ALN Monthly Market Stats January 2022 via ALN Apartment Data

ALN Data just released their December 2021 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 2022 via ALN Apartment Data

2022 Multifamily Outlook: Robust Growth to Continue via MHN

Investors looking for income generation, appreciation, diversification and other benefits often turn to commercial real estate. Physical properties tend to perform independent of the stock market and provide a hedge against inflation. Additionally, property owners can enjoy certain tax benefits, such as deducting interest expense on a commercial property loan and offsetting gains with depreciation.

For many individuals, multifamily properties arguably present the most accessible, relatable and rewarding real estate investment available. Everyone needs a home, after all, and owners generally have the ability to increase rental rates yearly as leases renew or residents turn over.

Read more...2022 Multifamily Outlook: Robust Growth to Continue via MHN

Eleventh District Beige Book 1/12/22 via Dallas Fed

Robust expansion continued in the Eleventh District economy, with gains broad based across sectors. Growth in the manufacturing, nonfinancial services, and retail sectors stayed strong, and growth in financial services picked up. Home sales remained elevated, though construction capacity continued to be highly constrained. Solid apartment leasing continued. The energy sector saw further expansion, while drought dampened agricultural conditions. Employment rose robustly, and wage growth remained highly elevated due to widespread labor shortages. Supply-chain bottlenecks continued to drive up costs, and prices rose at a rapid clip. Outlooks improved overall, though uncertainty increased amid a new surge in COVID-19 cases and concern that labor market tightness and supply-chain disruptions will persist well into 2022.

Read more...Eleventh District Beige Book 1/12/22 via Dallas Fed

Austin Economic Indicators January 2022 via Dallas Fed

The Austin economy continued to expand in November. The Austin Business-Cycle Index increased, led by solid employment gains and a lower unemployment rate. The labor force also posted strong growth. Since mid-December, however, COVID-19 hospitalizations have surged. Housing affordability improved in the third quarter, and existing-home sales were positive in November.

Read more...Austin Economic Indicators January 2022 via Dallas Fed

Apartment Demand Smashes Previous Record High by 66% via GlobeSt

For the vast majority of market-rate renters, apartments remain affordable and these renters moving in are bringing big incomes, according to recent data from RealPage.

Demand for market-rate apartments in 2021 soared far above the highest levels on record in the three decades RealPage has tracked the market. Net demand totaled more than 673,000 units⁠—obliterating the previous high set in 2000 by a remarkable 66%.

Read more...Apartment Demand Smashes Previous Record High by 66% via GlobeSt

Sticker Shock Coming for Renters Receiving Concessions via GlobeSt

The multifamily sector has experienced the effects of an increase in pent-up demand this past year, resulting in higher-than-average asking rents as well as concessions, depending on the type of apartment and its location.

Class A concessions peaked in March at 9.9% and have been falling since, but they remain elevated at 9.2% as of October due to competing new supply entering many local submarkets.

Read more...Sticker Shock Coming for Renters Receiving Concessions via GlobeSt

CRE's Growth Forecast for 2022 via GlobeSt

Commercial real estate can be expected to perform well this year despite the prospect of higher interest rates, according to the National Association of Realtors.

While interest rates are expected to broadly rise by about 75 basis points, they will still be low compared to historical levels and should not cause a severe decline in investment activity and the ability of companies to service their debt.

Bottom line: CRE’s underlying demand fundamentals should more than mitigate the impact of the slightly higher interest rates in 2022, according to NAR’s 2022 Commercial Real Estate Outlook report.

Read more...CRE's Growth Forecast for 2022 via GlobeSt

On-Time Collection Rates Dropping for Mom and Pop Multifamily Landlords via GlobeSt

A new report is offering real-time glimpses into how well non-institutional landlords are collecting monthly rental payments as the pandemic wears on⁠—and the data reveals that on-time collection rates among independent landlords have now dropped for four consecutive months. On-time payments are at their lowest rate since February 2021, and “some deterioration could still lay ahead.”

Read more...On-Time Collection Rates Dropping for Mom and Pop Multifamily Landlords via GlobeSt

1,000 New People Arrive in Texas Every Day. Half Are Newborns. via The New York Times

Every three minutes, a child is born somewhere in Texas.

At one hospital in North Texas, 107 babies were delivered over 96 hours this summer, shattering local records. At a hospital in San Antonio, more than 1,200 babies have been born this year, up nearly 30 percent since 2018.

Read more...1,000 New People Arrive in Texas Every Day. Half Are Newborns. via The New York Times

Texas Employment Forecast December 2021 via Dallas Fed

Texas employment grew at a strong 7.4 percent annualized rate in November after increasing a revised 4.5 percent (previously 3.8 percent) in October. The Texas Leading Index increased for the fourth consecutive month—the 17th rise in the last 19 months. The recent gains in the index suggest continued strong job growth over the next three to six months.

Read more... Texas Employment Forecast December 2021 via Dallas Fed