On the heels of one of its best years in recent history, the U.S. apartment market continued to record impressive demand and rent growth in 1st quarter 2015.
Watch video...Momentum Carries into 2015’s 1st Quarter for U.S. Apartment Sector | Property Management Insider
Tuesday, March 31, 2015
Berkadia: San Antonio 2014 Multifamily Sales Summary via Real Estate Center at Texas A&M
Significant activity persisted in the multifamily-investment market in 2014, according to Berkadia's 2014 Sales Summary.
In 2013, a majority of the deals consisted of 1960s to 1980s stock.
During 2014, however, investors targeted newer assets, with approximately 55 percent of transactions comprised of apartment communities built from 1980 to 2000. Consequently, dollar volume rose 9.6 percent year over year to $1 billion.
Read more...Berkadia: San Antonio 2014 Multifamily Sales Summary
In 2013, a majority of the deals consisted of 1960s to 1980s stock.
During 2014, however, investors targeted newer assets, with approximately 55 percent of transactions comprised of apartment communities built from 1980 to 2000. Consequently, dollar volume rose 9.6 percent year over year to $1 billion.
Read more...Berkadia: San Antonio 2014 Multifamily Sales Summary
First Look: Early Economic Forecast for Property Managers (Webinar Recap) via AppFolio
Senior Economist Ryan Severino gave an in depth look at the economic forecast for the housing market in this value-packed webinar. He covered everything from what will happen with homeownership rates to how rising construction will impact the rental housing market. Property management professionals who are looking to gain a deep understanding of the market and where it is going won’t want to miss this presentation.
Read more...First Look: Early Economic Forecast for Property Managers (Webinar Recap)
Read more...First Look: Early Economic Forecast for Property Managers (Webinar Recap)
DFW major apartment sales prices 2014 via Real Estate Center at Texas A&M
Cushman & Wakefield has released its Year-End 2014 Multifamily Snapshot, which includes a highlight of significant apartment sales from the past year.
Read more...DFW major apartment sales prices 2014
Read more...DFW major apartment sales prices 2014
Texas Manufacturing Activity Weakens in March, Says Dallas Fed Survey via Dallas Fed
Texas factory activity declined in March, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.
Texas produces more than 11 percent of total manufactured goods in the United States, ranking second behind California in factory production.
The production index—a key measure of state manufacturing conditions—fell to –5.2, posting its first negative reading in nearly two years.
Read more...Texas Manufacturing Activity Weakens in March, Says Dallas Fed Survey - Dallas Fed
Texas produces more than 11 percent of total manufactured goods in the United States, ranking second behind California in factory production.
The production index—a key measure of state manufacturing conditions—fell to –5.2, posting its first negative reading in nearly two years.
Read more...Texas Manufacturing Activity Weakens in March, Says Dallas Fed Survey - Dallas Fed
Demographics and GDP: 2% is the new 4% via Calculated Risk
Note: This is a repeat of a post I wrote early this year. Based on some recent comments I've seen, I think this is worth repeating.
For amusement, I checked out the WSJ opinion page comments on the Q4 GDP report. As usual, the WSJ opinion is pure politics - but it does bring up an excellent point (that the WSJ conveniently ignores).
First, from the WSJ opinion page:
The fourth quarter report means that growth for all of 2014 clocked in at 2.4%, which is the best since 2.5% in 2010. It also means another year, an astonishing ninth in a row, in which the economy did not grow by 3%.
This period of low growth isn't "astonishing". First, usually following a recession, there is a brief period of above average growth - but not this time due to the financial crisis and need for households to deleverage. So we didn't see a strong bounce back (sluggish growth was predicted on the blog for the first years of the recovery).
Read more...Calculated Risk: Demographics and GDP: 2% is the new 4%
For amusement, I checked out the WSJ opinion page comments on the Q4 GDP report. As usual, the WSJ opinion is pure politics - but it does bring up an excellent point (that the WSJ conveniently ignores).
First, from the WSJ opinion page:
The fourth quarter report means that growth for all of 2014 clocked in at 2.4%, which is the best since 2.5% in 2010. It also means another year, an astonishing ninth in a row, in which the economy did not grow by 3%.
This period of low growth isn't "astonishing". First, usually following a recession, there is a brief period of above average growth - but not this time due to the financial crisis and need for households to deleverage. So we didn't see a strong bounce back (sluggish growth was predicted on the blog for the first years of the recovery).
Read more...Calculated Risk: Demographics and GDP: 2% is the new 4%
Monday, March 30, 2015
Cap Rate Limbo: How Low Can They Go? via Multifamily Executive Magazine
When Barbara J. Gaffen, co-CEO of Northbrook, Ill.-based Prime Property Investors, heard about the latest deal coming out of Chicago, she almost couldn’t believe her ears.
Heitman, the Chicago-based global real-estate giant, had agreed to buy a 60-story, 504-unit luxury high-rise in the Loop for $328.2 million, or $651,000 per door, from the Related Companies. According to Real Capital Analytics (RCA), at that price, the property known as OneEleven became the highest per-door sale of any large apartment building ever in Chicago.
Hearing the numbers, Gaffen was baffled.
“I mean, what was the cap rate there? Is there a cap rate there?” Gaffen asked. “You’ve got people paying $5,000 a month to live in a two bedroom apartment—in Chicago. I just don’t know how that works. But obviously, with all the foreign capital in this market, these foreign investment funds have the money, and they have an extremely long-term investment horizon. Those funds are looking at 30 years or more.
"But that’s certainly not how we do it.”
Read more...Cap Rate Limbo: How Low Can They Go? | Multifamily Executive Magazine
Heitman, the Chicago-based global real-estate giant, had agreed to buy a 60-story, 504-unit luxury high-rise in the Loop for $328.2 million, or $651,000 per door, from the Related Companies. According to Real Capital Analytics (RCA), at that price, the property known as OneEleven became the highest per-door sale of any large apartment building ever in Chicago.
Hearing the numbers, Gaffen was baffled.
“I mean, what was the cap rate there? Is there a cap rate there?” Gaffen asked. “You’ve got people paying $5,000 a month to live in a two bedroom apartment—in Chicago. I just don’t know how that works. But obviously, with all the foreign capital in this market, these foreign investment funds have the money, and they have an extremely long-term investment horizon. Those funds are looking at 30 years or more.
"But that’s certainly not how we do it.”
Read more...Cap Rate Limbo: How Low Can They Go? | Multifamily Executive Magazine
U.S. Multifamily Investment Sets Record-Breaking Year via CBRE Capital Markets
Propensity to rent, improving job economy and new development deliveries in the U.S. combined to drive the largest full-year multifamily investment total since 2007, according to the latest research from CBRE.
Total investment volume in U.S. multifamily properties totaled $106 billion in 2014, a 7 percent climb over the prior year and surpassing the prior peak of $105.1 billion set in 2007. Multifamily is the first property sector to return to 2007 sales levels with this milestone.
The year closed with a very active quarter for multifamily property investment, in terms of sales volume. In Q4 2014, U.S. multifamily sales volume reached $34.1 billion—10 percent higher than the year prior—setting a new quarterly investment record.
Read more...U.S. MULTIFAMILY INVESTMENT SETS RECORD-BREAKING YEAR
Total investment volume in U.S. multifamily properties totaled $106 billion in 2014, a 7 percent climb over the prior year and surpassing the prior peak of $105.1 billion set in 2007. Multifamily is the first property sector to return to 2007 sales levels with this milestone.
The year closed with a very active quarter for multifamily property investment, in terms of sales volume. In Q4 2014, U.S. multifamily sales volume reached $34.1 billion—10 percent higher than the year prior—setting a new quarterly investment record.
Read more...U.S. MULTIFAMILY INVESTMENT SETS RECORD-BREAKING YEAR
Wednesday, March 25, 2015
Rising Rents Are Finally Forcing Millennials to Buy Houses via Bloomberg Business
Americans in their 20s and early 30s are getting a nudge toward homeownership a decade after sales peaked during the housing bubble. It’s not their nagging parents. It’s rents. They’ve risen so much that buying is making more sense.
“I pay $1,410 in rent for my one-bedroom apartment in downtown Denver,” said Eric Arther, 28, who has saved about $30,000 for a down payment. “If I pay that much, I’d like to build some equity.”
Expect the open-house crowds to skew a little younger during this year’s spring homebuying season. Millennials made up 32 percent of the U.S. housing market in 2014, up from 28 percent two years earlier, and have pulled ahead of the older Generation X as the largest segment of buyers, according to the National Association of Realtors.
Read more...Rising Rents Are Finally Forcing Millennials to Buy Houses - Bloomberg Business
“I pay $1,410 in rent for my one-bedroom apartment in downtown Denver,” said Eric Arther, 28, who has saved about $30,000 for a down payment. “If I pay that much, I’d like to build some equity.”
Expect the open-house crowds to skew a little younger during this year’s spring homebuying season. Millennials made up 32 percent of the U.S. housing market in 2014, up from 28 percent two years earlier, and have pulled ahead of the older Generation X as the largest segment of buyers, according to the National Association of Realtors.
Read more...Rising Rents Are Finally Forcing Millennials to Buy Houses - Bloomberg Business
Report: Dallas area job growth fuels escalating apartment rents via Dallas Business Journal
As Dallas-Fort Worth continue to add jobs to the region, apartment owners are expected to raise their rental prices by 5.4 percent, which outpaces the national average.
Apartment rents in the United States rose year-over-year by 5.1 percent for February, according to Addison-based Axiometrics, which analyzes the apartment market.
"Employment has been strong throughout Dallas-Fort Worth, with an almost 5 percent increase for jobs in Dallas," Stephanie McCleskey, vice president of research for Axiometrics, told the Dallas Business Journal."Nationally, that job growth is at 2.2 percent."
Read more...Report: Dallas area job growth fuels escalating apartment rents - Dallas Business Journal
Apartment rents in the United States rose year-over-year by 5.1 percent for February, according to Addison-based Axiometrics, which analyzes the apartment market.
"Employment has been strong throughout Dallas-Fort Worth, with an almost 5 percent increase for jobs in Dallas," Stephanie McCleskey, vice president of research for Axiometrics, told the Dallas Business Journal."Nationally, that job growth is at 2.2 percent."
Read more...Report: Dallas area job growth fuels escalating apartment rents - Dallas Business Journal
Subscribe to:
Posts (Atom)