Rehab ROI: Which Upgrades Cause the Biggest Rent Bumps? via Multifamily Executive Magazine

In April, Home Properties got started on a $3 million, three-year renovation of Stone Hill Apartments in Brookhaven, Pa. a complex of 11 three-story buildings with 205 units that Home Properties had purchased in November 2013.

This company is upgrading these garden apartments’ kitchens with maple cabinets and brushed-steel finishes. The units’ bathrooms will now have tub surrounds, two-tone paint and six-inch wood baseboards. Lighting, plumbing and electrical services are being improved. And, in response to resident feedback, Home Properties is installing energy efficient windows and sliding glass doors.

The initial results of this acquisition and renovation have been positive in terms of bumping up monthly rents for a two-bedroom apartment to $1,040, from $918 in December, thereby exceeding the 10 percent return on investment target Home Properties typically shoots for on interior rehabs, according to its senior vice president of property management Bernie Quinn.

Read more...Rehab ROI: Which Upgrades Cause the Biggest Rent Bumps? - Multifamily Executive Magazine

DFW ranks No. 2 for job growth in U.S. via Real Estate Center at Texas A&M

DFW ranked No. 2 in adding the most jobs in April compared to a year earlier, according to data released by the U.S. Bureau of Labor Statistics. DFW added 115,900 jobs in the last year, or a 3.8 percent increase.

The Los Angeles metro area was No. 1, adding 118,200 jobs in the year ended April 30, or a gain of 2.1 percent.

April’s announcement by Toyota that it will move its North American headquarters to Plano and generate 4,000 jobs through 2017 “adds to our expectations for ongoing strong job growth,” said Robert A. Dye, chief economist for Dallas-based Comerica Bank.

Read more...DFW ranks No. 2 for job growth in U.S.

Austin multifamily 1Q 2014: Hendricks-Berkadia via Real Estate Center at Texas A&M

Developers delivered 2,850 units in first quarter 2014, 53.1 percent more than 4Q 2013. The Central submarket had the most completions for the metropolitan area with 590 units.

Rental demand has remained healthy as 2,000 units have been absorbed in 1Q 2014. Leasing activity has accelerated from the 1,330 units absorbed in 4Q 2013.

Developers submitted multifamily permits for 17,200 annualized units in March, up 24.6 percent from December 2013. The recent surge elevated permitting activity 33.5 percent from March 2013. The 1Q 2014 submission rate was a three-decade high.

Read more...Austin multifamily 1Q 2014: Hendricks-Berkadia via Real Estate Center at Texas A&M

Led By Multifamily, Improvement Seen in All Commercial Real Estate Sectors via realtor.org

The outlook for all of the major commercial real estate sectors is slightly improving despite disappointing economic growth during the first quarter of 2014, according to the National Association of Realtors® quarterly commercial real estate forecast.

Lawrence Yun, NAR chief economist, said the sluggish growth experienced in the first quarter is not indicative of the actual health of the economy. “Gross Domestic Product should expand closer to 3 percent for the remainder of the year. The improved lending for commercial loans and continuing job gains we’ve seen this spring bode well for modest progress in commercial real estate leases and purchases of properties.”

However, Yun cautions that with rising long-term interest rates on the horizon, consistent economic growth is imperative to solid commercial real estate investment in the years ahead.

Read more...Led By Multifamily, Improvement Seen in All Commercial Real Estate Sectors | realtor.org

San Antonio Economic Update May 2014 via Dallas Fed

The San Antonio economy accelerated in April. The unemployment rate fell to 4.8 percent, 0.4 percentage points below the state and 1.5 percentage points below the nation. Private employment growth was strong, particularly in business and professional services, while government jobs declined. New building permits remained steady in March and construction employment grew moderately in April, but housing starts weakened and continue to lag behind the state as a whole.

The San Antonio Business-Cycle Index continued to accelerate, primarily due to a continuing decline in the unemployment rate. The six-month growth rate increased from 4.5 percent in March to 4.8 percent in April, the highest rate in nearly a year. Overall, the San Antonio economy continues to track above trend when compared with the 10-year annual growth rate of 3.4 percent.

Read more...San Antonio Economic Update May 2014 via Dallas Fed

Commercial Building Energy-Use Disclosure Requirements via Commercial Property Executive

Once again, the government is attempting to help the general public by getting into our business. I’m not saying it’s a bad thing, but it’s more regulation and bureaucracy that building owners and tenants will need to deal with. Effective Jan. 1, 2014, building owners will be required to provide energy benchmark reports for the prior year when a commercial property is leased, sold or refinanced.

The law will be phased in over the next 18 months depending on the size of the property. Buildings that exceed 10,000 square feet of total floor area need to begin their energy usage benchmarking Jan. 1, 2014. Buildings measuring between 5,000 to 10,000 square feet must begin their energy use disclosure by July 1, 2014.

Read more...Commercial Building Energy-Use Disclosure Requirements | Commercial Property Executive

DFW Economic Indicators May 2014 via Dallas Fed

The Dallas–Fort Worth economy expanded at a rapid clip in April. DFW employment grew 8.7 percent, faster than Texas and the U.S., which grew 5.7 percent and 2.5 percent during the month. Unemployment rates in both Dallas and Fort Worth declined further in April. Robust leasing activity continued to keep office and apartment vacancies low despite strong construction. The Dallas Fed business-cycle indexes posted increases, suggesting continued expansion for the Dallas–Fort Worth metroplex.

Dallas–Fort Worth employment expanded at a faster pace in April. Jobs grew at an annual rate of 8.7 percent in April, up sharply from the 2.7 percent increase recorded in March. For the year, Dallas–Fort Worth has added 46,700 jobs—a 4.6 percent annualized pace.

Read more...DFW Economic Indicators May 2014 via Dallas Fed

MF Rent Growth Hits New High via GlobeSt.com

Effective rent growth in US multifamily year to date is the best since the nation’s economy began recovering from the Great Recession, locally based Axiometrics said Tuesday. Effective rent growth rose to 3.4% in April, up from 3.1% the previous month and 3.2% year over year. The research firm credited increased occupancy and burgeoning job growth with giving apartment landlords the impetus to raise rents.

Apartment occupancy increased last month to 94.8%, a 60-basis-point rise since 2014 began. At the same time, job growth was 1.6% in March, while the national unemployment rate dropped to 6.3% in April. Accordingly, more people sought housing in what is already a landlord’s market, Axiometrics says.

Read more...MF Rent Growth Hits New High - Daily News Article - GlobeSt.com

Apartments: Supply and Demand via Calculated Risk

Time flies! It was four years ago that we started discussing the turnaround for apartments. Then, in January 2011, I attended the NMHC Apartment Strategies Conference in Palm Springs, and the atmosphere was very positive.

The drivers were 1) very low new supply, and 2) strong demand (favorable demographics, and people moving from owning to renting).

Demographics are still favorable, but my sense is the move "from owning to renting" has slowed. And more supply is now coming online.

Read more...Calculated Risk: Apartments: Supply and Demand

Treasury yield squeeze suggests interest rates to stay low via HousingWire

The rally in U.S. Treasurys that pushed 10-year yields down to a level not seen since late 2013 shows the belief that the Federal Reserve will keep rates low in a slowly growing global economy, Bill Gross, chief investment officer at Pimco told MarketWatch.

“2.50% currently reflects a 0.5% new neutral rate and seems fair for now,” Gross said.

MarketWatch goes on to say, “The new-neutral outlook published by Gross and Pimco adviser Richard Clarida suggests that the global economy is transforming from a period of recovery after the financial crisis…toward stability that is characterized by modest economic growth over the next three-to-five years.”

Read more...Treasury yield squeeze suggests interest rates to stay low | 2014-05-16 | HousingWire

Rental rates in San Antonio hit record high via Real Estate Center at Texas A&M

The average rate for an apartment in the Alamo City is 99 cents per sf in first quarter, up nearly 4 percent from the same period last year, according to Austin Investor Interests.

Over the past four years, developers have built roughly 13,250 units in the San Antonio area. During that time, rents have jumped almost 20 percent.

Through 1Q 2014, construction started on 2,466 units, almost twice as many starts as 1Q 2013. An additional 1,520 apartments came on the market in 1Q 2014, a nearly 40 percent jump from 1Q 2013.

Read more...Rental rates in San Antonio hit record high

Commercial Property Pricing, Sales Gains Continue In First Quarter via CoStar Group

Strengthening fundamentals in all major property types and across U.S. regions bolstered continued gains in commercial real estate pricing and transaction activity in the opening months of 2014, according to the new CoStar Commercial Repeat Sale Indices (CCRSI) report.

Vacancies have fallen to within 100 basis points of pre-recession levels in the office and retail sectors and are now lower than pre-recession levels for industrial property, according to this month's CCRSI report analyzing data through March and first-quarter 2014.

Driven by an uptick in transaction activity in March, first-quarter sales volume was up 33% from a year ago, logging an aggregate sale pair volume of $16 billion for the quarter.

Read more...Commercial Property Pricing, Sales Gains Continue In First Quarter - CoStar Group

DFW apartments 1Q 2014: Hendricks-Berkadia via Real Estate Center at Texas A&M

More than 3,000 apartments were delivered in first quarter 2014, a 15.1 percent increase from 1Q 2013. From 2009 to 2013, completions averaged 8,560 units annually.

In March 2014, 24,900 annualized permits were issued, a 43.8 percent gain from March 2013.

There were 11,000 newly occupied apartments in the last 12 months, compared to 12,000 completions. Consequently, vacancy ticked up, reaching 5.8 percent in 1Q 2014.

Read more...DFW apartments 1Q 2014: Hendricks-Berkadia

Dallas, state unemployment drops significantly in past year via Dallas Business Journal

Unemployment in Dallas and across the state dropped by more than a percentage point over the past year, according to a Texas Workforce Commission report.

The state added 64,100 jobs in April, for a total of 348,000 for the year. That fueled a decrease in unemployment numbers from 6.4 percent a year ago to 5.2 percent in April. The month’s numbers were also down from March’s 5.3 percent rate.

The Dallas area is beating both state and national trends, with unemployment at 4.8 percent for the month, down from 6 percent a year ago.

Read more...Dallas, state unemployment drops significantly in past year - Dallas Business Journal

Multifamily Surge Propels Housing Starts Over 1 Million Mark in April, Says NAHB via Multi-Housing News Online

Soaring production of multifamily apartments pushed nationwide housing starts above the million-unit mark in April, according to newly released figures from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Total housing production rose 13.2 percent for the month to a seasonally adjusted annual rate of 1.07 million units, due entirely to a 39.6 percent increase on the multifamily side, while single-family production held steady.

“The flat single-family data confirm our latest surveys, which show that single-family builders remain concerned that tight credit availability and uncertain economic conditions are keeping potential buyers on the sidelines,” says Kevin Kelly, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Wilmington, Del. “However, demand for apartment construction still remains high.”

Read more...Multifamily Surge Propels Housing Starts Over 1 Million Mark in April, Says NAHB | Multi-Housing News Online

Houston apartments 1Q 2014: Hendricks-Berkadia via Real Estate Center at Texas A&M

Nearly 2,930 units were delivered in first quarter 2014, according to Hendricks-Berkadia. With 890 new units, development in the Montrose-River Oaks submarket led the metropolitan area. Construction was up from the 2,110 units added across the metropolitan area in 4Q 2013.

Rental demand surged to start 2014 with the net absorption of 2,140 units.

Permits for 5,190 multifamily units were filed. Permitting activity was down 30.2 percent from 1Q 2013. The decline followed a 162.8 percent surge in 2013.

Read more...Houston apartments 1Q 2014: Hendricks-Berkadia via Real Estate Center at Texas A&M

Apartment Trends Q1 2014 via ReisReports

Reis VP of Economics & Research, Dr. Victor Calanog, provides an update on the apartment sector performance for the first quarter of 2014.
* Apartment asking and effective rents increased 0.5% and 0.6% during Q1 2014.
* New supply may begin to put upward pressure on vacancies in 2014.
* Rents should continue to grow despite slowing vacancy improvements.

Watch video...Apartment Trends Q1 2014 | ReisReports

Texas Tea: Developers, Owners Follow Energy Pipelines via Multifamily Executive Magazine

Ever since oil was discovered near Houston in 1901, the city has been the poster child for the boom and bust energy sector. And now, it also has the Eagle Ford shale line to help fuel growth.

The Eagle Ford shale, located about halfway between San Antonio and Brownsville Texas, is more than 400 miles long. Three years ago, energy companies were shuttling drillers about two hours each way to small-town sites along the line. That’s when San Diego-based DWOLV started seeking opportunities outside of its home town and zeroed-in on the area, buying Class C, value-add properties to rehab.

Read more...Texas Tea: Developers, Owners Follow Energy Pipelines - Multifamily Executive Magazine

Investors Will Remain Interested in Multifamily Through 2015 (And Likely Beyond) via National Real Estate Investor

It’s no secret that the nation’s apartment sector has been on fire in recent years. With new multifamily construction largely stalled and homeownership on the decline, occupancy and rental rates at apartment communities surged, and investors entered the market in droves.

Now, with construction levels beginning to rise and the single-family housing sector showing signs of recovery, people have been wondering if multifamily’s moment in the sun has passed. In short, my answer is, “No.”

The sector should continue to experience strong consumer and investor demand for at least several years. The kinds of properties investors are chasing, however, are changing.

Read more...Investors Will Remain Interested in Multifamily Through 2015 (And Likely Beyond) | Viewpoints content from National Real Estate Investor

Construction Strong in Houston High-Income Areas via Axiometrics

“A picture is worth 1,000 words” is a well-known phrase that was coined, according to some accounts, by renowned early 20th-century newspaper publisher Arthur Brisbane in 1911 while discussing newspapers and publicity.

This old adage still holds true today, and for a lot more than publicity in newspapers. Here at Axiometrics, we believe a simple two-layer chart can tell us a lot about aspects of an apartment market more quickly than a detailed explanation. Of course, some explanation is needed so readers know the true picture behind the picture.

Look at the chart below, which depicts the location of apartment properties opened or under construction since 2012, overlaid above average household income (the darker, the larger).

Read more...Construction Strong in Houston High-Income Areas

ALN Monthly Newsletter May 2014 via ALN Apartment Data

ALN Data just released their April 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 May 2014 via ALN Apartment Data

Essential Energy Management Steps for Multifamily Properties via Appfolio

Research and development over the past several decades have consistently reduced energy consumption in the US. But, did you know that the National Academy of Engineering predicts we will use almost 70% more energy in 2040 unless we continue to reduce energy intensity sufficiently enough to offset growth and economic conditions?

The good news for property owners and managers is that those energy predictions don’t have to come true. In fact, the same NAE study found that, accounting for population growth, if U.S. continues to reduce energy consumption at the levels that it has for the past 30 years, energy use will rise by less than 10% over the next 15 years. With 25 million multifamily residences in the U.S., property managers have the potential to reap tremendous savings and benefit our country at the same time.

Some property managers delay implementing energy conservation measures because they doubt reports that their efforts will produce significant benefits. Others hear anecdotal accounts of green industry failures and hesitate to invest money in unproven upgrades and lifestyle changes.

Read more...Essential Energy Management Steps for Multifamily Properties

Texas Economic Indicators May 2014 via Dallas Fed

The Texas economy continues to expand, with employment growing at a 0.9 percent annual rate in March. Texas single-family construction permits, existing-home sales and housing starts all edged down in March. Texas exports declined in March. Manufacturing activity increased for the 12th month in a row in April, according to the Texas Manufacturing Outlook Survey.

Texas gained 8,300 jobs in March after adding 33,200 jobs in February. Current Texas employment stands at 11.38 million, according to the payroll survey (CES).

Read more...Texas Economic Indicators May 2014 via Dallas Fed

Don't Rule Out Multifamily Investments via Realtor Magazine

Over the past few years, institutional investors have gobbled up the available stock of desirable single-family rentals in many markets. Rather than compete with these large investment companies, why not try multifamily investment?

Too many investors immediately rule multifamily homes as unaffordable and high maintenance, which is a costly mistake. In many cases, multifamily property can be a better investment than single-family homes. If you know your audience and are willing to be creative, a multifamily investment property could be the best purchase you ever make. Here are three reasons:

Read more...Don't Rule Out Multifamily Investments | Realtor Magazine

3 things to know about interest rates for the rest of 2014 via HousingWire

At the start of 2014, most industry experts and insiders agreed that based on the metrics they had at the time, interest rates and therefore mortgage rates would be going up in 2014.

And yet now five months into the year, mortgage rates continue to defy analyst expectations.

At the start of the year, the Mortgage Bankers Association projected interest rates on the 10-year Treasury yield to go from 3% in the first quarter of 2014 to 3.3% by fourth quarter of 2014, averaging 3.2% for the year, and then creeping up to 3.5% by the last two quarters 2015, averaging 3.4% for 2015.

Read more...3 things to know about interest rates for the rest of 2014 | 2014-05-12 | HousingWire

Houston Economic Update May 2014 via Dallas Fed

The Houston Business-Cycle Index advanced 7.4 percent in March after rising a revised 6.3 percent in February on an annualized basis. This was driven by a surprisingly strong surge in employment. Housing and construction show ongoing strength, as does energy, but total trade growth in the region continues to soften. Overall, the outlook for Houston remains healthy.

March employment growth was a vigorous 4.7 percent overall. The large trade, transportation and utilities industry grew the fastest, with financial activities close behind. Manufacturing and leisure and hospitality contracted.

Read more...Houston Economic Update May 2014 via Dallas Fed

Urban Core, ‘New Normal’ Top CBRE Conference Discussion via Axiometrics

This year’s edition of CBRE’s annual Multi-Housing Conference April 29-30 in Chicago covered a broad range of issues facing the apartment industry. The consensus view among the 500-plus participants was that the market is strong right now, but perhaps developers, owners and investors should start thinking about a cyclical softening in the next few years.

Axiometrics Regional Director Jeff Dowdle and I attended the conference and found our fellow participants enthusiastic about the industry and eager to exchange information, ideas and opinions. The rise of the urban core was one of the hottest topics of discussion.

During a general session panel presentation titled “Sales Trends and Market Fundamentals,” of which I was among the panelists, I said the market is at a place where urban core rent growth is really slowing.

Read more...Urban Core, ‘New Normal’ Top CBRE Conference Discussion

Greystar Saves $6 Million on Utilities and Plans More Energy-Saving Projects via Property Management Insider

DeeAnne McClenahan says she’s always been a numbers nerd and loves pouring over energy and water usage data. Within the numbers, she says, are tales that potentially lead to greater stories of savings and sustainability. Those are especially relevant considering that costs for energy and water aren’t getting any cheaper and, in some parts of the country, the resources are in short supply.

The Senior Director of Procurement and Sustainability has spent the past three and half years looking for ways to save money in Greystar’s vast business portfolio. During that time, she has helped implement numerous energy-saving projects at many of the more than 700 properties under the company’s management.

She estimates in 2013 that Greystar saved $6 million in utilities just related to consumption, including projects ranging from changing shower heads to improving irrigation systems. Some of the savings were achieved with practices as simple as properly programming a thermostat.

Read more...Greystar Saves $6 Million on Utilities and Plans More Energy-Saving Projects | Property Management Insider

Austin ranks No. 3 on Forbes' best cities for jobs list via Real Estate Center at Texas A&M

The city rebounded to take the No. 3 spot on Forbes’ “Best Big Cities for Jobs 2014” list. The Austin area recorded 881,000 jobs and growth of 4.1 percent in 2013. Its growth rate from 2008 to 2013 was 13.7 percent. Austin was ranked at No. 1 in 2012, but dipped down to No. 10 in 2013.

The ranking is based on five factors: recent employment growth, mid-term growth (average annual 2008-2013 growth rate), long-term trend and momentum, current year growth and the average of each year's growth rate for the past ten years.

Read more...Austin ranks No. 3 on Forbes' best cities for jobs list via Real Estate Center at Texas A&M

Increasing Supply. Not Oversupply Yet via Axiometrics

During the final panel at RealShare Houston, local industry leaders shared their thoughts on where Houston is now and how long the good times will continue in a Town Hall Power Panel.

“The growth has been phenomenal since the downturn,” said moderator Rand Stephens, managing principal at Avison Young, siting the 5.2% unemployment rate as proof to the exceptional nature of the current cycle.

Andrew Montgomery, executive vice president of acquisitions at Griffin Partners, agreed, “I think demand drivers are here to stay. It is a pretty compelling story as to why Texas has outperformed the rest of the country.”

Read more...Increasing Supply. Not Oversupply Yet.

Houston Has Become a Gateway City via GlobeSt.com

During the final panel at RealShare Houston, local industry leaders shared their thoughts on where Houston is now and how long the good times will continue in a Town Hall Power Panel.

“The growth has been phenomenal since the downturn,” said moderator Rand Stephens, managing principal at Avison Young, siting the 5.2% unemployment rate as proof to the exceptional nature of the current cycle.

Andrew Montgomery, executive vice president of acquisitions at Griffin Partners, agreed, “I think demand drivers are here to stay. It is a pretty compelling story as to why Texas has outperformed the rest of the country.”

Read more...Houston Has Become a Gateway City - Daily News Article - GlobeSt.com

Why millenials rent: What do you think? via CNBC.com

The nation's homeownership rate may be falling, but the dream of homeownership isn't exactly dead. It is just being postponed, especially among the younger millennial generation. A far stricter credit environment is keeping them outside of homeownership for now, and as investors move out of the market, that is actually stalling the housing recovery.

"Readings on housing activity—a sector that has been recovering since 2011—have remained disappointing so far this year and will bear watching," remarked Federal Reserve Chairman Janet Yellen in testimony Wednesday.

In addition to credit, millennials' attitudes toward renting are far different than their parents', and they have very vivid memories of the housing crash. In just the past year, their views toward homeownership have changed dramatically.

Read more...Why millenials rent: Concerns about credit and down payments

Austin Investor projects San Antonio will gain 17,000 new apartment units via San Antonio Business Journal

The wave of new apartment projects taking shape in San Antonio is actually helping to underscore this real estate sector’s signature stability.

Over the first three months of 2014, more than 1,500 new apartment units were added to the market, according to the latest analysis by Austin-based multifamily research firm Austin Investor Interests.

And yet, the occupancy rate remains at a healthy 92 percent.

Read more...Austin Investor projects San Antonio will gain 17,000 new apartment units - San Antonio Business Journal

Multifamily in Houston Is Smoking Hot via GlobeSt.com

Panelists at the Multifamily Focus panel at RealShare Houston agreed that the entire multifamily market is changing in a number of ways.

“The market is smoking hot,” said moderator Scott Ziegler, senior principal at Ziegler Cooper Architects. “It’s on fire and it’s showing itself in all the different directions of the city.”

The market’s demand is partially due to the larger number of people actively looking toward multifamily housing options over single family homes. Ziegler said they estimate 30% of each 100,000 new residents will opt for multifamily housing.

Read more...Multifamily in Houston Is Smoking Hot - Daily News Article - GlobeSt.com

MF Mortgage Servicing Hurdles Grow via GlobeSt.com

Multifamily mortgage servicing—never an easy undertaking—may get even more challenging as portfolios shift and shrink and investors demand more loan surveillance, analysts said.

“We’re finding 2014 to be a tough year,” said Bob Shean, COO of M&T Realty Capital Corp., speaking here at the Mortgage Bankers Association’s Commercial/Multifamily Servicing and Technology Conference. Shean said some lenders report higher payoffs and lower retention rates, leading to shrinking portfolios.

Read more...MF Mortgage Servicing Hurdles Grow - Daily News Article - GlobeSt.com

Multifamily, commercial mortgage loans stall out in 1Q2014 via HousingWire

Commercial and multifamily mortgage loan originations in the first quarter of 2014 were 1% lower than during the same period last year and 45% lower than the fourth quarter of 2013, according to the Mortgage Banker’s Association’s survey of originations.

“Commercial and multifamily borrowing typically starts the year slowly, with less than one-fifth of the annual volume usually done in the first quarter,” said Jamie Woodwell, MBA’s vice president of commercial real estate research. “This year is looking to continue the trend."

Reaad more...Multifamily, commercial mortgage loans stall out in 1Q2014 | 2014-05-06 | HousingWire

Bedbug Lawsuit Costs Landlords, Pest Company $2.5 Million via Apartment Management Magazine

Residents of an apartment complex in Iowa will be sharing a $2.45 million dollar settlement after a major bedbug outbreak occurred at the building.

According to a report , the class action lawsuit, which involves 300 current and former tenants, has been going through the courts for four years and eventually ended up in the Iowa Supreme Court. After years of legal wrangling, the case was settled before going to trial.

Read more...Bedbug Lawsuit Costs Landlords, Pest Company $2.5 Million | Apartment Management Magazine

1Q Apartment Deal Volume Falls, But With a Big Caveat via Multifamily Executive Magazine

On the surface, a 43 percent drop in year-over-year transaction volume would be disturbing. But if you take a deeper look at the first-quarter report by New York-based research firm Real Capital Analytics (RCA), things don’t look quite as alarming.

Excluding portfolio deals, sales of individual apartment properties increased 28 percent compared to the first quarter of 2013. That’s because the massive $6.5 billion portfolio sale of Denver-based Archstone occurred in the first quarter of 2013, skewing the results in last year's favor.

Overall, the first quarter saw $18.7 billion in apartments change hands. Individual properties accounted for $14.5 billion of that volume, while portfolios comprised $4.2 billion of the tally. In fact, 11 properties priced above $100 million sold in the quarter.

Read more...1Q Apartment Deal Volume Falls, But With a Big Caveat - Multifamily Executive Magazine

Austin apartment tally: 19,767 units in 1Q 2014 via Real Estate Center Texas A&M

Apartment occupancy remains high and rents continue to rise throughout the Austin market, according to the Austin Multifamily Report by Austin Investor Interests LLC.

There are 17,627 units currently under construction and another 2,140 units poised to start. The average price per unit for investment sales is $102,538.

Read more...Austin apartment tally: 19,767 units in 1Q 2014 via Real Estate Center Texas A&M

Apartment Market Statistics: May 2014 via Multi-Housing News Online

According to PPR/CoStar, the average apartment sales price was $107,501 per unit in the fourth quarter of 2013, down slightly from the same period in 2012.

Coop and condo prices rose by 13 percent over 2013, while inventory fell, according to the National Association of Home Builders (NAHB). Housing starts, meanwhile, exhibited a downward trend.

“Housing starts of buildings with five or more units began 2014 with a month-over-month decline to a seasonally adjusted annual rate of 300,000 units,” states the NAHB. According to NAHB, since peaking at 379,000 units in November 2013, housing starts of buildings with five or more units has now declined for two consecutive months.

Read more...APARTMENT MARKET STATISTICS: May 2014 | Multi-Housing News Online