Houston Apartment Market Update June 2014 via Oconnordata.com

Market Summary

Key metrics for the Houston area multifamily sector recorded both positive and negative changes in June 2014.

Occupancy figures for the classes recorded both positive and negative changes over the month. Class A recorded an increase of 0.13% from previous month. The average went down by 0.90% over the year for Class A properties. The largest annual increase was noted for Class C properties with an average increase of 1.64% to close at 89.49%.

Read more...Houston Apartment Market Update June 2014

Austin Apartment Market Update June 2014 via OConnordata.com

Market Summary

All metrics for the Austin area multifamily sector recorded both positive and negative changes in June 2014.

Occupancy figures recorded both positive and negative figures for the classes for the month. Class A properties reported a decrease of 0.29% over last month, and a decrease of 1.87% over last year. The largest increase over the month was noted for Class B with an increase of 0.79%.

Read more...Austin Apartment Market Update June 2014

Dallas/Ft. Worth Apartment Market Update June 2014 via OConnordata.com

Market Summary

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 0.14% over previous month. On a year-over-year basis Class A properties recorded a decrease of 0.62%. The largest annual increase was noted for Class B properties with an increase of 0.35%.

Read more...Dallas/Ft. Worth Apartment Market Update June 2014

DFW's top 10 submarkets for apartment growth via Dallas Business Journal

The Dallas area has been outperforming the national average for rental property growth, which is up nearly 3.9 percent in June year-over-year.

And developers are jumping on board, delivering the third biggest supply of new apartments in the U.S., according to data from Axiometrics, a Dallas-based analytics firm that tracks the nation's apartment housing market.

"If you include Fort Worth, we'd hop over Houston," Jay Denton, vice president of research for Axiometrics, told the Dallas Business Journal."This is one of the top markets for deliveries and we're seeing strong rent growth. We are developing 11,000 to 13,000 new units a year and barely satisfying demand."

Read more...DFW's top 10 submarkets for apartment growth - Dallas Business Journal

Tenants Use 30% More Gas When Owners Pay the Bill via Multifamily Executive Magazine

WegoWise, a building intelligence provider, has unveiled a utility bill study that for the first time demonstrates how incentive structures can make a substantial impact on building efficiency. The study found that multifamily buildings where owners pay utility bills use approximately 30 percent more energy (BTUs) per square foot than buildings where tenants pay utility bills. Additionally, the study found that annual utility costs for buildings with owner-paid bills are 20 percent higher than tenant-paid bills.

“The building efficiency space has long been dogged by the ‘split incentive’ issue, whereby only those who pay the energy bill are motivated to change behavior or invest in building upgrades,” said Eric Bloom, senior research analyst at Navigant Research. “For years, upgrades have been seen as the smartest investment for owners because they deliver reliable returns and increase value. However, the WegoWise study reveals that incentives that motivate behavioral changes can play a significant role in cracking the efficiency puzzle. Understanding these complexities will be increasingly important as the multifamily sector continues rapid growth.”

Read more...Tenants Use 30% More Gas When Owners Pay the Bill - Multifamily Executive Magazine

Homes prices increase 8.6% in Dallas, sets new record via Dallas Business Journal

Home prices in North Texas are continuing to reach record levels, as Dallas area home prices were up 8.6 percent year-over-year in May, setting an index record of 138.51, according to the S&P/Case-Shiller Home Price Indices report released Tuesday.

From April to May, home prices in the Dallas area rose 1.3 percent.

The only other city in the 20-city national composite to set a home price index record in May was Denver. Detroit is the only city that has yet to reach home price levels seen in January 2000, according to the report.

Read more...Homes prices increase 8.6% in Dallas, sets new record - Dallas Business Journal

San Antonio Economic Update July 2014 via Dallas Fed

San Antonio saw mixed signs of growth in June after a very strong month in May, although broader measures of economic activity point toward continued expansion. The unemployment rate dropped to 4.7 percent, comparable to prerecession levels in 2008. However, payroll job growth slowed to an annualized 0.4 percent after a strong 6.3 percent increase in May. Housing starts slowed slightly, but other indicators such as construction employment and sales point to continued strength in housing.

Growth in the San Antonio Business-Cycle Index picked up again in June, with the six-month growth rate increasing from 5.0 to 5.3 percent, continuing the upward trend in growth that began at the end of 2013. This increase was driven primarily by a decline in the unemployment rate to 4.7 percent.

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

Houston multifamily 2Q 2014: Hendricks-Berkadia via Real Estate Center at Texas A&M

As hiring accelerated in the last six months, so did leasing activity with 10,650 newly occupied apartments. Rental demand was up from the 10,170 units absorbed during the same time period last year.

The Houston inventory expanded by 4,300 new apartments in the last three months. Deliveries were up 65.6 percent from the first quarter.

Read more...Houston multifamily 2Q 2014: Hendricks-Berkadia

New Multifamily Construction Will Contribute to Vacancies in Certain Markets via National Real Estate Investor

The multifamily sector will soon set a record for new construction, with more than 77,000 units delivering in the third quarter, adding to the 200,000-plus units delivered in the prior four quarters, including many still in the lease-up stage. The wave of supply is putting upward pressure on vacancies, which increased by 10 basis points in the second quarter, to 5.5 percent. While this is still low by historical standards, the pressure on the market will only build in the coming quarters.

It is still early in a supply wave that will increase the total stock of the multifamily market by 3.6 percent from 2014 to 2015. The pace of new construction will more than double the market’s historical average and should handily outpace absorption, pushing vacancies back up to 6.0 percent-6.5 percent by the end of 2015.

Read more...New Multifamily Construction Will Contribute to Vacancies in Certain Markets | Multifamily content from National Real Estate Investor

NMHC Survey: Apartment Market Conditions Tighter in Q2 2014 via Calculated Risk

From the National Multi Housing Council (NMHC): Apartment Markets Continue Expansion in July NMHC Quarterly Survey
Apartment markets continued to expand in the second quarter of 2014, as growth accelerated in all four indexes in the National Multifamily Housing Council (NMHC) Quarterly Survey of Apartment Market Conditions. The market tightness (68), sales volume (56), equity financing (58) and debt financing (68) indexes all improved from the first quarter this year and marked the second quarter in a row with all above the breakeven level of 50.

Read more...Calculated Risk: NMHC Survey: Apartment Market Conditions Tighter in Q2 2014

Apartment Market Remains Strong in First Half of 2014 via Multi-Housing News Online

According to a recent report from apartment research company Axiometrics, the U.S. apartment market has remained strong through the first half of 2014, thanks in part to low concession rates, high annualized rent growth and occupancy rates. The Oakland, Calif., major metropolitan market is hot with the Denver, Miami, Atlanta and Seattle markets also posting strong numbers.

“In April, 2014 year-to-date (YTD) effective rent growth just edged 2011 and 2012 to position itself as the strongest year of the recovery,” says Jay Denton, Axiometrics vice president of research. “The apartment market’s performance in the past two months has widened the gap.”

Read more...Apartment Market Remains Strong in First Half of 2014 | Multi-Housing News Online

Lots of New Supply So Far Hasn’t Derailed Austin’s Apartment Market Performance via Property Management Insider

With properties totaling another 3,100 apartments finished during 2Q, Austin now has added just over 8,700 units during the past year. The metro’s 4.6% annual inventory growth pace recorded since mid-2013 is the second most aggressive expansion rate seen across the country, topped only by Raleigh’s inventory growth of 5.5%.

While lots of new product coming on stream often creates a competitive leasing environment, there’s not much of a problem if big supply is accompanied by big demand. And that’s what we’ve seen so far in Austin. Net absorption in the apartment sector came in at some 3,500 units during 2Q and roughly 7,900 units over the past year.

Read more...Lots of New Supply So Far Hasn’t Derailed Austin’s Apartment Market Performance | Property Management Insider

DFW Economic Indicators July 2014 via Dallas Fed

The Dallas–Fort Worth economy has expanded at a strong pace in the first half of 2014 and is outperforming the state as a whole. Year to date, DFW employment has grown 4.5 percent, one percentage point faster than the state’s 3.5 percent pace. Job growth continues to be mostly broad-based across sectors. Activity in the housing sector remains healthy, and home prices continue to rise due to solid demand and low inventories. The Dallas and Fort Worth unemployment rates remain below those of the U.S., and the Dallas Fed business-cycle indexes suggest continued expansion for the Dallas–Fort Worth metroplex.

Dallas–Fort Worth employment grew 3.4 percent in June, adding 8,900 jobs. Job creation in the second quarter outpaced first-quarter growth by a wide margin. DFW employment rose 5.5 percent (42,600 jobs) in the second quarter, compared with 3.4 percent (26,500 jobs) in the first. Most of the increase in the area’s employment has come from rapid growth in the Dallas economy, which has added jobs at a 5.4 percent pace in the first half of the year—faster than any other major metro in the state.

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

Single-Family Gains; Multifamily Reigns via GlobeSt.com

Existing home sales reached an eight-month high last month, and a recent GlobeSt.com article raised anew the question of whether new supply is overtaking demand in the multifamily sector. However, four new reports, including one from Dallas-based Axiometrics, indicate that apartments’ reign is far from done.

Axiometrics reported on Tuesday that June’s concession rate of 0.78% was the lowest in at least five years, annualized effective rent growth of 3.6% was the highest since December 2012 and occupancy remained above 95% for the second month in a row. “In April, 2014 year-to-date effective rent growth just edged 2011 and 2012 to position itself as the strongest year of the recovery,” says Jay Denton, VP of research at Axiometrics. “The apartment market’s performance in the past two months has widened the gap.”

Read more...Single-Family Gains; Multifamily Reigns - Daily News Article - GlobeSt.com

Texas adds 19,100 jobs in June; Dallas-Fort Worth unemployment falls via Dallas Business Journal

Texas has added 371,000 jobs in the past year, including 19,100 in June, and the unemployment rate in the Dallas-Fort Worth area continues to fall.

The unemployment rate in Dallas-Fort Worth dropped to 5.4 percent compared to 6.7 percent a year ago, according to figures released Friday by the Texas Workforce Commission.

The state’s unemployment rate dropped to 5.1 percent in June from 6.4 percent a year ago. Texas’ unemployment rate remained below the nation’s June unemployment rate of 6.1 percent.

Read more...Texas adds 19,100 jobs in June; Dallas-Fort Worth unemployment falls - Dallas Business Journal

DFW apartment stats 2Q 2014: Hendricks-Berkadia via Real Estate Center at Texas A&M

Apartment demand was healthy in the first two quarters 2014, despite a 12.1 percent decrease in leasing activity compared to the first half of 2013. Renters occupied 7,250 additional units since the beginning of 2014.

Asking rents advanced 2.4 percent year over year to $950 per month 2Q 2014.

Read more...DFW apartment stats 2Q 2014: Hendricks-Berkadia

Austin multifamily 2Q 2014: Hendricks-Berkadia via Real Estate Center at Texas A&M

Rental demand jumped in second quarter 2014 with 2,950 newly occupied apartments, up from the 1,320 units absorbed in 1Q 2014. Recent leasing activity was more than double the quarterly average of 1,260 units absorbed since mid-2009.

In 2Q 2014, 2,520 multifamily units came online. Overall deliveries were up 85.2 percent from the 1,360 units added in 2Q 2013. Heightened leasing activity amid elevated deliveries resulted in a dip in vacancy to 4.7 percent.

Read more...Austin multifamily 2Q 2014: Hendricks-Berkadia

Apartment Fundamentals Soar to Long-Term Highs in Houston via Property Management Insider

With tremendous job growth and surprisingly moderate apartment construction (by Texas standards, at least), Houston’s apartment market continues to put up impressive numbers. In fact, Houston notched long-term highs in both occupancy in and in rent growth during 2014’s 2nd quarter.

Occupancy in the Houston apartment market hit a 13-year high during Q2 2014, jumping 80 basis points to 94.4%. More impressively, year over year rents reaccelerated in the second quarter, rising to 5.6%, a number not seen in the 20 years MPF Research has been tracking the metro.

Read more...Apartment Fundamentals Soar to Long-Term Highs in Houston | Property Management Insider

Dallas Beige Book July 16, 2014 via Dallas Fed

The Eleventh District economy grew at a moderate pace over the past six weeks. Manufacturing activity continued to increase, although there were a few reports of weaker demand. Retail and automobile sales strengthened, and were above year-ago levels. Demand for nonfinancial services was stable or improved, while growth in loan demand slowed over the reporting period. Sales of single-family homes were flat to down slightly, but apartment, office and industrial leasing activity was strong. Demand for oilfield services remained robust, and agricultural conditions improved. Prices were unchanged or increased modestly at most responding firms, and employment held steady or rose slightly. Outlooks remained optimistic.

Read more...Dallas Beige Book - Dallas Fed

Winning the ZMOT in the MFH Industry via Multifamily Blogs

Stop for a moment and think about the last time you made a major purchase. Now, think back 10 – 15 years and compare how you researched, analyzed and ultimately made your decision then to your most recent decision.

Chances are your approaches were materially different. If you’re like the vast majority of consumers, your recent purchase was highly influenced by time you spent online. Maybe you read some articles online, downloaded a buyer’s guide, visited a review site or utilized social media to gauge the experience or knowledge of others.

If you did, you’ve participated in the biggest changes in marketing since the development of modern consumer branding techniques. The Zero Moment of Truth (ZMOT) represents the time one spends in self-discovery during a purchasing process.

Read more...Winning the ZMOT in the MFH Industry - Multifamily Blogs

ALN Monthly Newsletter July 2014 via ALN Apartment Data

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

How Ratings and Reviews Steer a Renter's Search via Multifamily Executive Magazine

Out of every 10 people that look for a new apartment, nearly seven are using ratings and reviews, according to Highly Recommended: The Influence and Impact of Online Ratings and Reviews on Apartment Searchers sponsored by Apartment Guide and conducted by Kingsley Associates.

The survey, which included responses from 29,907 current apartment residents, pointed out that different demographics use ratings in different ways. For instance, women are much more likely than men to leave either a mostly negative or a mostly positive review. And more than 70 percent of residents under 34 were likely to probably or definitely consult online ratings and reviews in their next apartment search.

Read more...How Ratings and Reviews Steer a Renter's Search - Multifamily Executive Magazine

Houston Economic Indicators July 2014 via Dallas Fed

The Houston Business-Cycle Indexwas essentially un­ changed in May,growing an annualized 7.8percent after a robust 7.9percent in April. The indexrecorded itsfastest three-month growth rate since October 2012. The oiland gas industry posted solidjob gains, and industry funda­ mentals remained healthy. Refining and plastics contin­ ued to perform well, and overall labor market conditions remained positive despite somewhat bleak first-quarter exports. Taken together, these indicators continue to imply strong economic conditions in Houston.

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

Is Multifamily Supply Overtaking Demand? A New Twist to the Argument Emerges via GlobeSt.com

The apartment industry has been worried about a bubble forming, and then bursting, in this asset class since the recession. A case can be--and will be in a moment--made that building in this sector is reaching a saturation point in some markets. On the other end of the spectrum a new argument has emerged: not only is a supply bubble not forming--but current development pipeline is not sufficient to meet the real demand for apartments.

Certainly the pieces are all in place for a bubble burst in apartments: after the flood of foreclosures from the recession, apartments were in high demand and short supply. Apartment REITs reliably posted high returns, attracting investment and developers, with an eye on the growing valuations and ever-strengthening fundamentals in this space, set out to build, build, build.

Read more...Is Multifamily Supply Overtaking Demand? A New Twist to the Argument Emerges - Daily News Article - GlobeSt.com

Give Residents a Reason to Love You and They’ll Have No Reason to Leave You via Property Management Insider

As an industry, we’re consistently focused on developing a sense of community. A critical budget line item is resident events. And yet, participation in our pizza parties, breakfast-on-the-run, “Frozen” sing-alongs, or World Cup viewing parties are minimal, at best. To make matters worse, when asking residents about their satisfaction with “Sense of Community,” the national average is 3.40 on a 5-point scale. That translates to a “Warning” classification on our rating scale. Yikes.

What we now understand, however, is that when residents are evaluating “Sense of Community,” they’re not expressing their desire to become best friends with their neighbors or even having more or better events. Let’s face it: how many of you are dying to hang out with your own neighbors a little bit more? If you’re like me, I have a hard enough time scheduling get-togethers with the friends I already have! Why do we insist our residents feel any differently?

Read more...Give Residents a Reason to Love You and They’ll Have No Reason to Leave You | Property Management Insider

Urban Cores Getting Denser via Axiometrics

If you think apartment units are getting smaller, you’re right. Densification has become a keyword in urban-planning circles, Density-microunitespecially in urban core submarkets.

But while the center-city trend is toward smaller units geared to the active millennials who use their apartments almost solely as a place to sleep, Axiometrics doesn’t expect “microunits” to spread to the suburbs.

Average unit size nationally has fallen from a high of 1,010 square feet (s.f.) in 2006 to 940 s.f. in 2013, though that figure is expected to rise to 959 s.f. this year.

Read more...Urban Cores Getting Denser

In the rental market, Craigslist may be undisruptable via SFGate

At a recent dinner party, Pete Flint, CEO of the online real estate empire Trulia, expressed exasperation with one of his company's largest competitors.

"I mean, can you really believe Craigslist is still the best way to find an apartment?" he said.

While Trulia is better known for real estate sales listings, the rental market has been a growing slice of the company pie since it launched the rental side of its business in 2010. And in many markets - notably the dense, high-profile rental markets of San Francisco and New York - the classified listing site Craigslist is its only real competitor.

Read more...In the rental market, Craigslist may be undisruptable - SFGate

What Does the Multifamily Forecast Look Like Leading Up to 2020? via Multifamily Blogs

With all the popularity that multifamily has seen in the last few years and the recent news that construction of multifamily buildings with five or more units has seen a 10% boost this year to now total 35% of the U.S. market’s total units constructed, we thought it might be interesting to take a look at this current trend and what it means for the multifamily industry in the next half decade and beyond.

When looking forward at what we see coming to the multifamily industry in 2020, we first take inventory of the changing events that have brought us to where we are today.

For example, after the struggles that came about by way of the housing crisis, many long-time and would-be owners saw their attitude towards the dream of homeownership change.

Read more...What Does the Multifamily Forecast Look Like Leading Up to 2020? - Multifamily Blogs

Monthly Review of Texas Economy, June 2014 via Real Estate Center at Texas A&M

The Texas economy gained 375,300 nonagricultural jobs from May 2013 to May 2014, an annual growth rate of 3.4 percent compared with 1.8 percent for the United States (Table 1 and Figure 1). The state’s nongovernment sector added 343,000 jobs, an annual growth rate of 3.7 percent compared with 2.1 percent for the nation’s private sector (Table 1).

Texas’ seasonally adjusted unemployment rate fell to 5.1 percent in May 2014 from 6.4 percent in May 2013. The nation’s rate decreased from 7.5 to 6.3 percent (Table 1).

Read more...Monthly Review of Texas Economy, June 2014 -- Real Estate Center at Texas A&M

Renters Trading Size for Frills Fuel U.S. Apartment Boom via Bloomberg

Katie Graham is living large. Just in a small apartment.

She moved into the new ParkCentral tower in Nashville, Tennessee, for its gym, rooftop deck with heated pool, and the bars and restaurants in the neighborhood below. She didn’t mind the size of the 562-square-foot (52-square-meter) studio.

“I just wanted to be in a good area and wanted good amenities, so I wasn’t looking for something huge,” said Graham, 25, who relocated from her hometown in Jackson, Tennessee, two hours away. “I’m by myself and don’t need all that. The bigger the area, the more furniture you have to buy.”

Read more...Renters Trading Size for Frills Fuel U.S. Apartment Boom - Bloomberg

5 Reasons Occupancy Is Growing Stronger via Multifamily Executive Magazine

Most people think that when a flood of new supply hits the apartment market, occupancy and effective rents will go down. That’s true in most cases, but not in the first half of 2014, according to Axiometrics research. Even though 180,000 units have come on line in the past year, with thousands more on the way in the third and fourth quarters, occupancy and effective-rent growth have been at their highest levels since almost the turn of the 21st century.

Occupancy in May was 95.0 percent, the highest since Axiometrics started reporting monthly in April 2008. Early-release second-quarter 2014 numbers also show occupancy at 95.0 percent, the best quarter since the second quarter of 2001.

Additionally, the 2Q14 statistics show the quarter-over-quarter effective-rent growth rate at 2.4 percent, the strongest performance since the third quarter of 2000.
So why is this cycle different from most others? Here are some answers:

Read more...5 Reasons Occupancy Is Growing Stronger - Multifamily Executive Magazine

The truth behind millennial housing numbers via HousingWire

Despite an overabundance of news reports on millennials, one key factor is consistently left out of the mix. According to The Atlantic, one problem with the official statistics is that the Current Population Survey counts students living in dormitories as living with their parents.

Be sure to click on the link to see the graphic.

As you can see in the graph below, the share of 18-to-24-year-olds living at home who aren't in college has declined since 1986. But the share of college students living "at home" (i.e.: in dorms, often) has increased. So the Millennials-living-in-our-parents meme is almost entirely a result of higher college attendance.

Read more...The truth behind millennial housing numbers | 2014-07-09 | HousingWire

How To Select A Discount Rate For A Commercial Real Estate Investment via Model For Success, the REFM Blog

How do you determine the discount rate for your analysis? An easy question to ask and a somewhat tricky one to answer. My thoughts are below. Sound off in the comments section.

First of all, what is the discount rate?

The discount rate is first and foremost an annual rate (expressed as a percentage) that is used to contract (reduce in size) a future projected dollar value to its today’s-equivalent dollar value. At a minimum, assuming annual periods, the discount rate is applied over a single annual period, to discount a value projected to be achieved as of the end of Year 1 back to its perceived dollar value as of Time Zero (i.e., today).

Read more...How To Select A Discount Rate For A Commercial Real Estate Investment | Model For Success, the REFM Blog

The Definitive Guide to IRR (Internal Rate of Return) via Bigger Pockets

The most easily understood metric of investment return in real estate is Cash on Cash Return, usually abbreviated either CCR or COC. The concept is rather simple – CCR juxtaposes the cash investment that has been made to the Cash Flow (Income minus Expenses) being received.

For example, let’s say you invest $100,000 cash to buy a 4-plex which generates $2,000/month of Gross Income which results in $1,200/month of Cash Flow. Since CCR is usually thought of in terms of annual return, we must multiply all of the monthly numbers by 12. Thus, this $100,000 4-plex is generating $14,400 of Annual Cash Flow.

Now, CCR is simply the answer to the question – if I invest $100,000 in this 4-plex, how quickly, or at what rate, would I recover my cash?

Read more...The Definitive Guide to IRR (Internal Rate of Return)

Texas Economic Indicators July 2014 via Dallas Fed

The Texas economy continues to expand, with employment growing at a 4.5 percent annual rate in May. Single-family construction permits and existing-home sales in Texas increased, while housing starts decreased in May. Texas exports edged up in April. Manufacturing activity in June rose at a faster rate than May, according to the Texas Manufacturing Outlook Survey.

Texas gained 42,000 jobs in May after adding 54,100 jobs in April. Current Texas employment stands at 11.49 million, according to the payroll survey (CES).

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

When Going "Green" Counts: 7 Ways to Save Money on Your Rentals Through Water Conservation via Bigger Pockets

Many landlords pay the water bills for their tenants, which means most landlords really like it when their tenants don’t use a lot of water.

That puts them in the rare position of being right in line with the green crowd who wants to save the Earth. The problem, naturally, is getting them to actually do anything about it. Well, as it happens, there are a few things that you can do to a property between tenants — or even while a tenant is renting.

The following hands-off water-saving tricks can completely cut costs and benefit you as a landlord. Check them out:

Read more...When Going "Green" Counts: 7 Ways to Save Money on Your Rentals Through Water Conservation

The Nation's 10 Hottest Apartment Markets, According to SVN via Multifamily Executive Magazine

In its recently released Apartment Market Outlook, commercial real estate advisory firm Sperry Van Ness (SVN) says that while multifamily was the first sector to emerge from a “recessionary slump,” it “continues to offer widespread potential for further gains.” SVN’s offers a caveat though, which, not surprisingly, is about supply.

“Investors must be cognizant of rising inventory levels, however, and the potential for declining rents in submarkets where construction is getting too far ahead of demand,” it says in the report.

Read more...The Nation's 10 Hottest Apartment Markets, According to SVN - Multifamily Executive Magazine

San Antonio Real Estate Trends - May 2014 via Oconnordata

San Antonio Real Estate Trends is prepared for investors, lenders, brokers, developers, management companies and other industry professionals to provide transaction data and insights into market trends. The newsletter covers significant transactions and economic and financial news for Multifamily, Retail, Office, Industrial, Single-family and Vacant land.

Apartment market occupancy in San Antonio stood at 90.99% in April 2014, a decrease of 0.11% compared to the adjusted figure for the previous month, according to www.oconnordata.com, O’Connor & Associates data. Overall rents stood at $0.948 per square foot, which represented an increase of $0.001, when compared to March 2014. Rental rates increase by $0.004 per square foot for Class C properties and by $0.001 per square foot for Class A properties. Rental rates remained an unchanged figure for Class B & D properties when compared to previous month. Pre-leasing is currently underway for five communities (1,475), out of the 23 total properties (5,756 units) which are in the construction pipeline city-wide.

Read more...San Antonio Real Estate Trends - May 2014

Austin Real Estate Trends - May 2014 via Oconnordata

Austin Real Estate Trends is prepared for investors, lenders, brokers, developers, management companies and other industry professionals to provide transaction data and insights into market trends. The newsletter covers significant transactions and economic and financial news for Multifamily, Retail, Office, Industrial, Single-family and Vacant land.

Apartment market occupancy in the Austin area stood at 94.19% in April 2014, a decrease of 0.03% compared to the adjusted figure for the previous month, according to www.oconnordata.com, O’Connor & Associates data. Overall rents stood at $1.121 per square foot, an increase of $0.001 per square foot from March 2014. Rental rates increased by $0.002 per square foot for Class D properties. Rental rates increased by $0.001 per square foot for Class A, Class B and Class C properties, when compared to the previous month. Pre-leasing is currently underway in 16 communities (4,694 units) out of the 33 total properties (9,599 units) in the construction pipeline city-wide.

Read more...Austin Real Estate Trends - May 2014

Dallas / Ft. Worth Real Estate Trends - May 2014 via OConnordata

Dallas/Ft. Worth Real Estate Trends is prepared for investors, lenders, brokers, developers, management companies and other industry professionals to provide transaction data and insights into market trends. The newsletter covers significant transactions and economic and financial news for Multifamily, Retail, Office, Industrial, Single-family and Vacant land.

Apartment market occupancy in the Dallas/Fort Worth area stood at 92.99% in April 2014, an increase of 0.05% compared to the adjusted figure for the previous month according to www.oconnordata.com, O’Connor & Associates data. Overall rents stood at $0.956 per square foot, an increase of $0.001 per square foot from March 2014. Rental rate increased by $0.001 per square foot for Class A and Class B properties from previous month. Rental rates increased by $0.002 per square foot for Class C and Class D properties, when compared to previous month. Average rental rate per unit stood at $816.002 per unit, an increase of $0.54 per unit from previous month. Pre-leasing is currently underway in one community (123 units) out of the 38 total properties (10,206 units) in the construction pipeline city-wide.

Read more...Dallas / Ft. Worth Real Estate Trends - May 2014

Houston Real Estate Trends - May 2014 via OConnordata

Houston Real Estate Trends is widely read by brokers, developers and other industry professionals. The newsletter covers significant transactions and economic and financial news for Multifamily, Retail, Office, Industrial, Single-family and Vacant land.

Apartment market occupancy in the Greater Houston area stood at 91.98% in April 2014, a decrease of 0.13% compared to the previous month, according to www.oconnordata.com, O’Connor & Associates data. Overall rents stood at $0.965 per square foot, which represents an increase of 0.003 per square foot compared to March 2014. Average rental rates per unit stood at $833.83, an increase of $2.32 per unit over the previous month. Pre-leasing is currently underway in 25 communities (7,924 units) out of the 71 total properties (20,147 units) in the construction pipeline city-wide.

Read more...Houston Real Estate Trends - May 2014

Reis: MF Vacancy Compression Slows via GlobeSt.com

Notwithstanding strong metrics for the second quarter—including an historically low vacancy rate, appreciable year-over-year rent growth and the best Q2 showing for absorption in three years—the apartment sector’s recovery is maturing, Reis Inc. said Wednesday in its quarterly report. “Vacancy compression stalled during the second quarter of 2014 and it continues to slow gradually over time,” says senior economist Ryan Severino. “This is a trend that we have observed over the last few years and a harbinger for the apartment market going forward.”

After hitting bottom in 2011, new multifamily construction increased in 2012 and 2013, and thus far this year it’s ahead of the pace seen a prior. “As construction continues to ramp up and demand moderates, this will put upward pressure on national vacancy,” Severino says.

Read more...Reis: MF Vacancy Compression Slows - Daily News Article - GlobeSt.com

U.S. Commercial Real Estate Enjoys Strong Rebound in Q2 via World Property Channel

According to global commercial real estate consultants CBRE, the U.S. commercial real estate market improved strongly across all property types in the second quarter (Q2) of 2014.

"Commercial real estate leasing activity in Q2 2014 picked up from the weather-affected levels of the prior quarter," said Jon Southard, Managing Director of CBRE's Econometric Advisors group. "The pace of demand can finally be described as good--without the caveat of 'for this recovery.'"

Read more...U.S. Commercial Real Estate Enjoys Strong Rebound in Q2 - WORLD PROPERTY CHANNEL Global News Center

Quarterly Rent Growth Hits 14-Year High via GlobeSt.com

According to the latest report put out by RealPage MPF Research Division, effective rents for new leases in the 100 largest US apartment markets has increased by 1.9% in the second quarter. Quarterly apartment rent growth has reached a 14-year high.

For Q2, the annual effective rent growth pace came in at 3.5%; an upward trend from 3.2% in the first quarter and 2.9% in the fourth quarter of 2013. According to the report, monthly rents now average $1,153, across the nation.

Read more...Quarterly Rent Growth Hits 14-Year High - Daily News Article - GlobeSt.com

Rents up 15% while incomes up 0% via HousingWire

The growth of rental demand as homeownership rates hit historic, near 40-year lows may in part be because of Millennials who want to stay mobile, but it’s also driven by would-be homebuyers who are getting shut out by tight mortgage-lending standards.

"If you can't get into a single-family house and you can't get a mortgage, well, you don't need a mortgage to get an apartment," said Stephanie Karol, an economist at IHS.

Undeniably, household incomes have been stagnant since the 1970s, and especially since 1990. Median household income was $50,017 in 2012, below 2007's peak level of $55,627, after adjusting for inflation, according to U.S. Census Bureau data.

Read more...Rents up 15% while incomes up 0% | 2014-07-02 | HousingWire

Reis: Apartment Vacancy Rate unchanged in Q2 2014 at 4.1% via Calculated Risk

Reis reported that the apartment vacancy rate was unchanged in Q2 at 4.1%. In Q2 2013 (a year ago) the vacancy rate was at 4.3%, and the rate peaked at 8.0% at the end of 2009.

Some interesting comments from Reis Senior Economist Ryan Severino:

Read more...Calculated Risk: Reis: Apartment Vacancy Rate unchanged in Q2 2014 at 4.1%

The Coming Texas Housing Affordability Squeeze via WORLD PROPERTY CHANNEL

According to Metrostudy's first quarter 2014 survey of the Texas Housing market, first time and lower income buyers are getting priced out of the market.

Texas right now is home to the strongest housing markets in the entire country. Texas was on a different cycle long before the boom and the bust came along. Driven by past swings in oil prices, the state was already on a rapid-growth trajectory before the rest of the country went on its early-2000s building binge. Said colloquially, when Phoenix and Las Vegas caught pneumonia, Houston sneezed and kept on going, right to the top of the national market list.

Read more...The Coming Texas Housing Affordability Squeeze - WORLD PROPERTY CHANNEL Global News Center

Quarterly Apartment Rent Growth Hits 14-Year High via Property Management Insider

During the three months of 2014, the U.S. apartment market logged a surprisingly good performance considering the severe winter weather experienced by most of the country. As the weather turned warm during the second quarter, the industry wondered if that momentum could be continued.

According to just-released data from MPF Research, the U.S. apartment market had a stellar performance for the second quarter of 2014.

Apartment owners and operators continue to have strong pricing power as quarterly rent growth for new leases in the 100 largest U.S. apartment markets reached a 14-year high, increasing 1.9 percent during the second quarter of 2014. Monthly rents across the nation now average $1,153.

Read more...Quarterly Apartment Rent Growth Hits 14-Year High | Property Management Insider