Friday, October 31, 2014

Dallas Love Field real estate market ready to take off after airport upgrades via Dallas Morning News

After almost four years of construction, the reconstruction of Dallas Love Field is almost done.

But development of the area surrounding the city airport is just beginning.

Developers who are planning apartments, commercial construction and new hotel and retail around Love Field say that the airport’s half-billion-dollar modernization program and the end of domestic flight restrictions will boost business in the neighborhood.

Read more...Dallas Love Field real estate market ready to take off after airport upgrades | Dallas Morning News

No Picket Fence: Younger Adults Opting to Rent via NYTimes.com

On a recent sunny afternoon, a half-dozen grinding and spinning cement trucks helped lay the foundation for what many real estate developers see as the most promising housing opportunity in postrecession America: apartment living.

Here in suburban Vienna, about 16 miles west of downtown Washington, Joshua Solomon’s DSF Group is remaking a congested but nondescript intersection into a haven for young adults of the millennial generation. Like many other developers who survived the housing bust, he now expects a coming wave of renters who intend to stay that way for a while to help lead the industry to a brighter future.

Read more...No Picket Fence: Younger Adults Opting to Rent - NYTimes.com

ULI Special Report: Strong Rental M-F Market Driven by Record Student Debt, Cautious Millennials via Multi-Housing News Online

“Do we have a boom or do we have a bust in the multifamily industry?” John Healy Jr., co-founder & principal of Hyde Street Holdings LLC, asked that question as he opened the “Rental Multifamily Housing: New American Dream or Classic Bubble?” panel at the Urban Land Institute’s Fall Meeting, held in Manhattan last week.

The response from the audience was unequivocal—and clearly anticipated the course of the discussion—as the overwhelming majority voted in favor of a “housing boom” that we will continue to witness over the next two to five years.

Read more...ULI Special Report: Strong Rental M-F Market Driven by Record Student Debt, Cautious Millennials | Multi-Housing News Online

Wednesday, October 29, 2014

Rehab ROI: Do the Math via Multifamily Executive Magazine

Rehabs present one of the most challenging pricing situations I’ve found in the apartment industry.

There’s a tug of war between the business desire to allocate capital in a way that provides a measurable real return on investment (ROI) and the human desire to preside over a nicer portfolio. Candidly, I find that a lack of familiarity and comfort with the math behind ROI calculations often gets in the way—and not always just from the jobsite side of the team.

The basic premise of rehabs* is straightforward: An operator invests $X to increase rent $Y, gaining a return of Z% in the process. As long as Z% is higher than the cost of capital, the overall return is positive.

Seems simple enough, right? But I’ve encountered several issues that cause me to believe that operators aren’t always getting what they think they’re getting from their rehab investments.

Read more...Rehab ROI: Do the Math | Multifamily Executive Magazine

Renters scooping up apartments at historic rate via Houston Chronicle

The multifamily market in Houston is nearing a historical high of 91 percent occupancy, real estate firm CBRE reports.

This demand has caused rents to skyrocket as the construction crews work to build more projects around the region.

According to Houston-based Apartment Data Services, some of the largest rent increases have been in outlying areas.

Read more...Renters scooping up apartments at historic rate - Prime Property

Austin apartment market still on fire; could mean rent relief on its way via Austin Business Journal

The data behind Austin's red hot apartment market could spell relief for some renters. Almost 18,000 units are now under construction in the metro area and some of the new complexes are concentrated in smaller submarkets.

Those submarkets could see rent concessions return after years of escalating prices and diminished supply, according to the latest Austin Multi-Family Trend Report published by Austin Investor Interests LLC.

"In the short run, the abundance of (Class A) product that will enter the market over the next two seasonally slow quarters are likely to saturate these areas creating a bit of market competition," the report states.

Read more...Austin apartment market still on fire; could mean rent relief on its way - Austin Business Journal

Tuesday, October 28, 2014

NMHC Survey: Apartment Market Conditions Slightly Tighter in Q3 2014 via Calculated Risk

From the National Multi Housing Council (NMHC): Apartment Markets Expand Further in October NMHC Quarterly Survey.

For the third quarter in a row, apartment markets expanded across all four areas of the National Multifamily Housing Council (NMHC) Quarterly Survey of Apartment Market Conditions. Market tightness (52), sales volume (58), equity financing (54) and debt financing (71) indexes all remained above 50 – indicating growth from the previous quarter.

“The apartment markets are still firing on all cylinders,” said Mark Obrinsky, NMHC’s SVP of Research and Chief Economist. “Demand for apartment residences is still strong enough to offset the gradually rising level of new apartment deliveries. Even with occupancy rates at high levels, markets got just a bit tighter in the last three months."

Read more...Calculated Risk: NMHC Survey: Apartment Market Conditions Slightly Tighter in Q3 2014

HVS: Q3 2014 Homeownership and Vacancy Rates via Calculated Risk

The Census Bureau released the Housing Vacancies and Homeownership report for Q3 2014.

This report is frequently mentioned by analysts and the media to track the homeownership rate, and the homeowner and rental vacancy rates. However, there are serious questions about the accuracy of this survey.

This survey might show the trend, but I wouldn't rely on the absolute numbers. The Census Bureau is investigating the differences between the HVS, ACS and decennial Census, and analysts probably shouldn't use the HVS to estimate the excess vacant supply or household formation, or rely on the homeownership rate, except as a guide to the trend.

Read more...Calculated Risk: HVS: Q3 2014 Homeownership and Vacancy Rates

Monday, October 27, 2014

Texas Manufacturing Outlook Survey October 2014 - Dallas Fed

Texas factory activity increased again in October, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, fell from 17.6 to 13.7, indicating output grew but at a slightly slower pace than in September.

Other measures of current manufacturing activity also reflected continued growth in October. The new orders index rose notably from 7.5 to 14.2, reaching a six-month high. The capacity utilization index edged down to 18.1 and the shipments index slipped to 12.8, although still more than a quarter of firms noted increases in these measures over September levels.

Read more...Texas Manufacturing Outlook Survey - Dallas Fed

Are Multifamily's Best Days In the Past? via Multifamily Blogs

The short answer? No way.

Here’s why…

Across the country vacancy rates are steadily decreasing, rental rates are on the rise, and new construction is breaking ground at an impressive rate.

Looking at the Marcus & Millichap’s 2014 National Apartment Overview, we see that national vacancy rates for multifamily sector are expected to reach 5.1% in 2014 mostly because of the 215,000 new multifamily units under construction this year. In addition, the reports project that rental rates will increase by another 2.6% over the 4.2% we saw in 2013.

Read more...Are Multifamily's Best Days In the Past? - Multifamily Blogs

San Antonio Economic Update October 2014 via Dallas Fed

The San Antonio economy continued to grow strongly in September, though indicators were more mixed than in August. Payroll employment contracted slightly at a 0.8 percent annualized rate. At the same time, the unemployment rate fell sharply to 4.7 percent. Housing indicators were mixed as August housing starts and September help-wanted ads for construction workers fell but median home prices rose and inventories remained low.

The San Antonio Business-Cycle Index rose at a strong annualized rate of 5.6 percent over the six months ended in September. After reaching 5.6 percent in June, the index continued to maintain this rate over the next three months.

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

Urban Land Institute's Emerging Trends in Real Estate 2015 report names Houston No. 1 market to watch via Houston Business Journal

Houston's real estate market has caught the eye of investors worldwide, prompting one to call the Bayou City the "perfect storm for commercial real estate," according to a new report from the Urban Land Institute and PwC.

The "Emerging Trends in Real Estate 2015" report ranked Houston the country's No. 1 market to watch next year. That's up from No. 2 in 2014 and No. 5 in 2013.

Houston ranked No. 1 in both investment and development prospects, and it came in second to Austin for homebuilding prospects.

Read more...Urban Land Institute's Emerging Trends in Real Estate 2015 report names Houston No. 1 market to watch - Houston Business Journal

Thursday, October 23, 2014

ULI: CRE's Momentum Will Continue via GlobeSt.com

With the Urban Land Institute’s Fall Meeting in full swing here, a pair of surveys cosponsored by ULI predicts the industry’s current momentum will carry over into 2015. The 2015 edition of ULI’s annual Emerging Trends in Real Estate report, co-published by PwC US and issued Wednesday at the conference, cites the rise of markets outside the coastal gateway cities, with Houston leading the way. Similarly, the semi-annual ULI/EY Real Estate Consensus Forecast issued last week predicts continued strengthening in the capital markets and in commercial real estate fundamentals.

Read more...ULI: CRE's Momentum Will Continue - Daily News Article - GlobeSt.com

Wednesday, October 22, 2014

DFW Economic Indicators October 2014 via Dallas Fed

The Dallas–Fort Worth economy grew at a slower rate in September than in the summer months. Year to date, DFW employment has grown 3.5 percent, nearly matching the state’s 3.6 percent pace. Job creation remains broad-based across sectors. Residential construction activity is healthy, with apartment construction outpacing homebuilding. Unemployment rates for Dallas and Fort Worth fell in September and remain below those of the U.S. Business-cycle indexes from the Federal Reserve Bank of Dallas point to continued expansion in the metroplex.

DFW employment grew at an annualized rate of 1.7 percent in September, adding 4,600 jobs. Job creation slowed considerably, rising 2.5 percent (19,800 jobs) in the third quarter, compared with 6.2 percent (47,400 jobs) in the second. Most of the increase has come from rapid economic growth in Dallas, which has added jobs at a 4 percent pace in the first nine months of the year and is the state’s second-fastestgrowing major metro.

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

Texas No. 1 business climate, new survey says via Real Estate Center at Texas A&M

For the sixth consecutive time Texas took the top spot on Development Counsellors International's (DCI) "Winning Strategies in Economic Development Marketing" survey.

The survey, published every three years since 1996, tracks trends in economic development. DCI specializes in economic development and tourism marketing.

Of the 356 respondents in 2014 49.7 percent said Texas has the most favorable business climate.

Read more...Texas No. 1 business climate, new survey says

Multifamily Market Report via The Balance Sheet - Yardi Corporate Blog

Despite the slowest population growth rate in 70 years, the US apartment sector remains healthy throughout most of the country, according to the recent Multifamily Market Commentary released by Fannie Mae. In the national development 386,000 new units were underway as of Q2 2014.

Growth indicators from the National Association of Home Builders (NAHB) show that 9.6 percent of the $331 billion of new housing built in 2013 was multifamily construction. According to housing consultant IBISWorld Inc., multifamily development will reach a 28 percent annual average rate increase since 2009, with California blazing ahead due to a 47 percent growth rate in 2012 and 20 percent in 2013.

Although apartment market fundamentals remain positive, this veritable apartment market boom is leading some to question how long the growth rate can be sustained.

Read more...Multifamily Market Report | The Balance Sheet - Yardi Corporate Blog

IREM Special Report: The Millennial Factor via Commercial Property Executive

The impact of Millennials on commercial real estate sparked a thought-provoking discussion at the Institute of Real Estate Management’s Fall Leadership Conference last week.

“We are in the midst of a sea change . . . and I think it’s probably as revolutionary as in the 1960s, when the open office was introduced into the United States,” said the panel’s moderator, the veteran real estate journalist John Salustri, as he introduced session on Friday.

In many ways, Millennials are leading the revitalization of the nation’s urban cores.

Read more...IREM Special Report: The Millennial Factor | Commercial Property Executive

Monday, October 20, 2014

Multifamily Absorption Expected to be Significant via GlobeSt.com

What will the big multifamily surprise be in 2015? “The level of absorption that will be seen,” said Tyler Anderson, vice chairman of CBRE.

“The elephant in the room is the pipeline that is coming…The singlefamily market really hasn’t taken off,” Anderson said. “If we look back a year from now, we will be pleased with the level of absorption we will see.”

Read more...Multifamily Absorption Expected to be Significant - Daily News Article - GlobeSt.com

Top Ten New Construction Markets in 2015 via Multifamily Executive Magazine

In the nation's 100 largest metros, roughly 230,000 apartment units are scheduled for completion in 2015, about a 14 percent drop from the 13-year high that will be reached this year, according to MPF Research, the market intelligence division of RealPage, Inc.

Of course, the largest metros will be building the most units, with Houston coming in first with 19,662 expected completions in 2015. However, in terms of inventory growth rate, Houston falls to sixth place, at 3.2 percent.

Following Houston in sheer volume is Dallas, New York, Washington, D.C. and Seattle, all producing between an estimated 10,500 and 16,500 units next year.

Read more...Top Ten New Construction Markets in 2015 | Multifamily Executive Magazine

Texas breaks record for jobs added in 12-month span via Dallas Morning News

Texas created enough jobs last month to help the state set a 12-month record.

The Texas economy added 36,400 jobs in September, according to data released Friday by the Texas Workforce Commission. Over the past 12 months, employers added 413,700 jobs — the most ever recorded by the state.

The unemployment rate fell to 5.2 percent in September, down from 5.3 percent in August. A year ago, the rate was 6.3 percent.

“We’re having a broad -based increase in job growth in Texas, and sooner or later we’re going to have to see wage increases,” said Trinity University economist David Macpherson.

Read more...Texas breaks record for jobs added in 12-month span | Dallas Morning News

Thursday, October 16, 2014

Commercial, Multifamily Mortgage Debt in U.S. Rises to $2.56 Trillion - World Property Journal

According to a Mortgage Bankers Association (MBA) report released today, the level of commercial and multifamily mortgage debt outstanding increased by $24.9 billion in the second quarter of 2014, as three of the four major investor groups increased their holdings. That is a 1.0 percent increase over the first quarter of 2014.

Total commercial and multifamily debt outstanding stood at $2.56 trillion in the second quarter. Multifamily mortgage debt outstanding rose to $930 billion, an increase of $13.0 billion, or 1.4 percent, from the first quarter of 2014.

Read more...Commercial, Multifamily Mortgage Debt in U.S. Rises to $2.56 Trillion - WORLD PROPERTY JOURNAL Global News Center

Multifamily Sector Benefits From ‘Perfect Storm’ via GlobeSt.com

“Multifamilies have benefited from the perfect storm.” That is according to RealShare Apartments 2014 panelist Ethan Penner, a commercial real estate expert known for founding CBRE Capital Partners and as former president of Kennedy Wilson. “You have low interest rates, which helps all income-producing properties; had good access to capital and leverage; had the weight of the housing crisis; had more people driven into rentals and out of housing; and you also have a weak economy.”

For a whole host of reasons, such as those mentioned above, “we are in good shape on multifamilies,” Penner said. “I don’t see that changing any time soon.”

Read more...Multifamily Sector Benefits From ‘Perfect Storm’ - Daily News Article - GlobeSt.com

A Quick Look at Dallas-Fort Worth’s Apartment Supply Wave via Property Management Insider

Totaling just over 675,000 units, Dallas-Fort Worth is the nation’s fourth-biggest apartment market. With construction occurring at such a rapid pace, North Texas likely will bump Chicago out of the #3 spot sometime in late 2016 to early 2017.

So far in this development cycle (we’ll call that early 2010 through Q3 2014), DFW has added just a hair under 50,000 units, by far the most new supply anywhere across the country. Some 28,000 more units are under construction right now.

Read more...A Quick Look at Dallas-Fort Worth’s Apartment Supply Wave | Property Management Insider

Wednesday, October 15, 2014

Dallas Beige Book October 15, 2014 via Dallas Fed

The Eleventh District economy grew at a moderate pace over the past six weeks. Manufacturers mostly reported increases in demand, and retail and automobile sales expanded at a pace in line with the prior report. Demand for nonfinancial services generally improved and real estate activity remained solid. The energy sector continued to grow, and agricultural conditions improved. Upward price pressures eased slightly and employment held steady or increased. Outlooks remained optimistic across the board.

Read more...Dallas Beige Book - Dallas Fed

Q2 2014 Cap Rate Trends via ReisReports

The mean cap rate increased by 20 basis points during the second quarter to 6.6%. The mean cap rate is now on a bit of an upswing after bottoming out at 6.2% during the first quarter of 2013. Although the mean cap rate has fluctuated slightly since that time, an increase of 40 basis points is not insignificant. Moreover, if we look at the 12-month rolling cap rate, this also indicates that cap rates in the market have bottomed out and are trending upward. The 12-month rolling cap rate was virtually unchanged at 6.5%. Does this mean that pricing in the apartment sector is reversing course?

Read more...Q2 2014 Cap Rate Trends - ReisReports

Tuesday, October 14, 2014

ALN Monthly Newsletter October 2014 via ALN Apartment Data

ALN Data just released their September 2014 stats on occupancy and rents for 23 markets. In Texas, it includes DFW, Austin, Houston, San Antonio, Lubbock, Amarillo, Abilene and Corpus Christi. It is a must read from a great provider of apartment data.

Read more...ALN Monthly Newsletter October 2014 via ALN Apartment Data

Monday, October 13, 2014

Texas Economic Indicators October 2014 via Dallas Fed

The Texas economy continues to expand, with employment growing at a 3.2 percent annual rate in August. Texas existing-home sales increased in August, while single-family permits and housing starts declined. Texas exports edged up in July. Manufacturing activity in September rose at a faster rate than in August, according to the Texas Manufacturing Outlook Survey.

Texas gained 30,700 jobs in August after adding 39,700 jobs in July. Current Texas employment stands at 11.6 million, according to the payroll survey (CES).

The Texas unemployment rate rose to 5.3 percent in August. The Texas rate continues to be lower than the U.S. rate, which fell to 6.1 percent in August.

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

Houston Economic Indicators October 2014 via Dallas Fed

The Houston Business-Cycle Index slowed markedly in August to a still-healthy 4.4 percent growth rate from a revised 8 percent rate in July. Energy industry employment accelerated into the second half of the year, while refining and plastics continued to perform well. Overall labor market conditions remained positive despite continued tightness for key skills. Taken together, these indicators continue to imply above-average economic conditions in Houston.

Houston payroll employment grew an annualized 3.5 percent from July to August. Gains were particularly strong in construction and mining and in education and health services. Leisure and hospitality and government contracted. Over the three months ending in August, employment grew an annualized 4.1 percent.

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

Soaring Dallas apartment costs haven’t put a dent in rentals via Real Estate Center at Texas A&M

An average new apartment in Dallas’ Uptown neighborhood can cost twice as much as the mortgage payment on a mid-priced North Texas home.

They are willing to pay more for the luxury rental lifestyle and an address in the heart of Dallas.

Greg Willett, vice president with longtime Dallas apartment market firm MPF Research, warns, “we need to pay attention to the affordability factor.”

Read more...Soaring Dallas apartment costs haven’t put a dent in rentals

Friday, October 10, 2014

San Antonio Apartment Market Update August 2014 via OConnordata.com

Most key metrics of the San Antonio area multifamily sector recorded positive and negative changes in August 2014.

The occupancy figures recorded both positive and negative values for all the classes. For Class A properties, occupancy increased by 0.78% over the month to close at 92.80%; and decreased by 1.05% over the year.

Read more...San Antonio Apartment Market Update August 2014

Austin Apartment Market Update August 2014 via OConnordata.com

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

Occupancy figures recorded both positive and negative figures for the classes for the month. Class A properties reported an increase of 0.87% over last month, and a decrease of 1.30% over last year. The largest increase over the month was noted for Class A properties. The largest annual increase was noted for Class B with an increase of 0.46%.

Read more...Austin Apartment Market Update August 2014

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

The key metrics for the Dallas/Fort Worth area multifamily sector recorded significant changes both over the month and over the year.

Over the month all the classes recorded mostly downward trends in terms of occupancy. Except Class A properties recorded an increase of 0.31% over previous month. On a year-over-year basis Class A properties recorded a decrease of 0.57%. The largest annual increase was noted for Class B properties with an increase of 0.29%.

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

Houston Apartment Market Update August 2014 via OConnordata.com

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

Occupancy figures for the classes recorded both positive and negative changes over the month. Class A recorded a decrease of 0.34% from previous month. The average went down by 1.59% over the year for Class A properties. The largest annual increase was noted for Class C properties with an average increase of 0.71% to close at 89.26%.

Read more...Houston Apartment Market Update August 2014

Axiometrics: MF Permitting Declines; Values Rise via GlobeSt.com

A new report from Axiometrics—created primarily from US Census Bureau data—suggests that multifamily construction permiting took a wild ride in August.

The annual rate of 343,000 units represents a 13.4% decrease from July's total of 396,000 units, following a 28.2% increase the previous month. The August rate represented a 17.5% increase from last August's figure of 292,000 units. MF permits have averaged 366,000 units for the first eight months of 2014 and 369,000 units since August 2013.

Read more...Axiometrics: MF Permitting Declines; Values Rise - Daily News Article - GlobeSt.com

Which Apartment Markets Appear Most Vulnerable to Q4 Supply Surge? via Property Management Insider

In 2014’s 4th quarter, the new supply levels of apartment markets will surge past the 14-year highs set just in 3rd quarter. The timing doesn’t appear ideal – given that Q4 is a seasonally weak demand period in most markets. Which metros appear most vulnerable to a supply wave in Q4?

Watch video...Which Apartment Markets Appear Most Vulnerable to Q4 Supply Surge? | Property Management Insider

Thursday, October 9, 2014

Dallas boots Houston from top 10 investment markets, report says via Dallas Business Journal

Dallas-Fort Worth has ranked as one of the top 10 growth cities targeted by global real estate investors, booting Houston outside the 10 coveted positions, according to a Cushman & Wakefield 2014 'Winning in Growth Cities' report released Wednesday.

The region's inclusion is marked by the spread of investment activity to more and more markets throughout the world, not just the usual suspects of gateway cities such as New York and London, researchers said.

Read more...Dallas boots Houston from top 10 investment markets, report says - Dallas Business Journal

U.S. Job Market Recovers Unevenly State by State via Businessweek

Kevin Yearout has added about 80 jobs at his Albuquerque contracting company since July 2013. That still leaves him with fewer than half the 750 workers he employed in 2009. “The economy went very south very quickly,” says the co-owner of Yearout Mechanical. “It has been a very slow climb back.”

The U.S. economy achieved a milestone in May with employment exceeding the all-time high in January 2008. Yet 29 states have not recovered all the jobs they lost in the recession, according to U.S. Department of Labor data. “This is not like any other recovery,” says John Herrmann, director of interest rate strategy at Mitsubishi UFJ Securities (USA). “There is a tremendous disparity, with the performance of the economy much more skewed on a regional basis.”

Read more...U.S. Job Market Recovers Unevenly State by State - Businessweek

Apartment developers migrating from Uptown to East Dallas for building sites via Dallas Morning News

Developers looking for profitable apartment building sites are continuing to migrate from Uptown and downtown Dallas.

The latest emerging rental unit construction market is Dallas’ near east side – locations close to the central business district and Baylor Medical Center.

Trammell Crow Residential and Greystar Real Estate already have two large apartment projects in the works on Ross Avenue and Live Oak Street.

Now another major apartment builder – Encore Multi-Family – has locked up a construction site in the same area.

Read more...Apartment developers migrating from Uptown to East Dallas for building sites | Dallas Morning News

Wednesday, October 8, 2014

The Nation’s Apartment Rent Growth Leaderboard Includes Some Surprises via Property Management Insider

Which apartment markets posted the strongest year-over-year rent gains through 2014’s 3rd quarter? While the list includes some of the usual suspects, a few surprise markets have cracked the rent growth leaderboard. Greg Willett and Jay Parsons reveal the leaderboard in this video edition of Apartment Market Dynamics.

Watch video...The Nation’s Apartment Rent Growth Leaderboard Includes Some Surprises | Property Management Insider

Will Oversupply Threaten the Industry's Momentum? via Multifamily Executive Magazine

The frequent silhouettes of cranes littering the skylines in most large metro areas aren't threatening the health of the apartment industry, experts say.

Although there are several markets approaching heavy saturation, industry leaders aren’t concerned about the more than 75,000 units that are expected to deliver before the end of this year, according to data from Dallas-based Axiometrics. The research firm also expects more than 222,000 units to come to fruition next year.

Read more...Will Oversupply Threaten the Industry's Momentum? - Multifamily Executive Magazine

Mapped: Where Austin's rents are skyrocketing via Austin Business Journal

Homes and apartments just north of Circle C Ranch in Southwest Austin have seen the greatest percentage increase in rent in the entire Austin area since 2010, according to data from the U.S. Census Bureau.
Median gross rents in that Census tract grew $843 — from $761 to $1,604 — between 2010 and 2012, an increase of 110 percent. It shared many characteristics of other rental tracts where median rent growth outpaced the region; smaller proportion of rental units in the housing stock; a smaller-than average number of rental units, and rental vacancy.

Read more...Mapped: Where Austin's rents are skyrocketing - Austin Business Journal

Reis: Apartment Vacancy Rate increased in Q3 to 4.2%, First quarterly increase since 2009 via Calculated Risk

Reis reported that the apartment vacancy rate increased in Q3 to 4.2% from 4.1% in Q2. In Q3 2013 (a year ago), the vacancy rate was at 4.3%, and the rate peaked at 8.0% at the end of 2009.

Some comments from Reis Senior Economist Ryan Severino:
The national vacancy rate increased by 10 basis points to 4.2% during the third quarter. This is the first quarterly increase in vacancy since the fourth quarter of 2009.

Read more...Calculated Risk: Reis: Apartment Vacancy Rate increased in Q3 to 4.2%, First quarterly increase since 2009

Austin Economic Indicators October 2014 via Dallas Fed

The Austin–Round Rock economy strengthened in August. Private sector jobs grew at an annualized pace of 3.5 percent in August, although overall job growth slowed to 1.6 percent. The unemployment rate ticked up to 4.4 percent but remains close to prerecession levels. Housing overall and multifamily housing in particular remain strong, with apartment vacancies and home inventories near historic lows and permits for new housing increasing sharply in the second quarter.

Read more...Austin Economic Indicators October 2014 via Dallas Fed

Wednesday, October 1, 2014

San Antonio: Austin Investor Interests 2Q 2014 apartments via Real Estate Center at Texas A&M

As expected, the second quarter 2014 was solid for the local apartment market, according to Austin Investor Interests.

Occupancy rates increased .29 percent, while effective rental rates increased 1.34 percent, finally breaking the $1-per-sf mark. Absorption levels have remained robust, with over 4,700 more units occupied than at midyear 2013.

New construction is faring especially well, as stabilized Class A units are showing an overall occupancy rate of over 94 percent, with rental rates at $1.20 per sf.

Read more...San Antonio: Austin Investor Interests 2Q 2014 apartments via Real Estate Center at Texas A&M

MPF Research: DFW apartment demand strong via Real Estate Center at Texas A&M

DFW continues to be one of the nation's top apartment markets, delivering thousands of apartments each month in an effort to meet demand.

In total, developers completed 6,228 apartments in third quarter 2014, and 16,193 apartments in the past 12 months, according Carrollton-based MPF Research.

Demand is keeping pace with construction. North Texas renters leased 5,860 additional apartments during 3Q 2014, and 15,961 apartments in the past year. The region's occupancy rate has reached a 13-year record high of 94.7 percent.

Read more...MPF Research: DFW apartment demand strong via Real Estate Center at Texas A&M

Demand keeps apartment rents rising in North Texas via Star-Telegram

Dallas-Fort Worth apartment rents continue to rise thanks to strong demand, according to a third-quarter report from MPF Research.

Rents for new leases rose 1.4 percent from July to September, taking the annual rent growth to 3.9 percent, MPF said. Average rents in North Texas reached $903 a month during the quarter, the report said.

Rents in downtown Fort Worth average $1,600 a month, compared with $1,800 in downtown Dallas. Some new suburban properties are commanding $1,200 a month on average, the report said.

Read more...Demand keeps apartment rents rising in North Texas | Business | Dallas Business, Texas B...