Friday, January 15, 2021

Multifamily Permits and Starts Jump in November via RealPage

Despite the weakened economy and a resurgence in new COVID-19 cases, multifamily permitting and starts both experienced a significant jump in November.

According to the U.S. Census Bureau, multifamily permitting increased 22.8% from October’s annual rate to 441,000 units, while multifamily starts were up 8% over the same period to 352,000 units.

Read more...Multifamily Permits and Starts Jump in November via RealPage

Builders tapping the brakes on apartment construction in DFW via Dallas Morning News

North Texas apartment builders are tapping the brakes on construction.

Permits for new multifamily residential construction are down more than 40% in Dallas-Fort Worth. And the number of D-FW apartments under construction fell below 40,000 units at the end of 2020 for the first time in five years.

But North Texas still leads the country in apartment construction. And it’s unclear whether the slowdown in new rental community development is a temporary pause or will last longer due to the pandemic.

Read more...Builders tapping the brakes on apartment construction in Dallas-Fort Worth via Dallas Morning News

Thursday, January 14, 2021

ALN Monthly Market Stats January 2021 via ALN Apartment Data

ALN Data just released their December 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 January 2021 via ALN Apartment Data

Wednesday, January 13, 2021

Eleventh District Beige Book 1/13/21 via Dallas Fed

The Eleventh District economy expanded at a moderate pace, but activity in most industries remained below normal levels. Recovery in the manufacturing and service sectors picked up, while retail activity remained weak. The housing market continued to be a bright spot, with robust home sales and strengthening apartment demand. Overall loan volume increased, led by real estate lending. Energy activity showed mounting signs of improvement after a prolonged contraction. Employment rose moderately, though wage growth remained subdued. Input cost increases continued to outpace growth in selling prices. Outlooks were generally positive, but uncertainty remained high. Several contacts voiced concern about rising COVID-19 infection rates impacting their short-term business prospects, though there was optimism about the vaccine paving the way to a resumption of more normal activity this year.

Read more...Eleventh District Beige Book 1/13/21 via Dallas Fed

Millions of Renters Are In a Deep Financial Hole via GlobeSt

The recent stimulus will help millions of renters.

The additional stimulus payments will bring their typical rent burdens from more than 80% of their income to less than half of that percentage, according to a Zillow analysis. But even with this help, millions of people are behind on their rent payments and face an incredible challenge catching up.

At least three million renters who were employed last March lost their jobs and were still out of work in November, according to Zillow.

Read more...Millions of Renters Are In a Deep Financial Hole via GlobeSt

Multifamily Properties Are Positioned for a Strong 2021 via WMRE

The multifamily sector weathered the storm in 2020, living up to its reputation as one of the most stable commercial real estate asset classes. The forecast for apartments in the new year is also bright. And even with where things sit today with the still raging pandemic and the terrifying scene that unfolded in the nation’s capital last week, observers point to the continued rollout of vaccines and the likelihood of new COVID-19 relief measures with the new administration and Democratic control of Congress as reasons for high hopes for the balance of 2021.

Read more...Multifamily Properties Are Positioned for a Strong 2021 via WMRE

Tuesday, January 12, 2021

Austin Economic Indicators January 2021 via Dallas Fed

The Austin economy slowed in November as the Austin Business-Cycle Index decelerated due to an increase in the unemployment rate. Nonetheless, job growth was positive in most industries, and regional consumer spending since mid-July continues to hold at pre-COVID-19 levels. Office space demand continued to weaken, and existing-home sales contracted slightly in November.

Read more...Austin Economic Indicators January 2021 via Dallas Fed

The Metrics You Should Be Watching in 2021 via GlobeSt

When the Bureau of Labor Statistics (BLS) publishes its monthly jobs numbers, the world takes notice. Markets move and politicians tweet. But for commercial real estate professionals, K.C. Conway, chief economist for CCIM Institute, thinks there are more insightful indicators that, taken together, would provide a better understanding of what’s ahead for the CRE industry.

Read more...The Metrics You Should Be Watching in 2021 via GlobeSt

Renters are Flocking to These Suburbs via GlobeSt

With the pandemic translating to a work-from-home shift for countless companies, the suburbs have a new-found appeal for renters with their abundance of space, larger apartments and homes and often lower rents compared to big cities.

With thousands of new suburban apartments opening in recent years, renters have many popular locations from which to choose. And if work-from-home becomes the new normal, a significant reversal of recent homebuilding patterns may emerge, according to a housing study by Harvard University.

Read more...Renters are Flocking to These Suburbs via GlobeSt

Renting Has Become More Affordable Than Owning in Many Counties via GlobeSt

Renting remains more affordable than homeownership in nearly three-quarters of the most populated counties in the United States, according to ATTOM Data Solutions’ 2021 Rental Affordability Report.

Renting is more affordable than buying a home in 18 of the country’s 25 most populated counties, and in 29 of 44 counties with a population of 1 million or more, including Los Angeles, Houston, San Diego, Chicago, and Orange County, Calif. It’s also more affordable to rent than buy in counties in the New York City, Seattle, Dallas, San Francisco, San Jose, Boston, and Riverside, Calif., areas.

Read more...Renting Has Become More Affordable Than Owning in Many Counties via GlobeSt

Monday, January 11, 2021

U.S. Apartment Performance Divide Persists Across Metros via RealPage

The U.S. apartment market has ended 2020 with sustained healthy occupancy but very mixed results across metros in terms of rent achievement.

Occupancy Holds Up
December occupancy in the country’s 150 largest metros came in at 95.5%, only a hair under the year-earlier figure of 95.6%.

Read more...U.S. Apartment Performance Divide Persists Across Metros via RealPage

Pricing Drops Were Not That Drastic After All Last Year via GlobeSt

Predictably, commercial real estate prices decreased last year, although the price changes were not uniform across property types. Industrial and manufactured home park values increased about 10% in 2020, while pricing of hardest-hit sectors fell 15 to 25%, according to Green Street. And, the Green Street Commercial Property Price Index was unchanged in December.

Read more...Pricing Drops Were Not That Drastic After All Last Year via GlobeSt

Multifamily Transactions See Dramatic Drop in 2020 via Multifamily Executive Magazine

Multifamily transactions were down sharply in 2020 due to the COVID-19 pandemic, according to a Yardi Matrix report.

Through the first three quarters of 2020, $50.6 billion of multifamily property sales had been completed nationwide, dropping 41.7% from $86.5 billion through the same period in 2019. According to Yardi Matrix, it will be a challenge for full-year volume to get close to 2019’s record high of $127.8 billion.

Read more...Multifamily Transactions See Dramatic Drop in 2020 via Multifamily Executive Magazine

Wednesday, January 6, 2021

Multifamily Leaders Concerned about Rent Issues, Economy: Survey via CPExecutive

As the COVID-19 battle moves into its second year, a survey of multifamily industry leaders said timely rent payment was the most challenging issue of 2020. Optimism about rent growth and the overall economy dropped to the lowest levels in a decade among respondents in an annual survey by J Turner Research.

Optimism for the national economy for the next 12 months dropped to 3.0, down from 3.7 in 2019 and the lowest outlook since 2010, according to the survey of senior-level and onsite multifamily personnel that began in 2008.

Read more...Multifamily Leaders Concerned about Rent Issues, Economy: Survey via CPExecutive

Tuesday, January 5, 2021

How Class C Apartment Residents are Getting By via GlobeSt

The pandemic’s impact on apartment dwellers hasn’t been uniform.

In its third-quarter National Housing Survey, Fannie Mae found that nearly one-third of respondents have experienced non-voluntary employment changes, including reduced working hours, layoffs, furloughs, pay cuts or their employers going out of business.

Fannie Mae found that lower-income households, renters and minorities are two to three times more likely to be concerned about their ability to pay their bills.

Read more...How Class C Apartment Residents are Getting By via GlobeSt

Nearly 90% Of Renters Paid Up in December via GlobeSt

Call it another casualty of COVID-19: rent collections have fallen 3.4% year-over-year in December 2020, according to National Multifamily Housing Council data.

The NMHC’s Rent Payment Tracker, which surveys 11.5 million units of professionally managed apartments across the country, found that 89.8% of apartment households made either a full or partial rent payment by December 20. That’s 393,952 fewer households than the share who paid rent by that date in 2019. NMHC data shows that 90.3 percent of households paid rent by November 20, 2020.

Read more...Nearly 90% Of Renters Paid Up in December via GlobeSt

Monday, January 4, 2021

D-FW apartment leasing jumped in the final months of ‘20 via Dallas Morning News

A surge in North Texas apartment leasing during the final months of 2020 was good news for rental landlords.

But reductions in rent — however slight — didn’t make for much merriment at the end of the year.

Net apartment rentals in Dallas-Fort Worth totaled 4,455 units during the final three months of 2020.

Read more...D-FW apartment leasing jumped in the final months of ‘20 via Dallas Morning News

More Renters Stayed Put Last Year via GlobeSt

The COVID-19 pandemic kept more people in their apartments last year.

This may come as a surprise, given the data that show more Americans moving to lower-cost areas of the country. Yet in a recent report, RENTCafé said that 10% fewer renters applied for a new apartment last year, which broke a years-long trend of single-digit increases. These results were consistent with a RENTCafé survey in April of 2020, when 11% of renters said they were staying put.

Read more...More Renters Stayed Put Last Year via GlobeSt

GSEs Extend Multifamily Forbearance Programs via Multi-Housing News

Fannie Mae and Freddie Mac have extended their COVID-19 mortgage forbearance programs for multifamily landlords through March 31, 2021, providing more flexibility for struggling property owners as well as protections for renters at a time of continuing stress for the industry.

The programs were due to expire Thursday, December 31, before the extensions announced by the Federal Housing Finance Agency (FHFA) last week. The move gives multifamily operators more time to request new or supplemental forbearance agreements if they are facing pandemic-related financial hardship.

Read more...GSEs Extend Multifamily Forbearance Programs via Multi-Housing News