The Multifamily Industry Preps for Permanent Remote Work via GlobeSt

Before the pandemic, remote work was already growing in the US. In 2019, work-from-home employees accounted for as much as 11.9% of the total labor market. During the pandemic, that number has shot up to 35%, according to a new report from Newmark. While most of these workers will return to the office once the pandemic ends, it is clear that the remote-work segment of the market will grow significantly.

Read more...The Multifamily Industry Preps for Permanent Remote Work via GlobeSt

Where Value-Add Investing Stands via Multi-Housing News

The practice of purchasing an underperforming multifamily asset at a discount, implementing significant renovations and raising rental prices, has grown in popularity over the last several years. But like much else in the multifamily industry, value-add investment suddenly became the subject of uncertainty when COVID-19 took hold in early 2020.

Value-add apartment sales totaled $32 billion in transaction volume in 2018—16 percent of all multifamily deals—according to Real Capital Analytics. But the unpredictability of the pandemic caused many investors to pull back or put deals on pause, and to reexamine their business strategies. The second quarter represented the lowest multifamily investment sales for any quarter in almost a decade.

Read more...Where Value-Add Investing Stands via Multi-Housing News

These are the DFW cities with the most new apartments via Dallas Business Journal

Dallas-Fort Worth is forecast to construct more new apartment units in 2020 than any other U.S. metro area. If that happens, DFW will push 40,000 new units this year, topping the charts for the third consecutive year.

So far this year within DFW, Frisco, Carrollton, Farmers Branch, North Fort Worth and Addison are leading the way in terms of additional units built to date and cities with the most multifamily construction in the pipeline, according to an analysis by Richardson-based RealPage Inc.

Read more...These are the DFW cities with the most new apartments via Dallas Business Journal

Austin Economic Indicators December 2020 via Dallas Fed

The Austin economy continued to recover in October. The Austin Business-Cycle Index accelerated as recent job growth was positive in most industries, and the unemployment rate declined. Regional consumer spending continues to increase and is well above pre-COVID-19 levels. Office space demand continued to weaken, building permits deteriorated slightly and home inventories were unchanged.

Read more...Austin Economic Indicators December 2020 via Dallas Fed

Apartment Values are Coming Back via GlobeSt

When COVID hit, transactions in the apartment market, like many commercial real estate sectors, ground to a halt.

For a short period, there was a 5% to 10% discount on deals that did move in the summer, according to Noah E. Hochman, co-chief investment officer and head of Capital Markets for TruAmerica.

But that didn’t last long.

Read more...Apartment Values are Coming Back via GlobeSt

DFW cuts year-over-year job loss to under 100,000 for first time in pandemic era via Dallas Morning News

North Texas is making steady progress in recouping jobs lost during the COVID-19 era.

New data from the U.S. Bureau of Labor Statistics shows that Dallas-Fort Worth picked up nearly 62,000 jobs in October, the most recent month available, to cut its year-over-year losses to fewer than 100,000 for the first time since the pandemic began.

Read more...DFW cuts year-over-year job loss to under 100,000 for first time in pandemic era via Dallas Morning News

Multifamily Rent Trends are Back on Track via GlobeSt

Although this year’s peak season was significantly disrupted due to the COVID-19 pandemic, Apartment List’s national index has stabilized back to a more typical trend during the past few months. Rents fell by 0.5% last month, which is consistent with historical rental trends in which rents have declined 0.5% from October to November in each of the last three years. Year-over-year, national rents are now down 1.3%.

Read more...Multifamily Rent Trends are Back on Track via GlobeSt

Eleventh District Beige Book 12/2/20 via Dallas Fed

The Eleventh District economy expanded at a modest pace, but activity in most industries remained below normal levels. Recovery in the manufacturing, retail, and services sectors slowed. The housing market continued to outperform expectations, but office leasing remained weak. Overall loan volume fell, though residential real estate lending continued to be robust. Energy activity remained depressed but showed some signs of improvement. Employment rose modestly, and several firms said weak demand and uncertainty about the course of the pandemic and/or related regulations were a drag on hiring. Input costs rose moderately, while selling prices were flat to up slightly. Outlooks were generally positive but uncertain, with political uncertainty and the trajectory of the pandemic weighing heavily on growth expectations for 2021.

Read more...Eleventh District Beige Book 12/2/20 via Dallas Fed

Look at Which City is Leading the US in CRE Deals via GlobeSt

In a year of firsts, another record has been set in commercial real estate. In normal years, Manhattan would occupy the top spot for US transaction volume, hands down. At various times of market disruption, Los Angeles would topple Manhattan for shorter periods, but this year, Dallas has logged more time at the top of the leader board, or three consecutive quarters, than either city, according to research by Real Capital Analytics.

Read more...Look at Which City is Leading the US in CRE Deals via GlobeSt

Homebuyers Brace for Pain in a Post-Pandemic Market: Conor Sen via NREI

As coronavirus vaccines approach a widespread rollout, the next six months of economic activity are going to be dominated by the impact of society's growing immunity — and easing fears. Combined with historically low levels of housing inventory, that could make the traditional spring homebuying season a particularly frustrating one for buyers.

Read more...Homebuyers Brace for Pain in a Post-Pandemic Market: Conor Sen via NREI