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

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

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

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

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

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

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

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

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

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