar Under Trepp Stress Test But Won’t Be as Bad as Great Recession via GlobeSt

Tuesday, March 31, 2020

For Some Family Offices, Now Is the “Buying Opportunity of a Century” When It Comes to CRE via NREI

As America grapples with the coronavirus-impaired economy, family offices are feeling the same uncertainty as other investors are. In some cases, it means it’s time for them to selectively search for commercial real estate opportunities. In other cases, it’s time to pause investment activity.

For investors who want to act rather than stand still, execution of acquisitions and sales has been hampered by market volatility and illiquidity, says Randy Hubschmidt, managing partner of Fortis Wealth, a multi-family office in King of Prussia, Penn. He’s seen deals extended or canceled altogether due to the inability to wrap up previously approved financing.

Read more...For Some Family Offices, Now Is the “Buying Opportunity of a Century” When It Comes to CRE via NREI

Texas Economic Activity Suddenly Contracts in March; Outlook Worsens Due to COVID-19 via Dallas Fed

The economic downturn in Texas has begun, recent data suggest. The coronavirus (COVID-19) outbreak initially affected manufacturers and retailers with supply lines in China. The virus’ subsequent arrival in the U.S. has produced a severe drop-off in demand for large parts of the service sector.

Some of the demand declines have intensified due to public health measures, such as social distancing and shelter-in-place policies. Additionally, record-low oil prices and the prospect of sustained depressed levels in the energy sector will further slow growth in Texas.

Before the COVID-19 outbreak in the U.S., economic activity in Texas had broadly improved. Service sector revenue and manufacturing production increased in January and February.

Read more...Texas Economic Activity Suddenly Contracts in March; Outlook Worsens Due to COVID-19 via Dallas Fed

Texas Service Sector Outlook Survey March 2020 via Dallas Fed

The Texas service sector saw a dramatic decline in March amid the ongoing coronavirus (COVID-19) pandemic and related measures, according to business executives responding to the Texas Service Sector Outlook Survey. The revenue index, a key measure of state service sector conditions, plummeted from 14.0 in February to -67.0 in March, an all-time low reading for the survey.

Labor market indicators reflected a sharp contraction in employment and significantly shortened workweeks. The employment index fell from 6.1 to -23.8, its lowest reading on record. The hours worked index drastically dropped over 47 points to -43.0, with nearly half of respondents noting a cut in employee hours.

Read more...Texas Service Sector Outlook Survey March 2020 via Dallas Fed

Will coronavirus permanently change CRE lending? via American Banker

The economic paralysis from the coronavirus outbreak could upend commercial real estate and accelerate loan losses for banks.

High vacancies are hurting hotels, while closed retail outlets are poised to cause headaches for malls and shopping centers. Offices could struggle over the long run as more Americans work remotely and employers decide they can get by with less space.

Those developments are apt to cause near-term credit issues and long-term adjustments in the CRE business.

Read more...Will coronavirus permanently change CRE lending? via American Banker

Monday, March 30, 2020

Multifamily Remains Long-Term Investment Vehicle via GlobeSt

Not only has COVID-19 upended Americans’ daily routines but also how capital is invested and transactions are conducted in the multifamily industry. While the caution level in the industry is warranted, that same cautiousness must be met with careful optimism based on detailed analysis, hard data and level-headed assessment of the new reality, says Berkadia.

Initial lease renewal rates exceeded 53% in 2019. According to RealPage, renewal rent growth has consistently registered around 4.5% annually for the past few years. Operators can also expect renters to stay put in the meantime as the COVID-19 crisis continues to unfold.

Read more...Multifamily Remains Long-Term Investment Vehicle via GlobeSt

Evictions in Texas are halted, but what happens to renters when the suspension lifts? via Dallas Morning News

The stress that comes with the first day of every month has never been more acute for Dallas Fort-Worth residents forced out of work by the COVID-19 pandemic.

For the week ending March 21, jobless claims in Texas soared more than 860%. And if the swamped phone lines at Texas unemployment offices are any indicator, the state could see those numbers rise even more.

To a degree, local and state officials anticipated this.

Read more...Evictions in Texas are halted, but what happens to renters when the suspension lifts? via Dallas Morning News

Texas Manufacturing Outlook Survey March 2020 via Dallas Fed

Texas factory activity declined sharply in March, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, plummeted from 16.4 to -35.3, suggesting a notable contraction in output since last month.

Other measures of manufacturing activity also point to a sudden decline in March. The new orders index dropped to -41.3, its lowest reading since March 2009 during the Great Recession. Similarly, the growth rate of orders index fell to -44.9. The capacity utilization and shipments indexes fell to -33.4 and -33.8, respectively, also the lowest readings since the Great Recession. Capital expenditures declined sharply, with the index dropping from 6.9 to -34.3.

Read more...Texas Manufacturing Outlook Survey March 2020 via Dallas Fed

Friday, March 27, 2020

At Long Last, the Cycle Ends. What’s Next? via CPExecutive

Commercial real estate’s unusually long run of success over the past decade left many in the industry guessing when and how the cycle would end. Recessions aren’t inevitable, but nobody working in the industry today had ever before gone a decade without having to deal with a major downturn.

All the guessing about the next recession is now over. The fact that nobody had the “global pandemic” box filled in their recession bingo card is of no consequence. The economic effects of COVID-19 have been transmitted to the entire population, even as many states enact social distancing measures to avoid spreading the virus.

Read more...At Long Last, the Cycle Ends. What’s Next? via CPExecutive

Now is the Time to Prepare for the Future of Multifamily via GlobeSt

Many of today’s property managers and leasing agents have been only exposed to strong leasing demand if they entered the industry during the last decade, that is, after the meltdown of 2008 and 2009. But now, that has all changed and they’ve been thrown into the deep end of the pool very abruptly.

Specifically, measuring same-store change on a rolling seven-day average, traffic to multifamily property websites are down 15% year-over-year and guest cards are down nearly 3%. Lead volumes will likely plummet further as more cities adopt shelter in place ordinances, according to a new report from RealPage, provider of software and data analytics to the real estate industry.

Read more...Now is the Time to Prepare for the Future of Multifamily via GlobeSt

Thursday, March 26, 2020

COVID-19 Expected to Slow Rental Market for 3 to 6 Months via Multifamily Executive Magazine

The coronavirus, or COVID-19, has “brought a technical end to the 11-year bull market” in equity and bond markets, according to the Yardi Matrix National Multifamily Report for February 2020.

The virus’ spread has disrupted airline traffic, conference schedules, cultural events, and daily activities. Drastic quarantine and social distancing measures, especially in Italy and Wuhan, China, have taken effect to slow the disease’s spread and ease the burden on health care facilities. In addition, as of March 11, Donald Trump has instituted a 30-day ban on travel to the U.S. for all European citizens. As a result, the economy is likely already experiencing a “technical recession,” with the travel, restaurant, and tourist industries expected to take the hardest hit.

Read more...COVID-19 Expected to Slow Rental Market for 3 to 6 Months via Multifamily Executive Magazine

We’re Two Weeks In, What Should Multifamily Firms Do Now? via Multifamily Executive Magazine

As the COVID-19 outbreak continues to rock the nation, the multifamily industry continues to grapple with the new reality while reducing risk and disruption for its residents, employees, and businesses. In a period where it’s anything but business as usual, it’s critical that industry stakeholders arm themselves with guidance and resources that will accurately inform important business decisions.

By now, apartment firms’ senior-level crisis teams should be in the throes of putting their COVID-19 response plan to work and adapting it as needed to the ever-changing circumstances.

Read more...We’re Two Weeks In, What Should Multifamily Firms Do Now? via Multifamily Executive Magazine

Will U.S. Stimulus be Enough to Save the Upcoming Rent Shortfall? via Propmodo

There are two ways to fall off a bike. One way to do it happens suddenly. You are riding along and the next thing you know you are on the ground, left to examine your wounds and wonder what you did wrong. The other way happens seemingly in slow motion. You feel yourself getting off-balance but are powerless to stop your gradual, agonizing descent onto the pavement.

Right now it feels like the economy is doing the latter. The virus came on suddenly but the economic effects are tipping off balance, pushing us slowly off our bike seats. As many people are unable to work, or are out of work entirely, they are wondering the same question: “How do I pay rent?” Even in good times, there were shocking reports that showed that almost three-quarters of American’s are living off of their paychecks, with little or no savings cushion.

Read more...Will U.S. Stimulus be Enough to Save the Upcoming Rent Shortfall? via Propmodo

Wednesday, March 25, 2020

Rastegar: Multifamily, Self Storage Well Positioned for Current Market Turmoil via GlobeSt

Ari Rastegar, founder of Rastegar Property, has acquired 15 multifamily buildings and previously co-invested in more than 10,000 storage doors across the country. In this exclusive, Rastegar shares the trends he’s noticing, the investor feedback he’s receiving and other topics relevant to two particular real estate sectors.

Rastegar believes multifamily and self storage are desirable in today’s market for a couple of reasons. While the stock market is gyrating, underlying trends still show that the US economy appears strong.

Read more...Rastegar: Multifamily, Self Storage Well Positioned for Current Market Turmoil via GlobeSt

Multifamily Investors Expect Modest Impact from Virus via Multi-Housing News Online

The commercial real estate industry is bracing for disruption brought on by the coronavirus crisis, but a new survey by Institutional Property Advisors (IPA) suggests that the multifamily market may be a safe place to shelter during a time of turbulence.

Nearly two-thirds of respondents to the survey said their firms expected only a slight decrease in multifamily rents over the next six months, while 17 percent foresee a significant drop. Almost 41 percent anticipate that vacancy rates will stay the same or decline.

Read more...Multifamily Investors Expect Modest Impact from Virus via Multi-Housing News Online

Tuesday, March 24, 2020

Texas Supreme Court halts eviction proceedings through late April due to coronavirus via Fort Worth Star-Telegram

The Texas Supreme Court issued an emergency order Thursday halting all eviction proceedings in Texas through late April.

The order notes that while filings can still be submitted, no trial, hearing, or other eviction proceeding may be conducted until after April 19. The order is effective immediately, and can be extended by the Chief Justice of the Supreme Court.

Read more...Texas Supreme Court halts eviction proceedings through late April due to coronavirus via Fort Worth Star-Telegram

Coronavirus Fallout for North American CRE Firms to Vary via CPExecutive

North America’s highest-rated commercial real estate companies probably won’t have to shutter their doors due to fallout from the coronavirus, but a great percentage will have to brace for setbacks, according to new commentary from DBRS Morningstar. In the commentary, entitled The Impact of the Coronavirus Disease (COVID-19) on REITs and CRE Companies in Canada and the U.S., the credit ratings agency notes that there are many variables at play.

Read more...Coronavirus Fallout for North American CRE Firms to Vary via CPExecutive

What A Recession Could Mean For Multifamily Real Estate Investment In 2020 via Forbes

Multifamily real estate investment, specifically income-generating property, has generally been a stable and high-return asset class. However, amid speculations of an impending recession, you may find yourself asking, "Is multifamily a prudent choice heading into a possible recession in 2020? And, how do I find and maintain profitable investments in currently inflated markets?"

Read more...What A Recession Could Mean For Multifamily Real Estate Investment In 2020 via Forbes

Monday, March 23, 2020

FHFA Moves to Provide Eviction Suspension Relief for Renters in Multifamily Properties via FHFA

Today, to keep renters in multifamily properties in their home and to support multifamily property owners during the coronavirus national emergency, the Federal Housing Finance Agency (FHFA) is announcing that Fannie Mae and Freddie Mac (the Enterprises) will offer multifamily property owners mortgage forbearance with the condition that they suspend all evictions for renters unable to pay rent due to the impact of coronavirus. The eviction suspensions are in place for the entire duration of time that a property owner remains in forbearance. The forbearance is available to all multifamily properties with an Enterprise-backed performing multifamily mortgage negatively affected by the coronavirus national emergency.

Read more...FHFA Moves to Provide Eviction Suspension Relief for Renters in Multifamily Properties via FHFA

NMHC Commits to Support for Residents Impacted by Pandemic via Connect Media

Amid the COVID-19 outbreak, the National Multifamily Housing Council (NMHC) recommends that apartment firms consider adopting the following principles to help America’s renters retain their housing during the crisis:

*Halt evictions for 90 days for those who can show they have been financially impacted by the COVID-19 pandemic.
*Avoid rent increases for 90 days to help residents weather the crisis.
*Create payment plans for residents who are unable to pay their rent because of the outbreak, and waive late fees for those residents.

Read more...NMHC Commits to Support for Residents Impacted by Pandemic via Connect Media

Friday, March 20, 2020

As Unemployment Surges, Where Does Multifamily Stand? via GlobeSt

Unemployment in the US has skyrocketed and there is little expectation that the layoffs will subside in the near term. This week, the Labor Department reported a 30% increase in unemployment claims last week, one of the largest spikes on record. Estimates for future claims are grim, with David Choi, an economist from Goldman Sachs, expecting initial claims for the week ending March 21 to jump to a seasonally adjusted 2.25 million, according to MarketWatch.

Read more...As Unemployment Surges, Where Does Multifamily Stand? via GlobeSt

Thursday, March 19, 2020

Dallas-Fort Worth Economic Indicators March 2020 via Dallas Fed

Dallas–Fort Worth economic growth continued in January. Payroll employment expanded, unemployment stayed near record lows, and the Dallas and Fort Worth business-cycle indexes rose further. Homebuilding activity soared in January, and housing market indicators point to moderate price appreciation and stable affordability in fourth quarter 2019.

Read more...Dallas-Fort Worth Economic Indicators March 2020 via Dallas Fed

National Multifamily Report – February 2020 via Multi-Housing News Online

The novel coronavirus has made a significant impact on the real estate industry. However, despite this ongoing outbreak, rents increased 3.2 percent in February on a year-over-year basis, matching the previous month‘s growth rate, according to a Yardi Matrix survey of 127 markets.

Read more...National Multifamily Report – February 2020 via Multi-Housing News Online

Wednesday, March 18, 2020

In the Short Term, CRE Will Take a Hit. But Real Estate Economists Advise Investors Not to Panic via NREI

As the impact from the measures to stem the spread of COVID-19 takes hold of virtually every sector of the U.S. economy, real estate economists are revisiting their predictions for 2020 made at the beginning of the year.

Just over two months ago, industry economists were saying 2020 activity should largely mirror the level seen in 2019. But with the coronavirus outbreak, those predictions are changing.

Read more...In the Short Term, CRE Will Take a Hit. But Real Estate Economists Advise Investors Not to Panic via NREI

Commercial Real Estate Finding It’s Not Immune to the Coronavirus via CPExecutive

Commercial property executives are trying to maintain calm and complete transactions as efforts to stop the spread of the coronavirus intensify, but a business-as-usual approach is growing increasingly difficult as commerce is being shut down across the country.

Over the last 7 to 10 days, industry has moved between trying to take advantage of a historic drop in interest rates, to cautiously trying to maintain deal flow, to trying to close existing deals, trying to re-trade those deals and then waiting on the sidelines until there is more clarity.

Read more...Commercial Real Estate Finding It’s Not Immune to the Coronavirus via CPExecutive

Coronavirus Fuels Indecision Among Multifamily Investors via NREI

What a difference a week makes. Investors can now expect fewer deals and lower prices for apartment properties—at least in the immediate term—as the U.S. economy adjusts to the rapid spread of the coronavirus disease 2019 (COVID-19).

Read more...Coronavirus Fuels Indecision Among Multifamily Investors via NREI

Why CRE Isn’t Celebrating the Recent Interest Rate Cuts via GlobeSt

The Federal Reserve cut interest rates twice in two weeks in response to the impacts of the COVID-19 outbreak. First, the Fed cut rates to 1% to 1.25% on March 3, and then, in an emergency meeting, made a second cut to 0% to .25% on March 15. Many in the commercial real estate industry say the move was a necessary response to the economic impacts of the virus outbreak, but that they will have little impact on new acquisition commercial real estate deals.

Read more...Why CRE Isn’t Celebrating the Recent Interest Rate Cuts via GlobeSt

Tuesday, March 17, 2020

Global Uncertainties Add to Multifamily’s Investment Appeal via NREI

Global financial markets are reeling from the drastic steps governments are taking to fight the novel coronavirus COVID-19 pandemic. During the week of March 9, dramatic drops in the Dow Jones Industrial Average signaled the arrival of a bear market for U.S. equities, and European and Asian stocks have also taken a beating.

In the face of uncertainty, individual and institutional investors are taking a closer look at commercial real estate, with a particular interest in the multifamily sector. Unlike office, industrial, retail and hospitality properties that are directly affected by an economic downturn, multifamily tends to be a more stable asset class.

Read more...Global Uncertainties Add to Multifamily’s Investment Appeal via NREI

Wednesday, March 11, 2020

ALN Monthly Market Stats March 2020 via ALN Apartment Data

ALN Data just released their February 2020 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 2020 via ALN Apartment Data

Monday, March 9, 2020

Rising rents: The hottest spots for apartments in Dallas-Fort Worth via WFAA

Trinity Groves/Oak Cliff North and Far South Dallas/Waxahachie, in that order, are the hottest apartment submarkets in North Texas, according to a ranking based on the combination of rental rate growth and absorption.

A submarket that includes downtown Dallas, the West End, and Deep Ellum ranked third, followed by the Denton submarket and the Allen/McKinney submarket, according to the ranking from ApartmentData.com.

Read more...Rising rents: The hottest spots for apartments in Dallas-Fort Worth via WFAA

Friday, March 6, 2020

Top 5 North Dallas Submarkets for Development by Number of Units via Multi-Housing News Online

Dallas-Fort Worth benefits from one of the most robust economies in the country, having remained on an upward trajectory and above national trends throughout the cycle. Growth is supported by the state’s economic environment which has come a long way since its energy-based roots. Although the state still has a substantial oil sector, other sectors have gained strength—education and health services, professional and business services, trade, construction, leisure and hospitality—have all seen remarkable increases. This economic cornucopia has boosted the multifamily sector and will likely continue to do so in the foreseeable future.

Read more...Top 5 North Dallas Submarkets for Development by Number of Units via Multi-Housing News Online

Rate Plunge Prompts Multifamily Borrowing Binge via Multi-Housing News Online

Interest rates have plunged over the last few weeks as the concerns grow about the spread of the coronavirus around the world and the impact on the global economy. The 10-year Treasury rate slipped below 1.0 percent for the first time ever this week, after having been as high as 1.63 percent as recently as Feb. 12. This happened just after the Federal Reserve held an emergency session to cut the interbank lending rate by 50 basis points.

Read more...Rate Plunge Prompts Multifamily Borrowing Binge via Multi-Housing News Online

Thursday, March 5, 2020

Rising rents: The hottest apartment submarkets in Dallas-Fort Worth via Dallas Business Journal

Trinity Groves/Oak Cliff North and Far South Dallas/Waxahachie, in that order, are the hottest apartment submarkets in North Texas, according to a ranking based on the combination of rental rate growth and absorption.

A submarket that includes downtown Dallas, the West End and Deep Ellum ranked third, followed by the Denton submarket and the Allen/McKinney submarket, according to the ranking from ApartmentData.com.

Read more...Rising rents: The hottest apartment submarkets in Dallas-Fort Worth via Dallas Business Journal

Why Demographic Trends Support Continued Multifamily Growth via Forbes

As the current economic expansion enters its 11th year — the longest on record — the “when will it end” speculation continues apace. As cap rates hover near historic lows and properties trade for historic highs, the question is particularly relevant for multifamily assets — one of the major beneficiaries of the current expansion.

It’s impossible to know when a correction will occur, so taking a long-term view is a smart approach. My belief is that there are three demographic trends shaping the future of the housing market that support the investment thesis of continued multifamily growth.

Read more...Why Demographic Trends Support Continued Multifamily Growth via Forbes

Wednesday, March 4, 2020

Texas is missing more than a half-million houses via Dallas Morning News

It’s no secret that home inventories around the country are at their lowest point in decades.

Many metro areas have a shortage of housing.

Texas alone is short more than a half-million houses from what’s needed, according to a report by mortgage giant Freddie Mac. And nationwide, there’s a deficit of more than 3 million homes.

Read more...Texas is missing more than a half-million houses via Dallas Morning News

Eleventh District Beige Book 3/4/2020 via Dallas Fed

The Eleventh District economy expanded moderately over the reporting period. Solid growth continued in nonfinancial services, and expansion in the manufacturing sector picked up to a more moderate pace. Housing demand continued to rise broadly, and sharply higher residential real estate lending boosted overall loan growth. Retail sales growth stalled out over the reporting period, and activity in the energy sector eroded slightly. Employment growth slowed to a modest pace, with a majority of hiring firms noting difficulty finding qualified workers. Upward wage pressures remained elevated. Input prices continued to rise while selling prices were mixed—holding steady in manufacturing but increasing in the service sector. Outlooks generally improved, though the coronavirus introduced new uncertainty into the business environment.

Read more...Eleventh District Beige Book 3/4/2020 via Dallas Fed

Is Multifamily Truly Recession Resistant? via GlobeSt

Multifamily is undoubtedly tremendously popular among investors—and for many reasons. Renter demand is up, and more young people want to live in urban, walkable markets, but the trend has led to a flood of class-A development and repositioning projects, which has taken away affordable housing supply. In a downturn, class-A apartments will be the first to see a dip in demand and rents. However, even with that in mind, multifamily remains the best asset to survive a downturn.

Read more...Is Multifamily Truly Recession Resistant? via GlobeSt

Houston Multifamily Report – Winter 2020 via Multi-Housing News Online

Despite several woes during the first half of this cycle, Houston’s economy is once again on a prolonged upswing. Rent growth is slowly but steadily rebounding again, bolstered by strong employment gains and a solid demographic expansion.

Metro Houston gained 82,800 jobs in the 12 months ending in September 2019, with the professional and business services sector accounting for nearly one-third of the total. Manufacturing and construction rounded out the top three, gaining a collective 25,600 positions.

Read more...Houston Multifamily Report – Winter 2020 via Multi-Housing News Online

Monday, March 2, 2020

Are Texas developers building too many apartments or not enough? via Dallas Morning News

Thousands of people move to North Texas every year, and they all need some place to live.

Most of the newcomers are renting.

“Population growth in the last 10 years has been enormous,” said Jeanette Rice, head of multifamily research for CBRE. “When we talk about growth, multifamily is going to help provide that housing.

Read more...Are Texas developers building too many apartments or not enough? via Dallas Morning News

Thursday, February 27, 2020

Apartment Developer Keep Building, Despite Fears of More Rent Control Laws via NREI

In spite of fears surrounding the expansion of rent control laws throughout the nation, developers in some of the biggest U.S. apartment markets haven't pulled back on new projects.

“These laws alone probably won’t slow down new construction,” says John Sebree, senior vice president and national director of Marcus & Millichap’s national multi housing group, based in Chicago. “However, these new rent control laws will do absolutely nothing to resolve the shortage of housing.”

Read more...Apartment Developer Keep Building, Despite Fears of More Rent Control Laws via NREI

Yardi: National Average Rent Falls $1 to $1,463; Rent Growth Steady at 3% via Multifamily Executive

The national average rent fell by $1 in January 2020, down to $1,463, while year-over-year rent growth has remained at 3%, according to the latest Yardi Matrix Multifamily National Report. January marks the third consecutive month of declines for the average U.S. rent, which Yardi Matrix attributes to seasonality and expects to continue for a few more month

Read more...Yardi: National Average Rent Falls $1 to $1,463; Rent Growth Steady at 3% via Multifamily Executive

Wednesday, February 26, 2020

Workers’ pay is rising faster in Dallas than the rest of the U.S. via Dallas Morning News

A rising economic tide is lifting workers’ pay, especially in Dallas County.

Private sector workers in Dallas saw average wages rise by 5.1% in the 12 months ended in September, according to newly released federal data. It was the biggest increase for the period since 2016, and Dallas County’s rise surpassed the average gain for the rest of the country.

That’s a reverse of recent trend. In four of the previous five years, wage growth in Dallas County had lagged increases nationwide.

Read more...Workers’ pay is rising faster in Dallas than the rest of the U.S. via Dallas Morning News

Tuesday, February 25, 2020

Is the Multifamily Asset Class Immune to Economic Shifts? via NREI

Most agree the real estate recovery post-recession has been lengthy and that multifamily has performed well across all stages of our current, mature cycle. At various points in time over the last decade, the other commercial real estate classes haven’t all fared as well as apartments, however.

This begs the question. Are apartments counter-cyclical and immune to economic shifts that negatively impact other types of real estate? Will multifamily maintain its position as the darling of the industry?

Read more...Is the Multifamily Asset Class Immune to Economic Shifts? via NREI

What Lenders Are Thinking as Multifamily Evolves via GlobeSt

Recently the Federal Housing Finance Agency created a new group with the goal of ensuring that both Fannie Mae and Freddie Mac foster a competitive, liquid and resilient multifamily market. “By creating a new group, it speaks to a commitment and dedication to focus on affordability in multifamily,” according to Siobhan Kelly, associate director for multifamily at the FHFA.

Read more...What Lenders Are Thinking as Multifamily Evolves via GlobeSt

Friday, February 21, 2020

The Future of Multifamily Investment via Multi-Housing News Online

Multifamily investment is exploding across the South and Western United States, particularly in suburban areas of Atlanta, Dallas and Phoenix, where garden apartments are plentiful. Mid- and high-rise multifamily assets are also selling in Manhattan, Seattle and Los Angeles, but Integra Realty Resources’ 2020 Viewpoint Multifamily Report notes that tertiary markets are the biggest beneficiaries of the search for yield.

“There is continued optimism, rent growth and investor interest in the multifamily sector, particularly in tertiary markets,” IRR CEO Anthony Graziano told Multi-Housing News.

Read more...The Future of Multifamily Investment via Multi-Housing News Online

Renewal-Lease Rent Growth Holds Steady via RealPage

Apartment rents climbed 4.5% during the past year for households who stayed in place at initial lease expiration. Renewal-lease rent growth now has stayed a little under the 5% mark for three consecutive years, after price inflation came in at higher levels during 2014 and 2015.

Rents are continuing to climb faster for renewal leases than for leases where a new resident is renting at a property for the first time. That new-resident annual rent growth has been running around the 3% mark since late 2016, specifically registering at 2.8% as of the end of 2019.

Read more...Renewal-Lease Rent Growth Holds Steady via RealPage

Top Markets for Rent Growth Shuffle in January via RealPage

The U.S. apartment market started 2020 in better occupancy shape than it did any other year in nearly two decades.

U.S. apartment occupancy hit 95.5% last month, the best January occupancy rate since the early 2000s. That rate was down somewhat from a 20-plus-year high of 96.3% achieved in August. But occupancy typically softens in winter, as many renters opt not to move in the coldest months.

Read more...Top Markets for Rent Growth Shuffle in January via RealPage

Investors Want to Place Capital Before the Next Recession via GlobeSt

Investors are anticipating the next downturn, but rather than taking their chips off the table, investors are looking to place capital this year before the next recession. According to an investor sentiment report from RCM LightBox, investors are looking to place capital in the first half of the year and before the November election.

Read more...Investors Want to Place Capital Before the Next Recession via GlobeSt

Tuesday, February 18, 2020

New Housing Starts Spike in December via RealPage

Total housing starts across the U.S. hit a record high in December. Multifamily starts haven’t reached current levels in more than 30 years and single-family starts are at a 13-year high, according to U.S. Census figures.

The seasonally adjusted annual rate for annual multifamily starts rose 32% from last month and 74.6% from year-ago figures (to 536,000 units). Single-family starts climbed 11.2% from the previous month and 29.6% above year-ago figures (1,055,000 units). Together, total residential starts rose almost 41% above 2018’s pace of 1.61 million units.

Read more...New Housing Starts Spike in December via RealPage

Freddie Mac Survey Profiles Renters vs. Owners via Multi-Housing News Online

A new Freddie Mac survey profiling renters and owners finds that an unprecedented number of renters—84 percent—believe renting is more affordable than owning, an all-time high for the survey and up 17 percentage points from two years ago. The number is even higher for Baby Boomers surveyed with 87 percent reporting renting is more affordable than owning, up 6 percent from last year.

Despite those numbers, the survey may be raising alarm bells about the impact of rising housing costs for many renters’ budgets as 42 percent of renters reported paying more than one-third of their income for rent, up 8 points from April 2019.

Read more...Freddie Mac Survey Profiles Renters vs. Owners via Multi-Housing News Online

Thursday, February 13, 2020

San Antonio Multifamily Report – Winter 2020 via Multi-Housing News Online

San Antonio’s multifamily market continued to benefit from sustained population and employment growth through 2019’s second half. Following robust supply for the better part of this cycle, the metro recorded a sharp deceleration in deliveries during 2019. This has helped keep demand in check, with rents going up 2.1 percent to $1,050 year-over-year as of November 2019. On the other hand, a consequence of the metro’s long-term strong pipeline is a descending occupancy rate in stabilized assets—93.0 percent as of October, down 20 basis points over 12 months and one of the lowest across all major national metros.

Read more...San Antonio Multifamily Report – Winter 2020 via Multi-Housing News Online

Houston Multifamily Report – Winter 2020 via Multi-Housing News Online

Metro Houston gained 82,800 jobs in the 12 months ending in September 2019, with the professional and business services sector accounting for nearly one-third of the total. Manufacturing and construction rounded out the top three, gaining a collective 25,600 positions. The latter is likely to get another boost from one of the largest infrastructure projects in the country. Texas Central has signed a design-build contract with the joint venture of Salini Impregilo and Lane Construction Corp. for a high-speed rail line connecting Houston and Dallas. The team aims to kick off the project this year, with the total civil works investment expected to exceed $14 billion.

Read more...Houston Multifamily Report – Winter 2020 via Multi-Housing News Online

ALN Monthly Market Stats February 2020 via ALN Apartment Data

ALN Data just released their January 2020 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 2020 via ALN Apartment Data

Tuesday, February 11, 2020

Takeaways from the MBA CREF 2020 Conference, Day One via NREI

This week kicked off the annual Mortgage Bankers Association/Commercial Real Estate Finance conference in San Diego. Among the hot topics discussed during Monday’s panel sessions were the rising volume of collateral debt obligations (CLO), the impact of rent regulations on multifamily lending and whether proptech is going to make commercial mortgage bankers obsolete. Here are some takeaways from Monday’s discussions:

Read more...Takeaways from the MBA CREF 2020 Conference, Day One via NREI

Investors Still Willing to Pay Top Dollar for Multifamily via GlobeSt

Multifamily acquisition yields and price per unit have hovered at record lows for several years despite Treasury yields moving up and down by more than 150 basis points during that time. What does that mean for pricing? Yardi Matrix spells it out in its newest report on the asset class: it means investors are willing to pay up even as market conditions change. The average price per unit in 2019 was $155,000, up 8.8% from 2018, it notes.

Read more...Investors Still Willing to Pay Top Dollar for Multifamily via GlobeSt

Dallas Multifamily Report – Winter 2020 via Multi-Housing News Online

Adding residents three times faster than the nation and sporting the largest multifamily pipeline in the U.S., Dallas-Fort Worth remained one of the country’s most dynamic yet stable rental markets. And despite the addition of more than 45,000 apartments since the beginning of 2018, the Metroplex’s occupancy rate in stabilized assets dropped just 10 basis points over 12 months, to 94.3 percent as of October 2019.

Read more...Dallas Multifamily Report – Winter 2020 via Multi-Housing News Online

MBA Predicts Slow Economy, Stable Rates via Multi-Housing News Online

This will be a year of slow GDP growth (roughly 1.2 percent) and interest rates will stay in pretty tight range of where they are today. That was the big economic picture offered by the Mortgage Bankers Association CREF/Multifamily Housing Convention & Expo 2020 conference in San Diego.

According to Michael Frantantoni, MBA’s chief economist, the projected slowdown (GDP last year was 2.2 percent) is not surprising for an economy that has been so robust for so long. But there are so many more uncertainties this year.

Read more...MBA Predicts Slow Economy, Stable Rates via Multi-Housing News Online

Friday, February 7, 2020

Some Markets See Big Shifts in Rent Growth in 2019 via RealPage

While rent growth in the U.S. overall didn’t see much change throughout 2019, a handful of markets charted notable momentum in the past year.

After hovering at or above the 3% mark for all of 2019, annual rent growth for new leases in U.S. apartments faded to 2.8% right at the end of the year. That rate was 50 basis points (bps) behind the 3.3% increase in calendar 2018.

Read more...Some Markets See Big Shifts in Rent Growth in 2019 via RealPage

Gen Z Residents Reshape Multifamily Operations via Multi-Housing News Online

The letter “Z” may be the last in the alphabet. But for multi-housing builders and managers, it signals the start of a new era in which young adults born since the mid-1990s will begin occupying their apartments, if they haven’t already.

They’re called Generation Z, or GenZ for short, and they’re totally different from the population cohorts that preceded them—even Millennials. And apartment professionals need to take notice. If for nothing else, they account for a third of the U.S. population and contribute $44 million to the economy.

Read more...Gen Z Residents Reshape Multifamily Operations via Multi-Housing News Online

Kingsley: National Renter Satisfaction Levels Out in Q4 2019 via Multifamily Executive Magazine

National renter satisfaction started to level out at the end of 2019, ending the steady increase that began at the end of 2017. This past quarter, 78.4% of residents reported “Good” or “Excellent” satisfaction with their overall renting experience. The past two quarters have each seen a slight decrease of 0.1 percentage points, indicating the two-year upward trend is leveling out.

Read more...Kingsley: National Renter Satisfaction Levels Out in Q4 2019 via Multifamily Executive Magazine

Thursday, February 6, 2020

Harvard Report: Higher-Income Households Driving Rental Demand via Multifamily Executive Magazine

The nation’s affordability crisis is not just affecting the lowest bracket of renter households, it’s climbing the income ladder to impact more modest-income households, according to the “America’s Rental Housing 2020” report by Harvard’s Joint Center for Housing Studies (JCHS).

“Ultimately, we are in a rental affordability crisis,” says Whitney Airgood-Obrycki, a research associate at the JCHS. “We have seen another worsening of the affordability crisis this year, evident in the rising cost-burdened numbers as well as the increasing numbers of people experiencing homelessness.”

Read more...Harvard Report: Higher-Income Households Driving Rental Demand via Multifamily Executive Magazine

Texas Economy Building Momentum to Start Year via Dallas Fed

Growth in the Texas economy picked up at year-end 2019 and accelerated into January, according to the Texas Business Outlook Surveys (TBOS). Job gains in December were led by service sector growth, adjusted Bureau of Labor Statistics payroll employment data showed.

Separately, TBOS respondents reported a return to mild expansion in manufacturing at the start of 2020.

The housing industry remained a bright spot, with increased home sales and construction permits, while the oil and gas sector continued to decline. Company outlooks have improved, with Texas business executives optimistic about activity in 2020.

Read more...Texas Economy Building Momentum to Start Year via Dallas Fed