The San Antonio economy grew at a very strong pace in November. Payroll employment growth reached a 10-year high of 9.4 percent. The unemployment rate fell to 4.5 percent, continuing the downward trend of the prior three months. Housing markets have been steady, although multifamily has shown some mixed signs in recent months. Stocks of companies based in San Antonio were weak in November and December as energy sector companies continued to feel the effects of falling oil prices.
Growth in the San Antonio Business-Cycle Index accelerated to 7.4 percent over the six months ended in November. Revised data show
that the index has grown 7.2 percent this year and has been accelerating since the third quarter of 2013. Continued strength in the four components of the index has pushed growth the past several months higher than initially estimated.
Read more...San Antonio Economic Update December 2014 via Dallas Fed
Tuesday, December 30, 2014
Multifamily Housing Hot in Texas; Single-family Squeeze May Ease, Says Dallas Fed via Dallas Fed
Apartment construction in Texas will likely moderate, while the state’s single-family housing market may regain traction in 2015, according to the latest issue of the Federal Reserve Bank of Dallas’ Southwest Economy.
The market for single-family housing in Texas lost some momentum in 2014, with record-high prices, depleted existing-home inventories and declining affordability contributing to relatively slow growth in sales, writes Dallas Fed economist Laila Assanie in “Single-Family Housing Squeeze Eases in Texas; Multifamily Soars.”
Improved access to credit and an expanding supply of new homes for first-time and lower-income buyers will be essential for the state’s housing market to strengthen in 2015, Assanie notes.
Read more...Multifamily Housing Hot in Texas; Single-family Squeeze May Ease, Says Dallas Fed - Dallas Fed
The market for single-family housing in Texas lost some momentum in 2014, with record-high prices, depleted existing-home inventories and declining affordability contributing to relatively slow growth in sales, writes Dallas Fed economist Laila Assanie in “Single-Family Housing Squeeze Eases in Texas; Multifamily Soars.”
Improved access to credit and an expanding supply of new homes for first-time and lower-income buyers will be essential for the state’s housing market to strengthen in 2015, Assanie notes.
Read more...Multifamily Housing Hot in Texas; Single-family Squeeze May Ease, Says Dallas Fed - Dallas Fed
Zillow: Renters paid $441 billion in rent in 2014 via HousingWire
he rent may indeed be “too damn high,” but it’s only going up, according to a new report from online real estate listing service Zillow (Z).
According to new analysis from Zillow, U.S. renters paid $441 billion in rent in 2014, up $20.6 billion from 2013’s total of $420.4 billion. That represents an increase of 4.9%.
Among the largest 25 metro areas covered by Zillow’s data, the three metro areas where rents rose the most were San Francisco, where the average rent payment rose by 13.5% or $163 per month; Denver, where the average rent payment rose by 10.8% or $86; and Pittsburgh, where the average rent payment rose by 10.6% or $56.
Read more...Zillow: Renters paid $441 billion in rent in 2014 | 2014-12-30 | HousingWire
According to new analysis from Zillow, U.S. renters paid $441 billion in rent in 2014, up $20.6 billion from 2013’s total of $420.4 billion. That represents an increase of 4.9%.
Among the largest 25 metro areas covered by Zillow’s data, the three metro areas where rents rose the most were San Francisco, where the average rent payment rose by 13.5% or $163 per month; Denver, where the average rent payment rose by 10.8% or $86; and Pittsburgh, where the average rent payment rose by 10.6% or $56.
Read more...Zillow: Renters paid $441 billion in rent in 2014 | 2014-12-30 | HousingWire
Tuesday, December 23, 2014
Rent Growth for M-F Properties Predicted in 2015 via Commercial Property Executive
Rent growth at multi-family properties across the United States in 2015 is expected to increase 4.5 percent for Class A and B+ assets and 5.1 percent for Class B and C assets with some technology-heavy Western markets seeing spikes as high as 9 percent.
The 2015 Rent Forecast & Outlook report for the U.S. multi-family sector prepared by Pierce-Eislen noted that next year’s estimated rent growth is lower than last year’s average of 5.9 percent. But the news is still good compared to previous years.
“Even with 2015’s forecasted rent growth decelerating from 2014’s pace, this still represents faster rent growth than in recent years: Rents grew by 3.7 percent in 2012 and 4.3 percent in 2013,” the report stated.
Read more...Rent Growth for M-F Properties Predicted in 2015 | Commercial Property Executive
The 2015 Rent Forecast & Outlook report for the U.S. multi-family sector prepared by Pierce-Eislen noted that next year’s estimated rent growth is lower than last year’s average of 5.9 percent. But the news is still good compared to previous years.
“Even with 2015’s forecasted rent growth decelerating from 2014’s pace, this still represents faster rent growth than in recent years: Rents grew by 3.7 percent in 2012 and 4.3 percent in 2013,” the report stated.
Read more...Rent Growth for M-F Properties Predicted in 2015 | Commercial Property Executive
Monday, December 22, 2014
Q3 2014 Cap Rate Trends via ReisReports
Apartment Cap Rate Trends
The mean cap rate, calculated on a dollar-weighted basis by quarter, declined by 30 basis points during the third quarter to 6.3%. As the mean cap rate shows, apartment cap rates have largely bottomed out. Over the last four years, the mean cap rate has fluctuated within a relatively narrow band of 50 basis points. That’s not to say that cap rates in the future won’t decline a bit more, but the majority of cap rate compression has clearly ended.
Read more...Q3 2014 Cap Rate Trends - ReisReports
The mean cap rate, calculated on a dollar-weighted basis by quarter, declined by 30 basis points during the third quarter to 6.3%. As the mean cap rate shows, apartment cap rates have largely bottomed out. Over the last four years, the mean cap rate has fluctuated within a relatively narrow band of 50 basis points. That’s not to say that cap rates in the future won’t decline a bit more, but the majority of cap rate compression has clearly ended.
Read more...Q3 2014 Cap Rate Trends - ReisReports
Portman: Multifamily Will Slow in 2015 via GlobeSt.com
When John C. Portman, vice chairman of Portman Holdings, looks back on 2014, he’ll have fond (and refreshing memories) of how equity financing continued its recover and construction debt financing softened, at least a little. He told me 2014 gave us a steady rise in competition among equity players—and that resulted in increased international capital heading into secondary markets, with primary focus on urban cores.
“Secondary markets are booming,” Portman tells GlobeSt.com. “These shifts in 2014 have left owners more willing to exit and sell into the market. Overall performance of assets has improved enough to stave off some of the 10-year CMBS maturities that many were expecting to default. In some cases, existing assets are already becoming over-levered.”
Read more...Portman: Multifamily Will Slow in 2015 - Daily News Article - GlobeSt.com
“Secondary markets are booming,” Portman tells GlobeSt.com. “These shifts in 2014 have left owners more willing to exit and sell into the market. Overall performance of assets has improved enough to stave off some of the 10-year CMBS maturities that many were expecting to default. In some cases, existing assets are already becoming over-levered.”
Read more...Portman: Multifamily Will Slow in 2015 - Daily News Article - GlobeSt.com
Regional Economy Continues to Expand Despite Headwinds via Dallas Fed
The Texas economy has continued to grow at a fast clip in recent weeks. Employment growth accelerated in October, and the Texas Business Outlook Survey indexes point to continued growth in retail and service sector activity in November. The Texas trade-weighted value of the dollar increased sharply, contributing to slowing export growth in October. Although energy sector activity has not yet responded significantly to falling oil prices, sustained prices below $60 per barrel will likely result in a sharp drop in drilling activity and dampen overall economic activity in 2015.
Read more...Regional Economy Continues to Expand Despite Headwinds - Dallas Fed
Read more...Regional Economy Continues to Expand Despite Headwinds - Dallas Fed
Friday, December 19, 2014
San Antonio multifamily market steady; units coming via Real Estate Center at Texas A&M
CBRE reports Texas' occupancy rate hit 91.7 percent third quarter 2014, slightly up from the same time last year. San Antonio's multifamily occupancy rate is slightly less, at 90.5 percent.
According to CBRE's research, the Stone Oak/Thousand Oaks/San Pedro community saw the most multifamily growth in 3Q with 416 units built. An additional 433 units are under construction in that neighborhood.
Compared to Austin, Dallas and Houston, San Antonio has the smallest number of multifamily units at about 159,400.
Read more...San Antonio multifamily market steady; units coming
According to CBRE's research, the Stone Oak/Thousand Oaks/San Pedro community saw the most multifamily growth in 3Q with 416 units built. An additional 433 units are under construction in that neighborhood.
Compared to Austin, Dallas and Houston, San Antonio has the smallest number of multifamily units at about 159,400.
Read more...San Antonio multifamily market steady; units coming
Texas sets job growth record for fourth month; business, professional services tops hiring via Dallas Business Journal
Texas continued a strong streak of job growth in November, tacking on 34,800 positions and setting an annual job growth record for the fourth consecutive month.
The added jobs also are pushing down the state's unemployment rate, which fell to 4.9 percent from 5.1 percent in October. That rate was a full point higher at 6.1 percent a year ago.
Read more...Texas sets job growth record for fourth month; business, professional services tops hiring - Dallas Business Journal
The added jobs also are pushing down the state's unemployment rate, which fell to 4.9 percent from 5.1 percent in October. That rate was a full point higher at 6.1 percent a year ago.
Read more...Texas sets job growth record for fourth month; business, professional services tops hiring - Dallas Business Journal
Houston Is 2015’s Wild Card Apartment Market – Part Three via Property Management Insider
If Houston’s employment growth pace over the near term slows to somewhere near half the level recorded of late, underlying support for housing demand, including apartment absorption, should erode. Substantial completion volumes that lie just ahead also are of concern in this metro’s outlook.
What’s the Current Performance?
In part one and two, we discussed some of the changes to Houston’s energy sector. Important to realize, Houston’s apartment market is entering this period of vulnerability when conditions are unusually strong. There’s room to lose some of its momentum and still log very solid results.
Read more...Houston Is 2015’s Wild Card Apartment Market – Part Three | Property Management Insider
What’s the Current Performance?
In part one and two, we discussed some of the changes to Houston’s energy sector. Important to realize, Houston’s apartment market is entering this period of vulnerability when conditions are unusually strong. There’s room to lose some of its momentum and still log very solid results.
Read more...Houston Is 2015’s Wild Card Apartment Market – Part Three | Property Management Insider
Houston Is 2015’s Wild Card Apartment Market – Part Two via Property Management Insider
What Does Houston’s Energy Sector Look Like?
Houston’s energy sector encompasses multiple activities. In part one, we discussed the changing energy industry, oil prices, and production. The degree of impact from falling oil prices will vary from one segment of the business to another, and the timing of the impact will vary, too.
The upstream sector of the energy business refers to oil extraction. While the Texas oil fields aren’t actually in Houston, lots of the metro’s energy workers are involved in upstream activities.
Read more...Houston Is 2015’s Wild Card Apartment Market – Part Two | Property Management Insider
Houston’s energy sector encompasses multiple activities. In part one, we discussed the changing energy industry, oil prices, and production. The degree of impact from falling oil prices will vary from one segment of the business to another, and the timing of the impact will vary, too.
The upstream sector of the energy business refers to oil extraction. While the Texas oil fields aren’t actually in Houston, lots of the metro’s energy workers are involved in upstream activities.
Read more...Houston Is 2015’s Wild Card Apartment Market – Part Two | Property Management Insider
Houston Is 2015’s Wild Card Apartment Market – Part One via Property Management Insider
There is typically at least one spot across the country where forecasting the apartment market performance is very tricky. Depending on assumptions made about the factors that should have the greatest influences on overall results, outcomes can vary drastically in these locales. During the past few years, these wild card markets have included Atlanta, reflecting questions about economic growth potential, and Washington, DC, reflecting questions focused on the volume of pent-up demand available to meet surging apartment completions.
Houston’s outlook now ranks as the toughest call to make. How much will a disruption in the energy sector cut into the metro’s job creation pace, household formation volume, and apartment demand level? At the same time, what impact will 2015 completions nearly doubling the 2014 tally place downward pressure on performance results?
Read more...Houston Is 2015’s Wild Card Apartment Market – Part One | Property Management Insider
Houston’s outlook now ranks as the toughest call to make. How much will a disruption in the energy sector cut into the metro’s job creation pace, household formation volume, and apartment demand level? At the same time, what impact will 2015 completions nearly doubling the 2014 tally place downward pressure on performance results?
Read more...Houston Is 2015’s Wild Card Apartment Market – Part One | Property Management Insider
Apartment Rent Growth Continues to Climb, Reaches New High for 2014 at 4.7% in November via MultifamilyBiz.com
National annual effective rent growth in November 2014 reached 4.7%, the strongest result of 2014 to date and the highest since August 2011 when the rate measured 5.0%.
According to research from Axiometrics, the leader in apartment market research and analysis, November's rent-growth rate was a 38-basis-point (bps) increase from the 4.3% recorded in October and the largest growth margin since the 39-bps increase from February-March 2011 (4.6% and 5.0%, respectively).
Read more...Apartment Rent Growth Continues to Climb, Reaches New High for 2014 at 4.7% in November | MultifamilyBiz.com
According to research from Axiometrics, the leader in apartment market research and analysis, November's rent-growth rate was a 38-basis-point (bps) increase from the 4.3% recorded in October and the largest growth margin since the 39-bps increase from February-March 2011 (4.6% and 5.0%, respectively).
Read more...Apartment Rent Growth Continues to Climb, Reaches New High for 2014 at 4.7% in November | MultifamilyBiz.com
Wednesday, December 17, 2014
CRE Mortgage Debt Reaches New High via GlobeSt.com
Commercial and multifamily mortgage debt reached a record high in the third quarter, the Mortgage Bankers Association said Tuesday. The 1.1% increase in outstanding debt brought the total to $2.59 trillion, with multifamily mortgages accounting for more than half the quarterly increase.
“The quarter-over-quarter increase was the highest since 2008, and the rise in multifamily mortgage debt was the highest since 2007,” says Jamie Woodwell, MBA’s VP of CRE research. “Strong originations are more than outpacing the low volume of loans maturing this year.”
Read more...CRE Mortgage Debt Reaches New High - Daily News Article - GlobeSt.com
“The quarter-over-quarter increase was the highest since 2008, and the rise in multifamily mortgage debt was the highest since 2007,” says Jamie Woodwell, MBA’s VP of CRE research. “Strong originations are more than outpacing the low volume of loans maturing this year.”
Read more...CRE Mortgage Debt Reaches New High - Daily News Article - GlobeSt.com
Through the Lens: A Look at Apartment Rents, Home Prices and Incomes in Real Terms via Property Management Insider
Strong performance in the multifamily sector of late has raised some concerns about affordability. The concerns are very much centered on trends over the last four years, as annual same-store effective rent change for the top 50 U.S. metros has outpaced the rate of inflation for 17 consecutive quarters. And in 3rd quarter 2014, annual effective rent change for the top 50 metros came in at a two-year high of 3.7%, more than twice the reported annual rate of inflation.
However, before sounding the alarm, it’s useful to look at apartment rent growth with a zoomed-out lens – viewing rent growth relative to inflation, wage growth and single-family price growth over multiple cycles. This zoomed-out view paints a very different (and perhaps surprising) picture. It shows that even post-housing bust, single-family appreciation has far outpaced apartment rent growth since 2002.
Read more...Through the Lens: A Look at Apartment Rents, Home Prices and Incomes in Real Terms | Property Management Insider
However, before sounding the alarm, it’s useful to look at apartment rent growth with a zoomed-out lens – viewing rent growth relative to inflation, wage growth and single-family price growth over multiple cycles. This zoomed-out view paints a very different (and perhaps surprising) picture. It shows that even post-housing bust, single-family appreciation has far outpaced apartment rent growth since 2002.
Read more...Through the Lens: A Look at Apartment Rents, Home Prices and Incomes in Real Terms | Property Management Insider
San Antonio Apartment Market Update October 2014 via oconnordata.com
Most key metrics of the San Antonio area multifamily sector recorded positive and negative changes in October 2014.
The occupancy figures recorded both positive and negative values for all the classes. For Class A properties, occupancy increased by 0.01% over the month to close at 93.03%; and decreased by 0.72% over the year. The largest annual increase was noted for Class B properties (0.30%).
Read more...San Antonio Apartment Market Update October 2014
The occupancy figures recorded both positive and negative values for all the classes. For Class A properties, occupancy increased by 0.01% over the month to close at 93.03%; and decreased by 0.72% over the year. The largest annual increase was noted for Class B properties (0.30%).
Read more...San Antonio Apartment Market Update October 2014
Dallas/Ft. Worth Apartment Market Update October 2014 via oconnordata.com
The key metrics for the Dallas/Fort Worth area multifamily sector recorded significant changes both over the month and over the year.
Over the month all the classes recorded mostly upward trends in terms of occupancy. Class A properties recorded an increase of 0.03% over previous month. On a year-over-year basis Class A properties recorded a decrease of 0.15%. The largest annual increase was noted for Class B properties with an increase of 0.42%.
Read more...Dallas/Ft. Worth Apartment Market Update October 2014
Over the month all the classes recorded mostly upward trends in terms of occupancy. Class A properties recorded an increase of 0.03% over previous month. On a year-over-year basis Class A properties recorded a decrease of 0.15%. The largest annual increase was noted for Class B properties with an increase of 0.42%.
Read more...Dallas/Ft. Worth Apartment Market Update October 2014
Tuesday, December 16, 2014
ALN Monthly Newsletter December 2014 via ALN Apartment Data
ALN Data just released their November 2014 stats on occupancy and rents for 23 markets. In Texas, it includes DFW, Austin, Houston, San Antonio, Lubbock, Amarillo, Abilene and Corpus Christi. It is a must read from a great provider of apartment data.
Read more...ALN Monthly Newsletter December 2014 via ALN Apartment Data
Read more...ALN Monthly Newsletter December 2014 via ALN Apartment Data
Austin Apartment Market Update October 2014 via oconnordata.com
All metrics for the Austin area multifamily sector recorded both positive and negative changes in October 2014.
Occupancy figures recorded both positive and negative figures for the classes for the month. Class A properties reported an increase of 0.01% over last month, and a decrease of 0.72% over last year. The largest annual increase was noted for Class B with an increase of 0.85%.
Read more...Austin Apartment Market Update October 2014
Occupancy figures recorded both positive and negative figures for the classes for the month. Class A properties reported an increase of 0.01% over last month, and a decrease of 0.72% over last year. The largest annual increase was noted for Class B with an increase of 0.85%.
Read more...Austin Apartment Market Update October 2014
Houston Apartment Market Update October 2014 via oconnordata.com
Key metrics for the Houston area multifamily sector recorded both positive and negative changes in October 2014.
Occupancy figures for the classes recorded both positive and negative changes over the month. Class A recorded a decrease of 0.30% from previous month. The average went down by 1.40% over the year for Class A properties. The largest annual increase was noted for Class C properties with an average increase of 0.31% to close at 89.50%.
Read more...Houston Apartment Market Update October 2014
Occupancy figures for the classes recorded both positive and negative changes over the month. Class A recorded a decrease of 0.30% from previous month. The average went down by 1.40% over the year for Class A properties. The largest annual increase was noted for Class C properties with an average increase of 0.31% to close at 89.50%.
Read more...Houston Apartment Market Update October 2014
MPF highlights DFW multifamily 3Q 2014 via Real Estate Center at Texas A&M
Apartment completions have picked up significantly in DFW, but substantial growth in the economy and other drivers have spurred absorption enough to mute the effect of the elevated supply, according to the latest report from MPF Research.
Demand for new lease-ups has been strong, and middle-market demand remains strong as well.
Read more...MPF highlights DFW multifamily 3Q 2014
Demand for new lease-ups has been strong, and middle-market demand remains strong as well.
Read more...MPF highlights DFW multifamily 3Q 2014
MPF: San Antonio apartment trends 3Q 2014 via Real Estate Center at Texas A&M
Like other major metros in Texas, San Antonio’s apartment sector showed strong growth coming out of the recession.
But unlike those other metros, San Antonio already appears to be reverting to a slow growth pattern that is more consistent with its own historical performances.
Structurally, the San Antonio metro is a more moderate-growth metro — heavy on government-related jobs, but not on large private employers.
Read more...MPF: San Antonio apartment trends 3Q 2014
But unlike those other metros, San Antonio already appears to be reverting to a slow growth pattern that is more consistent with its own historical performances.
Structurally, the San Antonio metro is a more moderate-growth metro — heavy on government-related jobs, but not on large private employers.
Read more...MPF: San Antonio apartment trends 3Q 2014
Monday, December 15, 2014
The Nation’s Top 10 Busiest Submarkets: 6. Frisco/Prosper, Texas via Property Management Insider
Landing in the No. 10 spot on our list of rapid inventory growth is the Frisco/Prosper submarket in the Dallas metro. Frisco/Prosper’s inventory expansion rate since 2012 is 44.5%. That calculation includes new apartment supply plus units under construction at the end of 3rd quarter 2014. Turning that percentage into an actual unit count, Frisco/Prosper has received 1,612 new apartments since 2012, and had an additional 2,081 units under construction at the end of 3rd quarter 2014.
Read more...The Nation’s Top 10 Busiest Submarkets: 6. Frisco/Prosper, Texas | Property Management Insider
Read more...The Nation’s Top 10 Busiest Submarkets: 6. Frisco/Prosper, Texas | Property Management Insider
MPF Research: Austin Multifamily 3Q 2014 via Real Estate Center at Texas A&M
Broad-based economic gains combined with the metro’s already favorable demographics have fueled demand for housing in Central Texas, which has generated strong revenue growth for the apartment sector, according to the latest report from MPF Research.
Such solid demand for apartments has strengthened the market’s fundamentals and led to elevated levels of apartment development.
Occupancy has hovered around the 95 percent mark for over three years. In response to the high occupancy, apartment operators have pushed rents around 4 percent to 7 percent annually for 14 straight quarters.
Read more...MPF Research: Austin multifamily 3Q 2014
Such solid demand for apartments has strengthened the market’s fundamentals and led to elevated levels of apartment development.
Occupancy has hovered around the 95 percent mark for over three years. In response to the high occupancy, apartment operators have pushed rents around 4 percent to 7 percent annually for 14 straight quarters.
Read more...MPF Research: Austin multifamily 3Q 2014
Friday, December 12, 2014
The Impending Wall of Maturities via GlobeSt.com
It’s not a coincidence that in recent reports, both Fitch Ratings and Trepp have used the word “wall” to characterize the CMBS maturities due to occur in 2015, 2016 and 2017. “Over the next three years, more than $300 billion in conduit CMBS loan balance will mature,” according to a Trepp report that cites a preponderance of 10-year balloon loans issued between 2005 and 2007. “That’s more than 2.5 times the amount that matured from 2012 to 2014.”
In fact, Trepp notes, nearly 60% of the loans in the CMBS conduit universe will mature over the next three years. “Commercial real estate lenders, borrowers and CMBS investors alike are looking at the next three years as a true test of the strength of recovering capital markets.”
Read more...The Impending Wall of Maturities - Daily News Article - GlobeSt.com
In fact, Trepp notes, nearly 60% of the loans in the CMBS conduit universe will mature over the next three years. “Commercial real estate lenders, borrowers and CMBS investors alike are looking at the next three years as a true test of the strength of recovering capital markets.”
Read more...The Impending Wall of Maturities - Daily News Article - GlobeSt.com
Transforming Multifamily Housing via The Balance Sheet - Yardi Corporate Blog
Sub-metering has been known to help multifamily managers cut costs. Now, as part of Fannie Mae’s Green Initiative, the simple technology can help both multifamily developers and existing properties loans.
Fannie Mae recently issued the report “Transforming Multifamily Housing: Fannie Mae’s Green Initiative and Energy Star for Multifamily,” which quantifies the benefits of energy efficiency on a blend of 1,163 multifamily properties. The data will be used to create standards for the Green Mortgage Backed Securities.
The report reveals that the least efficient properties consumed at least three times more energy and six times more water per square foot than the most efficient properties.
Read more...Transforming Multifamily Housing | The Balance Sheet - Yardi Corporate Blog
Fannie Mae recently issued the report “Transforming Multifamily Housing: Fannie Mae’s Green Initiative and Energy Star for Multifamily,” which quantifies the benefits of energy efficiency on a blend of 1,163 multifamily properties. The data will be used to create standards for the Green Mortgage Backed Securities.
The report reveals that the least efficient properties consumed at least three times more energy and six times more water per square foot than the most efficient properties.
Read more...Transforming Multifamily Housing | The Balance Sheet - Yardi Corporate Blog
The Nation’s Top 10 Busiest Submarkets: 7. Far North West San Antonio, Texas via Property Management Insider
The U.S. apartment market has seen elevated construction levels in this cycle. But construction activity has been concentrated in some spots more than others, and MPF Research has identified the nation’s 10 busiest submarkets for construction in this cycle. The submarkets were identified based on inventory growth since 2012, including the total number of units completed since 1st quarter 2012 and the total number of units under construction at the end of 3rd quarter 2014. Why have these spots attracted so much development? We’ll take a deeper look in this series highlighting each of the top 10 submarkets.
Far North West San Antonio, Texas
Placing in the No. 7 spot on our list of rapid inventory growth submarkets is Far Northwest San Antonio in San Antonio. Far Northwest San Antonio’s apartment inventory expansion rate since 2012 is 44.2%, including new apartment supply plus units under construction at the end of 3rd quarter 2014.
Read more...The Nation’s Top 10 Busiest Submarkets: 7. Far North West San Antonio, Texas | Property Management Insider
Far North West San Antonio, Texas
Placing in the No. 7 spot on our list of rapid inventory growth submarkets is Far Northwest San Antonio in San Antonio. Far Northwest San Antonio’s apartment inventory expansion rate since 2012 is 44.2%, including new apartment supply plus units under construction at the end of 3rd quarter 2014.
Read more...The Nation’s Top 10 Busiest Submarkets: 7. Far North West San Antonio, Texas | Property Management Insider
Thursday, December 11, 2014
Houston Economic Indicators December 2014 via Dallas Fed
The Houston Business-Cycle Index increased 7.7 percent in October after climbing a revised 10.8 percent in September. Indicators for manufacturing and service industries improved. Energy prices have continued to ease since July but haven’t taken the steam out of Houston’s economic engine. In the context of positive national indicators, recent data suggest that the Houston economy is growing rapidly as it heads into the holiday season.
Employment increased at an annualized rate of 4.4 percent in October, compared with 6.4 percent in September
Read more...Houston Economic Indicators December 2014 via Dallas Fed
Employment increased at an annualized rate of 4.4 percent in October, compared with 6.4 percent in September
Read more...Houston Economic Indicators December 2014 via Dallas Fed
CRE Lending, Asset Quality Soaring at U.S. Banks via CoStar Group
The amount of commercial real estate loans on U.S. bank books has swelled by more than $100 billion in the past four quarters, a 6.6% increase and now totals more than $1.65 trillion (excluding farming), according to the latest FDIC numbers released this past week. The total basically matches outstanding the CRE loan balance at the last peak of CRE markets seven years ago.
Multifamily lending continues to be the fastest growing category, increasing 14.5% over the past four quarters and now totaling $289 billion.
Read more...CRE Lending, Asset Quality Soaring at U.S. Banks - CoStar Group
Multifamily lending continues to be the fastest growing category, increasing 14.5% over the past four quarters and now totaling $289 billion.
Read more...CRE Lending, Asset Quality Soaring at U.S. Banks - CoStar Group
Wednesday, December 10, 2014
Lifestyle Wish Lists via The Balance Sheet - Yardi Corporate Blog
Millennials and Boomers are currently the heavyweights of the rental housing market, comprising a joint 62.2 percent of the renting population.
Broken down, Boomers make up 35.6 percent and Millennials total 26.6 percent. Although both are expected to move into the multifamily rental market in droves throughout the following years, as more and more Millennials leave their parents’ homes, Gen Y will take up a growing share of the market. In fact, it is expected that Millennials will rule both owner- and renter-occupied housing market until 2050. So what do the two greatest generations of the nation want from housing?
Read more...Lifestyle Wish Lists | The Balance Sheet - Yardi Corporate Blog
Broken down, Boomers make up 35.6 percent and Millennials total 26.6 percent. Although both are expected to move into the multifamily rental market in droves throughout the following years, as more and more Millennials leave their parents’ homes, Gen Y will take up a growing share of the market. In fact, it is expected that Millennials will rule both owner- and renter-occupied housing market until 2050. So what do the two greatest generations of the nation want from housing?
Read more...Lifestyle Wish Lists | The Balance Sheet - Yardi Corporate Blog
The Nation’s Top 10 Busiest Submarkets: 9. Far North Central San Antonio, Texas via Property Management Insider
The U.S. apartment market has seen elevated construction levels in this cycle. But construction activity has been concentrated in some spots more than others, and MPF Research has identified the nation’s 10 busiest submarkets for construction in this cycle. The submarkets were identified based on inventory growth since 2012, including the total number of units completed since 1st quarter 2012 and the total number of units under construction at the end of 3rd quarter 2014. Why have these spots attracted so much development? We’ll take a deeper look in this series highlighting each of the top 10 submarkets.
Far North Central San Antonio, Texas
Placing in the No. 9 slot on our list of rapid inventory growth submarkets is Far North Central San Antonio in the San Antonio metro.
Read more...The Nation’s Top 10 Busiest Submarkets: 9. Far North Central San Antonio, Texas | Property Management Insider
Far North Central San Antonio, Texas
Placing in the No. 9 slot on our list of rapid inventory growth submarkets is Far North Central San Antonio in the San Antonio metro.
Read more...The Nation’s Top 10 Busiest Submarkets: 9. Far North Central San Antonio, Texas | Property Management Insider
Tuesday, December 9, 2014
The Nation's Top 10 Busiest Submarkets: 10. Cedar Park, Texas via Property Management Insider
The U.S. apartment market has seen elevated construction levels in this cycle. But construction activity has been concentrated in some spots more than others, and MPF Research has identified the nation’s 10 busiest submarkets for construction in this cycle. The submarkets were identified based on inventory growth since 2012, including the total number of units completed since 1st quarter 2012 and the total number of units under construction at the end of 3rd quarter 2014. Why have these spots attracted so much development? We’ll take a deeper look in this series highlighting each of the top 10 submarkets.
Read more...The Nation's Top 10 Busiest Submarkets: 10. Cedar Park, Texas | Property Management Insider
Read more...The Nation's Top 10 Busiest Submarkets: 10. Cedar Park, Texas | Property Management Insider
Zillow: Renting is twice as expensive as buying via HousingWire
It’s more affordable to buy a home now in most U.S. metros than it was 15 years ago, even for millennials putting down less money on a home, according to a Zillow analysis of third-quarter income and home value data.
Renters, however, continue to pay an increasing share of their income to their landlords as rents soar and incomes remain flat.
Read more...Zillow: Renting is twice as expensive as buying | 2014-12-09 | HousingWire
Renters, however, continue to pay an increasing share of their income to their landlords as rents soar and incomes remain flat.
Read more...Zillow: Renting is twice as expensive as buying | 2014-12-09 | HousingWire
Monday, December 8, 2014
San Antonio apartment market overview Oct. 2014 via Real Estate Center at Texas A&M
Apartment MarketData Research Services LLC has released October 2014 data. The multifamily market data represent three months trailing (August–October 2014).
As a rule these represent all properties except those that are leased but not occupied units.
Read more...San Antonio apartment market overview Oct. 2014
As a rule these represent all properties except those that are leased but not occupied units.
Read more...San Antonio apartment market overview Oct. 2014
Texas Economic Indicators December 2014 via Dallas Fed
The Texas economy continues to expand, with employment growing at a 4.7 percent annual rate in October. Texas existing-home sales and single-family permits increased in October, while housing starts declined. Texas exports increased in the third quarter. Manufacturing activity in November rose at a slightly slower rate than in October, according to the Texas Manufacturing Outlook Survey.
Read more...Texas Economic Indicators December 2014 via Dallas Fed
Read more...Texas Economic Indicators December 2014 via Dallas Fed
Houston apartment market overview Oct. 2014 via Real Estate Center at Texas A&M
Apartment MarketData Research Services LLC released October 2014 data. The multifamily market data represent three months trailing (Aug.-Oct. 2014).
As a rule these represent all properties except those that are leased but not occupied units.
Read more...Houston apartment market overview Oct. 2014
As a rule these represent all properties except those that are leased but not occupied units.
Read more...Houston apartment market overview Oct. 2014
Austin apartment report 3Q 2014 Marcus & Millichap via Real Estate Center at Texas A&M
Central Texas apartment operators will enjoy tight conditions and significant rent growth this year despite record-high completions, according to Marcus & Millichap's most recent quarterly report.
Strong job creation in the metro, particularly in the high-tech sector, remains a lure for young professionals.
Read more...Austin apartment report 3Q 2014 Marcus & Millichap
Strong job creation in the metro, particularly in the high-tech sector, remains a lure for young professionals.
Read more...Austin apartment report 3Q 2014 Marcus & Millichap
Austin Economic Indicators December 2014 via Dallas Fed
Austin’s economy continued to surge in October. Payroll employment grew at an annual rate of 1.6 percent, with public sector hiring outpacing the private sector for the first time since May. The unemployment rate continued to fall, dropping from 4.2 to 4.1 percent. The housing market remained strong, with continued price appreciation,
construction employment growth, and brisk home sales. Manufacturing in Austin picked up in November after production and new orders contracted in October.
Read more...Austin Economic Indicators December 2014 via Dallas Fed
Read more...Austin Economic Indicators December 2014 via Dallas Fed
Will new supply ease Austin’s apartment rents? via Real Estate Center at Texas A&M
Although a record number of new units are opening in Central Texas this year amid an ongoing apartment-building boom, rents are continuing to rise due to robust job creation, particularly in the high-tech sector, according to Marcus & Millichap's fourth quarter 2014 report.
Builders are due to wrap up construction on more than 14,500 apartment units in Central Texas this year, the highest level of new supply since at least 2000.
As of the end of September, rents averaged $1,078 a month, a 6.2 percent increase from September 2013.
Read more...Will new supply ease Austin’s apartment rents?
Builders are due to wrap up construction on more than 14,500 apartment units in Central Texas this year, the highest level of new supply since at least 2000.
As of the end of September, rents averaged $1,078 a month, a 6.2 percent increase from September 2013.
Read more...Will new supply ease Austin’s apartment rents?
Thursday, December 4, 2014
Zillow Prediction on Millennials Sparks Debate via National Mortgage Professional
For most of this year, the economic news relating to Millennials has been discouraging, ranging from an absurdly high student loan debt burden to a painfully low prospect of decent-paying employment opportunities to a conspicuous lack of aggressive participation in the housing market. However, Zillow is boldly predicting a significant turnaround for the 18-to-35-year-old demographic, with a statement that Millennials will overtake Generation X (the 35-to-50-year-olds) as the largest group of homebuyers in 2015.
“Roughly 42 percent of Millennials say they want to buy a home in the next one to five years, compared to just 31 percent of Generation X, and by the end of 2015 Millennials will become the largest home-buying age group,” said Dr. Stan Humphries, Zillow chief economist. “The lack of home-buying activity from Millennials thus far is decidedly not because this generation isn't interested in homeownership, but instead because younger Americans have been delaying getting married and having children, two key drivers in the decision to buy that first home. As this generation matures, they will become a home-buying force to be reckoned with.”
Read more...Zillow Prediction on Millennials Sparks Debate | Mortgage News | Daily National and State Headlines
“Roughly 42 percent of Millennials say they want to buy a home in the next one to five years, compared to just 31 percent of Generation X, and by the end of 2015 Millennials will become the largest home-buying age group,” said Dr. Stan Humphries, Zillow chief economist. “The lack of home-buying activity from Millennials thus far is decidedly not because this generation isn't interested in homeownership, but instead because younger Americans have been delaying getting married and having children, two key drivers in the decision to buy that first home. As this generation matures, they will become a home-buying force to be reckoned with.”
Read more...Zillow Prediction on Millennials Sparks Debate | Mortgage News | Daily National and State Headlines
CRE Bank Lending Reaches $1.4T in Q3 via GlobeSt.com
Banking lending for commercial real estate transactions has reached new heights in Q3, according to Chandan Economic's Banking Lending & Default Report. Namely, it found that multifamily and commercial real estate loans held on bank balance sheets increased to $1.42 trillion during Q3 2014, up $15.5 billion from the prior quarter and up by $77.4 billion from a year earlier.
Bank lending against multifamily and commercial real estate has been rising for ten consecutive quarters and has now reached an all-time high with this latest quarter. It is 9% above the pre-financial crisis peak of $1.31 trillion.
Read more...CRE Bank Lending Reaches $1.4T in Q3 - Daily News Article - GlobeSt.com
Bank lending against multifamily and commercial real estate has been rising for ten consecutive quarters and has now reached an all-time high with this latest quarter. It is 9% above the pre-financial crisis peak of $1.31 trillion.
Read more...CRE Bank Lending Reaches $1.4T in Q3 - Daily News Article - GlobeSt.com
Real Estate Executives Eye 2016 as Peak Year via Commercial Property Executive
The best is yet to come in the current real estate cycle, according to the results of the latest CPE 100 Quarterly Sentiment Survey, which predicts that the next investment peak will be in 2016. Meanwhile, multi-family continues to win a vote of confidence from industry leaders, even after several years of robust development and investment.
Nearly half of the executives surveyed—46 percent—said that peak asset values and transaction volume across property types are still two years away (see chart below).
Read more...Real Estate Executives Eye 2016 as Peak Year | Commercial Property Executive
Nearly half of the executives surveyed—46 percent—said that peak asset values and transaction volume across property types are still two years away (see chart below).
Read more...Real Estate Executives Eye 2016 as Peak Year | Commercial Property Executive
Fewer Renters Under 25 via GlobeSt.com
Axiometrics data show that the percentage of households that are renting has been increasing for most age groups since the housing bubble burst in 2007/2008. There is one significant exception, however, and renting among this age group has in fact trended steadily, although not dramatically, downward since the mid-2000s: the youngest adults among the millennial generation, those born in the late 1980s and early 1990s.
As Generation X gave way to Generation Y among heads of household under age 25, what was a leveling-off effect among renters in this age cohort turned into a gradual decline.
Read more...Fewer Renters Under 25 - Daily News Article - GlobeSt.com
As Generation X gave way to Generation Y among heads of household under age 25, what was a leveling-off effect among renters in this age cohort turned into a gradual decline.
Read more...Fewer Renters Under 25 - Daily News Article - GlobeSt.com
Wednesday, December 3, 2014
Dallas Beige Book 12/3/2014 via Dallas Fed
The Eleventh District economy expanded at a solid pace over the past six weeks. Manufacturing activity continued to increase overall, although there were a few reports of slowing growth in demand. Retail and automobile sales reports were mixed, and nonfinancial services firms saw steady or improved demand. Sales of single-family homes slowed, but apartment, office, and industrial leasing activity remained strong. Demand for oilfield services stayed robust; agricultural conditions generally improved. Selling prices were stable or rose slightly for most firms, and employment held steady or increased. Outlooks remained optimistic, but some contacts noted concerns about the potential effect of declining oil prices on the District economy.
Read more...Dallas Beige Book - Dallas Fed
Read more...Dallas Beige Book - Dallas Fed
Impact from Apartment Construction Boom Expected to Further Hit Rents, Occupancy in 2015 via CoStar Group
With construction on new apartments back in full swing and vacancy rates beginning to trend upward, the robust rent increases enjoyed by landlords in most U.S. metro areas are expected to decelerate to below 2% in 2015 as the multifamily market shifts from full recovery into an expansion phase.
CoStar Group economists are forecasting that apartment vacancy rates will rise in 46 of the 54 top U.S. metros over the next four quarters due to the massive wave of current apartment deliveries and new apartment projects starting almost daily.
According to their most recent analysis, the U.S. apartment vacancy rate will rise from the current 4.1% to over 5% by the end of 2015.
Read more...Impact from Apartment Construction Boom Expected to Further Hit Rents, Occupancy in 2015 - CoStar Group
CoStar Group economists are forecasting that apartment vacancy rates will rise in 46 of the 54 top U.S. metros over the next four quarters due to the massive wave of current apartment deliveries and new apartment projects starting almost daily.
According to their most recent analysis, the U.S. apartment vacancy rate will rise from the current 4.1% to over 5% by the end of 2015.
Read more...Impact from Apartment Construction Boom Expected to Further Hit Rents, Occupancy in 2015 - CoStar Group
Still Growing Strong: 3 Reasons Occupancy Rates Are Higher Than Expected via AppFolio
Experienced property managers and multifamily investors keep a close eye on national inventory. The laws of supply and demand suggest that when thousands of units come on line in a few months, occupancy rates and rent potential fall. But, 2014 hasn’t followed traditional patterns. Knowing there’ve been about 180,000 units added over the past twelve months – and the third and fourth quarters should add thousands more – it seems implausible that occupancy rates are the best they’ve been in a decade and a half.
Why? There are a number of factors driving this phenomenon. Let’s look at three.
Read more...Still Growing Strong: 3 Reasons Occupancy Rates Are Higher Than Expected
Why? There are a number of factors driving this phenomenon. Let’s look at three.
Read more...Still Growing Strong: 3 Reasons Occupancy Rates Are Higher Than Expected
Apartment Completions Slow Rent Growth … Except Where They Don’t via Property Management Insider
Rent growth in the U.S. apartment market has exceeded the expectations of many during 2014, with much of that growth stemming from very strong pricing power in bread-and-butter, middle-market communities. Prices are tending to climb more slowly in the newest, most expensive units, partly reflecting the impact of large volumes of new properties moving through lease-up. Among projects completed during this cycle (since 2010) where initial leases have turned at least once, annual rent growth is running at 1.2%, versus the 3.7% average for all units.
That overall trend, however, certainly doesn’t hold true across all locations. Select metros are posting substantial rent growth in new projects, while a few are registering actual rent cuts at the top of the market.
Read more...Apartment Completions Slow Rent Growth … Except Where They Don’t | Property Management Insider
That overall trend, however, certainly doesn’t hold true across all locations. Select metros are posting substantial rent growth in new projects, while a few are registering actual rent cuts at the top of the market.
Read more...Apartment Completions Slow Rent Growth … Except Where They Don’t | Property Management Insider
Tuesday, December 2, 2014
DFW Economic Indicators November 2014 via Dallas Fed
The Dallas–Fort Worth economy expanded at a brisk pace in October. Year to date, DFW employment has grown 3.4 percent, slightly slower than the state’s 3.7 percent rate. Job creation remains mostly broad-based across sectors. Activity in the office and industrial markets remains brisk, characterized by rising rents and low vacancy rates, despite elevated levels of construction. Unemployment rates for Dallas and Fort Worth fell again in October and remain below those of the U.S. The Dallas Fed business-cycle indexes point to continued expansion for the Dallas–Fort Worth metroplex.
Dallas–Fort Worth employment expanded at a rapid clip in October. Jobs grew at an annual rate of 5.4 percent in October, up from the 3.0 percent increase recorded in the third quarter. Employment growth in trade, transportation and utilities (the largest sector), construction and mining, and financial activities contributed the most to faster growth during the month.
Read more...DFW Economic Indicators November 2014 via Dallas Fed
Dallas–Fort Worth employment expanded at a rapid clip in October. Jobs grew at an annual rate of 5.4 percent in October, up from the 3.0 percent increase recorded in the third quarter. Employment growth in trade, transportation and utilities (the largest sector), construction and mining, and financial activities contributed the most to faster growth during the month.
Read more...DFW Economic Indicators November 2014 via Dallas Fed
Texas Job Growth Continues via Real Estate Center at Texas A&M
Texas maintained steady job growth in October, posting another record for job creation over the past 12 months.
The state added 35,200 seasonally adjusted jobs in October, according to the Texas Workforce Commission. September’s employment gain was also revised from 34,600 to 37,400.
A record 421,900 jobs have been created over the last 12 months by employers statewide, representing one in every six new jobs in the United States.
Read more...Texas Job Growth Continues
The state added 35,200 seasonally adjusted jobs in October, according to the Texas Workforce Commission. September’s employment gain was also revised from 34,600 to 37,400.
A record 421,900 jobs have been created over the last 12 months by employers statewide, representing one in every six new jobs in the United States.
Read more...Texas Job Growth Continues
San Antonio Economic Update November 2014 via Dallas Fed
The San Antonio economy continued to grow robustly in October. Payroll employment expanded at a 4.4 percent annualized rate, while the unemployment rate fell to 4.6 percent. Housing indicators remained mixed as new housing starts fell but construction employment, help-wanted advertising and home sales rose in October. Growth in stock prices for San Antonio companies was broad-based, rebounding after weakness in early October.
The San Antonio Business-Cycle Index continued to grow at a fast pace, increasing an annualized 6.6 percent over the six months through October. So far this year, the index has grown at a 6.5 percent annualized rate, the fastest since 2005. Recent strength in job growth and a falling unemployment rate have propelled growth in the index.
Read more...San Antonio Economic Update November 2014 via Dallas Fed
The San Antonio Business-Cycle Index continued to grow at a fast pace, increasing an annualized 6.6 percent over the six months through October. So far this year, the index has grown at a 6.5 percent annualized rate, the fastest since 2005. Recent strength in job growth and a falling unemployment rate have propelled growth in the index.
Read more...San Antonio Economic Update November 2014 via Dallas Fed
San Antonio: Marcus & Millichap 4Q 2014 apartment report via Real Estate Center at Texas A&M
Thriving demand for rental housing in San Antonio is keeping pace with the delivery of hundreds of new apartments and holding vacancy on course to rise only nominally this year, according to Marcus & Millichap's Fourth Quarter 2014 Apartment Research Market Report.
At the end of 3Q 2014, vacancy was tight in nearly all corners of the market. Six of 14 submarkets posted vacancy rates lower than the national average.
Read more...San Antonio: Marcus & Millichap 4Q 2014 apartment report
At the end of 3Q 2014, vacancy was tight in nearly all corners of the market. Six of 14 submarkets posted vacancy rates lower than the national average.
Read more...San Antonio: Marcus & Millichap 4Q 2014 apartment report
Apartment Sales Could Edge Past ’07 via GlobeSt.com
While pricing for trophy assets in certain markets has exceeded the levels reached in 2007, no property sector has managed that feat in terms of 12-month sales as yet. It’s left to multifamily to potentially be the first; CBRE says we could see dollar volume for apartment properties edge past ’07 by Dec. 31.
Citing Real Capital Analytics data, CBRE says multifamily sales volume for the first nine months of 2014 totaled $73.1 billion, while reaching $27.5 in the most recent quarter. If the current pace is maintained through the end of the year, sales volume could reach $105.2 billion, just nosing past ‘07’s level of $105.1 billion.
Read more...Apartment Sales Could Edge Past ’07 - Daily News Article - GlobeSt.com
Citing Real Capital Analytics data, CBRE says multifamily sales volume for the first nine months of 2014 totaled $73.1 billion, while reaching $27.5 in the most recent quarter. If the current pace is maintained through the end of the year, sales volume could reach $105.2 billion, just nosing past ‘07’s level of $105.1 billion.
Read more...Apartment Sales Could Edge Past ’07 - Daily News Article - GlobeSt.com
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