Texas Manufacturing Picks up Pace in June, Says Dallas Fed Survey via Dallas Fed

Texas factory activity increased again in June, 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—rose from 11 to 15.5, indicating output grew at a faster pace than in May.

Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.

Read more...Texas Manufacturing Picks up Pace in June, Says Dallas Fed Survey - Dallas Fed

Houston Apartment MarketData stats: May 2014 via Real Estate Center at Texas A&M

Apartment MarketData Research Services LLC released May 2014 data. The multifamily market data represent three months trailing (March–May 2014).

As a rule these represent all properties except those that are leased but not occupied units.

Read more...Houston Apartment MarketData stats: May 2014 via Real Estate Center at Texas A&M

June Busting Out All Over in Houston via KTRH

Drive around the Galleria area and inside the Loop are you’re likely to see almost a dozen construction cranes, big ones, assembling the new multi-family units sprouting up in Houston like weeds.

The rents at The Tower in the Museum District can set you back a pretty coin: up to $7,750 a month for a two bed-two bath. And the amenities, including the 6th floor swimming pool with views that take your breath away, are total top notch.

Read more...June Busting Out All Over in Houston | KTRH

MF Posts Best Quarter Since 2001 via GlobeSt.com

For both occupancy and effective rent growth, the second quarter was the strongest that the multifamily sector has seen more than 13 years, according to Axiometrics data obtained EXCLUSIVELY by GlobeSt.com. The apartment and data research firm says both metrics exceeded expectations, with occupancy reaching levels not seen since Q1 in 2001 and rent growth posting its best quarterly showing since Q3 2000.

Read more...MF Posts Best Quarter Since 2001 - Daily News Article - GlobeSt.com

Bumpy Road Ahead for Occupancies via Multifamily Executive Magazine

Many prognosticators think the great run in the apartment market is coming to an end. After performing incredibly well for the past four years, the tide is starting to turn against the marketplace.

Sweeping changes over the next two years are going to cause fundamentals in the market to weaken for the first time since 2009. Significant increases in construction activity, for example, are going to send a torrent of properties into the market over the next seven quarters. Of course, these changes won’t be uniform across the United States. So it's critical to understand which markets are going to see the most challenges.

Read more...Bumpy Road Ahead for Occupancies - Multifamily Executive Magazine

Figuring Out the Gen Y Generation via GlobeSt.com

“Young adult population boom has fueled the apartment sector, and that boom should extend another decade… It has been one of the big demand drivers. A big part of the story is that we have so many young adults in the prime renting age renting a good chuck of those apartments.” So said Jay Parsons, national market analysis manager of MPF Research, who served as panelist of a PCBC session titled: “Not Our Parents’ House,” a panel about who are Gen Y renters and what do they want?

According to Parsons, it is very hard to figure out this generation. He pointed out that the Millennial population has been slower to marry and become financially independent and they express less interest in “worldly” goods.

Read more...Figuring Out the Gen Y Generation - Daily News Article - GlobeSt.com

The Future is still Bright! 6/26/14 via Calculated Risk

Trulia chief economist Jed Kolko wrote this morning:
"Median age in US ~38. But modal age is 23. Five most common ages: 23, 24, 22, 54, 53."

This is an important change in the modal age. As I've noted before, by 2020, eight of the top ten largest cohorts (five year age groups) will be under 40, and by 2030 the top 11 cohorts will be the youngest 11 cohorts.

Demographics is a key driver of economic growth, and although most people focus on the aging of the "baby boomer" generation, the movement of these younger cohorts into the prime working age is another key story in coming years. Here is a graph of the prime working age population (this is population, not the labor force) from 1948 through May 2014.

Read more...Calculated Risk: The Future is still Bright!

DFW Economic Indicators June 2014 via Dallas Fed

The Dallas–Fort Worth economy continued to expand at a healthy clip in May. DFW employment grew 4.7 percent, faster than Texas and the U.S., which grew 4.5 percent and 1.9 percent during the month. Home prices continued on an upward trend, and home inventories remained low. The unemployment rate held steady in Dallas and edged up in Fort Worth. The Dallas Fed business-cycle indexes posted increases, suggesting continued expansion for the Dallas–Fort Worth metroplex.

Dallas–Fort Worth employment expanded at a rapid pace of 4.7 percent in May, adding 12,300 jobs. Through May, the DFW area has seen payrolls increase by 4.6 percent or 58,900 jobs. Most of the increase in the area’s employment has come from rapid growth in the Dallas economy, which has added jobs at a 5.5 percent pace (year to date)—faster than any other major metro in the state.

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

Regional Growth Accelerates in the Spring via Dallas Fed

The Texas economy has grown at a faster pace, according to recent data. Job growth picked up in April, and unemployment fell to a new five-year low. Housing permits, starts and existing-home sales rose in April. Thus far in the second quarter, Texas Business Outlook Survey (TBOS) results are improved over first-quarter averages, suggesting that manufacturing and services activity is picking up. On the negative side, manufacturing and government employment growth are flat year to date. Wage pressures continue as labor shortages persist, even for unskilled labor. However, employment growth for the full year is projected to outpace 2013.

Read more...Regional Growth Accelerates in the Spring - Dallas Fed

APARTMENT MARKET STATISTICS: June 2014 via Multi-Housing News Online

Multifamily housing starts fell for the third consecutive month in February 2014, according to the National Association of Home Builders (NAHB).

The seasonally adjusted annual start rate of 312,000 units during the month exceeded the average level recorded between 2000 and 2003 by 2.4 percent.

Meanwhile, existing condo and co-op sales prices, not seasonally adjusted, rose by 9.8 percent over the past 12 months, states NAHB.

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

Strong Austin economy staying ahead of the pack through 2020 via Real Estate Center at Texas A&M

The Austin economy led the entire nation in percentage growth of gross metro product in 2013 and is expected to stay on top through 2020, according to an economic analysis released by the U.S. Conference of Mayors.

Austin led the nation's cities in 2013 with a gross metro product growth — the sum of all goods and services produced annually in a city — of 4.6 percent.

Read more...Strong Austin economy staying ahead of the pack through 2020 via Real Estate Center at Texas A&M

Texas Employment Update 6/20/14 via Dallas Fed

The Texas economy continued to expand in May; the state added 42,000 jobs. Year to date, Texas has gained 171,500 jobs.

The Dallas Fed improves the Bureau of Labor Statistics' (BLS) payroll employment estimates for Texas by incorporating preliminary benchmarks into the data in a more timely manner and by using a two-step seasonal adjustment technique. Current Dallas Fed data are benchmarked through third quarter 2013. BLS data are benchmarked through third quarter 2013.

Read more...Texas Employment Update - Dallas Fed

House our Heroes Program Welcomes Homeless Veterans Home via Property Management Insider

Alamo Community Group (ACG) gets lots of calls every day from individuals and families seeking affordable housing. But one inquiry three years ago resonated through the company’s San Antonio, Texas, offices.

On the other end of the line was a community services agency asking if ACG could provide a home for a working military veteran, his wife and five kids who had nowhere else to go. ACG Deputy Director Tina Aranda, who has worked in affordable housing for 12 years, remembers the call.

“We have a vet family, they are living in their van, seven people. Do you have anything for them?” she recounted. “So, we said okay, we have a 3-bedroom, and let’s put them in and figure out how we do it later. It was one of those desperate needs and we didn’t quite know how we were going to do it, but we’ll figure it out.”

Read more...House our Heroes Program Welcomes Homeless Veterans Home | Property Management Insider

Apartments: Watch Numbers in Jobs, Units via GlobeSt.com

Ten apartment markets that bear watching by investors, and each for different reasons. In Denver, for example, a key factor is the rapid job growth, while in Dallas it’s the fast pace of new construction. One thing investors ought to keep an eye on for each of the 10 markets—Austin, TX; Boston; Houston; Kansas City, MO; Las Vegas; Portland, OR; the Research Triangle in North Carolina; and Tucson, AZ as well as Dallas and Denver—is “the employment rate as it relates to multifamily development,” Reid Bennett, Chicago-based national council chair of multifamily properties for Sperry Van Ness International, tells GlobeSt.com.

In many of the MSAs which Bennett tracks on a monthly basis, “We’re seeing an influx of jobs in many sectors, but we’re also seeing a different effect” in many of them. Atlanta and Dallas, for example, have comparable numbers in terms of brisk employment growth, “but Dallas has 6,500 more apartment units that they’re bringing to market. It’s interesting watching the employment rate as it relates to the number of units being brought to market.”

Read more...Apartments: Watch Numbers in Jobs, Units - Daily News Article - GlobeSt.com

Economy Watch: Fed to Keep Tapering Stimulus, Predicts Slower Growth in 2014 via Commercial Property Executive

Much of Wednesday’s economic news emerged from the Federal Reserve, especially the decision by its Federal Open Market Committee to continue tapering the economic stimulus tool known as quantitative easing. In July, the central bank will buy agency-backed securities at a pace of $15 billion per month, down from $20 billion. The Fed will also add to its holdings of longer-term Treasuries at a monthly clip of $20 billion, rather than $25 billion.

The FOMC also said that U.S. economic activity has rebounded in recent months. Labor market indicators show further improvement, though the committee pointed out that the unemployment rate “remains elevated.” The FOMC added that “household spending appears to be rising moderately and business fixed investment resumed its advance, while the recovery in the housing sector remained slow.”

Read more...Economy Watch: Fed to Keep Tapering Stimulus, Predicts Slower Growth in 2014 | Commercial Property Executive

Growing Urban Development Trend: Walkability via WORLD PROPERTY CHANNEL

Based on a new report by the Center for Real Estate and Urban Analysis at George Washington University School of Business in conjunction with LOCUS: Responsible Real Estate Developers and Investors, walkable real estate development projects and places are on the rise nationwide.

The report titled: Foot Traffic Ahead: Ranking Walkable Urbanism in America's Largest Metros, ranks the country's top 30 metropolitan areas based on the amount of commercial development in Walkable Urban Places (WalkUPs). The study finds higher education levels and one-third higher GDP per capita in high-ranking cities. Additionally, a series of forward-looking metrics examine the future development patterns in these metro areas to predict how walkable or how sprawling their future development is likely to be.

Read more...Growing Urban Development Trend: Walkability - WORLD PROPERTY CHANNEL Global News Center

Apartment Occupancy Reaches 95% via GlobeSt.com

More evidence that multifamily is proceeding from strength to strength. A month ago, Axiometrics released data showing that apartment rent growth hit a post-recession peak; this time, it’s occupancy that is posting the strongest national performance since the Dallas-based firm began keeping track on a monthly basis.

As of May, national apartment occupancy had reached 95%, Axiometrics said Thursday. Stephanie McCleskey, the firm’s director of research, says Axiometrics began tracking apartment data on a monthly basis in April 2008, “and this is the first time since then that occupancy has been 95%.” It has risen steadily for the past four months, she adds.

Read more...Apartment Occupancy Reaches 95% - Daily News Article - GlobeSt.com

Once a Top Performer, El Paso's Apartment Sector is Now a Laggard via Property Management Insider

El Paso has proven to be a counter-cyclical apartment market over the last six years. In the recession, El Paso held steady and then quickly surged to rank as the nation’s leader for rent growth through most of 2010. But in recent years, El Paso has ranked among the nation’s weakest apartment markets. What happened?

El Paso Performance Highlights for Q1 2014
When the recession hit in 2008, the effect on the national apartment market was pretty severe across most metros. However, one market that consistently stood above the pack was El Paso. But since the end of 2010, El Paso has gone from being a top performer to a bottom performer.

Read more...Once a Top Performer, El Paso's Apartment Sector is Now a Laggard | Property Management Insider

MF Slowdown Skews May Numbers via GlobeSt.com

The headline numbers in housing starts for May don’t tell the whole story, in the view of David Crowe, chief economist with the National Association of Home Builders. Blogging on Tuesday’s new residential construction statistics jointly released by the US Census Bureau and the Department of Housing and Urban Development, Crowe acknowledges “mixed signals” but says the general trends are positive.

Multifamily starts in May were off 7.6% from April to 376,000, while permits declined 19.5% from the previous month to 372,000. “But the three-month moving average for multifamily starts is still the best since February 2006 and the decline is more the result of an extraordinarily high April,” Crowe writes. “The same trend was evident in the multifamily permits, which adjusted downward after scoring a seven-year high in April.”

Read more...MF Slowdown Skews May Numbers - Daily News Article - GlobeSt.com

Commercial REALTOR® Markets Experience Rising Rents in 2014.Q1 via NAR Research

Commercial fundamentals continued to strengthen in REALTOR® markets, as demand for space accelerated during the first quarter. Commercial leasing rose 5.0 percent over the fourth quarter 2013, following a moderate 0.4 percent rise the prior quarter. On the supply side, new construction showed a similar acceleration, gaining 4.0 percent in the first quarter 2014, on the heels of a 2.0 percent increase last quarter.

Vacancies declined for all property types, except multifamily buildings. Office vacancies declined 90 basis points, to 16.7 percent, while industrial availability declined 150 basis points, to 13.1 percent. Multifamily vacancy reached 7.4 percent, an 80 basis point advance. Retail availability declined 190 basis points to 14.2 percent. REALTORS® expect inventory availability to remain flat over the next 12 months.

Read more...Commercial REALTOR® Markets Experience Rising Rents in 2014.Q1

Q1 2014 Apartment Market Trends via ReisReports

Asking and effective rents rose by 0.5 and 0.6 percent, respectively, during the first quarter. While these are decent growth figures, it should be noted that this is the slowest pace of growth in rents in the last 12 months, and depending on the neighborhood it is increasingly obvious that landlords are finding it difficult to raise rents by over 5 to 10 percent. Every single submarket that Reis covers now displays effective rent levels that exceed their highs from 2008, before the downturn pummeled the sector. With median wages not rising appreciably, unless the apartment complex caters to the top 1 percent of income earners it will be more of a challenge for landlords to raise rents moving forward. 2014 is going to be an interesting year, with Reis projecting effective rent growth to be slightly stronger versus 2013, but mainly because we are expecting an influx of new apartment units priced at a premium to bump up average rent levels over the period.

Read more...Q1 2014 Apartment Market Trends | ReisReports

CBRE 1Q 2014 multifamily big four metros via Real Estate Center at Texas A&M

Texas apartment market fundamentals remained strong in first quarter 2014, according CBRE's MarketView report.

San Antonio's Downtown/Trinity University submarket occupancy has grown 5.7 percent in the last 12 months. Consequently, the submarket is growing quickly and accounts for 24.3 percent of the units under construction throughout the metropolitan area.

Houston’s downtown core has over 900 units under construction.

Read more...CBRE 1Q 2014 multifamily big four metros via Real Estate Center at Texas A&M

How multifamily boom in Houston, nation affects affordability via Houston Chronicle

We’re seeing a multifamily housing boom in the Houston realty market, particularly in such hot spots as the Inner Loop, Energy Corridor and The Woodlands. This can mean brand-new apartment living options for some and a more scant market for those looking for something more affordable.

Rising land and labor costs continue to be an issue, incomes may not necessarily align with rising rents, more people are renting by choice and builders are bringing more to the market to make up for lags during the recession, experts on a panel at the National Association of Real Estate Editors said Wednesday.

Read more...How multifamily boom in Houston, nation affects affordability - Prime Property

Dallas/Fort Worth Multifamily via REBusinessOnline.com

Is the Dallas/Fort Worth multifamily market headed back to the same level of intensity we experienced from 2005 to 2007?

Most of the signs suggest that we are on track to not only meet this same amount of demand, but also outperform the market of the mid-2000s. So what are the drivers that are leading this investor demand?

First, as a whole (not only Dallas/Fort Worth), Texas is flourishing right now. The state leads the nation in job growth, gaining nearly 300,000 new jobs in 2013, with one-third of those being considered high-paying jobs.

Read more...Dallas/Forth Worth Multifamily via REBusinessOnline.com

The Smart Money Likes Value-Add Deals via Multifamily Executive Magazine

If you have designs on buying that aging B property to renovate it to a B-plus, there’s some good news. Lenders want your business. But there’s also a downside—you likely won’t be the only one who covets that particular asset.

Since the end of 2012, Keith Harris, chief investment officer at Chicago-based owner and manager Laramar Group, began to see banks move more aggressively on acquisition and renovation loans. Wells Fargo and J.P. Morgan financed several of its acquisitions but Harris notes that local and regional lenders are also highly competitive.

“The debt market has gotten aggressive in terms of the amount of money that lenders want to put out,” he says. “At the same time, rates and spreads have come in a bit.”

Read more...The Smart Money Likes Value-Add Deals - Multifamily Executive Magazine

Texas economy tacks on more jobs in April via Dallas Business Journal

The Texas economy continued expansion in April, gaining more jobs than it did in March, according to a study by the Federal Reserve Bank of Dallas.
Fed data showed the state gained 52,700 jobs in April, up from just 12,400 the previous month. The hike took Texas’ unemployment rate to 5.2 percent, more than a full point lower than the nation’s, which stood at 6.3 in April.

Read more...Texas economy tacks on more jobs in April - Dallas Business Journal

Houston Economic Indicators June 2014 via Dallas Fed

The Houston Business Cycle Index increased at a slower 5.5 percent in April after climbing a revised 7.7 percent in March. This implies that economic conditions, while still strong, softened slightly in April. Overall employment growth slowed, but indicators for manufacturing activity improved. Service industries posted solid gains, and energy prices declined only slightly. Taken together, these indicators continue to suggest a robust local economy.

While remaining quite healthy, employment growth slowed in April to a 3.3 percent annual pace, the slowest growth this year. The two broad categories of education and health and professional and business services posted the fastest growth rates, representing an addition of 4,500 and 3,600 jobs, respectively. Trade, transportation and utilities declined the fastest (losing 2,400 jobs).

Read more...Houston Economic Indicators June 2014 via Dallas Fed

ALN Monthly Newsletter June 2014 via ALN Apartment Data

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

Corpus Christi Apartment Stats Continue to Impress via Property Management Insider

Corpus Christi has ranked among the nation’s best tertiary apartment market performers over the course of the past few years. Stellar stats registered once again in 1Q 2014.

The metro’s early 2014 occupancy rate stood at 95.6%, continuing the streak of occupancy above the 95% mark seen since the middle of 2012. Perhaps even more impressive was annual growth in effective rents for new leases that came in at 6.2%, almost double the U.S. norm.

Read more...Corpus Christi Apartment Stats Continue to Impress | Property Management Insider

As Big Wave of Apartment Supply Hits, Dallas’ Urban Core Holding Up Well … So Far via Property Management Insider

Like other markets across the country, Dallas is seeing an unusually high concentration of apartment construction within its urban core submarkets. So far, fundamentals have remained solid … but with a lot more new product on the way, how will the Dallas core hold up?

Dallas Urban Core Performance Highlights for Q1 2014
Today, MPF Research looks at the two key suburbs that make up the urban core of Dallas: Intown Dallas and Oak Lawn/Park Cities. And the story being told in the urban core of Dallas is one that is being repeated across the country in other metros: lots of new, and expensive, product coming online in the urban core.

Read more...As Big Wave of Apartment Supply Hits, Dallas’ Urban Core Holding Up Well … So Far | Property Management Insider

U.S. Commercial Mortgage Debt at Record High $2.56 Trillion via WORLD PROPERTY CHANNEL

According to the Mortgage Bankers Association (MBA), the level of commercial and multifamily mortgage debt outstanding increased by $11.1 billion in the first quarter of 2014, as three of the four major investor groups increased their holdings. That is a 0.4 percent increase over the fourth quarter of 2013.

Total commercial and multifamily debt outstanding stood at $2.56 trillion in the first quarter. Multifamily mortgage debt outstanding rose to $913 billion, an increase of $8.7 billion, or 1.0 percent, from the fourth quarter of 2013.

Read more...U.S. Commercial Mortgage Debt at Record High $2.56 Trillion - WORLD PROPERTY CHANNEL Global News Center

Texas Economic Indicators June 2014 via Dallas Fed

The Texas economy continues to expand, with employment growing at a 5.7 percent annual rate in April. Texas single-family construction permits, existing-home sales and housing starts all increased in April. Texas exports declined in the first quarter. Manufacturing activity continued to rise in May, according to the Texas Manufacturing Outlook Survey (TMOS).

Texas gained 52,700 jobs in April after adding 12,400 jobs in March. Current Texas employment stands at 11.45 million, according to the Bureau of Labor Statistics’ payroll survey.

The Texas unemployment rate declined to 5.2 percent in April. The Texas rate remains lower than the U.S. rate, which was 6.3 percent in April.

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

Vacancy, Employment Up in Austin via Commercial Property Executive

The Silicon Hills nickname Austin received in the 1990s proves to still be a suitable one for the current times due to the technology firms that are continuously attracted to this area. This impacts a few market aspects, primarily employment, and subsequently construction, rent growth and new investments.

After a less impressive 2013, Austin rebounded to occupy the third position inForbes’ latest listing of the best cities for jobs. The area recorded growth of 4.1 percent in 2013; it reached a 13.7 percent growth rate between 2008 and 2013, ranked at no. 1 in 2012 and dipping down to no. 10 in 2013.

Read more...Vacancy, Employment Up in Austin | Commercial Property Executive

Texas Strong via Multi-Housing News Online

They say all things are big in Texas, and when it comes to the current state of multifamily rentals in Houston, Dallas and Austin, the numbers certainly live up to the billing. Last year saw tremendous growth for the Texas apartment market, and industry insiders expect 2014 to follow suit.

Ryan Reid, CBRE’s market leader for multifamily sales in Dallas, says “opportunity” is the buzz word in Texas.

“Most markets are performing very well, and job growth continues overall, which will continue to drive absorption,” he says. “Given the changing demographics of Baby Boomers and Gen Y, we continue to see strong demand for apartments. There is very good capital interest in the space given these factors that I believe provide opportunity for both buyers and sellers.”

Read more...Texas Strong | Multi-Housing News Online

Perception is Reality: What Your Apartment Community Says About You via Property Management Insider

The impression your apartment community gives a potential renter isn’t limited to the physical environment inside or outside of your leasing office. The appearance of your company logo, website, Facebook page, and even the attire your on-site staff, down to the color of their shoes and nail polish, will send signals to every customer about what you and your company value.

All things speak to the potential renter’s perception of the customer experience. Whether or not that perception is reality is irrelevant to their impression of you and your apartment community.

Keep the Community Message Consistent and Fresh

Read more...Perception is Reality: What Your Apartment Community Says About You | Property Management Insider

Dallas Beige Book 6/4/2014 via Dallas Fed

The Eleventh District economy grew at a moderate pace over the past six weeks. Most manufacturers reported an increase in demand. Retail and automobile sales strengthened. Demand improved or held steady in most nonfinancial services industries. Activity in the housing sector was robust, and office and industrial leasing activity remained strong. Growth in loan demand increased. Drilling and oil field services activity remained solid, while agricultural conditions worsened. Price increases were noted in some industries. Employment was flat to up slightly, with several reports of wage pressures. Outlooks were optimistic across most industries.

Read more...Dallas Beige Book - Dallas Fed

10 Reasons It's Better to Be a Renter via Yahoo News

For decades, it was drilled into the heads of many Americans that renting makes you a second-class citizen. You only rent temporarily until you can move up in the world and achieve the American dream by purchasing a home -- but those days may be behind us.

About three in five adults believe renters can be just as successful as homeowners at achieving the American Dream, and more than half believe buying a home has become less appealing in recent years, according to a 2013 survey of more than 1,400 people by research firm Hart Research Associates.

While owning a home may be an aspiration for many Americans, it's often just less expensive and more convenient to be a renter. Here are 10 examples:

Read more...10 Reasons It's Better to Be a Renter - Yahoo News

Recession Aftermath: All Under One Roof via Fox Business

The rush to rent is starting to show up in homebuilding statistics. Construction starts for multi-family homes have been soaring in recent years, hitting an all-time high in November when they accounted for a staggering 38.4% of total house sales. And this trend doesn’t seem to be slowing down.

“The rally in multi-family house building is in response to an increase in demand for such homes,” says Capital Economics economist Paul Diggle. “Renting has become more prevalent over the past nine years, and two-thirds of renters live in multi-family accommodations. The cyclical rebound in household formation over the next few years will be driven by renters, so it doesn't look like multi-family demand is going to weaken anytime soon.”

Read more...Recession Aftermath: All Under One Roof | Fox Business

Lower Default Rates Bolster Bank Lending via GlobeSt.com

The default rate across banks' multifamily and commercial real estate mortgages declined to 1.6 percent in the first quarter, Chandan Economics has shown in its quarterly Bank Lending and Default Report. The overall rate of default (including loans 90+ days delinquent and in non-accrual) has now fallen for the twelfth consecutive quarter, reflecting write-downs, troubled debt restructurings, and the dilution of legacy loans by banks' new mortgage lending. The multifamily default rate has fallen to 0.7 percent, its lowest level since before the recession, while the slower recovery in the commercial pool has pulled its default rate down to 1.8 percent.

Read more...Lower Default Rates Bolster Bank Lending - Chief Economist Article - GlobeSt.com

Five Tips to Help Prevent Fraud and Embezzlement at the Site Level via Property Management Insider

In more than 35 years in the apartment industry, Mike Clark knows that he’s been a victim of internal, identifiable criminal embezzlement and fraud at the site level seven times, to the tune of tens of thousands of dollars. And he’s pretty sure there were other times that employees have stolen from his company that were never discovered.

Clark, the newly installed president of the Texas Apartment Association and Principal and Owner of Alpha-Barnes Real Estate Services, recalls one instance where he believed an employee bilked his company out of more than $60,000 before moving on. He’s also convinced the woman is still out there taking from another organization.

Another used disappearing ink to write the company name on rent checks that didn’t list the payee, and rewrote her name when the ink faded and cashed the checks. Then there was the maintenance worker who dug up and stole shrubs.

Read more...Five Tips to Help Prevent Fraud and Embezzlement at the Site Level | Property Management Insider

Secondary Markets to Experience Accelerated Rent Growth in 2014 via National Real Estate Investor

Apartment rents will grow faster in many secondary markets than in the top primary markets like New York City and Los Angeles, according to 2014 projections from data firms Reis Inc. and Pierce Eislen.

“There has been a tremendous amount of rent growth and growth in value in these markets,” says Robert Kadoori, senior vice president for debt and structured finance with CBRE capital markets, which quoted the Pierce Eislen projections in a recent multifamily presentation.

Apartment investors have been turning toward secondary markets this year as they look for higher yields on their investments. Rising rents will make those markets even more attractive.

Read more...Secondary Markets to Experience Accelerated Rent Growth in 2014 | Multifamily content from National Real Estate Investor

Commercial, Multifamily Mortgage Delinquencies Decline in U.S. via WORLD PROPERTY CHANNEL

According to the Mortgage Bankers Association's (MBA) latest Commercial/Multifamily Delinquency Report, delinquency rates for commercial and multifamily mortgage loans continued to decline in the first quarter of 2014.

During the first quarter of 2014, the 30+ day delinquency rate for loans held in commercial mortgage-backed securities (CMBS) decreased 0.69 percentage points to 6.16 percent. The 60+ day delinquency rate for multifamily loans held or insured by Fannie Mae was unchanged at 0.10 percent. The 60+ day delinquency rate for multifamily loans held or insured by Freddie Mac decreased 0.05 percentage points to 0.04 percent. The 60+ day delinquency rate for commercial and multifamily mortgages held in life company portfolios were unchanged at 0.05 percent. The 90+ day delinquency rate for loans held by FDIC-insured banks and thrifts decreased 0.13 percentage points to 1.57 percent.

Read more...Commercial, Multifamily Mortgage Delinquencies Decline in U.S. - WORLD PROPERTY CHANNEL Global News Center

CBRE: Houston multifamily 1Q 2014 MarketView via Real Estate Center at Texas A&M

Houston’s job and population growth continued to drive apartment demand in first quarter 2014. Rental rates and occupancy continued their upward trend as average rents reached $1 per sf for the first time ever in Houston and occupancy climbed to 90.9 percent.

In Q1 2014, 4,199 new apartment units were delivered, up slightly from the Q4 2013 when 4,060 units delivered. 22,246 units remained under construction across the Houston metro at the end of Q1 2014.

Read more...CBRE: Houston multifamily 1Q 2014 MarketView

Apartments Still a Landlords’ Market, Says NAR via Multi-Housing News Online

The forecast for rental apartments is still positive, according to the Q1 2014 Commercial Real Estate Outlook, which was released this week by the National Association of Realtors. In fact, according to the outlook, the apartment sector will remain the strongest kind of commercial real estate into 2015, as it has been for a number of years now.

NAR predicts that apartment vacancies nationwide will edge up from 4 percent, as of the second quarter of 2014, to 4.1 percent in Q2 2015. Though that represents a small increase, it doesn’t mean a fundamental change in the landlord-tenant dynamic. Vacancy rates below 5 percent are generally considered a landlord’s market, with demand justifying higher rent.

Read more...Apartments Still a Landlords’ Market, Says NAR | Multi-Housing News Online

Vacancy Goes Up in Austin, But So Does Employment via Multi-Housing News Online

The Silicon Hills nickname Austin, Texas, received in the 1990s proves to still be a suitable one for the current times due to the technology firms that are continuously attracted to this area. This impacts a few market aspects, primarily employment, and subsequently construction, rent growth and new investments.

After a less impressive 2013, Austin rebounded to occupy the third position in Forbes’ latest listing of the best cities for jobs. The area recorded growth of 4.1 percent in 2013; it reached a 13.7 percent growth rate between 2008 and 2013, ranked at no. 1 in 2012 and dipping down to no. 10 in 2013.

Read more...Vacancy Goes Up in Austin, But So Does Employment | Multi-Housing News Online