The San Antonio economy grew at a very strong pace in November. Payroll employment growth reached a 10-year high of 9.4 percent. The unemployment rate fell to 4.5 percent, continuing the downward trend of the prior three months. Housing markets have been steady, although multifamily has shown some mixed signs in recent months. Stocks of companies based in San Antonio were weak in November and December as energy sector companies continued to feel the effects of falling oil prices.
Growth in the San Antonio Business-Cycle Index accelerated to 7.4 percent over the six months ended in November. Revised data show
that the index has grown 7.2 percent this year and has been accelerating since the third quarter of 2013. Continued strength in the four components of the index has pushed growth the past several months higher than initially estimated.
Read more...San Antonio Economic Update December 2014 via Dallas Fed
Tuesday, December 30, 2014
Multifamily Housing Hot in Texas; Single-family Squeeze May Ease, Says Dallas Fed via Dallas Fed
Apartment construction in Texas will likely moderate, while the state’s single-family housing market may regain traction in 2015, according to the latest issue of the Federal Reserve Bank of Dallas’ Southwest Economy.
The market for single-family housing in Texas lost some momentum in 2014, with record-high prices, depleted existing-home inventories and declining affordability contributing to relatively slow growth in sales, writes Dallas Fed economist Laila Assanie in “Single-Family Housing Squeeze Eases in Texas; Multifamily Soars.”
Improved access to credit and an expanding supply of new homes for first-time and lower-income buyers will be essential for the state’s housing market to strengthen in 2015, Assanie notes.
Read more...Multifamily Housing Hot in Texas; Single-family Squeeze May Ease, Says Dallas Fed - Dallas Fed
The market for single-family housing in Texas lost some momentum in 2014, with record-high prices, depleted existing-home inventories and declining affordability contributing to relatively slow growth in sales, writes Dallas Fed economist Laila Assanie in “Single-Family Housing Squeeze Eases in Texas; Multifamily Soars.”
Improved access to credit and an expanding supply of new homes for first-time and lower-income buyers will be essential for the state’s housing market to strengthen in 2015, Assanie notes.
Read more...Multifamily Housing Hot in Texas; Single-family Squeeze May Ease, Says Dallas Fed - Dallas Fed
Zillow: Renters paid $441 billion in rent in 2014 via HousingWire
he rent may indeed be “too damn high,” but it’s only going up, according to a new report from online real estate listing service Zillow (Z).
According to new analysis from Zillow, U.S. renters paid $441 billion in rent in 2014, up $20.6 billion from 2013’s total of $420.4 billion. That represents an increase of 4.9%.
Among the largest 25 metro areas covered by Zillow’s data, the three metro areas where rents rose the most were San Francisco, where the average rent payment rose by 13.5% or $163 per month; Denver, where the average rent payment rose by 10.8% or $86; and Pittsburgh, where the average rent payment rose by 10.6% or $56.
Read more...Zillow: Renters paid $441 billion in rent in 2014 | 2014-12-30 | HousingWire
According to new analysis from Zillow, U.S. renters paid $441 billion in rent in 2014, up $20.6 billion from 2013’s total of $420.4 billion. That represents an increase of 4.9%.
Among the largest 25 metro areas covered by Zillow’s data, the three metro areas where rents rose the most were San Francisco, where the average rent payment rose by 13.5% or $163 per month; Denver, where the average rent payment rose by 10.8% or $86; and Pittsburgh, where the average rent payment rose by 10.6% or $56.
Read more...Zillow: Renters paid $441 billion in rent in 2014 | 2014-12-30 | HousingWire
Tuesday, December 23, 2014
Rent Growth for M-F Properties Predicted in 2015 via Commercial Property Executive
Rent growth at multi-family properties across the United States in 2015 is expected to increase 4.5 percent for Class A and B+ assets and 5.1 percent for Class B and C assets with some technology-heavy Western markets seeing spikes as high as 9 percent.
The 2015 Rent Forecast & Outlook report for the U.S. multi-family sector prepared by Pierce-Eislen noted that next year’s estimated rent growth is lower than last year’s average of 5.9 percent. But the news is still good compared to previous years.
“Even with 2015’s forecasted rent growth decelerating from 2014’s pace, this still represents faster rent growth than in recent years: Rents grew by 3.7 percent in 2012 and 4.3 percent in 2013,” the report stated.
Read more...Rent Growth for M-F Properties Predicted in 2015 | Commercial Property Executive
The 2015 Rent Forecast & Outlook report for the U.S. multi-family sector prepared by Pierce-Eislen noted that next year’s estimated rent growth is lower than last year’s average of 5.9 percent. But the news is still good compared to previous years.
“Even with 2015’s forecasted rent growth decelerating from 2014’s pace, this still represents faster rent growth than in recent years: Rents grew by 3.7 percent in 2012 and 4.3 percent in 2013,” the report stated.
Read more...Rent Growth for M-F Properties Predicted in 2015 | Commercial Property Executive
Monday, December 22, 2014
Q3 2014 Cap Rate Trends via ReisReports
Apartment Cap Rate Trends
The mean cap rate, calculated on a dollar-weighted basis by quarter, declined by 30 basis points during the third quarter to 6.3%. As the mean cap rate shows, apartment cap rates have largely bottomed out. Over the last four years, the mean cap rate has fluctuated within a relatively narrow band of 50 basis points. That’s not to say that cap rates in the future won’t decline a bit more, but the majority of cap rate compression has clearly ended.
Read more...Q3 2014 Cap Rate Trends - ReisReports
The mean cap rate, calculated on a dollar-weighted basis by quarter, declined by 30 basis points during the third quarter to 6.3%. As the mean cap rate shows, apartment cap rates have largely bottomed out. Over the last four years, the mean cap rate has fluctuated within a relatively narrow band of 50 basis points. That’s not to say that cap rates in the future won’t decline a bit more, but the majority of cap rate compression has clearly ended.
Read more...Q3 2014 Cap Rate Trends - ReisReports
Portman: Multifamily Will Slow in 2015 via GlobeSt.com
When John C. Portman, vice chairman of Portman Holdings, looks back on 2014, he’ll have fond (and refreshing memories) of how equity financing continued its recover and construction debt financing softened, at least a little. He told me 2014 gave us a steady rise in competition among equity players—and that resulted in increased international capital heading into secondary markets, with primary focus on urban cores.
“Secondary markets are booming,” Portman tells GlobeSt.com. “These shifts in 2014 have left owners more willing to exit and sell into the market. Overall performance of assets has improved enough to stave off some of the 10-year CMBS maturities that many were expecting to default. In some cases, existing assets are already becoming over-levered.”
Read more...Portman: Multifamily Will Slow in 2015 - Daily News Article - GlobeSt.com
“Secondary markets are booming,” Portman tells GlobeSt.com. “These shifts in 2014 have left owners more willing to exit and sell into the market. Overall performance of assets has improved enough to stave off some of the 10-year CMBS maturities that many were expecting to default. In some cases, existing assets are already becoming over-levered.”
Read more...Portman: Multifamily Will Slow in 2015 - Daily News Article - GlobeSt.com
Regional Economy Continues to Expand Despite Headwinds via Dallas Fed
The Texas economy has continued to grow at a fast clip in recent weeks. Employment growth accelerated in October, and the Texas Business Outlook Survey indexes point to continued growth in retail and service sector activity in November. The Texas trade-weighted value of the dollar increased sharply, contributing to slowing export growth in October. Although energy sector activity has not yet responded significantly to falling oil prices, sustained prices below $60 per barrel will likely result in a sharp drop in drilling activity and dampen overall economic activity in 2015.
Read more...Regional Economy Continues to Expand Despite Headwinds - Dallas Fed
Read more...Regional Economy Continues to Expand Despite Headwinds - Dallas Fed
Friday, December 19, 2014
San Antonio multifamily market steady; units coming via Real Estate Center at Texas A&M
CBRE reports Texas' occupancy rate hit 91.7 percent third quarter 2014, slightly up from the same time last year. San Antonio's multifamily occupancy rate is slightly less, at 90.5 percent.
According to CBRE's research, the Stone Oak/Thousand Oaks/San Pedro community saw the most multifamily growth in 3Q with 416 units built. An additional 433 units are under construction in that neighborhood.
Compared to Austin, Dallas and Houston, San Antonio has the smallest number of multifamily units at about 159,400.
Read more...San Antonio multifamily market steady; units coming
According to CBRE's research, the Stone Oak/Thousand Oaks/San Pedro community saw the most multifamily growth in 3Q with 416 units built. An additional 433 units are under construction in that neighborhood.
Compared to Austin, Dallas and Houston, San Antonio has the smallest number of multifamily units at about 159,400.
Read more...San Antonio multifamily market steady; units coming
Texas sets job growth record for fourth month; business, professional services tops hiring via Dallas Business Journal
Texas continued a strong streak of job growth in November, tacking on 34,800 positions and setting an annual job growth record for the fourth consecutive month.
The added jobs also are pushing down the state's unemployment rate, which fell to 4.9 percent from 5.1 percent in October. That rate was a full point higher at 6.1 percent a year ago.
Read more...Texas sets job growth record for fourth month; business, professional services tops hiring - Dallas Business Journal
The added jobs also are pushing down the state's unemployment rate, which fell to 4.9 percent from 5.1 percent in October. That rate was a full point higher at 6.1 percent a year ago.
Read more...Texas sets job growth record for fourth month; business, professional services tops hiring - Dallas Business Journal
Houston Is 2015’s Wild Card Apartment Market – Part Three via Property Management Insider
If Houston’s employment growth pace over the near term slows to somewhere near half the level recorded of late, underlying support for housing demand, including apartment absorption, should erode. Substantial completion volumes that lie just ahead also are of concern in this metro’s outlook.
What’s the Current Performance?
In part one and two, we discussed some of the changes to Houston’s energy sector. Important to realize, Houston’s apartment market is entering this period of vulnerability when conditions are unusually strong. There’s room to lose some of its momentum and still log very solid results.
Read more...Houston Is 2015’s Wild Card Apartment Market – Part Three | Property Management Insider
What’s the Current Performance?
In part one and two, we discussed some of the changes to Houston’s energy sector. Important to realize, Houston’s apartment market is entering this period of vulnerability when conditions are unusually strong. There’s room to lose some of its momentum and still log very solid results.
Read more...Houston Is 2015’s Wild Card Apartment Market – Part Three | Property Management Insider
Houston Is 2015’s Wild Card Apartment Market – Part Two via Property Management Insider
What Does Houston’s Energy Sector Look Like?
Houston’s energy sector encompasses multiple activities. In part one, we discussed the changing energy industry, oil prices, and production. The degree of impact from falling oil prices will vary from one segment of the business to another, and the timing of the impact will vary, too.
The upstream sector of the energy business refers to oil extraction. While the Texas oil fields aren’t actually in Houston, lots of the metro’s energy workers are involved in upstream activities.
Read more...Houston Is 2015’s Wild Card Apartment Market – Part Two | Property Management Insider
Houston’s energy sector encompasses multiple activities. In part one, we discussed the changing energy industry, oil prices, and production. The degree of impact from falling oil prices will vary from one segment of the business to another, and the timing of the impact will vary, too.
The upstream sector of the energy business refers to oil extraction. While the Texas oil fields aren’t actually in Houston, lots of the metro’s energy workers are involved in upstream activities.
Read more...Houston Is 2015’s Wild Card Apartment Market – Part Two | Property Management Insider
Houston Is 2015’s Wild Card Apartment Market – Part One via Property Management Insider
There is typically at least one spot across the country where forecasting the apartment market performance is very tricky. Depending on assumptions made about the factors that should have the greatest influences on overall results, outcomes can vary drastically in these locales. During the past few years, these wild card markets have included Atlanta, reflecting questions about economic growth potential, and Washington, DC, reflecting questions focused on the volume of pent-up demand available to meet surging apartment completions.
Houston’s outlook now ranks as the toughest call to make. How much will a disruption in the energy sector cut into the metro’s job creation pace, household formation volume, and apartment demand level? At the same time, what impact will 2015 completions nearly doubling the 2014 tally place downward pressure on performance results?
Read more...Houston Is 2015’s Wild Card Apartment Market – Part One | Property Management Insider
Houston’s outlook now ranks as the toughest call to make. How much will a disruption in the energy sector cut into the metro’s job creation pace, household formation volume, and apartment demand level? At the same time, what impact will 2015 completions nearly doubling the 2014 tally place downward pressure on performance results?
Read more...Houston Is 2015’s Wild Card Apartment Market – Part One | Property Management Insider
Apartment Rent Growth Continues to Climb, Reaches New High for 2014 at 4.7% in November via MultifamilyBiz.com
National annual effective rent growth in November 2014 reached 4.7%, the strongest result of 2014 to date and the highest since August 2011 when the rate measured 5.0%.
According to research from Axiometrics, the leader in apartment market research and analysis, November's rent-growth rate was a 38-basis-point (bps) increase from the 4.3% recorded in October and the largest growth margin since the 39-bps increase from February-March 2011 (4.6% and 5.0%, respectively).
Read more...Apartment Rent Growth Continues to Climb, Reaches New High for 2014 at 4.7% in November | MultifamilyBiz.com
According to research from Axiometrics, the leader in apartment market research and analysis, November's rent-growth rate was a 38-basis-point (bps) increase from the 4.3% recorded in October and the largest growth margin since the 39-bps increase from February-March 2011 (4.6% and 5.0%, respectively).
Read more...Apartment Rent Growth Continues to Climb, Reaches New High for 2014 at 4.7% in November | MultifamilyBiz.com
Wednesday, December 17, 2014
CRE Mortgage Debt Reaches New High via GlobeSt.com
Commercial and multifamily mortgage debt reached a record high in the third quarter, the Mortgage Bankers Association said Tuesday. The 1.1% increase in outstanding debt brought the total to $2.59 trillion, with multifamily mortgages accounting for more than half the quarterly increase.
“The quarter-over-quarter increase was the highest since 2008, and the rise in multifamily mortgage debt was the highest since 2007,” says Jamie Woodwell, MBA’s VP of CRE research. “Strong originations are more than outpacing the low volume of loans maturing this year.”
Read more...CRE Mortgage Debt Reaches New High - Daily News Article - GlobeSt.com
“The quarter-over-quarter increase was the highest since 2008, and the rise in multifamily mortgage debt was the highest since 2007,” says Jamie Woodwell, MBA’s VP of CRE research. “Strong originations are more than outpacing the low volume of loans maturing this year.”
Read more...CRE Mortgage Debt Reaches New High - Daily News Article - GlobeSt.com
Through the Lens: A Look at Apartment Rents, Home Prices and Incomes in Real Terms via Property Management Insider
Strong performance in the multifamily sector of late has raised some concerns about affordability. The concerns are very much centered on trends over the last four years, as annual same-store effective rent change for the top 50 U.S. metros has outpaced the rate of inflation for 17 consecutive quarters. And in 3rd quarter 2014, annual effective rent change for the top 50 metros came in at a two-year high of 3.7%, more than twice the reported annual rate of inflation.
However, before sounding the alarm, it’s useful to look at apartment rent growth with a zoomed-out lens – viewing rent growth relative to inflation, wage growth and single-family price growth over multiple cycles. This zoomed-out view paints a very different (and perhaps surprising) picture. It shows that even post-housing bust, single-family appreciation has far outpaced apartment rent growth since 2002.
Read more...Through the Lens: A Look at Apartment Rents, Home Prices and Incomes in Real Terms | Property Management Insider
However, before sounding the alarm, it’s useful to look at apartment rent growth with a zoomed-out lens – viewing rent growth relative to inflation, wage growth and single-family price growth over multiple cycles. This zoomed-out view paints a very different (and perhaps surprising) picture. It shows that even post-housing bust, single-family appreciation has far outpaced apartment rent growth since 2002.
Read more...Through the Lens: A Look at Apartment Rents, Home Prices and Incomes in Real Terms | Property Management Insider
San Antonio Apartment Market Update October 2014 via oconnordata.com
Most key metrics of the San Antonio area multifamily sector recorded positive and negative changes in October 2014.
The occupancy figures recorded both positive and negative values for all the classes. For Class A properties, occupancy increased by 0.01% over the month to close at 93.03%; and decreased by 0.72% over the year. The largest annual increase was noted for Class B properties (0.30%).
Read more...San Antonio Apartment Market Update October 2014
The occupancy figures recorded both positive and negative values for all the classes. For Class A properties, occupancy increased by 0.01% over the month to close at 93.03%; and decreased by 0.72% over the year. The largest annual increase was noted for Class B properties (0.30%).
Read more...San Antonio Apartment Market Update October 2014
Dallas/Ft. Worth Apartment Market Update October 2014 via oconnordata.com
The key metrics for the Dallas/Fort Worth area multifamily sector recorded significant changes both over the month and over the year.
Over the month all the classes recorded mostly upward trends in terms of occupancy. Class A properties recorded an increase of 0.03% over previous month. On a year-over-year basis Class A properties recorded a decrease of 0.15%. The largest annual increase was noted for Class B properties with an increase of 0.42%.
Read more...Dallas/Ft. Worth Apartment Market Update October 2014
Over the month all the classes recorded mostly upward trends in terms of occupancy. Class A properties recorded an increase of 0.03% over previous month. On a year-over-year basis Class A properties recorded a decrease of 0.15%. The largest annual increase was noted for Class B properties with an increase of 0.42%.
Read more...Dallas/Ft. Worth Apartment Market Update October 2014
Tuesday, December 16, 2014
ALN Monthly Newsletter December 2014 via ALN Apartment Data
ALN Data just released their November 2014 stats on occupancy and rents for 23 markets. In Texas, it includes DFW, Austin, Houston, San Antonio, Lubbock, Amarillo, Abilene and Corpus Christi. It is a must read from a great provider of apartment data.
Read more...ALN Monthly Newsletter December 2014 via ALN Apartment Data
Read more...ALN Monthly Newsletter December 2014 via ALN Apartment Data
Austin Apartment Market Update October 2014 via oconnordata.com
All metrics for the Austin area multifamily sector recorded both positive and negative changes in October 2014.
Occupancy figures recorded both positive and negative figures for the classes for the month. Class A properties reported an increase of 0.01% over last month, and a decrease of 0.72% over last year. The largest annual increase was noted for Class B with an increase of 0.85%.
Read more...Austin Apartment Market Update October 2014
Occupancy figures recorded both positive and negative figures for the classes for the month. Class A properties reported an increase of 0.01% over last month, and a decrease of 0.72% over last year. The largest annual increase was noted for Class B with an increase of 0.85%.
Read more...Austin Apartment Market Update October 2014
Houston Apartment Market Update October 2014 via oconnordata.com
Key metrics for the Houston area multifamily sector recorded both positive and negative changes in October 2014.
Occupancy figures for the classes recorded both positive and negative changes over the month. Class A recorded a decrease of 0.30% from previous month. The average went down by 1.40% over the year for Class A properties. The largest annual increase was noted for Class C properties with an average increase of 0.31% to close at 89.50%.
Read more...Houston Apartment Market Update October 2014
Occupancy figures for the classes recorded both positive and negative changes over the month. Class A recorded a decrease of 0.30% from previous month. The average went down by 1.40% over the year for Class A properties. The largest annual increase was noted for Class C properties with an average increase of 0.31% to close at 89.50%.
Read more...Houston Apartment Market Update October 2014
MPF highlights DFW multifamily 3Q 2014 via Real Estate Center at Texas A&M
Apartment completions have picked up significantly in DFW, but substantial growth in the economy and other drivers have spurred absorption enough to mute the effect of the elevated supply, according to the latest report from MPF Research.
Demand for new lease-ups has been strong, and middle-market demand remains strong as well.
Read more...MPF highlights DFW multifamily 3Q 2014
Demand for new lease-ups has been strong, and middle-market demand remains strong as well.
Read more...MPF highlights DFW multifamily 3Q 2014
MPF: San Antonio apartment trends 3Q 2014 via Real Estate Center at Texas A&M
Like other major metros in Texas, San Antonio’s apartment sector showed strong growth coming out of the recession.
But unlike those other metros, San Antonio already appears to be reverting to a slow growth pattern that is more consistent with its own historical performances.
Structurally, the San Antonio metro is a more moderate-growth metro — heavy on government-related jobs, but not on large private employers.
Read more...MPF: San Antonio apartment trends 3Q 2014
But unlike those other metros, San Antonio already appears to be reverting to a slow growth pattern that is more consistent with its own historical performances.
Structurally, the San Antonio metro is a more moderate-growth metro — heavy on government-related jobs, but not on large private employers.
Read more...MPF: San Antonio apartment trends 3Q 2014
Monday, December 15, 2014
The Nation’s Top 10 Busiest Submarkets: 6. Frisco/Prosper, Texas via Property Management Insider
Landing in the No. 10 spot on our list of rapid inventory growth is the Frisco/Prosper submarket in the Dallas metro. Frisco/Prosper’s inventory expansion rate since 2012 is 44.5%. That calculation includes new apartment supply plus units under construction at the end of 3rd quarter 2014. Turning that percentage into an actual unit count, Frisco/Prosper has received 1,612 new apartments since 2012, and had an additional 2,081 units under construction at the end of 3rd quarter 2014.
Read more...The Nation’s Top 10 Busiest Submarkets: 6. Frisco/Prosper, Texas | Property Management Insider
Read more...The Nation’s Top 10 Busiest Submarkets: 6. Frisco/Prosper, Texas | Property Management Insider
MPF Research: Austin Multifamily 3Q 2014 via Real Estate Center at Texas A&M
Broad-based economic gains combined with the metro’s already favorable demographics have fueled demand for housing in Central Texas, which has generated strong revenue growth for the apartment sector, according to the latest report from MPF Research.
Such solid demand for apartments has strengthened the market’s fundamentals and led to elevated levels of apartment development.
Occupancy has hovered around the 95 percent mark for over three years. In response to the high occupancy, apartment operators have pushed rents around 4 percent to 7 percent annually for 14 straight quarters.
Read more...MPF Research: Austin multifamily 3Q 2014
Such solid demand for apartments has strengthened the market’s fundamentals and led to elevated levels of apartment development.
Occupancy has hovered around the 95 percent mark for over three years. In response to the high occupancy, apartment operators have pushed rents around 4 percent to 7 percent annually for 14 straight quarters.
Read more...MPF Research: Austin multifamily 3Q 2014
Friday, December 12, 2014
The Impending Wall of Maturities via GlobeSt.com
It’s not a coincidence that in recent reports, both Fitch Ratings and Trepp have used the word “wall” to characterize the CMBS maturities due to occur in 2015, 2016 and 2017. “Over the next three years, more than $300 billion in conduit CMBS loan balance will mature,” according to a Trepp report that cites a preponderance of 10-year balloon loans issued between 2005 and 2007. “That’s more than 2.5 times the amount that matured from 2012 to 2014.”
In fact, Trepp notes, nearly 60% of the loans in the CMBS conduit universe will mature over the next three years. “Commercial real estate lenders, borrowers and CMBS investors alike are looking at the next three years as a true test of the strength of recovering capital markets.”
Read more...The Impending Wall of Maturities - Daily News Article - GlobeSt.com
In fact, Trepp notes, nearly 60% of the loans in the CMBS conduit universe will mature over the next three years. “Commercial real estate lenders, borrowers and CMBS investors alike are looking at the next three years as a true test of the strength of recovering capital markets.”
Read more...The Impending Wall of Maturities - Daily News Article - GlobeSt.com
Transforming Multifamily Housing via The Balance Sheet - Yardi Corporate Blog
Sub-metering has been known to help multifamily managers cut costs. Now, as part of Fannie Mae’s Green Initiative, the simple technology can help both multifamily developers and existing properties loans.
Fannie Mae recently issued the report “Transforming Multifamily Housing: Fannie Mae’s Green Initiative and Energy Star for Multifamily,” which quantifies the benefits of energy efficiency on a blend of 1,163 multifamily properties. The data will be used to create standards for the Green Mortgage Backed Securities.
The report reveals that the least efficient properties consumed at least three times more energy and six times more water per square foot than the most efficient properties.
Read more...Transforming Multifamily Housing | The Balance Sheet - Yardi Corporate Blog
Fannie Mae recently issued the report “Transforming Multifamily Housing: Fannie Mae’s Green Initiative and Energy Star for Multifamily,” which quantifies the benefits of energy efficiency on a blend of 1,163 multifamily properties. The data will be used to create standards for the Green Mortgage Backed Securities.
The report reveals that the least efficient properties consumed at least three times more energy and six times more water per square foot than the most efficient properties.
Read more...Transforming Multifamily Housing | The Balance Sheet - Yardi Corporate Blog
The Nation’s Top 10 Busiest Submarkets: 7. Far North West San Antonio, Texas via Property Management Insider
The U.S. apartment market has seen elevated construction levels in this cycle. But construction activity has been concentrated in some spots more than others, and MPF Research has identified the nation’s 10 busiest submarkets for construction in this cycle. The submarkets were identified based on inventory growth since 2012, including the total number of units completed since 1st quarter 2012 and the total number of units under construction at the end of 3rd quarter 2014. Why have these spots attracted so much development? We’ll take a deeper look in this series highlighting each of the top 10 submarkets.
Far North West San Antonio, Texas
Placing in the No. 7 spot on our list of rapid inventory growth submarkets is Far Northwest San Antonio in San Antonio. Far Northwest San Antonio’s apartment inventory expansion rate since 2012 is 44.2%, including new apartment supply plus units under construction at the end of 3rd quarter 2014.
Read more...The Nation’s Top 10 Busiest Submarkets: 7. Far North West San Antonio, Texas | Property Management Insider
Far North West San Antonio, Texas
Placing in the No. 7 spot on our list of rapid inventory growth submarkets is Far Northwest San Antonio in San Antonio. Far Northwest San Antonio’s apartment inventory expansion rate since 2012 is 44.2%, including new apartment supply plus units under construction at the end of 3rd quarter 2014.
Read more...The Nation’s Top 10 Busiest Submarkets: 7. Far North West San Antonio, Texas | Property Management Insider
Thursday, December 11, 2014
Houston Economic Indicators December 2014 via Dallas Fed
The Houston Business-Cycle Index increased 7.7 percent in October after climbing a revised 10.8 percent in September. Indicators for manufacturing and service industries improved. Energy prices have continued to ease since July but haven’t taken the steam out of Houston’s economic engine. In the context of positive national indicators, recent data suggest that the Houston economy is growing rapidly as it heads into the holiday season.
Employment increased at an annualized rate of 4.4 percent in October, compared with 6.4 percent in September
Read more...Houston Economic Indicators December 2014 via Dallas Fed
Employment increased at an annualized rate of 4.4 percent in October, compared with 6.4 percent in September
Read more...Houston Economic Indicators December 2014 via Dallas Fed
CRE Lending, Asset Quality Soaring at U.S. Banks via CoStar Group
The amount of commercial real estate loans on U.S. bank books has swelled by more than $100 billion in the past four quarters, a 6.6% increase and now totals more than $1.65 trillion (excluding farming), according to the latest FDIC numbers released this past week. The total basically matches outstanding the CRE loan balance at the last peak of CRE markets seven years ago.
Multifamily lending continues to be the fastest growing category, increasing 14.5% over the past four quarters and now totaling $289 billion.
Read more...CRE Lending, Asset Quality Soaring at U.S. Banks - CoStar Group
Multifamily lending continues to be the fastest growing category, increasing 14.5% over the past four quarters and now totaling $289 billion.
Read more...CRE Lending, Asset Quality Soaring at U.S. Banks - CoStar Group
Wednesday, December 10, 2014
Lifestyle Wish Lists via The Balance Sheet - Yardi Corporate Blog
Millennials and Boomers are currently the heavyweights of the rental housing market, comprising a joint 62.2 percent of the renting population.
Broken down, Boomers make up 35.6 percent and Millennials total 26.6 percent. Although both are expected to move into the multifamily rental market in droves throughout the following years, as more and more Millennials leave their parents’ homes, Gen Y will take up a growing share of the market. In fact, it is expected that Millennials will rule both owner- and renter-occupied housing market until 2050. So what do the two greatest generations of the nation want from housing?
Read more...Lifestyle Wish Lists | The Balance Sheet - Yardi Corporate Blog
Broken down, Boomers make up 35.6 percent and Millennials total 26.6 percent. Although both are expected to move into the multifamily rental market in droves throughout the following years, as more and more Millennials leave their parents’ homes, Gen Y will take up a growing share of the market. In fact, it is expected that Millennials will rule both owner- and renter-occupied housing market until 2050. So what do the two greatest generations of the nation want from housing?
Read more...Lifestyle Wish Lists | The Balance Sheet - Yardi Corporate Blog
The Nation’s Top 10 Busiest Submarkets: 9. Far North Central San Antonio, Texas via Property Management Insider
The U.S. apartment market has seen elevated construction levels in this cycle. But construction activity has been concentrated in some spots more than others, and MPF Research has identified the nation’s 10 busiest submarkets for construction in this cycle. The submarkets were identified based on inventory growth since 2012, including the total number of units completed since 1st quarter 2012 and the total number of units under construction at the end of 3rd quarter 2014. Why have these spots attracted so much development? We’ll take a deeper look in this series highlighting each of the top 10 submarkets.
Far North Central San Antonio, Texas
Placing in the No. 9 slot on our list of rapid inventory growth submarkets is Far North Central San Antonio in the San Antonio metro.
Read more...The Nation’s Top 10 Busiest Submarkets: 9. Far North Central San Antonio, Texas | Property Management Insider
Far North Central San Antonio, Texas
Placing in the No. 9 slot on our list of rapid inventory growth submarkets is Far North Central San Antonio in the San Antonio metro.
Read more...The Nation’s Top 10 Busiest Submarkets: 9. Far North Central San Antonio, Texas | Property Management Insider
Tuesday, December 9, 2014
The Nation's Top 10 Busiest Submarkets: 10. Cedar Park, Texas via Property Management Insider
The U.S. apartment market has seen elevated construction levels in this cycle. But construction activity has been concentrated in some spots more than others, and MPF Research has identified the nation’s 10 busiest submarkets for construction in this cycle. The submarkets were identified based on inventory growth since 2012, including the total number of units completed since 1st quarter 2012 and the total number of units under construction at the end of 3rd quarter 2014. Why have these spots attracted so much development? We’ll take a deeper look in this series highlighting each of the top 10 submarkets.
Read more...The Nation's Top 10 Busiest Submarkets: 10. Cedar Park, Texas | Property Management Insider
Read more...The Nation's Top 10 Busiest Submarkets: 10. Cedar Park, Texas | Property Management Insider
Zillow: Renting is twice as expensive as buying via HousingWire
It’s more affordable to buy a home now in most U.S. metros than it was 15 years ago, even for millennials putting down less money on a home, according to a Zillow analysis of third-quarter income and home value data.
Renters, however, continue to pay an increasing share of their income to their landlords as rents soar and incomes remain flat.
Read more...Zillow: Renting is twice as expensive as buying | 2014-12-09 | HousingWire
Renters, however, continue to pay an increasing share of their income to their landlords as rents soar and incomes remain flat.
Read more...Zillow: Renting is twice as expensive as buying | 2014-12-09 | HousingWire
Monday, December 8, 2014
San Antonio apartment market overview Oct. 2014 via Real Estate Center at Texas A&M
Apartment MarketData Research Services LLC has released October 2014 data. The multifamily market data represent three months trailing (August–October 2014).
As a rule these represent all properties except those that are leased but not occupied units.
Read more...San Antonio apartment market overview Oct. 2014
As a rule these represent all properties except those that are leased but not occupied units.
Read more...San Antonio apartment market overview Oct. 2014
Texas Economic Indicators December 2014 via Dallas Fed
The Texas economy continues to expand, with employment growing at a 4.7 percent annual rate in October. Texas existing-home sales and single-family permits increased in October, while housing starts declined. Texas exports increased in the third quarter. Manufacturing activity in November rose at a slightly slower rate than in October, according to the Texas Manufacturing Outlook Survey.
Read more...Texas Economic Indicators December 2014 via Dallas Fed
Read more...Texas Economic Indicators December 2014 via Dallas Fed
Houston apartment market overview Oct. 2014 via Real Estate Center at Texas A&M
Apartment MarketData Research Services LLC released October 2014 data. The multifamily market data represent three months trailing (Aug.-Oct. 2014).
As a rule these represent all properties except those that are leased but not occupied units.
Read more...Houston apartment market overview Oct. 2014
As a rule these represent all properties except those that are leased but not occupied units.
Read more...Houston apartment market overview Oct. 2014
Austin apartment report 3Q 2014 Marcus & Millichap via Real Estate Center at Texas A&M
Central Texas apartment operators will enjoy tight conditions and significant rent growth this year despite record-high completions, according to Marcus & Millichap's most recent quarterly report.
Strong job creation in the metro, particularly in the high-tech sector, remains a lure for young professionals.
Read more...Austin apartment report 3Q 2014 Marcus & Millichap
Strong job creation in the metro, particularly in the high-tech sector, remains a lure for young professionals.
Read more...Austin apartment report 3Q 2014 Marcus & Millichap
Austin Economic Indicators December 2014 via Dallas Fed
Austin’s economy continued to surge in October. Payroll employment grew at an annual rate of 1.6 percent, with public sector hiring outpacing the private sector for the first time since May. The unemployment rate continued to fall, dropping from 4.2 to 4.1 percent. The housing market remained strong, with continued price appreciation,
construction employment growth, and brisk home sales. Manufacturing in Austin picked up in November after production and new orders contracted in October.
Read more...Austin Economic Indicators December 2014 via Dallas Fed
Read more...Austin Economic Indicators December 2014 via Dallas Fed
Will new supply ease Austin’s apartment rents? via Real Estate Center at Texas A&M
Although a record number of new units are opening in Central Texas this year amid an ongoing apartment-building boom, rents are continuing to rise due to robust job creation, particularly in the high-tech sector, according to Marcus & Millichap's fourth quarter 2014 report.
Builders are due to wrap up construction on more than 14,500 apartment units in Central Texas this year, the highest level of new supply since at least 2000.
As of the end of September, rents averaged $1,078 a month, a 6.2 percent increase from September 2013.
Read more...Will new supply ease Austin’s apartment rents?
Builders are due to wrap up construction on more than 14,500 apartment units in Central Texas this year, the highest level of new supply since at least 2000.
As of the end of September, rents averaged $1,078 a month, a 6.2 percent increase from September 2013.
Read more...Will new supply ease Austin’s apartment rents?
Thursday, December 4, 2014
Zillow Prediction on Millennials Sparks Debate via National Mortgage Professional
For most of this year, the economic news relating to Millennials has been discouraging, ranging from an absurdly high student loan debt burden to a painfully low prospect of decent-paying employment opportunities to a conspicuous lack of aggressive participation in the housing market. However, Zillow is boldly predicting a significant turnaround for the 18-to-35-year-old demographic, with a statement that Millennials will overtake Generation X (the 35-to-50-year-olds) as the largest group of homebuyers in 2015.
“Roughly 42 percent of Millennials say they want to buy a home in the next one to five years, compared to just 31 percent of Generation X, and by the end of 2015 Millennials will become the largest home-buying age group,” said Dr. Stan Humphries, Zillow chief economist. “The lack of home-buying activity from Millennials thus far is decidedly not because this generation isn't interested in homeownership, but instead because younger Americans have been delaying getting married and having children, two key drivers in the decision to buy that first home. As this generation matures, they will become a home-buying force to be reckoned with.”
Read more...Zillow Prediction on Millennials Sparks Debate | Mortgage News | Daily National and State Headlines
“Roughly 42 percent of Millennials say they want to buy a home in the next one to five years, compared to just 31 percent of Generation X, and by the end of 2015 Millennials will become the largest home-buying age group,” said Dr. Stan Humphries, Zillow chief economist. “The lack of home-buying activity from Millennials thus far is decidedly not because this generation isn't interested in homeownership, but instead because younger Americans have been delaying getting married and having children, two key drivers in the decision to buy that first home. As this generation matures, they will become a home-buying force to be reckoned with.”
Read more...Zillow Prediction on Millennials Sparks Debate | Mortgage News | Daily National and State Headlines
CRE Bank Lending Reaches $1.4T in Q3 via GlobeSt.com
Banking lending for commercial real estate transactions has reached new heights in Q3, according to Chandan Economic's Banking Lending & Default Report. Namely, it found that multifamily and commercial real estate loans held on bank balance sheets increased to $1.42 trillion during Q3 2014, up $15.5 billion from the prior quarter and up by $77.4 billion from a year earlier.
Bank lending against multifamily and commercial real estate has been rising for ten consecutive quarters and has now reached an all-time high with this latest quarter. It is 9% above the pre-financial crisis peak of $1.31 trillion.
Read more...CRE Bank Lending Reaches $1.4T in Q3 - Daily News Article - GlobeSt.com
Bank lending against multifamily and commercial real estate has been rising for ten consecutive quarters and has now reached an all-time high with this latest quarter. It is 9% above the pre-financial crisis peak of $1.31 trillion.
Read more...CRE Bank Lending Reaches $1.4T in Q3 - Daily News Article - GlobeSt.com
Real Estate Executives Eye 2016 as Peak Year via Commercial Property Executive
The best is yet to come in the current real estate cycle, according to the results of the latest CPE 100 Quarterly Sentiment Survey, which predicts that the next investment peak will be in 2016. Meanwhile, multi-family continues to win a vote of confidence from industry leaders, even after several years of robust development and investment.
Nearly half of the executives surveyed—46 percent—said that peak asset values and transaction volume across property types are still two years away (see chart below).
Read more...Real Estate Executives Eye 2016 as Peak Year | Commercial Property Executive
Nearly half of the executives surveyed—46 percent—said that peak asset values and transaction volume across property types are still two years away (see chart below).
Read more...Real Estate Executives Eye 2016 as Peak Year | Commercial Property Executive
Fewer Renters Under 25 via GlobeSt.com
Axiometrics data show that the percentage of households that are renting has been increasing for most age groups since the housing bubble burst in 2007/2008. There is one significant exception, however, and renting among this age group has in fact trended steadily, although not dramatically, downward since the mid-2000s: the youngest adults among the millennial generation, those born in the late 1980s and early 1990s.
As Generation X gave way to Generation Y among heads of household under age 25, what was a leveling-off effect among renters in this age cohort turned into a gradual decline.
Read more...Fewer Renters Under 25 - Daily News Article - GlobeSt.com
As Generation X gave way to Generation Y among heads of household under age 25, what was a leveling-off effect among renters in this age cohort turned into a gradual decline.
Read more...Fewer Renters Under 25 - Daily News Article - GlobeSt.com
Wednesday, December 3, 2014
Dallas Beige Book 12/3/2014 via Dallas Fed
The Eleventh District economy expanded at a solid pace over the past six weeks. Manufacturing activity continued to increase overall, although there were a few reports of slowing growth in demand. Retail and automobile sales reports were mixed, and nonfinancial services firms saw steady or improved demand. Sales of single-family homes slowed, but apartment, office, and industrial leasing activity remained strong. Demand for oilfield services stayed robust; agricultural conditions generally improved. Selling prices were stable or rose slightly for most firms, and employment held steady or increased. Outlooks remained optimistic, but some contacts noted concerns about the potential effect of declining oil prices on the District economy.
Read more...Dallas Beige Book - Dallas Fed
Read more...Dallas Beige Book - Dallas Fed
Impact from Apartment Construction Boom Expected to Further Hit Rents, Occupancy in 2015 via CoStar Group
With construction on new apartments back in full swing and vacancy rates beginning to trend upward, the robust rent increases enjoyed by landlords in most U.S. metro areas are expected to decelerate to below 2% in 2015 as the multifamily market shifts from full recovery into an expansion phase.
CoStar Group economists are forecasting that apartment vacancy rates will rise in 46 of the 54 top U.S. metros over the next four quarters due to the massive wave of current apartment deliveries and new apartment projects starting almost daily.
According to their most recent analysis, the U.S. apartment vacancy rate will rise from the current 4.1% to over 5% by the end of 2015.
Read more...Impact from Apartment Construction Boom Expected to Further Hit Rents, Occupancy in 2015 - CoStar Group
CoStar Group economists are forecasting that apartment vacancy rates will rise in 46 of the 54 top U.S. metros over the next four quarters due to the massive wave of current apartment deliveries and new apartment projects starting almost daily.
According to their most recent analysis, the U.S. apartment vacancy rate will rise from the current 4.1% to over 5% by the end of 2015.
Read more...Impact from Apartment Construction Boom Expected to Further Hit Rents, Occupancy in 2015 - CoStar Group
Still Growing Strong: 3 Reasons Occupancy Rates Are Higher Than Expected via AppFolio
Experienced property managers and multifamily investors keep a close eye on national inventory. The laws of supply and demand suggest that when thousands of units come on line in a few months, occupancy rates and rent potential fall. But, 2014 hasn’t followed traditional patterns. Knowing there’ve been about 180,000 units added over the past twelve months – and the third and fourth quarters should add thousands more – it seems implausible that occupancy rates are the best they’ve been in a decade and a half.
Why? There are a number of factors driving this phenomenon. Let’s look at three.
Read more...Still Growing Strong: 3 Reasons Occupancy Rates Are Higher Than Expected
Why? There are a number of factors driving this phenomenon. Let’s look at three.
Read more...Still Growing Strong: 3 Reasons Occupancy Rates Are Higher Than Expected
Apartment Completions Slow Rent Growth … Except Where They Don’t via Property Management Insider
Rent growth in the U.S. apartment market has exceeded the expectations of many during 2014, with much of that growth stemming from very strong pricing power in bread-and-butter, middle-market communities. Prices are tending to climb more slowly in the newest, most expensive units, partly reflecting the impact of large volumes of new properties moving through lease-up. Among projects completed during this cycle (since 2010) where initial leases have turned at least once, annual rent growth is running at 1.2%, versus the 3.7% average for all units.
That overall trend, however, certainly doesn’t hold true across all locations. Select metros are posting substantial rent growth in new projects, while a few are registering actual rent cuts at the top of the market.
Read more...Apartment Completions Slow Rent Growth … Except Where They Don’t | Property Management Insider
That overall trend, however, certainly doesn’t hold true across all locations. Select metros are posting substantial rent growth in new projects, while a few are registering actual rent cuts at the top of the market.
Read more...Apartment Completions Slow Rent Growth … Except Where They Don’t | Property Management Insider
Tuesday, December 2, 2014
DFW Economic Indicators November 2014 via Dallas Fed
The Dallas–Fort Worth economy expanded at a brisk pace in October. Year to date, DFW employment has grown 3.4 percent, slightly slower than the state’s 3.7 percent rate. Job creation remains mostly broad-based across sectors. Activity in the office and industrial markets remains brisk, characterized by rising rents and low vacancy rates, despite elevated levels of construction. Unemployment rates for Dallas and Fort Worth fell again in October and remain below those of the U.S. The Dallas Fed business-cycle indexes point to continued expansion for the Dallas–Fort Worth metroplex.
Dallas–Fort Worth employment expanded at a rapid clip in October. Jobs grew at an annual rate of 5.4 percent in October, up from the 3.0 percent increase recorded in the third quarter. Employment growth in trade, transportation and utilities (the largest sector), construction and mining, and financial activities contributed the most to faster growth during the month.
Read more...DFW Economic Indicators November 2014 via Dallas Fed
Dallas–Fort Worth employment expanded at a rapid clip in October. Jobs grew at an annual rate of 5.4 percent in October, up from the 3.0 percent increase recorded in the third quarter. Employment growth in trade, transportation and utilities (the largest sector), construction and mining, and financial activities contributed the most to faster growth during the month.
Read more...DFW Economic Indicators November 2014 via Dallas Fed
Texas Job Growth Continues via Real Estate Center at Texas A&M
Texas maintained steady job growth in October, posting another record for job creation over the past 12 months.
The state added 35,200 seasonally adjusted jobs in October, according to the Texas Workforce Commission. September’s employment gain was also revised from 34,600 to 37,400.
A record 421,900 jobs have been created over the last 12 months by employers statewide, representing one in every six new jobs in the United States.
Read more...Texas Job Growth Continues
The state added 35,200 seasonally adjusted jobs in October, according to the Texas Workforce Commission. September’s employment gain was also revised from 34,600 to 37,400.
A record 421,900 jobs have been created over the last 12 months by employers statewide, representing one in every six new jobs in the United States.
Read more...Texas Job Growth Continues
San Antonio Economic Update November 2014 via Dallas Fed
The San Antonio economy continued to grow robustly in October. Payroll employment expanded at a 4.4 percent annualized rate, while the unemployment rate fell to 4.6 percent. Housing indicators remained mixed as new housing starts fell but construction employment, help-wanted advertising and home sales rose in October. Growth in stock prices for San Antonio companies was broad-based, rebounding after weakness in early October.
The San Antonio Business-Cycle Index continued to grow at a fast pace, increasing an annualized 6.6 percent over the six months through October. So far this year, the index has grown at a 6.5 percent annualized rate, the fastest since 2005. Recent strength in job growth and a falling unemployment rate have propelled growth in the index.
Read more...San Antonio Economic Update November 2014 via Dallas Fed
The San Antonio Business-Cycle Index continued to grow at a fast pace, increasing an annualized 6.6 percent over the six months through October. So far this year, the index has grown at a 6.5 percent annualized rate, the fastest since 2005. Recent strength in job growth and a falling unemployment rate have propelled growth in the index.
Read more...San Antonio Economic Update November 2014 via Dallas Fed
San Antonio: Marcus & Millichap 4Q 2014 apartment report via Real Estate Center at Texas A&M
Thriving demand for rental housing in San Antonio is keeping pace with the delivery of hundreds of new apartments and holding vacancy on course to rise only nominally this year, according to Marcus & Millichap's Fourth Quarter 2014 Apartment Research Market Report.
At the end of 3Q 2014, vacancy was tight in nearly all corners of the market. Six of 14 submarkets posted vacancy rates lower than the national average.
Read more...San Antonio: Marcus & Millichap 4Q 2014 apartment report
At the end of 3Q 2014, vacancy was tight in nearly all corners of the market. Six of 14 submarkets posted vacancy rates lower than the national average.
Read more...San Antonio: Marcus & Millichap 4Q 2014 apartment report
Apartment Sales Could Edge Past ’07 via GlobeSt.com
While pricing for trophy assets in certain markets has exceeded the levels reached in 2007, no property sector has managed that feat in terms of 12-month sales as yet. It’s left to multifamily to potentially be the first; CBRE says we could see dollar volume for apartment properties edge past ’07 by Dec. 31.
Citing Real Capital Analytics data, CBRE says multifamily sales volume for the first nine months of 2014 totaled $73.1 billion, while reaching $27.5 in the most recent quarter. If the current pace is maintained through the end of the year, sales volume could reach $105.2 billion, just nosing past ‘07’s level of $105.1 billion.
Read more...Apartment Sales Could Edge Past ’07 - Daily News Article - GlobeSt.com
Citing Real Capital Analytics data, CBRE says multifamily sales volume for the first nine months of 2014 totaled $73.1 billion, while reaching $27.5 in the most recent quarter. If the current pace is maintained through the end of the year, sales volume could reach $105.2 billion, just nosing past ‘07’s level of $105.1 billion.
Read more...Apartment Sales Could Edge Past ’07 - Daily News Article - GlobeSt.com
Tuesday, November 25, 2014
Risk Premium Still High for Apartments via National Real Estate Investor
By at least one measure, the yield on investments in apartment properties still hasn’t matched the level of the real estate boom. That’s the “risk premium” that investors demand for apartments compared to Treasury bonds—a supposedly risk-free investment.
That means that cap rates on apartment buildings could yet inch even lower.
“The potential for commercial real estate risk premiums to edge lower and interest rates to resist the long-awaited increase may point to lower cap rates,” says Peter Muoio, executive vice president with Auction.com research.
Read more...Risk Premium Still High for Apartments | Multifamily content from National Real Estate Investor
That means that cap rates on apartment buildings could yet inch even lower.
“The potential for commercial real estate risk premiums to edge lower and interest rates to resist the long-awaited increase may point to lower cap rates,” says Peter Muoio, executive vice president with Auction.com research.
Read more...Risk Premium Still High for Apartments | Multifamily content from National Real Estate Investor
DFW: Marcus & Millichap 4Q 2014 apartment report via Real Estate Center at Texas A&M
While apartment completions in DFW have surged, the vacancy rate has retreated to its lowest level on record since 2001, according to Marcus & Millichap's Fourth Quarter 2014 ApartmentResearch Market Report.
This tightening in the market can be attributed to strong job creation and nation-leading net migration and household formation driving renter demand to new heights.
Read more...DFW: Marcus & Millichap 4Q 2014 apartment report
This tightening in the market can be attributed to strong job creation and nation-leading net migration and household formation driving renter demand to new heights.
Read more...DFW: Marcus & Millichap 4Q 2014 apartment report
Houston: Marcus & Millichap 4Q 2014 apartment report via Real Estate Center at Texas A&M
Houston ranks atop most U.S. metros for job creation, household formation and net migration, which supports expectations for the local apartment market to finish the year strong, according to Marcus & Millichap's Fourth Quarter 2014 ApartmentResearch Market Report.
Multifamily permit activity jumped 74 percent to nearly 24,600 units during the past 12 months. During 2014, Houston’s prime renter-age cohort will grow by 1.9 percent, or 26,100 residents, and developers will complete 13,100 apartments, a sizable increase from 2013, when 9,600 units were delivered.
Read more...Houston: Marcus & Millichap 4Q 2014 apartment report
Multifamily permit activity jumped 74 percent to nearly 24,600 units during the past 12 months. During 2014, Houston’s prime renter-age cohort will grow by 1.9 percent, or 26,100 residents, and developers will complete 13,100 apartments, a sizable increase from 2013, when 9,600 units were delivered.
Read more...Houston: Marcus & Millichap 4Q 2014 apartment report
Global Slump Could Reach US in 2015 via GlobeSt.com
A slowdown in economic growth globally isn’t breaking the stride of the US economy or commercial real estate, the National Association of Realtors said Monday, predicting that the momentum will carry forth into the new year. However, NAR’s quarterly forecast hints at a potential drag on US growth as overseas markets weaken.
“GDP growth in the fourth quarter will be sluggish at around 2% behind stalling exports,” says Lawrence Yun, NAR’s chief economist. “Although GDP will likely climb to near 3% in 2015, the current pace of job growth could slow and ultimately impact commercial real estate activity if sluggishness in the global economy persists.”
Read more...Global Slump Could Reach US in 2015 - Daily News Article - GlobeSt.com
“GDP growth in the fourth quarter will be sluggish at around 2% behind stalling exports,” says Lawrence Yun, NAR’s chief economist. “Although GDP will likely climb to near 3% in 2015, the current pace of job growth could slow and ultimately impact commercial real estate activity if sluggishness in the global economy persists.”
Read more...Global Slump Could Reach US in 2015 - Daily News Article - GlobeSt.com
Monday, November 24, 2014
Camden’s Campo: No Evidence of Overbuilding in Multifamily Sector via REIT.com
Ric Campo, chairman and CEO of Camden Property Trust (NYSE: CPT), joined REIT.com for a CEO Spotlight video interview at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT at the Atlanta Marriott Marquis.
Camden is a Houston-based REIT that owns and operates apartment communities across the United States.
Campo provided an overview of supply fundamentals in the multifamily sector.
“We are definitely not seeing overbuilding at this point,” he said. While construction is at peak levels compared with the recent past, the new supply is acting to replenish the dearth of new accomodation that occurred during the financial crisis, Campo explained.
Read more...Camden’s Campo: No Evidence of Overbuilding in Multifamily Sector | REIT.com
Camden is a Houston-based REIT that owns and operates apartment communities across the United States.
Campo provided an overview of supply fundamentals in the multifamily sector.
“We are definitely not seeing overbuilding at this point,” he said. While construction is at peak levels compared with the recent past, the new supply is acting to replenish the dearth of new accomodation that occurred during the financial crisis, Campo explained.
Read more...Camden’s Campo: No Evidence of Overbuilding in Multifamily Sector | REIT.com
Texas Manufacturing Posts Slower Growth, Says Dallas Fed Survey via Dallas Fed
Texas factory activity increased again in November, 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 from 13.7 to 6, indicating output growth slowed in November.
Read more...Texas Manufacturing Posts Slower Growth, 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 from 13.7 to 6, indicating output growth slowed in November.
Read more...Texas Manufacturing Posts Slower Growth, Says Dallas Fed Survey - Dallas Fed
Friday, November 21, 2014
Do Apartment Fundamentals and Valuations Line Up? via Property Management Insider
In the previous blog titled, “Structural Shift or Mean Reversion: Exploring the NOI Profit Margin Cycle,” we discussed the importance of the profit margin cycle in relation to the pro forma analysis. This piece will expand upon the original idea by including a valuation metric: price-to-sales ratio. A price-to-sales ratio is a common metric used in stock valuation. To derive the ratio, an analyst will divide a company’s price per share by the most recent annual revenue per share and compare the results to peer companies. Similarly, we will apply the same logic to real estate, utilizing NCREIF data with two key distinctions. The price-to-sales ratio used in the stock valuation is based on market values and annual revenue, but the analysis for this blog is based on NCREIF appraised values and quarterly operating revenue.
At the national level, the U.S. apartment sector is valued at 48.1 times the 3rd quarter 2014 revenue figure compared to the long-term average of roughly a 40 multiple. On the surface, this suggests the apartment sector is overvalued relative to the long-term norm.
Read more...Do Apartment Fundamentals and Valuations Line Up? | Property Management Insider
At the national level, the U.S. apartment sector is valued at 48.1 times the 3rd quarter 2014 revenue figure compared to the long-term average of roughly a 40 multiple. On the surface, this suggests the apartment sector is overvalued relative to the long-term norm.
Read more...Do Apartment Fundamentals and Valuations Line Up? | Property Management Insider
Commercial Real Estate Is Now a Market of the Haves and Have Nots via WSJ
The rebounding real estate market isn’t treating all commercial property owners equally.
Properties like apartment buildings and downtown office buildings have recovered all the value they lost during the bust and then some. But other types of properties, like suburban office buildings, are still worth a lot less than they were before the crash.
Read more...Commercial Real Estate Is Now a Market of the Haves and Have Nots - Developments - WSJ
Properties like apartment buildings and downtown office buildings have recovered all the value they lost during the bust and then some. But other types of properties, like suburban office buildings, are still worth a lot less than they were before the crash.
Read more...Commercial Real Estate Is Now a Market of the Haves and Have Nots - Developments - WSJ
Texas breaks jobs record for third consecutive month via - Dallas Business Journal
Texas set a record for annual annual job growth while seeing its unemployment rate drop in October.
Numbers released by the Texas Workforce Commission show the state added 35,200 seasonally-adjusted jobs for the month, bringing its total to 421,900 total non-farm jobs for the year. Those figures set the record for jobs added for the third consecutive month.
Read more...Texas breaks jobs record for third consecutive month - Dallas Business Journal
Numbers released by the Texas Workforce Commission show the state added 35,200 seasonally-adjusted jobs for the month, bringing its total to 421,900 total non-farm jobs for the year. Those figures set the record for jobs added for the third consecutive month.
Read more...Texas breaks jobs record for third consecutive month - Dallas Business Journal
Renter Satisfaction Continues Upward Trend According to Latest Kingsley Associates Report via MultifamilyBiz.com
According to Kingsley Associates' latest analysis, 76.4 percent of apartment renters rated their overall satisfaction as "good" or "excellent" for the 12-month period ending September 30, 2014. Conversely, renewal intent has continued to decline now for the past two quarters and has reached another all-time low. Only 53.5 percent of residents responded that they "probably would" or "definitely would" renew their lease, down .3 percent from the prior period and 6.0 percent since Q4 2011.
“Our data shows that an increasing proportion of residents, who appear perfectly satisfied with their apartments, are expressing hesitation to renew their leases primarily due to price escalation.”
Read more...Renter Satisfaction Continues Upward Trend According to Latest Kingsley Associates Report | MultifamilyBiz.com
“Our data shows that an increasing proportion of residents, who appear perfectly satisfied with their apartments, are expressing hesitation to renew their leases primarily due to price escalation.”
Read more...Renter Satisfaction Continues Upward Trend According to Latest Kingsley Associates Report | MultifamilyBiz.com
Thursday, November 20, 2014
Houston Economic Indicators November 2014 via Dallas Fed
Employment increased at an annualized rate of 6.4 percent in September after growing a revised 3.8 percent in August and 5.8 percent in July. Government grew the fastest, adding 4,800 jobs as public education employment ticked up in September. Construction and mining was the second-fastest category, adding 3,100 jobs. No category lost jobs in September. The Houston-area unemployment rate fell three-tenths of a percent to 5.0 in September. The rate was 5.2 percent in Texas and 5.9 percent in the U.S.
The Houston Business-Cycle Index advanced at a blistering 10.4 percent in September after rising a revised 5.3 percent and 8.8 percent in August and July. Job growth was broad-based across industries, demonstrating particular strength in energy, construction and public education. With energy prices still at healthy levels for Houston industries, the construction boom underway for petrochemicals and a tailwind coming from the U.S. economy, the Houston outlook remains positive.
Read more...Houston Economic Indicators November 2014 via Dallas Fed
The Houston Business-Cycle Index advanced at a blistering 10.4 percent in September after rising a revised 5.3 percent and 8.8 percent in August and July. Job growth was broad-based across industries, demonstrating particular strength in energy, construction and public education. With energy prices still at healthy levels for Houston industries, the construction boom underway for petrochemicals and a tailwind coming from the U.S. economy, the Houston outlook remains positive.
Read more...Houston Economic Indicators November 2014 via Dallas Fed
Apartment Market Statistics: November 2014 via Multi-Housing News Online
Multifamily housing starts hit 423,000 units in July, reports the National Association of Home Builders (NAHB). The seasonally adjusted figure, for multifamily housing of five or more units, represents an increase of 33 percent over the month before.
Meanwhile, apartments investment sales in the second quarter jumped to a multi-year high of $125,063 per unit in the second quarter, compared to $108,485 in first quarter 2014, according to PPR/Costar.
Read more...APARTMENT MARKET STATISTICS: November 2014 | Multi-Housing News Online
Meanwhile, apartments investment sales in the second quarter jumped to a multi-year high of $125,063 per unit in the second quarter, compared to $108,485 in first quarter 2014, according to PPR/Costar.
Read more...APARTMENT MARKET STATISTICS: November 2014 | Multi-Housing News Online
Wednesday, November 19, 2014
How will Cap Rates Behave when Interest Rates Jump? via Commercial Property Executive
This question, of course, is loaded heavily by the increasingly debatable assumption that interest rates indeed will rise in the near future. Yet for the sake of discussion, let us accept the premise that the Fed will soon engineer a modest uptick in, among other rates, the 10-year treasury. Let us further presume that this increase will come as a result of improved employment and a return to healthy inflation growth.
Dime-store wisdom tells us that cap rates will move closely with interest rates, reflecting a simple premium for real estate over treasuries. Reality, however, has proven far more complex. To make sense of this dysfunctional relationship, economists have expressed cap rates in various algebraic terms that can be summarized as follows:
Read more...How will Cap Rates Behave when Interest Rates Jump? | Commercial Property Executive
Dime-store wisdom tells us that cap rates will move closely with interest rates, reflecting a simple premium for real estate over treasuries. Reality, however, has proven far more complex. To make sense of this dysfunctional relationship, economists have expressed cap rates in various algebraic terms that can be summarized as follows:
Read more...How will Cap Rates Behave when Interest Rates Jump? | Commercial Property Executive
Lenders' Insatiable Appetite For CRE via GlobeSt.com
The commercial real estate lender community shows no signs of scaling back its appetite for business, according to the Fall 2014 survey of Commercial Real Estate Lender Sentiment, a report issued by the Real Estate Lenders Association and Chandan Economics. In fact certain providers, such as CMBS lenders and life companies are expected to grow their market share – and that growth will most likely come at the expense of national and foreign banks, as well as relatively slower growth in agency lending.
There are several implications to these trends, Sam Chandan, CEO of Chandan Economics tells GlobeSt.com. One, the increasingly competitive environment leaves lenders little room to push the envelope much further. Two, the envelope is being pushed as much as possible, which, means loosening underwriting standards.
Read more...Lenders' Insatiable Appetite For CRE - Daily News Article - GlobeSt.com
There are several implications to these trends, Sam Chandan, CEO of Chandan Economics tells GlobeSt.com. One, the increasingly competitive environment leaves lenders little room to push the envelope much further. Two, the envelope is being pushed as much as possible, which, means loosening underwriting standards.
Read more...Lenders' Insatiable Appetite For CRE - Daily News Article - GlobeSt.com
Millennials want to save, many can't via USA Today
Millennials are stuck between having a financially responsible mindset and having the resources and discipline to pull off long-term results, finds a USA TODAY/Bank of America Better Money Habits poll of Millennials.
The survey of 1,001 people ages 18-34 reveals a disconnect between the way Millennials think about their finances and what they're actually able to achieve. They say they have good financial habits, though the majority still worry about their financial situations. They think they'll be at least as well off, if not more, than their parents — yet more than a third still receive financial support from family. They say they're good at living within their means, but many are living paycheck to paycheck. And while this age group has prioritized reducing debt, many are unable to put away emergency savings simultaneously.
Read more...Millennials want to save, many can't
The survey of 1,001 people ages 18-34 reveals a disconnect between the way Millennials think about their finances and what they're actually able to achieve. They say they have good financial habits, though the majority still worry about their financial situations. They think they'll be at least as well off, if not more, than their parents — yet more than a third still receive financial support from family. They say they're good at living within their means, but many are living paycheck to paycheck. And while this age group has prioritized reducing debt, many are unable to put away emergency savings simultaneously.
Read more...Millennials want to save, many can't
Renter-Age Demographic Growth Boosts Austin Multifamily Market via Real Estate Center at Texas A&M
Thanks to continued growth in the renter-age demographic, local apartment operators will enjoy tight conditions and significant rent growth this year despite record-high completions, reports Marcus & Millichap in its latest market report.
"Strong job creation in the metro, particularly in the high-tech sector, remains a lure for young professionals," the report said. "This year, Austin’s 20- to 34-year-old age cohort will grow by an estimated 2.6 percent, which compares favorably with the 1 percent gain projected nationwide.
Read more...Renter-Age Demographic Growth Boosts Austin Multifamily Market via Real Estate Center at Texas A&M
"Strong job creation in the metro, particularly in the high-tech sector, remains a lure for young professionals," the report said. "This year, Austin’s 20- to 34-year-old age cohort will grow by an estimated 2.6 percent, which compares favorably with the 1 percent gain projected nationwide.
Read more...Renter-Age Demographic Growth Boosts Austin Multifamily Market via Real Estate Center at Texas A&M
Is Apartment Supply Heading to Where Households Are Forming? via Property Management Insider
What do household formation and apartment supply have in common? MPF Research looked at the relationship between total household growth and apartment supply growth among the top 50 U.S. metros, since the recession. Overall, we found that there is a linear relationship between the two. But by region, clear differences emerge, especially when viewed in light of employment growth over the same time period.
The chart below illustrates the relationships between employment growth, household formation and apartment inventory growth from 3rd quarter 2009 through 3rd quarter 2014.
Read more...Is Apartment Supply Heading to Where Households Are Forming? | Property Management Insider
The chart below illustrates the relationships between employment growth, household formation and apartment inventory growth from 3rd quarter 2009 through 3rd quarter 2014.
Read more...Is Apartment Supply Heading to Where Households Are Forming? | Property Management Insider
Tuesday, November 18, 2014
Apartment Market Predictions: A Look at 2014 and Beyond (Webinar Recap) via Appfolio
We recently hosted a valuable webinar presented by Stephanie McCleskey of Axiometrics (the leading apartment market research organization). Stephanie shared fresh data from the housing market at the local and national level, with emphasis on the apartment market. Don’t miss what she had to say about how 2014 is rounding out, and what Axiometrics predicts for 2015!
Watch video...Apartment Market Predictions: A Look at 2014 and Beyond (Webinar Recap)
Watch video...Apartment Market Predictions: A Look at 2014 and Beyond (Webinar Recap)
Apartment Trends Q3 2014 via ReisReports
Reis VP of Economics & Research, Dr. Victor Calanog, provides an update on the apartment sector performance for the second quarter of 2014.
The national vacancies rose 10 basis points to 4.2% during Q3 for the apartment sector.
Asking and effective rents increased by 1.1% on a quarterly basis.
Close to 200,000 units are expected to come online in 2014.
Watch Video...Apartment Trends Q3 2014 - ReisReports
The national vacancies rose 10 basis points to 4.2% during Q3 for the apartment sector.
Asking and effective rents increased by 1.1% on a quarterly basis.
Close to 200,000 units are expected to come online in 2014.
Watch Video...Apartment Trends Q3 2014 - ReisReports
CoStar: Commercial Real Estate prices increased in September via Calculated Risk
Here is a price index for commercial real estate that I follow.
From CoStar: Commercial Real Estate Price Surge Continues In Third Quarter
NATIONAL COMPOSITE INDICES CONTINUE TO CLIMB. Both the value-weighted and the equal-weighted U.S. Composite Indices of the CCRSI made strong gains in September 2014 to close the quarter. The value-weighted index, which is heavily influenced by core transactions, advanced by 1.9% in the month of September and 3.3% in the third quarter of 2014. The value-weighted index is now 2.8% above its prerecession high and continues to make solid gains. The equal-weighted U.S. Composite Index, which is heavily influenced by smaller non-core deals, increased by 1.3% in September and 4.2% in the third quarter of 2014.
Read more...Calculated Risk: CoStar: Commercial Real Estate prices increased in September
From CoStar: Commercial Real Estate Price Surge Continues In Third Quarter
NATIONAL COMPOSITE INDICES CONTINUE TO CLIMB. Both the value-weighted and the equal-weighted U.S. Composite Indices of the CCRSI made strong gains in September 2014 to close the quarter. The value-weighted index, which is heavily influenced by core transactions, advanced by 1.9% in the month of September and 3.3% in the third quarter of 2014. The value-weighted index is now 2.8% above its prerecession high and continues to make solid gains. The equal-weighted U.S. Composite Index, which is heavily influenced by smaller non-core deals, increased by 1.3% in September and 4.2% in the third quarter of 2014.
Read more...Calculated Risk: CoStar: Commercial Real Estate prices increased in September
Monday, November 17, 2014
Austin Apartment Market Update September 2014 via oconnordata.com
All metrics for the Austin area multifamily sector recorded both positive and negative changes in September 2014.
Occupancy figures recorded both positive and negative figures for the classes for the month. Class A properties reported an increase of 0.03% over last month, and a decrease of 1.34% over last year. The largest increase over the month was noted for Class B properties. The largest annual increase was noted for Class B with an increase of 0.61%.
Read more...Austin Apartment Market Update September 2014
Occupancy figures recorded both positive and negative figures for the classes for the month. Class A properties reported an increase of 0.03% over last month, and a decrease of 1.34% over last year. The largest increase over the month was noted for Class B properties. The largest annual increase was noted for Class B with an increase of 0.61%.
Read more...Austin Apartment Market Update September 2014
Dallas/Ft. Worth Apartment Market Update September 2014 via oconnordata.com
The key metrics for the Dallas/Fort Worth area multifamily sector recorded significant changes both over the month and over the year.
Over the month all the classes recorded mostly downward trends in terms of occupancy. Except Class A properties recorded an increase of 0.12% over previous month. On a year-over-year basis Class A properties recorded a decrease of 0.50%. The largest annual increase was noted for Class B properties with an increase of 0.31%.
Read more...Dallas/Ft. Worth Apartment Market Update September 2014
Over the month all the classes recorded mostly downward trends in terms of occupancy. Except Class A properties recorded an increase of 0.12% over previous month. On a year-over-year basis Class A properties recorded a decrease of 0.50%. The largest annual increase was noted for Class B properties with an increase of 0.31%.
Read more...Dallas/Ft. Worth Apartment Market Update September 2014
Commentary: The 'Texas Miracle' is more than oil via Dallas Business Journal
The economic juggernaut dubbed the "Texas Miracle" is powered by more than oil.
A reinvigorated oil and gas industry has rippled across the economy, but attributing our state's success to the energy sector alone would paint a half-finished picture. Smart policy, entrepreneurship and economic diversity have been the keys to Texas achieving the nation's largest economic growth, four years in a row.
The Texas economy is no one trick pony.
Read more...Commentary: The 'Texas Miracle' is more than oil - Dallas Business Journal
A reinvigorated oil and gas industry has rippled across the economy, but attributing our state's success to the energy sector alone would paint a half-finished picture. Smart policy, entrepreneurship and economic diversity have been the keys to Texas achieving the nation's largest economic growth, four years in a row.
The Texas economy is no one trick pony.
Read more...Commentary: The 'Texas Miracle' is more than oil - Dallas Business Journal
Houston Apartment Market Update September 2014 via oconnordata.com
Key metrics for the Houston area multifamily sector recorded both positive and negative changes in September 2014.
Occupancy figures for the classes recorded both positive and negative changes over the month. Class A recorded a decrease of 0.28% from previous month. The average went down by 1.50% over the year for Class A properties. The largest annual increase was noted for Class C properties with an average increase of 0.38% to close at 89.31%.
Read more...Houston Apartment Market Update September 2014
Occupancy figures for the classes recorded both positive and negative changes over the month. Class A recorded a decrease of 0.28% from previous month. The average went down by 1.50% over the year for Class A properties. The largest annual increase was noted for Class C properties with an average increase of 0.38% to close at 89.31%.
Read more...Houston Apartment Market Update September 2014
San Antonio Apartment Market Update September 2014 via oconnordata.com
Most key metrics of the San Antonio area multifamily sector recorded positive and negative changes in September 2014.
The occupancy figures recorded both positive and negative values for all the classes. For Class A properties, occupancy increased by 0.22% over the month to close at 93.02%; and decreased by 1.08% over the year.
Read more...San Antonio Apartment Market Update September 2014
The occupancy figures recorded both positive and negative values for all the classes. For Class A properties, occupancy increased by 0.22% over the month to close at 93.02%; and decreased by 1.08% over the year.
Read more...San Antonio Apartment Market Update September 2014
Multifamily Showdown via CCIM Institute
Multifamily properties have been a hot commodity in recent years. And potential threats on the horizon in terms of looming interest rate hikes and a growing development pipeline have yet to cool investor enthusiasm.
“If you talk to any multifamily specialist across the country, particularly in the Sunbelt and on the coasts as well as in Chicago, the demand is through the roof,” says T. Sean Lance, CCIM, ALC, a founding partner at Vertica Partners in Tampa, Fla. That is certainly the case in Florida where capital is flowing into the state from domestic buyers as well as foreign investors from South America, Europe, and Canada.
Strong fundamentals and positive economic and demographic trends that support renter demand have stoked buyer interest.
Read more...Multifamily Showdown | CCIM Institute
“If you talk to any multifamily specialist across the country, particularly in the Sunbelt and on the coasts as well as in Chicago, the demand is through the roof,” says T. Sean Lance, CCIM, ALC, a founding partner at Vertica Partners in Tampa, Fla. That is certainly the case in Florida where capital is flowing into the state from domestic buyers as well as foreign investors from South America, Europe, and Canada.
Strong fundamentals and positive economic and demographic trends that support renter demand have stoked buyer interest.
Read more...Multifamily Showdown | CCIM Institute
Friday, November 14, 2014
Our Latest Texas Economic Outlook Report Available via Real Estate Center at Texas A&M
The November 2014 Outlook for the Texas Economy is now online. This month's report highlights Texas manufacturing exports.
The monthly report is written by Real Estate Center Research Economist Dr. Luis Torres, Chief Economist Dr. Mark Dotzur and Research Assistant Wayne Day.
Read more...Our Latest Texas Economic Outlook Report Available via Real Estate Center at Texas A&M
The monthly report is written by Real Estate Center Research Economist Dr. Luis Torres, Chief Economist Dr. Mark Dotzur and Research Assistant Wayne Day.
Read more...Our Latest Texas Economic Outlook Report Available via Real Estate Center at Texas A&M
Risk Premium Declines with Cap Rates via GlobeSt.com
Graphically, the upward trend in commercial real estate sales volume since 2009 resembles the crest of an enormous wave, while the trend for risk premiums looks more like the trough of that wave. Even the highest-risk asset class in ’09—hotels, its premium at more than 7%—has seen its risk premium taper off to below 6%. That’s one of the insights to be gleaned from Auction.com’s Q3 Commercial Real Estate Market Monitor, issued Wednesday.
Read more...Risk Premium Declines with Cap Rates - Daily News Article - GlobeSt.com
Read more...Risk Premium Declines with Cap Rates - Daily News Article - GlobeSt.com
Ten Things You Might Not Know About Today's Renter via Appfolio
Millions of dollars are spent each year studying the housing market. Buried in the tomes of research, are clues about resident “wish lists” and expectations. If you didn’t get a chance to attend the 2014 Multifamily Executive Conference, here are a few things you might not know about today’s renter.
#1 Long-term renters
Young adults are eager to own their own home someday, many don’t expect it to be a possibility until they hit their late thirties or early forties. More than 50% of respondents surveyed see themselves as homeowners in the future, but Millennials are most interested in homeownership. Only 28% of Gen-Xers, compared to 61% of Millennials, see themselves as homeowners five years from now.
Read more...Ten Things You Might Not Know About Today's Renter
#1 Long-term renters
Young adults are eager to own their own home someday, many don’t expect it to be a possibility until they hit their late thirties or early forties. More than 50% of respondents surveyed see themselves as homeowners in the future, but Millennials are most interested in homeownership. Only 28% of Gen-Xers, compared to 61% of Millennials, see themselves as homeowners five years from now.
Read more...Ten Things You Might Not Know About Today's Renter
Forbes ranks Texas No. 1 on Best States for Job Growth, No. 6 on Best And Worst States For Businesses lists via Dallas Business Journal
Texas is the top state for its current economic climate and future job growth in Forbes' annual Best States for Business study released this week.
But it only ranks No. 6 on Forbes' "The Best And Worst States For Business 2014" list.
Texas added 2.1 million jobs since 2000, more than twice as many as any other state, Forbes reports. Moody's Analytics expects Texas to have an annual job growth rate of 2.7 percent over the next five years — the fastest in the nation — ranking it No. 1 on Forbes' "Best States for Job Growth" list.
Read more...Forbes ranks Texas No. 1 on Best States for Job Growth, No. 6 on Best And Worst States For Businesses lists - Dallas Business Journal
But it only ranks No. 6 on Forbes' "The Best And Worst States For Business 2014" list.
Texas added 2.1 million jobs since 2000, more than twice as many as any other state, Forbes reports. Moody's Analytics expects Texas to have an annual job growth rate of 2.7 percent over the next five years — the fastest in the nation — ranking it No. 1 on Forbes' "Best States for Job Growth" list.
Read more...Forbes ranks Texas No. 1 on Best States for Job Growth, No. 6 on Best And Worst States For Businesses lists - Dallas Business Journal
Wednesday, November 12, 2014
The Urban Renter: Who Art Thou? via Metropolitan Capital Advisors
One trip down the tollway to Uptown/Downtown Dallas leaves me in utter amazement at the amount and quality of high-density multifamily projects under construction. Apartment development clearly appears to be riding the coattails of the biggest building boom in decades. With about 28,000 units under construction in North Texas, the Dallas/Fort Worth area is the fastest-growing apartment rental market in the country. It kind of makes you wonder who is going to lease all of these apartments, and moreover, who’s got the money to pay $2.00 + sf for apartment rentals?
Read more...The Urban Renter: Who Art Thou? | Metropolitan Capital Advisors
Read more...The Urban Renter: Who Art Thou? | Metropolitan Capital Advisors
Commercial Market on Road to Recovery, Say Realtors® via realtor.org
While economic activity was mixed during the first half of the year, industry experts expressed confidence that the commercial real estate market is on the rise during the Commercial Economic Issues & Trends Forum at the 2014 REALTORS® Conference & Expo.
National Association of Realtors® Chief Economist Lawrence Yun joined leading investment experts during a panel discussion about recent trends in commercial real estate markets. The panelists agreed that the improvements seen in the economy as a whole will spur the commercial market forward.
Read more...Commercial Market on Road to Recovery, Say Realtors® | realtor.org
National Association of Realtors® Chief Economist Lawrence Yun joined leading investment experts during a panel discussion about recent trends in commercial real estate markets. The panelists agreed that the improvements seen in the economy as a whole will spur the commercial market forward.
Read more...Commercial Market on Road to Recovery, Say Realtors® | realtor.org
Job Growth, Rent Growth Match Up via GlobeSt.com
Nationally, monthly employment growth has exceeded 200,000 jobs for the past nine months. Locally, the progress has been more variable, and one indicator of this is the correlation between job growth and rent growth, which dovetail 83% of the time.
When these two statistics don't jibe, a market experiences “high job growth and low effective rent growth or vice versa, according to a report from Dallas-based Axiometrics, which examined the top 54 apartment markets to see how each fared. “In such situations, something other than job growth influences effective rent growth.”
Read more...Job Growth, Rent Growth Match Up - Daily News Article - GlobeSt.com
When these two statistics don't jibe, a market experiences “high job growth and low effective rent growth or vice versa, according to a report from Dallas-based Axiometrics, which examined the top 54 apartment markets to see how each fared. “In such situations, something other than job growth influences effective rent growth.”
Read more...Job Growth, Rent Growth Match Up - Daily News Article - GlobeSt.com
Friday, November 7, 2014
Dallas ranks first for small business job growth in October - Dallas Business Journal
Dallas regained its spot as the top metropolitan statistical area for small business job growth in October.
Nationally, job growth remained steady, growing at just 0.23 percent over the past 12 months. Still, the U.S. is maintaining an index number of 100.84, indicating a strong job climate, according to the study conducted by payroll services company Paychex and business analyst firm IHS.
However, Dallas has been the country's star for several months, only dropping its ranking as a top job creator in September. Officials are attributing that to a random fluctuation in the market.
Read more...Dallas ranks first for small business job growth in October - Dallas Business Journal
Nationally, job growth remained steady, growing at just 0.23 percent over the past 12 months. Still, the U.S. is maintaining an index number of 100.84, indicating a strong job climate, according to the study conducted by payroll services company Paychex and business analyst firm IHS.
However, Dallas has been the country's star for several months, only dropping its ranking as a top job creator in September. Officials are attributing that to a random fluctuation in the market.
Read more...Dallas ranks first for small business job growth in October - Dallas Business Journal
Austin Economic Indicators November 2014 via Dallas Fed
Austin’s economy continued to grow briskly in September. Payroll employment expanded robustly at 3.5 percent, driven by strong hiring in the private sector. The unemployment rate ticked down to 4.2 from 4.4 percent in August. Housing markets remained strong, and tight inventories, strong construction hiring and sustained price appreciation are likely to drive continued growth. Manufacturing in Austin slowed in September, with both employment and production showing signs of moderation from earlier in the year.
Read more...Austin Economic Indicators November 2014 via Dallas Fed
Read more...Austin Economic Indicators November 2014 via Dallas Fed
Thursday, November 6, 2014
On a Metro Level, Employment Recovery Remains Uneven via Property Management Insider
Taking a step back from the multifamily market, let’s take a look at what nearly all tenants need to occupy an apartment unit – a job. The good news is the U.S. economy has experienced monthly growth in nonfarm payrolls for 48 consecutive months. For the purpose of this piece, MPF Research looked at the current employment levels among the core 100 U.S. metros relative to their pre-recession levels to get a sense for the underlying strength of the economic recovery. Five years after the recession officially ended, most metros have returned to pre-recession employment levels. In that vein, the improvement in the labor market can be best described as slow and steady. The chart below illustrates the prolonged recovery, but more importantly depicts the consistent upward trend in the number of metros moving above pre-recession employment levels.
Read more...On a Metro Level, Employment Recovery Remains Uneven | Property Management Insider
Read more...On a Metro Level, Employment Recovery Remains Uneven | Property Management Insider
Texas Economic Indicators November 2014 via Dallas Fed
The Texas economy continues to expand, with employment growing at a 3.2 percent annual rate in September. Texas existing-home sales and single-family permits increased in September, while housing starts
declined. Texas exports edged up in August. Manufacturing activity in October rose at a slightly slower rate than in September,according to the Texas Manufacturing Outlook Survey.
Texas employment rose at a 3.2 percent annualized pace in September,faster than the nation's 2.2 percent increase. Texas gained 30,800 jobs in September after adding 38,400 jobs in August. Current Texas employment stands at 11.6 million, accord ing to the payroll survey (CES).
The Texas unemployment rate fell to 5.2 percent in September.The Texas rate continues to be lower than the U.S.rate,which fell to 5.9 percent in September.
Read more...Texas Economic Indicators November 2014 via Dallas Fed
Texas employment rose at a 3.2 percent annualized pace in September,faster than the nation's 2.2 percent increase. Texas gained 30,800 jobs in September after adding 38,400 jobs in August. Current Texas employment stands at 11.6 million, accord ing to the payroll survey (CES).
The Texas unemployment rate fell to 5.2 percent in September.The Texas rate continues to be lower than the U.S.rate,which fell to 5.9 percent in September.
Read more...Texas Economic Indicators November 2014 via Dallas Fed
Rents skyrocket well beyond wages via CNBC.com
Lease a two-bedroom apartment in Miami, and you could be putting more than half your salary into the rent check. The same is true for Los Angeles and New York City—and it's only getting worse, according to a report from real estate company Trulia.
Rents are rising most in the local housing markets where renters are already stretched thinnest. In the five least affordable markets, rents are now 7.8 percent higher than they were a year ago.
"Rents are rising because of strong demand that supply hasn't kept up with. Nearly all the new households are renters, and young people moving out of their parents' homes will keep fueling rental demand," said Jed Kolko, chief economist at Trulia.
Read more...Rents skyrocket well beyond wages
Rents are rising most in the local housing markets where renters are already stretched thinnest. In the five least affordable markets, rents are now 7.8 percent higher than they were a year ago.
"Rents are rising because of strong demand that supply hasn't kept up with. Nearly all the new households are renters, and young people moving out of their parents' homes will keep fueling rental demand," said Jed Kolko, chief economist at Trulia.
Read more...Rents skyrocket well beyond wages
Monday, November 3, 2014
ENERGY STAR® includes Broader Scope of Apartments in Rating System via Property Management Insider
The multifamily housing industry finally has its long-awaited energy rating system that now covers the whole nine yards.
In September, the Environmental Protection Agency (EPA) rolled out its new 1-100 ENERGY STAR rating system, culminating a three-year effort to create an equitable energy efficiency scoring system for multifamily properties. Beginning Sept. 16, apartments of all shapes and sizes – existing or new – began inputting energy usage data and other information to get a score that many believe will help drive leases.
In recent years, much emphasis has been placed on energy efficiency and the ENERGY STAR rating in the commercial and public building sectors with only limited applications to multifamily. Until now, apartments eligible for the rating were once limited by size and age.
Read more...ENERGY STAR® includes Broader Scope of Apartments in Rating System | Property Management Insider
In September, the Environmental Protection Agency (EPA) rolled out its new 1-100 ENERGY STAR rating system, culminating a three-year effort to create an equitable energy efficiency scoring system for multifamily properties. Beginning Sept. 16, apartments of all shapes and sizes – existing or new – began inputting energy usage data and other information to get a score that many believe will help drive leases.
In recent years, much emphasis has been placed on energy efficiency and the ENERGY STAR rating in the commercial and public building sectors with only limited applications to multifamily. Until now, apartments eligible for the rating were once limited by size and age.
Read more...ENERGY STAR® includes Broader Scope of Apartments in Rating System | Property Management Insider
More Americans Are Preferring the Lease to the Mortgage via NYTimes.com
THE homeownership rate in the United States plunged during the Great Recession. Many families lost their homes as prices collapsed and unemployment rose.
Now the economy is growing, and there are more jobs than ever. Home prices have risen, although they have not fully recovered.
But the homeownership rate continues to decline.
Read more...More Americans Are Preferring the Lease to the Mortgage - NYTimes.com
Now the economy is growing, and there are more jobs than ever. Home prices have risen, although they have not fully recovered.
But the homeownership rate continues to decline.
Read more...More Americans Are Preferring the Lease to the Mortgage - NYTimes.com
Friday, October 31, 2014
Dallas Love Field real estate market ready to take off after airport upgrades via Dallas Morning News
After almost four years of construction, the reconstruction of Dallas Love Field is almost done.
But development of the area surrounding the city airport is just beginning.
Developers who are planning apartments, commercial construction and new hotel and retail around Love Field say that the airport’s half-billion-dollar modernization program and the end of domestic flight restrictions will boost business in the neighborhood.
Read more...Dallas Love Field real estate market ready to take off after airport upgrades | Dallas Morning News
But development of the area surrounding the city airport is just beginning.
Developers who are planning apartments, commercial construction and new hotel and retail around Love Field say that the airport’s half-billion-dollar modernization program and the end of domestic flight restrictions will boost business in the neighborhood.
Read more...Dallas Love Field real estate market ready to take off after airport upgrades | Dallas Morning News
No Picket Fence: Younger Adults Opting to Rent via NYTimes.com
On a recent sunny afternoon, a half-dozen grinding and spinning cement trucks helped lay the foundation for what many real estate developers see as the most promising housing opportunity in postrecession America: apartment living.
Here in suburban Vienna, about 16 miles west of downtown Washington, Joshua Solomon’s DSF Group is remaking a congested but nondescript intersection into a haven for young adults of the millennial generation. Like many other developers who survived the housing bust, he now expects a coming wave of renters who intend to stay that way for a while to help lead the industry to a brighter future.
Read more...No Picket Fence: Younger Adults Opting to Rent - NYTimes.com
Here in suburban Vienna, about 16 miles west of downtown Washington, Joshua Solomon’s DSF Group is remaking a congested but nondescript intersection into a haven for young adults of the millennial generation. Like many other developers who survived the housing bust, he now expects a coming wave of renters who intend to stay that way for a while to help lead the industry to a brighter future.
Read more...No Picket Fence: Younger Adults Opting to Rent - NYTimes.com
ULI Special Report: Strong Rental M-F Market Driven by Record Student Debt, Cautious Millennials via Multi-Housing News Online
“Do we have a boom or do we have a bust in the multifamily industry?” John Healy Jr., co-founder & principal of Hyde Street Holdings LLC, asked that question as he opened the “Rental Multifamily Housing: New American Dream or Classic Bubble?” panel at the Urban Land Institute’s Fall Meeting, held in Manhattan last week.
The response from the audience was unequivocal—and clearly anticipated the course of the discussion—as the overwhelming majority voted in favor of a “housing boom” that we will continue to witness over the next two to five years.
Read more...ULI Special Report: Strong Rental M-F Market Driven by Record Student Debt, Cautious Millennials | Multi-Housing News Online
The response from the audience was unequivocal—and clearly anticipated the course of the discussion—as the overwhelming majority voted in favor of a “housing boom” that we will continue to witness over the next two to five years.
Read more...ULI Special Report: Strong Rental M-F Market Driven by Record Student Debt, Cautious Millennials | Multi-Housing News Online
Wednesday, October 29, 2014
Rehab ROI: Do the Math via Multifamily Executive Magazine
Rehabs present one of the most challenging pricing situations I’ve found in the apartment industry.
There’s a tug of war between the business desire to allocate capital in a way that provides a measurable real return on investment (ROI) and the human desire to preside over a nicer portfolio. Candidly, I find that a lack of familiarity and comfort with the math behind ROI calculations often gets in the way—and not always just from the jobsite side of the team.
The basic premise of rehabs* is straightforward: An operator invests $X to increase rent $Y, gaining a return of Z% in the process. As long as Z% is higher than the cost of capital, the overall return is positive.
Seems simple enough, right? But I’ve encountered several issues that cause me to believe that operators aren’t always getting what they think they’re getting from their rehab investments.
Read more...Rehab ROI: Do the Math | Multifamily Executive Magazine
There’s a tug of war between the business desire to allocate capital in a way that provides a measurable real return on investment (ROI) and the human desire to preside over a nicer portfolio. Candidly, I find that a lack of familiarity and comfort with the math behind ROI calculations often gets in the way—and not always just from the jobsite side of the team.
The basic premise of rehabs* is straightforward: An operator invests $X to increase rent $Y, gaining a return of Z% in the process. As long as Z% is higher than the cost of capital, the overall return is positive.
Seems simple enough, right? But I’ve encountered several issues that cause me to believe that operators aren’t always getting what they think they’re getting from their rehab investments.
Read more...Rehab ROI: Do the Math | Multifamily Executive Magazine
Renters scooping up apartments at historic rate via Houston Chronicle
The multifamily market in Houston is nearing a historical high of 91 percent occupancy, real estate firm CBRE reports.
This demand has caused rents to skyrocket as the construction crews work to build more projects around the region.
According to Houston-based Apartment Data Services, some of the largest rent increases have been in outlying areas.
Read more...Renters scooping up apartments at historic rate - Prime Property
This demand has caused rents to skyrocket as the construction crews work to build more projects around the region.
According to Houston-based Apartment Data Services, some of the largest rent increases have been in outlying areas.
Read more...Renters scooping up apartments at historic rate - Prime Property
Austin apartment market still on fire; could mean rent relief on its way via Austin Business Journal
The data behind Austin's red hot apartment market could spell relief for some renters. Almost 18,000 units are now under construction in the metro area and some of the new complexes are concentrated in smaller submarkets.
Those submarkets could see rent concessions return after years of escalating prices and diminished supply, according to the latest Austin Multi-Family Trend Report published by Austin Investor Interests LLC.
"In the short run, the abundance of (Class A) product that will enter the market over the next two seasonally slow quarters are likely to saturate these areas creating a bit of market competition," the report states.
Read more...Austin apartment market still on fire; could mean rent relief on its way - Austin Business Journal
Those submarkets could see rent concessions return after years of escalating prices and diminished supply, according to the latest Austin Multi-Family Trend Report published by Austin Investor Interests LLC.
"In the short run, the abundance of (Class A) product that will enter the market over the next two seasonally slow quarters are likely to saturate these areas creating a bit of market competition," the report states.
Read more...Austin apartment market still on fire; could mean rent relief on its way - Austin Business Journal
Tuesday, October 28, 2014
NMHC Survey: Apartment Market Conditions Slightly Tighter in Q3 2014 via Calculated Risk
From the National Multi Housing Council (NMHC): Apartment Markets Expand Further in October NMHC Quarterly Survey.
For the third quarter in a row, apartment markets expanded across all four areas of the National Multifamily Housing Council (NMHC) Quarterly Survey of Apartment Market Conditions. Market tightness (52), sales volume (58), equity financing (54) and debt financing (71) indexes all remained above 50 – indicating growth from the previous quarter.
“The apartment markets are still firing on all cylinders,” said Mark Obrinsky, NMHC’s SVP of Research and Chief Economist. “Demand for apartment residences is still strong enough to offset the gradually rising level of new apartment deliveries. Even with occupancy rates at high levels, markets got just a bit tighter in the last three months."
Read more...Calculated Risk: NMHC Survey: Apartment Market Conditions Slightly Tighter in Q3 2014
For the third quarter in a row, apartment markets expanded across all four areas of the National Multifamily Housing Council (NMHC) Quarterly Survey of Apartment Market Conditions. Market tightness (52), sales volume (58), equity financing (54) and debt financing (71) indexes all remained above 50 – indicating growth from the previous quarter.
“The apartment markets are still firing on all cylinders,” said Mark Obrinsky, NMHC’s SVP of Research and Chief Economist. “Demand for apartment residences is still strong enough to offset the gradually rising level of new apartment deliveries. Even with occupancy rates at high levels, markets got just a bit tighter in the last three months."
Read more...Calculated Risk: NMHC Survey: Apartment Market Conditions Slightly Tighter in Q3 2014
HVS: Q3 2014 Homeownership and Vacancy Rates via Calculated Risk
The Census Bureau released the Housing Vacancies and Homeownership report for Q3 2014.
This report is frequently mentioned by analysts and the media to track the homeownership rate, and the homeowner and rental vacancy rates. However, there are serious questions about the accuracy of this survey.
This survey might show the trend, but I wouldn't rely on the absolute numbers. The Census Bureau is investigating the differences between the HVS, ACS and decennial Census, and analysts probably shouldn't use the HVS to estimate the excess vacant supply or household formation, or rely on the homeownership rate, except as a guide to the trend.
Read more...Calculated Risk: HVS: Q3 2014 Homeownership and Vacancy Rates
This report is frequently mentioned by analysts and the media to track the homeownership rate, and the homeowner and rental vacancy rates. However, there are serious questions about the accuracy of this survey.
This survey might show the trend, but I wouldn't rely on the absolute numbers. The Census Bureau is investigating the differences between the HVS, ACS and decennial Census, and analysts probably shouldn't use the HVS to estimate the excess vacant supply or household formation, or rely on the homeownership rate, except as a guide to the trend.
Read more...Calculated Risk: HVS: Q3 2014 Homeownership and Vacancy Rates
Monday, October 27, 2014
Texas Manufacturing Outlook Survey October 2014 - Dallas Fed
Texas factory activity increased again in October, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, fell from 17.6 to 13.7, indicating output grew but at a slightly slower pace than in September.
Other measures of current manufacturing activity also reflected continued growth in October. The new orders index rose notably from 7.5 to 14.2, reaching a six-month high. The capacity utilization index edged down to 18.1 and the shipments index slipped to 12.8, although still more than a quarter of firms noted increases in these measures over September levels.
Read more...Texas Manufacturing Outlook Survey - Dallas Fed
Other measures of current manufacturing activity also reflected continued growth in October. The new orders index rose notably from 7.5 to 14.2, reaching a six-month high. The capacity utilization index edged down to 18.1 and the shipments index slipped to 12.8, although still more than a quarter of firms noted increases in these measures over September levels.
Read more...Texas Manufacturing Outlook Survey - Dallas Fed
Are Multifamily's Best Days In the Past? via Multifamily Blogs
The short answer? No way.
Here’s why…
Across the country vacancy rates are steadily decreasing, rental rates are on the rise, and new construction is breaking ground at an impressive rate.
Looking at the Marcus & Millichap’s 2014 National Apartment Overview, we see that national vacancy rates for multifamily sector are expected to reach 5.1% in 2014 mostly because of the 215,000 new multifamily units under construction this year. In addition, the reports project that rental rates will increase by another 2.6% over the 4.2% we saw in 2013.
Read more...Are Multifamily's Best Days In the Past? - Multifamily Blogs
Here’s why…
Across the country vacancy rates are steadily decreasing, rental rates are on the rise, and new construction is breaking ground at an impressive rate.
Looking at the Marcus & Millichap’s 2014 National Apartment Overview, we see that national vacancy rates for multifamily sector are expected to reach 5.1% in 2014 mostly because of the 215,000 new multifamily units under construction this year. In addition, the reports project that rental rates will increase by another 2.6% over the 4.2% we saw in 2013.
Read more...Are Multifamily's Best Days In the Past? - Multifamily Blogs
San Antonio Economic Update October 2014 via Dallas Fed
The San Antonio economy continued to grow strongly in September, though indicators were more mixed than in August. Payroll employment contracted slightly at a 0.8 percent annualized rate. At the same time, the
unemployment rate fell sharply to 4.7 percent. Housing indicators were mixed as August housing starts and September help-wanted ads for construction workers fell but median home prices rose and inventories remained low.
The San Antonio Business-Cycle Index rose at a strong annualized rate of 5.6 percent over the six months ended in September. After reaching 5.6 percent in June, the index continued to maintain this rate over the next three months.
Read more...San Antonio Economic Update October 2014 via Dallas Fed
The San Antonio Business-Cycle Index rose at a strong annualized rate of 5.6 percent over the six months ended in September. After reaching 5.6 percent in June, the index continued to maintain this rate over the next three months.
Read more...San Antonio Economic Update October 2014 via Dallas Fed
Urban Land Institute's Emerging Trends in Real Estate 2015 report names Houston No. 1 market to watch via Houston Business Journal
Houston's real estate market has caught the eye of investors worldwide, prompting one to call the Bayou City the "perfect storm for commercial real estate," according to a new report from the Urban Land Institute and PwC.
The "Emerging Trends in Real Estate 2015" report ranked Houston the country's No. 1 market to watch next year. That's up from No. 2 in 2014 and No. 5 in 2013.
Houston ranked No. 1 in both investment and development prospects, and it came in second to Austin for homebuilding prospects.
Read more...Urban Land Institute's Emerging Trends in Real Estate 2015 report names Houston No. 1 market to watch - Houston Business Journal
The "Emerging Trends in Real Estate 2015" report ranked Houston the country's No. 1 market to watch next year. That's up from No. 2 in 2014 and No. 5 in 2013.
Houston ranked No. 1 in both investment and development prospects, and it came in second to Austin for homebuilding prospects.
Read more...Urban Land Institute's Emerging Trends in Real Estate 2015 report names Houston No. 1 market to watch - Houston Business Journal
Thursday, October 23, 2014
ULI: CRE's Momentum Will Continue via GlobeSt.com
With the Urban Land Institute’s Fall Meeting in full swing here, a pair of surveys cosponsored by ULI predicts the industry’s current momentum will carry over into 2015. The 2015 edition of ULI’s annual Emerging Trends in Real Estate report, co-published by PwC US and issued Wednesday at the conference, cites the rise of markets outside the coastal gateway cities, with Houston leading the way. Similarly, the semi-annual ULI/EY Real Estate Consensus Forecast issued last week predicts continued strengthening in the capital markets and in commercial real estate fundamentals.
Read more...ULI: CRE's Momentum Will Continue - Daily News Article - GlobeSt.com
Read more...ULI: CRE's Momentum Will Continue - Daily News Article - GlobeSt.com
Wednesday, October 22, 2014
DFW Economic Indicators October 2014 via Dallas Fed
The Dallas–Fort Worth economy grew at a slower rate in September than in the summer months. Year to date, DFW employment has grown 3.5 percent, nearly matching the state’s 3.6 percent pace. Job creation
remains broad-based across sectors. Residential construction activity is healthy, with apartment construction outpacing homebuilding. Unemployment rates for Dallas and Fort Worth fell in September and remain below those of the U.S. Business-cycle indexes from the Federal Reserve Bank of Dallas point to continued expansion in the metroplex.
DFW employment grew at an annualized rate of 1.7 percent in September, adding 4,600 jobs. Job creation slowed considerably, rising 2.5 percent (19,800 jobs) in the third quarter, compared with 6.2 percent (47,400 jobs) in the second. Most of the increase has come from rapid economic growth in Dallas, which has added jobs at a 4 percent pace in the first nine months of the year and is the state’s second-fastestgrowing major metro.
Read more...DFW Economic Indicators October 2014 via Dallas Fed
DFW employment grew at an annualized rate of 1.7 percent in September, adding 4,600 jobs. Job creation slowed considerably, rising 2.5 percent (19,800 jobs) in the third quarter, compared with 6.2 percent (47,400 jobs) in the second. Most of the increase has come from rapid economic growth in Dallas, which has added jobs at a 4 percent pace in the first nine months of the year and is the state’s second-fastestgrowing major metro.
Read more...DFW Economic Indicators October 2014 via Dallas Fed
Texas No. 1 business climate, new survey says via Real Estate Center at Texas A&M
For the sixth consecutive time Texas took the top spot on Development Counsellors International's (DCI) "Winning Strategies in Economic Development Marketing" survey.
The survey, published every three years since 1996, tracks trends in economic development. DCI specializes in economic development and tourism marketing.
Of the 356 respondents in 2014 49.7 percent said Texas has the most favorable business climate.
Read more...Texas No. 1 business climate, new survey says
The survey, published every three years since 1996, tracks trends in economic development. DCI specializes in economic development and tourism marketing.
Of the 356 respondents in 2014 49.7 percent said Texas has the most favorable business climate.
Read more...Texas No. 1 business climate, new survey says
Multifamily Market Report via The Balance Sheet - Yardi Corporate Blog
Despite the slowest population growth rate in 70 years, the US apartment sector remains healthy throughout most of the country, according to the recent Multifamily Market Commentary released by Fannie Mae. In the national development 386,000 new units were underway as of Q2 2014.
Growth indicators from the National Association of Home Builders (NAHB) show that 9.6 percent of the $331 billion of new housing built in 2013 was multifamily construction. According to housing consultant IBISWorld Inc., multifamily development will reach a 28 percent annual average rate increase since 2009, with California blazing ahead due to a 47 percent growth rate in 2012 and 20 percent in 2013.
Although apartment market fundamentals remain positive, this veritable apartment market boom is leading some to question how long the growth rate can be sustained.
Read more...Multifamily Market Report | The Balance Sheet - Yardi Corporate Blog
Growth indicators from the National Association of Home Builders (NAHB) show that 9.6 percent of the $331 billion of new housing built in 2013 was multifamily construction. According to housing consultant IBISWorld Inc., multifamily development will reach a 28 percent annual average rate increase since 2009, with California blazing ahead due to a 47 percent growth rate in 2012 and 20 percent in 2013.
Although apartment market fundamentals remain positive, this veritable apartment market boom is leading some to question how long the growth rate can be sustained.
Read more...Multifamily Market Report | The Balance Sheet - Yardi Corporate Blog
IREM Special Report: The Millennial Factor via Commercial Property Executive
The impact of Millennials on commercial real estate sparked a thought-provoking discussion at the Institute of Real Estate Management’s Fall Leadership Conference last week.
“We are in the midst of a sea change . . . and I think it’s probably as revolutionary as in the 1960s, when the open office was introduced into the United States,” said the panel’s moderator, the veteran real estate journalist John Salustri, as he introduced session on Friday.
In many ways, Millennials are leading the revitalization of the nation’s urban cores.
Read more...IREM Special Report: The Millennial Factor | Commercial Property Executive
“We are in the midst of a sea change . . . and I think it’s probably as revolutionary as in the 1960s, when the open office was introduced into the United States,” said the panel’s moderator, the veteran real estate journalist John Salustri, as he introduced session on Friday.
In many ways, Millennials are leading the revitalization of the nation’s urban cores.
Read more...IREM Special Report: The Millennial Factor | Commercial Property Executive
Monday, October 20, 2014
Multifamily Absorption Expected to be Significant via GlobeSt.com
What will the big multifamily surprise be in 2015? “The level of absorption that will be seen,” said Tyler Anderson, vice chairman of CBRE.
“The elephant in the room is the pipeline that is coming…The singlefamily market really hasn’t taken off,” Anderson said. “If we look back a year from now, we will be pleased with the level of absorption we will see.”
Read more...Multifamily Absorption Expected to be Significant - Daily News Article - GlobeSt.com
“The elephant in the room is the pipeline that is coming…The singlefamily market really hasn’t taken off,” Anderson said. “If we look back a year from now, we will be pleased with the level of absorption we will see.”
Read more...Multifamily Absorption Expected to be Significant - Daily News Article - GlobeSt.com
Top Ten New Construction Markets in 2015 via Multifamily Executive Magazine
In the nation's 100 largest metros, roughly 230,000 apartment units are scheduled for completion in 2015, about a 14 percent drop from the 13-year high that will be reached this year, according to MPF Research, the market intelligence division of RealPage, Inc.
Of course, the largest metros will be building the most units, with Houston coming in first with 19,662 expected completions in 2015. However, in terms of inventory growth rate, Houston falls to sixth place, at 3.2 percent.
Following Houston in sheer volume is Dallas, New York, Washington, D.C. and Seattle, all producing between an estimated 10,500 and 16,500 units next year.
Read more...Top Ten New Construction Markets in 2015 | Multifamily Executive Magazine
Of course, the largest metros will be building the most units, with Houston coming in first with 19,662 expected completions in 2015. However, in terms of inventory growth rate, Houston falls to sixth place, at 3.2 percent.
Following Houston in sheer volume is Dallas, New York, Washington, D.C. and Seattle, all producing between an estimated 10,500 and 16,500 units next year.
Read more...Top Ten New Construction Markets in 2015 | Multifamily Executive Magazine
Texas breaks record for jobs added in 12-month span via Dallas Morning News
Texas created enough jobs last month to help the state set a 12-month record.
The Texas economy added 36,400 jobs in September, according to data released Friday by the Texas Workforce Commission. Over the past 12 months, employers added 413,700 jobs — the most ever recorded by the state.
The unemployment rate fell to 5.2 percent in September, down from 5.3 percent in August. A year ago, the rate was 6.3 percent.
“We’re having a broad -based increase in job growth in Texas, and sooner or later we’re going to have to see wage increases,” said Trinity University economist David Macpherson.
Read more...Texas breaks record for jobs added in 12-month span | Dallas Morning News
The Texas economy added 36,400 jobs in September, according to data released Friday by the Texas Workforce Commission. Over the past 12 months, employers added 413,700 jobs — the most ever recorded by the state.
The unemployment rate fell to 5.2 percent in September, down from 5.3 percent in August. A year ago, the rate was 6.3 percent.
“We’re having a broad -based increase in job growth in Texas, and sooner or later we’re going to have to see wage increases,” said Trinity University economist David Macpherson.
Read more...Texas breaks record for jobs added in 12-month span | Dallas Morning News
Thursday, October 16, 2014
Commercial, Multifamily Mortgage Debt in U.S. Rises to $2.56 Trillion - World Property Journal
According to a Mortgage Bankers Association (MBA) report released today, the level of commercial and multifamily mortgage debt outstanding increased by $24.9 billion in the second quarter of 2014, as three of the four major investor groups increased their holdings. That is a 1.0 percent increase over the first quarter of 2014.
Total commercial and multifamily debt outstanding stood at $2.56 trillion in the second quarter. Multifamily mortgage debt outstanding rose to $930 billion, an increase of $13.0 billion, or 1.4 percent, from the first quarter of 2014.
Read more...Commercial, Multifamily Mortgage Debt in U.S. Rises to $2.56 Trillion - WORLD PROPERTY JOURNAL Global News Center
Total commercial and multifamily debt outstanding stood at $2.56 trillion in the second quarter. Multifamily mortgage debt outstanding rose to $930 billion, an increase of $13.0 billion, or 1.4 percent, from the first quarter of 2014.
Read more...Commercial, Multifamily Mortgage Debt in U.S. Rises to $2.56 Trillion - WORLD PROPERTY JOURNAL Global News Center
Multifamily Sector Benefits From ‘Perfect Storm’ via GlobeSt.com
“Multifamilies have benefited from the perfect storm.” That is according to RealShare Apartments 2014 panelist Ethan Penner, a commercial real estate expert known for founding CBRE Capital Partners and as former president of Kennedy Wilson. “You have low interest rates, which helps all income-producing properties; had good access to capital and leverage; had the weight of the housing crisis; had more people driven into rentals and out of housing; and you also have a weak economy.”
For a whole host of reasons, such as those mentioned above, “we are in good shape on multifamilies,” Penner said. “I don’t see that changing any time soon.”
Read more...Multifamily Sector Benefits From ‘Perfect Storm’ - Daily News Article - GlobeSt.com
For a whole host of reasons, such as those mentioned above, “we are in good shape on multifamilies,” Penner said. “I don’t see that changing any time soon.”
Read more...Multifamily Sector Benefits From ‘Perfect Storm’ - Daily News Article - GlobeSt.com
A Quick Look at Dallas-Fort Worth’s Apartment Supply Wave via Property Management Insider
Totaling just over 675,000 units, Dallas-Fort Worth is the nation’s fourth-biggest apartment market. With construction occurring at such a rapid pace, North Texas likely will bump Chicago out of the #3 spot sometime in late 2016 to early 2017.
So far in this development cycle (we’ll call that early 2010 through Q3 2014), DFW has added just a hair under 50,000 units, by far the most new supply anywhere across the country. Some 28,000 more units are under construction right now.
Read more...A Quick Look at Dallas-Fort Worth’s Apartment Supply Wave | Property Management Insider
So far in this development cycle (we’ll call that early 2010 through Q3 2014), DFW has added just a hair under 50,000 units, by far the most new supply anywhere across the country. Some 28,000 more units are under construction right now.
Read more...A Quick Look at Dallas-Fort Worth’s Apartment Supply Wave | Property Management Insider
Wednesday, October 15, 2014
Dallas Beige Book October 15, 2014 via Dallas Fed
The Eleventh District economy grew at a moderate pace over the past six weeks. Manufacturers mostly reported increases in demand, and retail and automobile sales expanded at a pace in line with the prior report. Demand for nonfinancial services generally improved and real estate activity remained solid. The energy sector continued to grow, and agricultural conditions improved. Upward price pressures eased slightly and employment held steady or increased. Outlooks remained optimistic across the board.
Read more...Dallas Beige Book - Dallas Fed
Read more...Dallas Beige Book - Dallas Fed
Q2 2014 Cap Rate Trends via ReisReports
The mean cap rate increased by 20 basis points during the second quarter to 6.6%. The mean cap rate is now on a bit of an upswing after bottoming out at 6.2% during the first quarter of 2013. Although the mean cap rate has fluctuated slightly since that time, an increase of 40 basis points is not insignificant. Moreover, if we look at the 12-month rolling cap rate, this also indicates that cap rates in the market have bottomed out and are trending upward. The 12-month rolling cap rate was virtually unchanged at 6.5%. Does this mean that pricing in the apartment sector is reversing course?
Read more...Q2 2014 Cap Rate Trends - ReisReports
Read more...Q2 2014 Cap Rate Trends - ReisReports
Tuesday, October 14, 2014
ALN Monthly Newsletter October 2014 via ALN Apartment Data
ALN Data just released their September 2014 stats on occupancy and rents for 23 markets. In Texas, it includes DFW, Austin, Houston, San Antonio, Lubbock, Amarillo, Abilene and Corpus Christi. It is a must read from a great provider of apartment data.
Read more...ALN Monthly Newsletter October 2014 via ALN Apartment Data
Read more...ALN Monthly Newsletter October 2014 via ALN Apartment Data
Monday, October 13, 2014
Texas Economic Indicators October 2014 via Dallas Fed
The Texas economy continues to expand, with employment growing at a 3.2 percent annual rate in August. Texas existing-home sales increased in August, while single-family permits and housing starts declined. Texas exports edged up in July. Manufacturing activity in September rose at a faster rate than in August, according to the Texas Manufacturing Outlook Survey.
Texas gained 30,700 jobs in August after adding 39,700 jobs in July. Current Texas employment stands at 11.6 million, according to the payroll survey (CES).
The Texas unemployment rate rose to 5.3 percent in August. The Texas rate continues to be lower than the U.S. rate, which fell to 6.1 percent in August.
Read more...Texas Economic Indicators October 2014 via Dallas Fed
Texas gained 30,700 jobs in August after adding 39,700 jobs in July. Current Texas employment stands at 11.6 million, according to the payroll survey (CES).
The Texas unemployment rate rose to 5.3 percent in August. The Texas rate continues to be lower than the U.S. rate, which fell to 6.1 percent in August.
Read more...Texas Economic Indicators October 2014 via Dallas Fed
Houston Economic Indicators October 2014 via Dallas Fed
The Houston Business-Cycle Index slowed markedly in August to a still-healthy 4.4 percent growth rate from a revised 8 percent rate in July. Energy industry employment accelerated into the second half of the year, while refining and plastics continued to perform well. Overall labor market conditions remained positive despite continued tightness for key skills. Taken together, these indicators continue to imply above-average economic conditions in Houston.
Houston payroll employment grew an annualized 3.5 percent from July to August. Gains were particularly strong in construction and mining and in education and health services. Leisure and hospitality and government contracted. Over the three months ending in August, employment grew an annualized 4.1 percent.
Read more...Houston Economic Indicators October 2014 via Dallas Fed
Houston payroll employment grew an annualized 3.5 percent from July to August. Gains were particularly strong in construction and mining and in education and health services. Leisure and hospitality and government contracted. Over the three months ending in August, employment grew an annualized 4.1 percent.
Read more...Houston Economic Indicators October 2014 via Dallas Fed
Soaring Dallas apartment costs haven’t put a dent in rentals via Real Estate Center at Texas A&M
An average new apartment in Dallas’ Uptown neighborhood can cost twice as much as the mortgage payment on a mid-priced North Texas home.
They are willing to pay more for the luxury rental lifestyle and an address in the heart of Dallas.
Greg Willett, vice president with longtime Dallas apartment market firm MPF Research, warns, “we need to pay attention to the affordability factor.”
Read more...Soaring Dallas apartment costs haven’t put a dent in rentals
They are willing to pay more for the luxury rental lifestyle and an address in the heart of Dallas.
Greg Willett, vice president with longtime Dallas apartment market firm MPF Research, warns, “we need to pay attention to the affordability factor.”
Read more...Soaring Dallas apartment costs haven’t put a dent in rentals
Friday, October 10, 2014
San Antonio Apartment Market Update August 2014 via OConnordata.com
Most key metrics of the San Antonio area multifamily sector recorded positive and negative changes in August 2014.
The occupancy figures recorded both positive and negative values for all the classes. For Class A properties, occupancy increased by 0.78% over the month to close at 92.80%; and decreased by 1.05% over the year.
Read more...San Antonio Apartment Market Update August 2014
The occupancy figures recorded both positive and negative values for all the classes. For Class A properties, occupancy increased by 0.78% over the month to close at 92.80%; and decreased by 1.05% over the year.
Read more...San Antonio Apartment Market Update August 2014
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