Friday, January 30, 2015

Apartment Market Statistics: January 2015 via Multi-Housing News Online

Housing starts rose by 18 percent over the month of September 2014 to 353,000 units, according to the National Association of Home Builders (NAHB). NAHB reports that in September 2014, the three-month moving average of housings starts of buildings with five or more units reached a post-recession high of 360,000 units, a 6 percent increase over the 341,000 that was recorded in August 2014 and 2 percent over the last high of 351,000 that was recorded in July 2014.

Apartment total returns increased by 2.53 percent in the third quarter, compared to 2.41 percent in the quarter before, and 2.21 in the first quarter, according to National Council of Real Estate Investment Fiduciaries.

Read more...APARTMENT MARKET STATISTICS: January 2015 | Multi-Housing News Online

Will a Drop in Energy-Related Tax Revenue Slow Down Austin? via Property Management Insider

As the Texas capital, Austin is largely dependent on state government … and the tax revenue stream to support it. With energy prices falling and energy exploration declining, how will Austin be impacted? And how does the economic forecast shape the 2015 outlook for the Austin apartment sector?

Watch video...Will a Drop in Energy-Related Tax Revenue Slow Down Austin? | Property Management Insider

Regional Outlook: Moderate Growth Ahead via Dallas Fed

Economic growth in the Eleventh District moderated somewhat as oil prices fell to five-year lows. Oil well permits and the Texas rig count have seen significant declines, and exports have continued to fall.

Conditions outside the energy sector were generally upbeat in December data as payroll employment rose an annualized 3.7 percent, the unemployment rate continued to trend downward and the Texas Business Outlook Survey (TBOS) indexes remained positive. However, TBOS indexes fell markedly in January. The headline manufacturing production index came in near zero, and the service sector revenue index dipped as well.

Read more...Regional Outlook: Moderate Growth Ahead - Dallas Fed

Thursday, January 29, 2015

In the Right Suburbs, Apartment Performance Mirrors the Urban Core via Property Management Insider

Suburbia has gotten a bad rap of late. The popular narrative among apartment investors, lenders and developers is that urban trumps suburban. That is certainly true in terms of liquidity, fueled by investor appetite. But is it also true of fundamentals?

Not exactly.

A new study by MPF Research shows that the differences in performance are much slighter than widely perceived. In fact, apartment occupancy and rent growth over multiple cycles are remarkably similar between central business districts and “good” suburbs, while renter turnover is – surprisingly – a bit higher in CBDs. And given cap rate compression and price appreciation in urban spots, suburban deals may offer more upside at this stage of the cycle – at least for investors who aren’t 30-year holders.

Read more...In the Right Suburbs, Apartment Performance Mirrors the Urban Core | Property Management Insider

3 Wild Cards for the Apartment Market in 2015 via Multifamily Executive Magazine

After what some observers would call a rebound year in 2014 (while others characterize it as the continuation of a good run), 2015 looks to be yet another year of growth for the apartment business.

But there are some clouds on the horizon that could trip the business in the months ahead. Here are three things economists think could be potential hiccups as the year plays out

-Oil Prices
Most observers paint lower energy prices as positive. At worst they’re something that will plague Houston and possibly some of the other markets in Texas.

Read more...3 Wild Cards for the Apartment Market in 2015 | Multifamily Executive Magazine

San Antonio Apartment Market Update November 2014 via OConnorData

Market Summary

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

The occupancy figures recorded both positive and negative values for all the classes. For Class A properties, occupancy decreased by 1.33% over the month to close at 91.70%; and decreased by 1.77% over the year. The largest annual increase was noted for Class C properties (1.00%).

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

Austin Apartment Market Update November 2014 via OConnorData

Market Summary

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

Occupancy figures recorded both positive and negative figures for the classes for the month. Class A properties reported an increase of 0.08% over last month, and a decrease of 0.13% over last year. The largest annual increase was noted for Class D with an increase of 0.42%.

Read more...Austin Apartment Market Update November 2014

Dallas/Ft. Worth Apartment Market Update November 2014 via OConnorData

Market Summary

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 0.01% over previous month. On a year-over-year basis Class A properties recorded an increase of 0.10%. The largest annual increase was noted for Class B properties with an increase of 0.42%.

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

Houston Apartment Market Update November 2014 via OConnorData

Market Summary

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

Occupancy figures for the classes recorded both positive and negative changes over the month. Class A recorded a decrease of 0.05% from previous month. The average went down by 1.25% over the year for Class A properties. The largest annual increase was noted for Class D properties with an average increase of 0.92% to close at 87.08%.

Read more...Houston Apartment Market Update November 2014

Wednesday, January 28, 2015

Report: Austin population boom happening no matter what via Real Estate Center at Texas A&M

Even under the most pessimistic projections — if some sort of plague and economic slump were to take hold in the region — the Austin area's population will still grow by more than 30 percent over the next 15 years, a report from the Urban Institute shows.

If migration and the birth rate are higher than expected, the Austin area could grow by more than 80 percent by 2030.

Read more...Report: Austin population boom happening no matter what

Markets to Watch for Multifamily Growth via GlobeSt.com

From the Northeast to the West, panelists at NMHC’s Apartment Strategies Outlook Conference here last week gave an overview of where the hot spots are and where rent growth is cooling for apartments. During the panel “The Markets: A Full Sweep,” moderator Jay Lybik, VP of market research for Equity Residential, said he expects continued demand for apartments in 2015 because national vacancy has been at or below 5.8% since 2012.

Lybik added that with Millennials’ shift toward delaying marriage and away from homeownership, the multifamily sector has great fundamentals. “Boomerang kids living home” after college are moving out as the economy has picked up, and they’re moving into apartments. “The 24-to-25 age cohort is the largest in the Millennial generation, and this is the prime age for starting households.”

Nationally, supply is not a problem for multifamily, Lybik said. “Oversupply is not happening since permitting numbers are half of what they were in the ’80s.”

Read more...Markets to Watch for Multifamily Growth - Daily News Article - GlobeSt.com

Will Falling Oil Prices Impact the Dallas/Fort Worth Apartment Sector? via Property Management Insider

n Part 2 of a four-part series on the big four Texas apartment markets, MPF Research updates current conditions in Dallas/Fort Worth and examines its exposure to the energy industry.

Watch video...Will Falling Oil Prices Impact the Dallas/Fort Worth Apartment Sector? | Property Management Insider

Houston apartment outlook not as rosy as oil price tumbles via Houston Chronicle

In the last two years, the multifamily market in Houston has been booming with sky-high occupancy rates and rents, hordes of new people moving to the city and thousands of brand-new apartment units under construction.

But the forecast for 2015 — in light of tumbling in oil prices –is far less rosy, a panel of industry leaders said at the annual Houston Apartment Association meeting Tuesday. Rent growth will drop off and job growth will shrink as construction crews bring even more units online.

Job growth was key to the last couple years increase in demand for apartments. Jesse Thompson, business economist with the Federal Reserve Bank of Dallas, Houston branch, predicted that job growth in Houston will shrink by about half of that in recent years and below the average to about 50,000 to 55,000 a year.

Read more...Houston apartment outlook not as rosy as oil price tumbles - Prime Property

Tuesday, January 27, 2015

Top 25 Cities for Bedbug Infestations via Multifamily Executive Magazine

Bedbugs are continuing to thrive in America and the problem is not going away any time soon, pest management officials say.

Pest management company Orkin reports that Americans spent $446 million on bedbug treatments last year, compared with $70 million in 2004. The company also notes an 18 percent increase in business from bedbugs over the past year.

Midwestern cities dominate the most problematic places for bedbugs, and the problem is only occurring more frequently, according to Orkin professional Ron Harrison.

Read more...Top 25 Cities for Bedbug Infestations | Multifamily Executive Magazine

Texas Manufacturing Outlook Survey, January 26, 2015 via Dallas Fed

Texas factory activity was flat in January, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, came in at 0.7, indicating output was essentially unchanged from December.

Other survey measures also reflected sluggish activity during the month. The capacity utilization index fell to 5.1, its lowest reading in five months. The shipments index plunged from 20.8 to 6, due to a much higher share of respondents noting a decline in shipments in January than in December. The new orders index moved down from 2.7 to -7.7, registering its first negative reading since April 2013.

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

Monday, January 26, 2015

Texas Labor Market Review - January 2015 via Texas Workforce Commission

Total Nonagricultural Employment in Texas expanded by an estimated 45,700 positions in December on the heels of a revised gain of 30,200 jobs in November. This marked 51 straight months of employment growth in the series, a stretch that was capped by nine straight monthly increases of more than 30,000 jobs. Seven of the 11 major industries showed employment increases over the month, led by a rise of 14,800 jobs in Professional and Business Services. Total Nonagricultural Employment ended the year at an estimated level of 11,783,300 jobs, an increase of 457,900 jobs over the year. The annual growth rate for the employment series edged up to 4.0 percent in December from 3.9 percent in November to reach its highest level since May 1998.

Read more...Texas Labor Market Review - January 2015 via Texas Workforce Commission

How Will Falling Oil Prices Impact the Houston Apartment Sector? via Property Management Insider

In Part 1 of a four-part series on the big four Texas apartment markets, MPF Research examines how falling energy prices impacts the Houston outlook.

Watch video...How Will Falling Oil Prices Impact the Houston Apartment Sector? | Property Management Insider

Friday, January 23, 2015

Houston Changes via Axiometrics

The massive drop in oil prices during the past two months has caused Axiometrics to revise its forecasts for employment and apartment fundamentals, but it’s not as gloomy as some might believe.

Now, employers in the Houston-Baytown-Sugar Land Metropolitan Statistical Area (MSA) are expected to add 73,000 jobs in 2015, a decrease of 20,000 jobs from the 93,000 originally forecast and almost 48,000 fewer than were created in 2014.

The rate of job gains is expected to soften further to 54,000 jobs in 2016, before rising again in 2017 and 2018.

Read more...Houston Changes

Thursday, January 22, 2015

Economy Watch: More Evidence of Apartments Still Having Long Runway via Commercial Property Executive

Any time a boom lasts more than a short while, the question naturally surfaces: How much longer can this go on? Doesn’t the party have to end sometime? All good times do come to an end, but in the case of the running boom for U.S. apartment properties, demographic data (demand) and development data (supply) are still on the landlords’ side and likely will be for at least another decade, if not longer. In short, there are a whole lot of renters in the market or preparing to enter the market, which is the demand side; but not as much development as one would expect, considering that demand.

A relatively youthful population bulge forms the demand side. Young adults have long been predominantly renters, and that might be even truer now, since young renters of today lived through the housing-led recession, and might (possibly) be more inclined to rent than buy. But even if they want to own property as much as their parents, the Millennials and their successors will still be a formidable renting class over the next decade. Put all Americans from age 20 to 34 together, and the total is more than 66 million in 2015, up from 60 million 2005. By 2025, that age cohort’s going to number more than 68 million; and in another 10 years, nearly 70 million.

Read more...Economy Watch: More Evidence of Apartments Still Having Long Runway | Commercial Property Executive

NMHC Special Report: Working Towards Workforce Housing via Multi-Housing News Online

Though we all like a slick rendering and discussing new trends in luxe amenities, the reality is that the median U.S. renter earns $36,000 a year. While employment growth averaged a healthy 246,000 jobs added per month in 2014, over 40 percent of the job growth over the past four years has been in lower-wage industries.

“The number of people that went from moderate income to low income increased dramatically since the recession,” said Hugh Frater, CEO of Berkadia, at panel covering workforce housing at the 2015 NMHC Apartment Strategies Outlook Conference in Palm Springs this Tuesday.

“Most working and lower income families are rent burdened. The number of people spending 30 to 50 percent of income on rent—and even more than 50 percent of income on rent in certain cases—has risen dramatically. When people are spending more than 50 percent of income on rent, they are also often deciding on whether or not they can afford food.”

Read more...NMHC Special Report: Working Towards Workforce Housing | Multi-Housing News Online

Wednesday, January 21, 2015

Panelists Predict Multifamily Construction Will Begin to Level Off via WSJ

The pace of rental apartment construction will decline from the frantic pace of recent years to a level that is sustainable for the long term, panelists at the International Builders Show predicted on Monday.

Multifamily unit starts jumped about 14% in 2014 to 352,000 from 309,000 in 2013, according to David Crowe, chief economist with the National Association of Home Builder. In 2015, he expects that number to edge up less than 2% to 358,000 unit starts.

Read more...Panelists Predict Multifamily Construction Will Begin to Level Off - Developments - WSJ

2014 Ends at No. 1 via Axiometrics

The Year of the Apartment Market ended, well, like the Year of the Apartment Market should have – strong in all aspects.

National annual effective rent growth in December 2014 reached 4.9%, the strongest monthly rate of 2014 (and even 2013 and 2012), according to Axiometrics apartment data. The last time rent growth was this high was the 5.0% of August 2011. The rate has increased for 10 straight months and was higher than the previous month’s level for 11 of 12 months during 2014.

The December 2014 rate was 219 basis points (bps) higher than the 2.7% of December 2013. It was also a 21-bps increase from November’s 4.7%, which is interesting because the end of the year is usually when rents begin to decelerate because of seasonality. We just didn’t see that happen this year.

Read more...2014 Ends at No. 1

Multifamily Sector Holds Onto Its Allure in 2014 via WSJ

Investors’ love affair with U.S. rental apartment buildings intensified in 2014 with sales volume hitting a record $110.1 billion, according to a new report from commercial real estate brokerage JLL.

That volume figure exceeds last year’s total by 14.9%. It also tops by 10.6% the prior peak year, 2007.

Six markets captured nearly 50% of the investment sales volume last year: New York, Los Angeles, Atlanta, Houston, Dallas and Washington, D.C. closely followed by Seattle, Denver and San Francisco.

Read more...Multifamily Sector Holds Onto Its Allure in 2014 - Developments - WSJ

Mapping household income, neighborhood by neighborhood, across all of Texas via Austin Business Journal

Our journey through the most-recent data released by the U.S. Census Bureau's American Community Survey continues with a look at median household income across all of Texas.

Readers may remember Austin Business Journal's most-recent Texas-wide map, which examined how median home value estimates are changing in each Census tract throughout the Lone Star state.

But this map takes a more granular approach by examining median household income by Census block group. Block groups are smaller than Census tracts, which typically contain between two to four block groups. According to the Census Bureau, each block group has between 250 and 550 households, and Census guidelines state the ideal size of a block group is 400 households. In terms of sample size, it's one of the more uniform demographic samples produced by the Census Bureau.

Read more...Mapping household income, neighborhood by neighborhood, across all of Texas - Austin Business Journal

Friday, January 16, 2015

Does Projecting a Green Image Really Matter in 2015? via Appfolio

Green Revolution is no longer just a buzz word. It’s a way of life for many Americans today. While some people still don’t see the value in making a commitment to protect our natural resources and reduce their carbon footprint – others make intentional decisions throughout the day to curb dependence on fossil fuels and replace wasteful behaviors with positive habits.

What does that mean for property managers in the United States?

Property Managers Can Model and Support Sustainable Practice

According to Kelton Global research, the national recycle-rate is 34.5%. Many survey participants said they would recycle more if they had better information about which items can be reclaimed.

Read more...Does Projecting a Green Image Really Matter in 2015?

Where are Multifamily Building Permits Rising and Falling Most? via Property Management Insider

Nationally, apartment construction remains at the highest levels since the late 1980s. But at the metro level, the latest multifamily permit numbers tell us which markets could soon see more construction … and which could see development start to wane.

Watch video...Where are Multifamily Building Permits Rising and Falling Most? | Property Management Insider

Hurting for Housing via The Balance Sheet Yardi Corporate Blog

The present is the most challenging time in 50 years for renting affordable and adequate housing. Historically low homeownership rates, the rising number of renters fueled by demographic and cultural shifts, increasing rents, a dearth of supply, growing construction costs, high levels of unemployment and underemployment and stagnant have all converged to a critical point.

Over 50 percent of American renters are now rent-burdened, up from approximately 40 percent in in 2000, according to the U.S Census Bureau’s American Community Survey 2000-2011. The U.S. Department of Housing and Urban Development (HUD) defines a rental unit affordable if the gross rent, comprised of rent and tenant-paid utilities, equals no more than 30 percent of the household’s income.

Read more...Hurting for Housing | The Balance Sheet - Yardi Corporate Blog

Wednesday, January 14, 2015

Dallas Beige Book January 14, 2015 via Dallas Fed

he Eleventh District economy expanded at a slightly slower pace over the past six weeks than in the previous report. Manufacturing activity continued to increase. Retailers and automobile dealers saw steady or higher sales. Growth in loan demand picked up, and demand for nonfinancial services was stable or improved. Home sales grew, and apartment and office leasing activity remained strong. Demand for oilfield services declined modestly, while agriculture conditions improved a little. Upward price and wage pressures moderated slightly. Employment in most industries held steady, but there were some layoffs. There was more uncertainty and generally less optimism in outlooks than in the prior report, with contacts across several industries expressing concern about the impact of lower oil prices on the District economy.

Read more...Dallas Beige Book - Dallas Fed

San Antonio Hendricks-Berkadia 2014 apartment review via Real Estate Center at Texas A&M

Multifamily builders continued adding to apartment stock in 2014, though completions decreased 22.4 percent in the last 12 months.

Substantial growth in the job market spurred apartment demand as absorption surged 41.1 percent in 2014 with 4,360 additional units occupied. A significant number of renters gravitated to the outskirts of the metro area, as nearly one-third of metrowide leasing activity was in the Bexar County/Other submarket.

Read more...San Antonio Hendricks-Berkadia 2014 apartment review

Plunging oil prices may finally curb runaway Houston apartment rents, according to Apartment Data Services Inc. via Houston Business Journal

Plunging oil prices may finally curb runaway apartment rents, according to a Houston multifamily expert.

In 2014, apartment rents skyrocketed 8.1 percent, fueled by a frenzy of new construction. Developers delivered 19,000 new units across Houston, much of it Class A. These luxury complexes and towers can charge a premium in rent — upwards of $2,000 a month — and can nudge Class B and C apartments to raise their rents, too.

However, falling oil prices may dampen rent growth in the coming years, according to Bruce McClenny, president of Houston-based Apartment Data Services Inc.

Read more...Plunging oil prices may finally curb runaway Houston apartment rents, according to Apartment Data Services Inc. - Houston Business Journal

Tuesday, January 13, 2015

Six Trends in Commercial Real Estate to Watch for in 2015 via REALTOR® University

Five years after the Great Recession, lending conditions in REALTOR® markets show signs of recovery. With commercial real estate fundamentals and investment prices on a solid upward trend, the Commercial Real Estate landscape looks bright. Whether you are a sole commercial property owner or broker or you work for a large commercial real estate firm, these are the trends you should watch for in 2015.

While many variables will determine the course of U.S. commercial real estate, here are six potential trends for 2015 based on the current outlook:

Read more...Six Trends in Commercial Real Estate to Watch for in 2015 - REALTOR® University

2015 Texas Job Growth Forecast Still Healthy Despite Oil Price Shock, Says Dallas Fed via Dallas Fed

Texas job growth is expected to moderate but remain healthy in 2015 as lower oil prices slow growth, said Federal Reserve Bank of Dallas senior economist and research officer Keith Phillips today in San Antonio.

Phillips presented the Bank’s annual Texas Economic Outlook before local business leaders at the Dallas Fed’s San Antonio Branch.

Texas job growth will likely slow from about 3.6 percent in 2014 to between 2 and 2.5 percent in 2015, Phillips said. That equates to about 235,000 to 295,000 new jobs in Texas in 2015, down from an estimated 408,000 jobs created in 2014.

Read more...2015 Texas Job Growth Forecast Still Healthy Despite Oil Price Shock, Says Dallas Fed - Dallas Fed

ALN Monthly Newsletter January 2015 via ALN Apartment Data

ALN Data just released their December 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 January 2015 via ALN Apartment Data

Top 5 Predictions for the Multifamily Sector in 2015 via National Real Estate Investor

In the year ahead, demand for multifamily properties in urban areas and in the affordable housing sector will continue increasing, while appetite for luxury condos may slow down, predicts Byron Carlock, Jr., U.S real estate practice leader with consulting firm PwC. Carlock, whose past stints included the role of CEO and president of CNL Lifestyle Properties and chief investment officer of Post Properties, is a member of the Urban Land Institute and a board member Emeritus at Harvard Business School.

Below he shares his predictions for the multifamily sector in 2015:

Read more...Top 5 Predictions for the Multifamily Sector in 2015 | Multifamily content from National Real Estate Investor

When Opportunity Knocks, Will the Apartment Industry Answer? via Property Management Insider

An improving economy fueled a strong run in the apartment industry last year, and it appears that the momentum will continue in 2015.

Forecasters are looking for continued churning in the U.S. economy, which grew at an annualized 5 percent in the third quarter and finished the year with a bang. In December, the Dow Jones Industrial Average and S&P 500 set records after a strong report on economic growth.

That should bode well for apartments.

Read more...When Opportunity Knocks, Will the Apartment Industry Answer? | Property Management Insider

Friday, January 9, 2015

What Slowdown? Rent Growth Accelerated in 2014 via Multifamily Executive Magazine

Apparently fears of the apartment market slowing were overblown, according to a recent report from RealPage's MPF Research.

Rent growth accelerated to 4.7 percent in 2014, the highest figure since 2011. Usually the pace of rent growth slows after the first couple of years of a cycle, but this upturn is behaving differently, driven by strong job growth in higher-paying jobs in 2014.

“The overall economic performance was stronger than typical at this stage of the recovery,” said MPF Research vice president Greg Willett. “Job production went up 20 to 25 percent over the previous three or four years. In past years, 60 percent of those jobs were in low-paying industries. In 2014, 60 percent of those jobs were in higher paying industries.”


Read more...What Slowdown? Rent Growth Accelerated in 2014 | Multifamily Executive Magazine

Houston Economic Indicators January 2015 via Dallas Fed

The Houston Business-Cycle Index growth rate slowed to 6 percent in November from 7.4 percent in October. The oil and gas industry posted solid job gains in November, and refining and plastics continued to perform well. Lower oil prices and declines in drilling activity will likely take considerable steam out of the region’s economic engine in coming months. While prospects for the Houston region are more uncertain, the outlook is for positive, though weaker, growth.

Houston payroll employment grew at an annualized rate of 3.9 percent from October to November. Gains were particularly strong in leisure and hospitality and in construction and mining. Financial activities and manufacturing saw declines, as did trade, transportation and utilities. Annualized, Houston employment grew 4 percent in the first 11 months of 2014. Growth was faster in only six other years dating back to 1990.

Read more...Houston Economic Indicators January 2015 via Dallas Fed

Texas Economic Indicators January 2015 via Dallas Fed

The Texas economy continues to expand, with employment growing at a 3.2 percent annual rate in November. Texas existing-home sales, single-family permits and housing starts all fell in November. Texas exports declined in October and November. Manufacturing activity rose at a faster pace in December than in November, according to the Texas Manufacturing Outlook Survey.

Texas employment grew at a 3.2 percent annualized pace in November, outperforming the nation’s 2.8 percent increase. Texas gained 30,700 jobs in November after adding 44,000 jobs in October. Current Texas employment stands at 11.7 million, according to the payroll survey (CES).

Read more...Texas Economic Indicators January 2015 via Dallas Fed

Wednesday, January 7, 2015

Reis: Apartment Vacancy Rate unchanged in Q4 at 4.2% via Calculated Risk

Reis reported that the apartment vacancy rate was unchanged in Q4 at 4.2%, the same as in Q3. In Q4 2013 (a year ago), the vacancy rate was also at 4.2%, and the rate peaked at 8.0% at the end of 2009.

Some comments from Reis Senior Economist Ryan Severino:
The national vacancy rate was unchanged at 4.2% during the fourth quarter. This follows last quarter's slight 10 basispoint increase in vacancy which was the first increase since the fourth quarter of 2009. Although vacancy did not continue to increase this quarter, the unchanged vacancy rate shows that the days of excess demand are likely over.

Read more...Calculated Risk: Reis: Apartment Vacancy Rate unchanged in Q4 at 4.2%

Why Apartment-Rent Gains Could Begin To Slow Down via WSJ

It won’t come as a big surprise to renters that rents rose briskly last year. What they may not realize: It could get a touch harder in 2015 and 2016 for landlords to keep raising rents as aggressively.

Rents have shot up over the past four years as apartment owners enjoyed stronger demand and, crucially, very little new supply.

Now, that’s changing. Rents rose 3.6% last year, according to Reis Inc., a real-estate research firm, and the apartment vacancy rate ended the year at 4.2%, near its lowest level since 2001.

Read more...Why Apartment-Rent Gains Could Begin To Slow Down - Developments - WSJ

Austin Economic Indicators January 2015 via Dallas Fed

The Austin economy grew at a steady pace in November. Jobs grew at a modest pace of 2.3 percent annualized, while the unemployment rate remained flat at a low 4.1 percent. Employment in technology industries in Austin has led overall job growth in the postrecession period, although there are signs that this growth may have moderated in the latter half of the year. Real estate markets continue to grow strongly in Austin, as new construction and home price appreciation show few signs of dampening in the near future.

Read more...Austin Economic Indicators January 2015 via Dallas Fed

Is Income Growth a Reliable Predictor of Apartment Rent Growth? via Property Management Insider

Conventional wisdom says that rent growth is contingent upon income and job growth. Is that always true, and if so, to what degree?

MPF Research examined the relationship between apartment rent, income and employment levels in each of the top 50 U.S. metros over the past seven years. The results showed that while there appears to be a general relationship between the three, it’s not nearly as consistent as you might think.

The key finding: Income growth appears correlated with rent growth primarily in markets on the extremes. The relationship, however, is notably weaker in most metros – suggesting that income growth is often an unreliable predictor of rent growth.

Read more...Is Income Growth a Reliable Predictor of Apartment Rent Growth? | Property Management Insider

Tuesday, January 6, 2015

4th-Quarter Surge via Axiometrics

The U.S. apartment market is ending 2014 with the strongest fourth-quarter annual effective rent growth in nine years,Strong_pic according to early release apartment data from Axiometrics, the leader in apartment research and data.

Annual effective rent growth in the fourth quarter of 2014 was 4.5%, according to the preliminary figures, a 47-basis-point (bps) increase from the 4.1% recorded in the third quarter and a 173-bps rise from the 2.8% of the fourth quarter of 2013. This quarter’s rate represents the strongest quarter overall since measuring 4.9% in 2011’s third quarter, and the highest fourth-quarter figure since the 5.8% of 2005.

Read more...4th-Quarter Surge

MF Rent Growth Favors Lower End in '15 via GlobeSt.com

The multifamily sector’s story in 2015 will invert the rent-growth scenario seen earlier in the cycle, says apartment data firm Pierce-Eislen. While rents grew faster for class A “renter by choice” properties a few years ago, this year it will be class B and C properties favored by “renters by necessity” that will have the edge.

The reason, according to Pierce-Eislen, a Yardi Systems company, is the advent of new supply. Although the tally for this year is still projected to come in below the long-term average of 300,000 units, it will affect a handful of submarkets more deeply, and the upper end of the market in particular. Accordingly, class A’s projected rent growth of 4.5% comes in below the predicted 5.1% for B and C properties.

Read more...MF Rent Growth Favors Lower End in '15 - Daily News Article - GlobeSt.com

North Texas leads the nation in apartment leasing via Dallas Morning News

The Dallas-Fort Worth area led the country in apartment rentals in 2014.

And rents and occupancy levels in local apartments rose at a feverish pace.

Net apartment leasing in North Texas totaled 15,226 units, according to year-end data from MPF Research Inc. Rental activity in the fourth quarter was about 15 percent higher than in the same period last year.

Local vacancy levels are at a 13-year low. Only about 5 percent of rental units are empty.

Read more...North Texas leads the nation in apartment leasing | Dallas Morning News

Dallas-Fort Worth residential rents rose by $600 million in 2014 via Dallas Morning News

North Texas renters shelled out $600 million more to keep a roof over their heads in 2014, according to a new report from Zillow.com.

Dallas-Fort Worth residents paid an estimated $10 billion in rents this year, the online marketing firm estimates. That’s 6.2 percent more than in 2013.

Nationwide, Americans in the 25 largest markets paid about 5 percent more for residential rents in 2014. The biggest increases were in the San Francisco area.

Median rents in the D-FW area were $35 a month higher this year, compared with a nationwide rise of $26.

Read more...Dallas-Fort Worth residential rents rose by $600 million in 2014 | Dallas Morning News