Tuesday, March 31, 2015

Momentum Carries into 2015’s 1st Quarter for U.S. Apartment Sector via Property Management Insider

On the heels of one of its best years in recent history, the U.S. apartment market continued to record impressive demand and rent growth in 1st quarter 2015.

Watch video...Momentum Carries into 2015’s 1st Quarter for U.S. Apartment Sector | Property Management Insider

Berkadia: San Antonio 2014 Multifamily Sales Summary via Real Estate Center at Texas A&M

Significant activity persisted in the multifamily-investment market in 2014, according to Berkadia's 2014 Sales Summary.

In 2013, a majority of the deals consisted of 1960s to 1980s stock.

During 2014, however, investors targeted newer assets, with approximately 55 percent of transactions comprised of apartment communities built from 1980 to 2000. Consequently, dollar volume rose 9.6 percent year over year to $1 billion.

Read more...Berkadia: San Antonio 2014 Multifamily Sales Summary

First Look: Early Economic Forecast for Property Managers (Webinar Recap) via AppFolio

Senior Economist Ryan Severino gave an in depth look at the economic forecast for the housing market in this value-packed webinar. He covered everything from what will happen with homeownership rates to how rising construction will impact the rental housing market. Property management professionals who are looking to gain a deep understanding of the market and where it is going won’t want to miss this presentation.

Read more...First Look: Early Economic Forecast for Property Managers (Webinar Recap)

DFW major apartment sales prices 2014 via Real Estate Center at Texas A&M

Cushman & Wakefield has released its Year-End 2014 Multifamily Snapshot, which includes a highlight of significant apartment sales from the past year.

Read more...DFW major apartment sales prices 2014

Texas Manufacturing Activity Weakens in March, Says Dallas Fed Survey via Dallas Fed

Texas factory activity declined in March, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.

Texas produces more than 11 percent of total manufactured goods in the United States, ranking second behind California in factory production.

The production index—a key measure of state manufacturing conditions—fell to –5.2, posting its first negative reading in nearly two years.

Read more...Texas Manufacturing Activity Weakens in March, Says Dallas Fed Survey - Dallas Fed

Demographics and GDP: 2% is the new 4% via Calculated Risk

Note: This is a repeat of a post I wrote early this year. Based on some recent comments I've seen, I think this is worth repeating.

For amusement, I checked out the WSJ opinion page comments on the Q4 GDP report. As usual, the WSJ opinion is pure politics - but it does bring up an excellent point (that the WSJ conveniently ignores).

First, from the WSJ opinion page:
The fourth quarter report means that growth for all of 2014 clocked in at 2.4%, which is the best since 2.5% in 2010. It also means another year, an astonishing ninth in a row, in which the economy did not grow by 3%.
This period of low growth isn't "astonishing". First, usually following a recession, there is a brief period of above average growth - but not this time due to the financial crisis and need for households to deleverage. So we didn't see a strong bounce back (sluggish growth was predicted on the blog for the first years of the recovery).

Read more...Calculated Risk: Demographics and GDP: 2% is the new 4%

Monday, March 30, 2015

Cap Rate Limbo: How Low Can They Go? via Multifamily Executive Magazine

When Barbara J. Gaffen, co-CEO of Northbrook, Ill.-based Prime Property Investors, heard about the latest deal coming out of Chicago, she almost couldn’t believe her ears.

Heitman, the Chicago-based global real-estate giant, had agreed to buy a 60-story, 504-unit luxury high-rise in the Loop for $328.2 million, or $651,000 per door, from the Related Companies. According to Real Capital Analytics (RCA), at that price, the property known as OneEleven became the highest per-door sale of any large apartment building ever in Chicago.

Hearing the numbers, Gaffen was baffled.

“I mean, what was the cap rate there? Is there a cap rate there?” Gaffen asked. “You’ve got people paying $5,000 a month to live in a two bedroom apartment—in Chicago. I just don’t know how that works. But obviously, with all the foreign capital in this market, these foreign investment funds have the money, and they have an extremely long-term investment horizon. Those funds are looking at 30 years or more.

"But that’s certainly not how we do it.”

Read more...Cap Rate Limbo: How Low Can They Go? | Multifamily Executive Magazine

U.S. Multifamily Investment Sets Record-Breaking Year via CBRE Capital Markets

Propensity to rent, improving job economy and new development deliveries in the U.S. combined to drive the largest full-year multifamily investment total since 2007, according to the latest research from CBRE.

Total investment volume in U.S. multifamily properties totaled $106 billion in 2014, a 7 percent climb over the prior year and surpassing the prior peak of $105.1 billion set in 2007. Multifamily is the first property sector to return to 2007 sales levels with this milestone.

The year closed with a very active quarter for multifamily property investment, in terms of sales volume. In Q4 2014, U.S. multifamily sales volume reached $34.1 billion—10 percent higher than the year prior—setting a new quarterly investment record.


Wednesday, March 25, 2015

Rising Rents Are Finally Forcing Millennials to Buy Houses via Bloomberg Business

Americans in their 20s and early 30s are getting a nudge toward homeownership a decade after sales peaked during the housing bubble. It’s not their nagging parents. It’s rents. They’ve risen so much that buying is making more sense.

“I pay $1,410 in rent for my one-bedroom apartment in downtown Denver,” said Eric Arther, 28, who has saved about $30,000 for a down payment. “If I pay that much, I’d like to build some equity.”

Expect the open-house crowds to skew a little younger during this year’s spring homebuying season. Millennials made up 32 percent of the U.S. housing market in 2014, up from 28 percent two years earlier, and have pulled ahead of the older Generation X as the largest segment of buyers, according to the National Association of Realtors.

Read more...Rising Rents Are Finally Forcing Millennials to Buy Houses - Bloomberg Business

Report: Dallas area job growth fuels escalating apartment rents via Dallas Business Journal

As Dallas-Fort Worth continue to add jobs to the region, apartment owners are expected to raise their rental prices by 5.4 percent, which outpaces the national average.

Apartment rents in the United States rose year-over-year by 5.1 percent for February, according to Addison-based Axiometrics, which analyzes the apartment market.

"Employment has been strong throughout Dallas-Fort Worth, with an almost 5 percent increase for jobs in Dallas," Stephanie McCleskey, vice president of research for Axiometrics, told the Dallas Business Journal."Nationally, that job growth is at 2.2 percent."

Read more...Report: Dallas area job growth fuels escalating apartment rents - Dallas Business Journal

Tuesday, March 24, 2015

City of Austin multifamily report 4Q 2014 via Real Estate Center at Texas A&M

Multifamily market watchers in Austin looking for a top to the current kaboom of incoming product will have to wait yet another quarter as almost 3,000 units were submitted in 22 new multifamily projects to the City’s Department of Planning and Development Review.

According to City Demographer Ryan Robinson fourth quarter 2014 also saw the approval of 13 projects that include a total of over 1,600 units — these developments are now entitled to begin construction.

Read more...City of Austin multifamily report 4Q 2014 via Real Estate Center at Texas A&M

Schnurman: Amid low oil prices, Dallas is bright spot via Dallas Morning News

What, Dallas worry?

Oil prices have cratered since last summer, and energy companies have cut thousands of jobs and shut down hundreds of drilling rigs. As a result, job growth for Texas, the nation’s top oil and gas producer, is projected to be about half of last year’s rate.

Yet Dallas is sitting pretty. While not unaffected by low oil prices, it’s much less vulnerable than Houston, Midland and the state at large.

Give credit to a diversified job base and a steady stream of newcomers that add pop to the growth story.

Read more...Schnurman: Amid low oil prices, Dallas is bright spot | Dallas Morning News

Apartment rents slip while occupancy grows via Houston Chronicle

Houston-area apartments continue to fill up even as more units are delivered and the oil price crash clouds the outlook for this segment of the real estate market.

Occupancy ticked up at the end of February to 94.2 percent, compared with 93.9 percent the previous month, according to new data from apartment research firm Axiometrics. Occupancy a year earlier was essentially flat.

Rent growth, however, slowed slightly from last year and last month, as landlords are becoming a little more flexible on price to fill units. Renters paid an average of $1,057.64 per unit in February.

Read more...Apartment rents slip while occupancy grows - Prime Property

Monday, March 23, 2015

Ten Word That Will Drive Traffic and Revenue UP! via AppFolio

There was a time that the mantra for every real estate professional was “Focus on location, location, location.” With the technology revolution, selling everything from Tootsie Rolls to Rolls Royce limos depends on “Content, content, content.”

To be fair, leasing apartments and single-family homes isn’t totally dependent on web content. But, there are some very interesting statistics in Zillow’s newly released book, Zillow Talk: The New Rules of Real Estate, which demonstrate the value of carefully choosing words when listing and showing property.

Read more...Ten Word That Will Drive Traffic and Revenue UP!

Market Snapshot: Dallas-Fort Worth Multifamily Market Keeps Momentum for 2015 via Multi-Housing News Online

In Q4 2014 the Dallas-Fort Worth Metroplex area multifamily market registered the region’s seventh consecutive quarter with an occupancy rate above 92 percent. According to recent research data from CBRE, in the last quarter of 2014 the DFW multifamily market had a 7.6 percent vacancy rate; 20,116 units under construction; 2,892 completed units; and a net absorption of 754 units.

While in the last quarter net absorption was significantly lower, the market absorbed more than 13,800 throughout 2014. Last year’s value exceeded those recorded in 2012 and 2013 by 1,640 units and 830 units, respectively.

Read more...Market Snapshot: Dallas-Fort Worth Multifamily Market Keeps Momentum for 2015 | Multi-Housing News Online

Regional Economy Moderates 3-19-15 via Dallas Fed

The Texas economy continues to expand, but there are signs that growth is slowing. Some major metro areas have begun to experience slower growth, especially in locations where energy industry jobs make up a large portion of employment. The unemployment rate fell further in January, while initial unemployment claims rose. The Texas Manufacturing Outlook Survey (TMOS) showed no growth in production over the past two months. House price appreciation remained strong, and mortgage delinquencies continued to fall in fourth quarter 2014. Oil prices remained at their lowest levels in years, and exports fell again in January, down from year-ago levels.

Job Growth Slows in January
Employment grew 1.7 percent in January, a significantly slower pace than December’s 4.3 percent increase and slightly slower than the nation’s 2.1 percent rate. Because monthly data can be noisy and subject to revision, more data are needed to determine the extent to which employment growth has slowed. The Texas economy added 367,700 jobs in the past year, growing 3.2 percent year over year in January.

Read more...Regional Economy Moderates - Dallas Fed

The Future of Property Energy Management Looking Bright via Multi-Housing News Online

NWP Services Corporation (NWP) hosted their Fifth Annual NWP Energy Summit in Washington, D.C., March 11-13. Top executives and policymakers in the industry shared big picture energy trends, sustainability case studies, conservation recommendations and guidelines to navigating today’s highly-regulated business environment. 26 individuals representing 21 portfolios from some of the largest multifamily managers and owners nationally were in attendance.

Representing vital industry experts and policymakers were Housing and Urban Development (HUD), Department of the Environment (DOE), Environmental Protection Agency (EPA), GreenBiz Group Inc., U.S. Green Building Council (USGBC) and the Climate Prediction Center (CPC). Joel Makower, chairman and executive director of GreenBiz Group Inc., was the keynote speaker and explained what the current sustainability strategy for corporate brands looks like.

Read more...The Future of Property Energy Management Looking Bright | Multi-Housing News Online

Thursday, March 19, 2015

San Antonio Lags via Axiometrics

There’s no doubting that the apartment market is doing well in Texas. Austin, Dallas, Houston and San Antonio were not hit as hard as the rest of the country during the last recession, have generally enjoyed strong recoveries and have experienced a lot of investor interest, as supported by apartment transaction volume data and increase in new supply.

All the talk about Texas’ apartment market has centered on Dallas, Houston and Austin – and recently Fort Worth, which has become the strongest market in the state. What about San Antonio?

Though the San Antonio Metropolitan Statistical Area (MSA), the market just next door to Austin, drew some investor interest during the early part of the recovery, the interest has been declining somewhat because of soft market fundamentals. Even though San Antonio is not far behind other Texas metros when it comes to the main driver of a robust apartment market – job growth – apartment metrics haven’t reflected that.

Read more...San Antonio Lags via Axiometrics

Multi-Family Development via The Balance Sheet - Yardi Corporate Blog

Multi-family development has steadily grown to reach today’s pre-crash average of 330,000 units each year. Coupled with America’s slowest population growth in 70 years, the time seems ripe for the renewal of the nation’s multi-family housing stock.

That, however, is not the case. In fact, the U.S. could soon face an apartment shortage due to the aging of the existing multi-family rental stock. While development is booming in some large metros, this mostly accommodates migration trends to large urban centers. New projects tend to concentrate on the high-end market, and typically does not replenish moderate-income housing removed from the stock due to obsolesce.

According to the Census Bureau’s 2012 American Community Survey, close to 60 percent of America’s rental properties with 20 or more units were built before 1980. Additionally, over 50 percent of affordable to extremely low-income units are upwards of 50 years old.

Read more...Multi-Family Development | The Balance Sheet - Yardi Corporate Blog

Houston apartment market to slow down amid oil slump, rents to go down in 2015 via Houston Business Journal

Houston apartment rental rates rose to an all-time high in 2014, but experts predict a slowdown in the multifamily market this year.

The Bayou City saw strong rent growth since 2009, when apartment construction and rental rates fell amid the Great Recession. Average monthly rents grew from $721 in 2009 to $923 in 2014, according to data from Apartment Data Services and CBRE Research released this week.

Last year, apartment rental rate growth hit 8.1 percent, a record high for Houston, according to CBRE. The international commercial real estate firm attributed the rental growth to Houston's rapid population and job growth, which has boosted occupancy rates well above 90 percent, and a flood of new luxury apartments, which can charge a higher premium for upscale amenities.

Read more...Houston apartment market to slow down amid oil slump, rents to go down in 2015 - Houston Business Journal

Income and Rents: It Takes Money to Make Money via Property Management Insider

As apartment rents continue to trend higher, real estate economists are worried income growth isn’t keeping up. After all, an increase in rent means residents are forced to allocate a higher percentage of their income to housing if their paychecks don’t also increase proportionately. Investors, especially in Class B and C assets, are worried that the ability of renters to pay higher rents is nearing a ceiling. As such, investors across all product segments have become more focused on metros with higher wage growth expectations – a backdrop necessary for higher rents moving forward.

At the metro level, the best indicator for wage growth is the average hourly earnings, as reported by the Bureau of Labor Statistics. However, the data is limited – the time series for average hourly earnings at the metro level only goes back to 2007. Since that dataset lacks coverage over multiple real estate cycles, let’s focus on personal income to assess income growth.

Read more...Income and Rents: It Takes Money to Make Money | Property Management Insider

Apartment Market Strengthens in February According to Latest Axiometrics' Market Survey via MultifamilyBiz.com

Annual effective rent growth in the national apartment market measured 5.0% in February 2015, the highest it has been in 44 months, according to Axiometrics, the leader in apartment research and analysis.

February was the second time in three months the metric has reached that mark -- when rounded to one decimal place. Extending the figure a second decimal place, February's rate of 5.05% was 8 basis points (bps) higher than December 2014's 4.97%.

The last time annual effective rent growth exceeded February's rate was in July 2011, when it increased 5.3%.

Read more...Apartment Market Strengthens in February According to Latest Axiometrics' Market Survey | MultifamilyBiz.com

Wednesday, March 18, 2015

Commercial, Multifamily Mortgage Debt in U.S. at $2.6 Trillion via WORLD PROPERTY JOURNAL

According to the Mortgage Bankers Association (MBA), total commercial and multifamily debt outstanding in the U.S. stood at $2.64 trillion in the fourth quarter of 2014, an increase of $48.9 billion, or 1.9 percent, over the third quarter of 2014.

Commercial-multifamily debt outstanding increased at the highest rate since the fourth quarter of 2007, as three of the four major investor groups increased their holdings in the fourth quarter. On a year-over-year basis, the amount of mortgage debt outstanding at the end of 2014 was $119.5 billion higher than at the end of 2013, an increase of 4.7 percent.

Read more...Commercial, Multifamily Mortgage Debt in U.S. at $2.6 Trillion - WORLD PROPERTY JOURNAL Global News Center

Tuesday, March 17, 2015

Latest Wave of New Apartments Shows Good Absorption via National Real Estate Investor

With so many new apartments being built across the country, the cities that have had the most new construction over the past five years show how the next wave of new apartments now under construction might be absorbed.

“The bottom line is a very basic story,” says Greg Willett, vice president of research and analysis for MPF Research, a division of RealPage Inc. “Building a lot of product isn’t a bad thing when there is demand there for all of those additions.”

Read more...Latest Wave of New Apartments Shows Good Absorption | Multifamily content from National Real Estate Investor

Axiometrics’ Fast Five Multifamily Rules for 2015 via Bisnow.com

Multifamily was the darling of commercial real estate in DFW in 2014 and it looks to be on target for another banner year in 2015. Axiometrics research guru Jay Denton gives us five trends to watch in the coming year.

Read more...Axiometrics’ Fast Five Multifamily Rules for 2015 - Multifamily

Apartment Renters are Renewing Leases at Historically High Levels via Property Management Insider

U.S. apartment renters are increasingly choosing to stay put rather than move up to new apartments, move down to cheaper units or move out to buy homes. Apartment resident retention rates hit a decade-high in February 2015, continuing a five-year upward trend.

Apartment lease renewal conversion hit a long-term high of 54.5% in February. Stated another way, only 45.5% of apartment renters with expiring leases chose to move out, according to an MPF Research analysis of actual lease transactions recorded in RealPage Inc.’s industry-leading apartment operations software. The lease renewal conversion data also accounts for early move-outs – meaning that renters who moved out prior to lease expiration are treated as non-renewals.

Read more...Apartment Renters are Renewing Leases at Historically High Levels | Property Management Insider

3 Reasons Multifamily May See More Sellers in 2015 via Bisnow.com

Multifamily continues its real estate domination, but 2015 may be the year of even more transactions as more owners are ready to sell, says Marcus & Millichap’s National Multi Housing Group senior director Al Silva (here, with his wife, Erin, at the Golden Globe Awards in Beverly Hills). He gives us his take on why.
1. Profit making & loans coming due

There were a lot of CMBS transactions in the last market cycle, and many of those loans are coming due, Al says, which will help spur sales. As values have increased, many buyers from the past several years have seen their value-add realization and are ready to sell and take some profits. There are still more buyers than sellers by a large margin, but it’s getting a little more balanced, he says.

Read more...3 Reasons Multifamily May See More Sellers in 2015 - Multifamily

Accelerating Housing Costs in U.S. Squeeze Renters, Says NAR via WORLD PROPERTY JOURNAL

According to new research by the National Association of Realtors (NAR), the gap between rental costs and household income is widening to unsustainable levels in many parts of the country, and the situation could worsen unless new home construction meaningfully rises.

NAR reviewed data on income growth, housing costs and changes in the share of renter and owner-occupied households over the past five years in metropolitan statistical areas across the U.S. The findings reveal that renters are being squeezed in many metro areas throughout the country due to the disproportionate growth in rental costs to incomes. New York, Seattle and San Jose, Calif. are among the cities where combined rent growth is far exceeding wages.

Read more...Accelerating Housing Costs in U.S. Squeeze Renters, Says NAR - WORLD PROPERTY JOURNAL Global News Center

Monday, March 16, 2015

Austin Economic Indicators March 2015 via Dallas Fed

The Austin economy expanded at a moderate pace in January. Jobs grew at a tepid annualized rate of 1.2 percent, below the state’s mild 1.7 percent. Unemployment ticked up to 3.7 percent, though it remains well below its historical norm. Despite continued price appreciation, home affordability increased slightly in Austin in the fourth quarter. The Austin Purchasing Managers Index fell in February, though it continued to indicate growth in the manufacturing sector.

The Austin Business-Cycle Index moderated in January, growing at a 7.8 percent annualized rate over the six months beginning in July. Though the index continues to expand robustly, it has slowed recently, due in part to below-average job growth in the second half of 2014. Given the low unemployment rate, however, at least part of the deceleration in job growth is likely due to firms having difficulty finding workers. This is supported by sharp increases in help-wanted advertising in the first two months of the year.

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

Household Formation Beginning to Surge via GlobeSt.com

Although much of the talk about the economy has revolved around the stronger employment numbers, the lack of robust new construction in the single-family market has hobbled the recovery. But Mesirow Financial’s chief economist and senior managing director Diane Swonk notes in her just-released economic report that those solid employment numbers have encouraged more household formations, and in 2015 this should lead to more new construction in the single-family and multifamily sectors.

One worry for many observers was that the impact of the Great Recession on the rate of household formation would be more or less permanent, as the Millennial Generation adjusted its expectations downward. But Swonk now says that a good portion of that shift is “cyclical and that those tides are beginning to turn.”

Read more...Household Formation Beginning to Surge - Daily News Article - GlobeSt.com

San Antonio Economic Update March 2015 via Dallas Fed

The San Antonio economy continued to expand moderately in January. Nonfarm payroll jobs grew at an annual rate of 3.1 percent, outpacing the state by over a percentage point. Unemployment ticked up slightly to 4 percent, though it remains near postrecession lows. While oil and gas activity has begun to dampen state job growth, San Antonio is unlikely to see as sharp a slowing despite its proximity to the Eagle Ford Shale.

Growth in the San Antonio Business-Cycle Index remained steady at a 6.4 percent annualized pace over the six months through January. Although growth has moderated slightly since peaking in mid-2014, continued declines in the unemployment rate and strong job gains over the second half of 2014 helped the index maintain a high growth rate.

Read more...San Antonio Economic Update March 2015 via Dallas Fed

Signs, Signs, Everywhere Are Signs via the Blog of the Real Estate Center

Besides the fall in oil prices to approximately $50 dollars a barrel, other signs point to a decline in the Texas oil industry. Recently published employment figures show the number of persons employed in the state’s oil and gas extraction industry has declined for three consecutive months, registering a much bigger decline in January (Figure 1).

The last time this happened was early in 2009 when the global economy was in the midst of the Great Recession. This time around the U.S. economy is not suffering a recession, but various indicators are signaling a possible downturn in the oil industry. The number of operating rigs in the state fell to 599 in the month of February (Figure 2).

Read more...Signs, Signs, Everywhere Are Signs | the Blog of the Real Estate Center

Houston Economic Indicators March 2015 via Dallas Fed

The Houston Business-Cycle Index increased just 1.1 percent in January after climbing a revised 4.7 percent in December, marking the index’s fourth consecutive month of deceleration and the weakest one-month growth since October 2011. The index implies a significant slowing in the Houston economy as 2015 began. Service sector employment growth slowed and manufacturing employment declined slightly. However, oil prices have leveled off, health-related industries are performing well and national economic indicators continue to improve. The outlook for Houston is slightly negative over the next few months, but data continue to suggest positive employment growth in 2015.

Employment increased at an annualized rate of 0.1 percent in January after growth of 2.3 percent in December

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

Thursday, March 12, 2015

ALN Monthly Newsletter March 2015 via ALN Apartment Data

ALN Data just released their February 2015 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 March 2015 via ALN Apartment Data

Millennial Home Buyers Back in the Game, Says NAR Study via WORLD PROPERTY JOURNAL

According to the newly released 2015 National Association of Realtors Home Buyer and Seller Generational Trends study, despite the economic and financial challenges young adults have braved since the recession, the millennial generation represented the largest share of recent buyers. The survey additionally found that an overwhelming majority of buyers search for homes online and then purchase their home through a real estate agent, with millennials using agents the most.

For the second consecutive year, NAR's study found that the largest group of recent buyers was the millennial generation, those 34 and younger, who composed 32 percent of all buyers (31 percent in 2013). Generation X, ages 35-49, was closely behind with a 27 percent share. Millennial buyers represented more than double the amount of younger boomer (ages 50-59) and older boomer (60-68) buyers (at 31 percent). The Silent Generation (ages 69-89) made up 10 percent of buyers in the past year.

Read more...Millennial Home Buyers Back in the Game, Says NAR Study - WORLD PROPERTY JOURNAL Global News Center

Texas Economic Indicators March 2015 via Dallas Fed

The Texas economy continued to expand in January, albeit at a slower pace than in December. Existing-home sales, single-family permits and housing starts all fell in January. Quarterly exports declined in the fourth quarter. Manufacturing activity was flat in January and February, according to the Texas Manufacturing Outlook Survey.

Texas employment grew at a 1.7 percent annualized pace in January, slower than the nation’s 2.1 percent increase. Texas gained 16,200 jobs in January after adding 40,700 in December. Texas employment stands at 11.75 million, according to the payroll survey (CES).

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

How Multifamily Properties can Save by Going Green via Property Management Insider

Going green can save some real bucks now for apartments, and more than just on energy bills

Developers and investors will be able to cash in when financing multifamily properties that have a green building certification. In February, Fannie Mae announced that it will give discounts on interest rates if the buildings have an energy stamp of approval.

A 10-basis-point reduction in the interest rate of a multifamily refinance, acquisition or supplemental mortgage loan will be automatic for an energy efficient-certified property, according to Fannie Mae. That means, for example, that interest on a market rate loan of 4 percent will drop to 3.9 percent. On a $10 million loan amortized over 30 years, that’s a savings of $95,000, says Fannie Mae.

Read more...How Multifamily Properties can Save by Going Green | Property Management Insider

DFW Economic Indicators March 2015 via Dallas Fed

The Dallas–Fort Worth economy continues to expand at a solid pace. In January, DFW employment grew 4.6 percent, outperforming the state’s 1.7 percent rate. The unemployment rate held steady in Fort Worth and edged up in Dallas during the month. The residential housing market remains tight, characterized by low affordability and rising house prices. Dallas Fed business-cycle indexes point to continued expansion for the metroplex.

Employment expanded at a rapid clip in January, although the 4.6 percent annual pace was down slightly from the 5.3 percent rate registered in the fourth quarter. Job creation occurred in most major sectors, with payroll declines limited to the financial activities and miscellaneous services sectors. In January, DFW added 12,500 jobs.

Read more...DFW Economic Indicators March 2015 via Dallas Fed

Apartment Renter Satisfaction Hits Highest Rate Since 2010 According to Latest Kingsley Report via MultifamilyBiz.com

Kingsley Associates' latest analysis reveals that 76.6 percent of apartment renters rated their overall satisfaction as "good" or "excellent" for the four quarters ending December 31, 2014, reaching its highest level since Q3 2011. While renter satisfaction has steadily increased throughout 2014, renewal intent and value for amount paid have continued to decline since 2013.

Only 53.4 percent of residents responded that they "probably would" or "definitely would" renew their lease, which is a new low. Reaching another low this quarter was value for amount paid. Only 55.1 percent of renters feel their apartments are worthy of their current rental rate, down .9 percent from Q3 2014.

Read more...Apartment Renter Satisfaction Hits Highest Rate Since 2010 According to Latest Kingsley Report | MultifamilyBiz.com

Monday, March 9, 2015

The U.S. homeownership rate is much worse than you think via HousingWire

It’s well known that the homeownership rate is at a low point owing to a number of factors including demographic shift, the effect of QM on mortgage lending, student loan debt, and tightened credit.

But looking deeper, as Bank of America and ZeroHedge have, it may be worse. Much, much worse.

What however not at all known, is that just like the unemployment rate's major methodological revision several decades ago, so too the homeownership calculation has been "adjusted" in recent years with the consequence of making it appear better than it is.

Read more...The U.S. homeownership rate is much worse than you think | 2015-03-09 | HousingWire

Friday, March 6, 2015

Supply of affordable multifamily housing doesn’t match the demand via HousingWire

There is a significant gap between the need for and the supply of affordable housing in the United States, according to a new report from the Mortgage Bankers Association.

The size of the gap can probably best be summarized by the dramatic fact that “more than a third of U.S. households live in housing that exceeds their means,” the report says. In addition to the financial burdens this gap places on families and communities, numerous studies have found direct links between affordable housing and positive health, education, economic and other outcomes.

Read more...Supply of affordable multifamily housing doesn’t match the demand | 2015-03-06 | HousingWire

MPF: Corpus Christi multifamily trends 4Q 2014 via Real Estate Center at Texas A&M

Aided by a booming local economy, Corpus Christi has consistently ranked among the nation’s top-performing apartment markets over the past three years — and it maintained that pace through mid-2014 according to MPF Research.

Considerable job growth levels have generated very healthy housing demand, pumping up apartment occupancy rates and rent growth levels in the metro.

In fact, as hard as it may be to believe, only California’s Bay Area has produced more rent growth than Corpus Christi over the last three years.

Read more...MPF: Corpus Christi multifamily trends 4Q 2014 via Real Estate Center at Texas A&M

Texas adds fewer jobs in January due to energy sector slump via Dallas Business Journal

Texas added 20,100 jobs in January, well lower than December's total of 45,700 positions.

Leading job creation last month was the trade, transportation and utility sector, which added 10,900 openings, according to the Texas Workforce Commission. Professional and business services also added 4,800 jobs, information had 3,600 and leisure and hospitality tacked on 1,800.

Read more...Texas adds fewer jobs in January due to energy sector slump - Dallas Business Journal

Austin's hot apartment market lures investors via Real Estate Center at Texas A&M

As Austin’s apartment sector continues to reach new heights in rent, occupancy and overall growth, property investors are taking an ever-stronger interest in the market.

Last year, 88 metro area apartment complexes with a total 22,074 units changed hands, at an average price of $109,529 per unit, according to Austin Investor Interests, which tracks the Central Texas apartment market.

Read more...Austin's hot apartment market lures investors via Real Estate Center at Texas A&M

Report: Dallas Employer Base Is Diverse via GlobeSt.com

Dallas has one of the most diverse employer bases in the country, according to new research from JLL.

Based on data compiled from Moody’s Analytics and the Dallas Business Journal, JLL found that the city rated an 80 (on a 1 to 100 scale), which means the market is not based solely or disproportionately on one particular industry/employer. And as a result of this diversification, employment volatility rates a 93, meaning the metro is one of the most stable in the country.

Read more...Report: Dallas Employer Base Is Diverse - Daily News Article - GlobeSt.com

Wednesday, March 4, 2015

Dallas Beige Book 3/4/2015 via Dallas Fed

The Eleventh District economy expanded at roughly the same pace as in the prior reporting period. Manufacturing activity was mostly stable or increased, but there were a few reports of decreased activity. Retailers and auto dealers reported higher sales. Demand for business and transportation services was mixed. Home sales continued on an upward trend and apartment demand remained strong, but office leasing activity held steady or slowed. Demand for oilfield services declined sharply, while agricultural conditions and loan demand improved slightly. Upward price and wage pressures continued to moderate. Employment in most industries held steady or increased. Overall expectations for the future were generally positive, but contacts expressed uncertainty and caution in their outlooks.

Read more...Dallas Beige Book - Dallas Fed

Report: Austin leads U.S. in downtown job growth via Real Estate Center at Texas A&M

Although most newcomers choose to live a suburban life, job growth in Central Austin is now outpacing job growth in the suburbs, according to a new report from City Observatory, an Oregon-based think tank.

In fact, Austin now leads all other U.S. cities in terms of the percentage of its overall workforce working downtown and in downtown job growth.

According to the report titled "Surging City Center Job Growth," the downtown-oriented job growth in Austin mirrors trends seen in metro areas across the nation, reversing suburban-oriented job growth trends that stretch back more than 50 years.

Read more...Report: Austin leads U.S. in downtown job growth via Real Estate Center at Texas A&M

Welcome To Houston, Texas - Still America's Economic Miracle via Forbes.com

The numbers don’t lie: Since 2000, Texas has created 2.1 million jobs, more than double any other state – that’s 30 percent of all the jobs created in the U.S. of A. Seven of the top 10 cities for projected job growth through 2015 will be in Texas. Analysts predict during the next five years, Texas will record an annual job growth rate of 2.7 percent – the fastest and best in the country. And corporate America likes what it sees in Texas: Apple AAPL -0.24% is hiring nearly 4,000 more workers for its Austin facility, brokerage Charles Schwab SCHW +0.27% is leaving California in droves for Austin and El Paso , and Toyota is packing up its North American headquarters, saying “sayonara” to California, and moving to the Dallas metroplex.

Read more...Welcome To Houston, Texas - Still America's Economic Miracle

Tuesday, March 3, 2015

Will Millennials Eventually Buy Instead of Rent? via GlobeSt.com

There’s no lack of discussion about how Millennials are impacting the multifamily market. The general consensus is that this demographic prefers to rent instead of buy, but could that change?

That was one of the topics in the Industry Leaders: Vital Signs panel at RealShare Apartments East in Miami last week.

Read more...Will Millennials Eventually Buy Instead of Rent? - Daily News Article - GlobeSt.com

MPF Research: Austin multifamily 4Q 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,

The gains have generated strong revenue growth for the apartment sector and led to elevated levels of apartment development, according to MPF Research.

Occupancy has hovered around the 95 percent mark for over three years.

Read more...MPF Research: Austin multifamily 4Q 2014 via Real Estate Center at Texas A&M

Monday, March 2, 2015

The Benefits of Renting to Baby Boomers via Property Management Insider

The last thing any apartment owner wants to see inside a unit is a Hangover sequel produced by irresponsible renters. Let’s face it, some people who rent don’t treat their homes like they would want to be treated.

The Downsizing of America charge led by baby boomers perhaps opens opportunities for landlords to have their rent and eat it, too. These are presumably a more responsible lot – they’ve raised their children, achieved their corporate standing and climbed their social ladders – and are less likely to head-butt walls. They’ll probably leave the place much like they found it.

They are also more apt to take out renter’s insurance, suggests industry research.

Read more...The Benefits of Renting to Baby Boomers | Property Management Insider