Yardi’s Matrix Monthly Reveals Average Apartment Rents Rose 4.3% Since April 2014 via Multi-Housing News Online

The April 2015 edition of Matrix Monthly, a report on U.S. apartment market trends from Yardi, documents a 4.3 percent year-over-year increase in average rents across the country. The average multifamily rent of $1,105 in April represented a one-month increase of 0.7 percent. The all-time high of $1,108 was recorded in February 2015. Strong rent escalation in San Francisco, Denver, Seattle and Portland, Ore., accounted for much of the average rent increase in April. Demand for higher-end product also contributed to this trend.

Read more...Yardi’s Matrix Monthly Reveals Average Apartment Rents Rose 4.3% Since April 2014 | Multi-Housing News Online

Three Types of Metros with the Most Renters via Property Management Insider

Across the country’s largest metros, residents of the Los Angeles-Orange County area have the highest propensity to rent, rather than own, their housing. Census Bureau information shows that rental units are the choice for 52.4% of all households in this locale, compared to the U.S. norm of 36%.

The key influence behind the high propensity to rent is just what you think it is – expensive for-sale home prices that are beyond the affordability reach of much of the populace. The National Association of Realtors places the median sales price of recent transactions in Los Angeles-Orange County at just under $500,000, and Zillow reports typical home values in the area at just over the half-million-dollar mark. Half of the nation’s 10 metros with the highest propensity to rent are simply very expensive places to buy. Take a look at this infographic of the hottest metros for renters across the nation:

Read more...Three Types of Metros with the Most Renters | Property Management Insider

Your Town apartment market overview 1Q 2015 via Real Estate Center at Texas A&M

How is the apartment market faring in your area? Apartment Market Data Research Services LLC has released March 2015 (or first quarter 2015) data for most Texas cities.

Click to see the full March 2015 Texas Multihousing Market Conditions Report, which includes data from areas across Texas.

Read more...Your Town apartment market overview 1Q 2015

Texas Service Sector Activity Picks up in April, Says Dallas Fed Survey via Dallas Fed

Texas service sector activity increased in April, according to the Federal Reserve Bank of Dallas’ Texas Service Sector Outlook Survey.

The TSSOS revenue index—a key measure of state service sector conditions—rose from 10.7 in March to 14.6 in April, its highest reading this year.

The survey is conducted monthly by the Dallas Fed to obtain a timely assessment of activity in the state’s service sector, which represents almost 70 percent of the state economy and employs close to 7.6 million workers.

Read more...Texas Service Sector Activity Picks up in April, Says Dallas Fed Survey - Dallas Fed

Fort Worth's apartment rent growth breaks record at 6.8% annual gain via Dallas Business Journal

Fort Worth's annual effective rents grew 6.8 percent year-over-year in March, which is the city's highest rent gain in the current real estate cycle, according to research from Addison-based Axiometrics.

Meanwhile, the annual effective rent growth for the same time period in Dallas reached 6 percent. Dallas and Fort Worth's annual rent increases surpass the national effective rent growth of 5 percent.

Read more...Fort Worth's apartment rent growth breaks record at 6.8% annual gain - Dallas Business Journal

Texas Manufacturing Activity Weakens Again in April, Says Dallas Fed Survey via Dallas Fed

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

The production index—a key measure of state manufacturing conditions—posted its second consecutive negative reading at –4.7.

Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.

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

No Signs of a Slowdown (Yet) in Houston’s Apartment Market via Property Management Insider

With oil prices plunging in 2014’s second half, energy-dependent Houston was on everyone’s watch lists going into 2015. Did Houston’s hot apartment market show any signs of slowing down in 2015’s 1st quarter?

Watch video...No Signs of a Slowdown (Yet) in Houston’s Apartment Market | Property Management Insider

San Antonio Economic Update April 23, 2015 via Dallas Fed

San Antonio economic indicators were mixed in March. Jobs contracted at a 0.9 percent annualized rate, though this was less than the 1.2 percent contraction for the state. The unemployment rate still fell to 3.7 percent due to a decline in the labor force. Housing market indicators were largely positive despite some slowing in housing starts as inventories remained low and existing-home sales rose.

Growth in the San Antonio Business-Cycle Index was flat at an annualized 7 percent over the six months through March. Strong job growth and a persistently falling unemployment rate over this time have pushed growth to a near 10-year high. While the San Antonio economy has maintained much of its momentum from the end of 2014, labor market tightness and slowing growth throughout the state are likely to moderate regional economic expansion over the next six months.

Read more...San Antonio Economic Update April 23, 2015 via Dallas Fed

DFW Economic Indicators April 2015 via Dallas Fed

The Dallas–Fort Worth economy slowed in March, with job growth declining for the first time in 15 months. For the first quarter, however, payrolls grew a modest 0.9 percent (annualized), faster than the state’s 0.7 percent increase. Home sales grew in March, and apartment demand remained strong. Unemployment in Dallas and Fort Worth held steady in March. Dallas Fed business-cycle indexes point to slower growth for the metroplex.

DFW employment declined at a 3.1 percent annual rate in March. This is the first drop since December 2013, when DFW payrolls edged down an annualized 0.2 percent, shedding 500 jobs. Over the past 12 months, the metroplex has created jobs at 3.4 percent pace—the fastest among major Texas metros.

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

Apartment Rent Growth in Strongest Two-Month Stretch Since 2011 According to Axiometrics Survey via MultifamilyBiz.com

Annual effective rent growth for the U.S. apartment market was 5.0% in March 2015, the second straight month in which the benchmark apartment metric was at 5% or above. The last two-month streak of 5% or higher was June-July 2011, according to Axiometrics, the leader in apartment market research and analysis.

The national annual rent growth rate was a slight decrease from February's 5.1%, yet was the highest March figure since 2011, when the rate was also 5.0%. March's effective rent growth metric was up from the 3.2% of March 2014.

The average U.S. renter paid $1,187 monthly in March, $57 more than the $1,130 average nationwide rent in March 2014.

Read more...Apartment Rent Growth in Strongest Two-Month Stretch Since 2011 According to Axiometrics Survey | MultifamilyBiz.com:



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Plunging oil prices slowing Texas’ jobs growth via Dallas Morning News

As the nation’s employment growth shifts into high gear, the Texas jobs machine is slowing down in response to lower oil prices.

Texas added 20,100 jobs in January, the smallest amount since April, according to adjusted data released Friday by the Texas Workforce Commission. The state’s seasonally adjusted unemployment rate fell to 4.4 percent from 4.6 percent in December.

Read more...Plunging oil prices slowing Texas’ jobs growth | Dallas Morning News

Texas Economic Indicators April 2015 via Dallas Fed

The Texas economy weakened in March. Employment growth was negative for the first time in more than two years, while unemployment continued to edge down. Monthly exports rose from January to February, while manufacturing activity fell in March, according to the Texas Manufacturing Outlook Survey.

Texas employment declined at a 1.2 percent annualized pace in March as the state shed 11,900 jobs. This was the first decline since January 2013, when employment contracted 0.1 percent and the state lost 900 jobs. Despite the March loss, Texas employment grew 0.7 percent on an annualized basis in the first quarter as the state added 21,100 jobs. As of March, Texas employment stood at 11.76 million, according to the payroll survey (CES).

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

Early 2015’s Apartment Demand Leaders via Property Management Insider

The nation’s apartment demand volume in Q1 2015 proved very impressive. Preliminary figures show that absorption across the country’s 100 largest metros came in at roughly 64,300 units, a jump of 55% from the demand tally seen during the initial three months of 2014.

Helping push up those apartment absorption stats, job creation in early 2015 well exceeds the volume recorded in early 2014. Furthermore, because apartment deliveries have climbed, more product availability is helping grow demand capacity. While almost all of the country’s largest local apartment markets are registering encouraging demand volumes, the figures are especially impressive in a few spots – some of them perhaps a little surprising.

Let’s look at the apartment demand leaderboard specifically for the January to March 2015 time frame:

Read more...Early 2015’s Apartment Demand Leaders | Property Management Insider

Austin apartments stay hot, but landlords in control via Real Estate Center at Texas A&M

The Central Texas apartment market’s hot streak isn’t over yet. The market saw about 4,400 net new units leased during first quarter 2015, bumping the annual total through March to 12,940 units, according to MPF Research.

Only three metro areas — Houston, Miami and Boston — saw stronger first-quarter demand, while Austin’s annual total was the fifth-highest level nationwide.

Read more...Austin apartments stay hot, but landlords in control via Real Estate Center at Texas A&M

NMHC: Apartment Market Conditions Tighter in April Survey via Calculated Risk

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

All four indexes landed above the breakeven level of 50 in the April National Multifamily Housing Council (NMHC) Quarterly Survey of Apartment Market Conditions.

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

San Antonio apartment market will soften, continue to climb via Real Estate Center at Texas A&M

San Antonio's apartment market will not be immune to the drop in oil prices, but continued increases in employment, construction and rents will bolster its long-term health.

According to Marcus & Millichap's First Quarter 2015 Apartment Research market report, the city's job growth and accelerating interest among investors will be the top drivers for the rental market throughout this year.

Particularly in the north and northwest areas of the city, apartment development will accelerate due to the thousands of professional jobs being created in those regions.

Read more...San Antonio apartment market will soften, continue to climb via Real Estate Center at Texas A&M

Dallas Beige Book 4/15/2015 via Dallas Fed

The Eleventh District economy grew at a moderate pace over the past six weeks, similar to the prior reporting period. Manufacturers mostly reported steady or increased demand. Retail reports were more mixed, but reports of automobile sales were consistently positive. Demand for nonfinancial services improved or held steady, and real estate activity remained solid. The energy sector continued to decline. Price pressures were muted and employment held steady or increased. Outlooks remained cautiously optimistic to quite positive, except for in the energy sector where outlooks were negative.

Prices
Most responding firms said prices held steady over the last six weeks. Retailers noted elevated transportation costs because of the West Coast port strike, while a few other industries--transportation services, airlines, and food and construction-related manufacturing--said lower fuel prices reduced transportation costs. Restaurant contacts said selling prices moved up to accommodate continued increasing costs and that further prices increases are expected by the third quarter.

Read more...Dallas Beige Book - Dallas Fed

No Signs of a Slowdown (Yet) in Houston’s Apartment Market via Property Management Insider

With oil prices plunging in 2014’s second half, energy-dependent Houston was on everyone’s watch lists going into 2015. Did Houston’s hot apartment market show any signs of slowing down in 2015’s 1st quarter?

Watch video...No Signs of a Slowdown (Yet) in Houston’s Apartment Market | Property Management Insider

Dallas Multifamily: Diversified Economy to Drive Apartment Demand via Real Estate Center at Texas A&M

Though slumping oil prices will continue to temper momentum, Marcus & Millichap says the Metroplex’s diversified economy will still record strong job growth this year, driving apartment demand and keeping vacancy at historically low levels.

Thousands of luxury apartments are slated for completion this year, the firm said in its first quarter 2015 market report, specifically in the Intown Dallas, Oak Lawn/Park Cities and Richardson submarkets, where several companies are relocating and expanding.

Read more...Dallas Multifamily: Diversified Economy to Drive Apartment Demand via Real Estate Center at Texas A&M

In “Good” Suburbs, Apartment Investment Returns Match the Urban Core via Property Management Insider

Investment research groups across the country have proven time and again that central business districts trump suburbs for apartment investment returns. That conclusion has guided an urban-centric strategy in recent years, yet it deserves a large, overlooked asterisk mark.

Within the nation’s core 50 markets, 88% of all apartment units are located outside of CBDs. That’s a massive group. Too large, we would argue, for meaningful analysis. A more useful analysis would break down the 88% into subgroups.

Read more...In “Good” Suburbs, Apartment Investment Returns Match the Urban Core | Property Management Insider

ALN Monthly Newsletter April 2015 via ALN Apartment Data

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

Houston Multifamily: Low Oil Prices Present Challenges via Real Estate Center at Texas A&M

The local economy has diversified significantly in recent years, though low oil prices will present challenges during 2015 and apartment operations will soften in the months ahead, according to Marcus & Millichap's first quarter 2015 apartment market report.

"How much low oil prices will affect the market depends greatly on where they stabilize and how long they will remain at that level," the report said. "Global layoffs have been announced by some of the metro's largest energy companies, including BP, Shell, Schlumberger, Baker Hughes and Halliburton. However, the direct impact on Houston remains unclear.

Read more...Houston Multifamily: Low Oil Prices Present Challenges via Real Estate Center at Texas A&M

San Antonio Multifamily: Look for Market to Soften via Real Estate Center at Texas A&M

In its first quarter 2015 apartment market report, Marcus & Millichap says the city's apartment market will soften some throughout the remainder of the year as builders accelerate projects and low oil prices create some economic uncertainty.

"Though direct exposure to the oil price reduction remains limited, the metro’s economy will be impacted somewhat nonetheless," the report said. "Job growth will be largely dependent on non-energy-related sectors such as healthcare, education, and professional and business services this year.

Read more...San Antonio Multifamily: Look for Market to Soften via Real Estate Center at Texas A&M

Apartment rent concessions hit Houston multifamily market via Houston Business Journal

Some Houston apartments are introducing rent concessions and beefing up their marketing efforts to encourage walk-ins and lease-ups amid the oil slump that took oil from $100 a barrel in the summer to about $50 now.

That means more competition in the tightening multifamily arena.

“We’re seeing concessions from one month to six weeks (free rent),” said Bruce McClenny, president of Houston-based Apartment Data Services Inc. “The new stuff builds it in (to encourage lease-up rates during construction), but we’re seeing more of that happening on the stabilized stuff.”

Read more...Apartment rent concessions hit Houston multifamily market - Houston Business Journal

Austin ALN apartment report March 2015 via Real Estate Center at Texas A&M

In the apartment market, Austin stumbled a bit in 2014, yet, like San Antonio, it looks like Austin also had a good winter.

The market absorbed almost 1,400 net rented units in the last three months. Consequently, average occupancy dropped a modest 0.5 percent to 90.2 percent.

Read more...Austin ALN apartment report March 2015 via Real Estate Center at Texas A&M

San Antonio ALN apartment report March 2015 via Real Estate Center at Texas A&M

Multifamily overall occupancy ticked upwards over the last three months from 89.3 percent to 89.4 percent. The market absorbed almost 1,000 net rented units in that time.

Over the last year, the region has absorbed almost 4,800 units. Effective rents however stayed flat in the last three months. They gained a mere $5 per unit from $849 to $854.

Read more...San Antonio ALN apartment report March 2015 via Real Estate Center at Texas A&M

Latest ULI Consensus Forecast Sees Stage Set for Sustainable Growth into 2017 via CoStar Group

Describing growth projections in U.S. real estate markets as 'sustainable' and 'solid, a survey of 46 leading real estate economists and industry analysts said they expect the current economic expansion to continue at healthy and steady levels over the next three years, boosted by a strong investor interest in real estate, above-average rent growth across all commercial property types and lower vacancy rates.

The optimistic outlook was presented in the latest installment of the semi-annual ULI Real Estate Consensus Forecast. Based on the median of the forecasts from the 46 participating economists/analysts, most economic and real estate indicators are forecasted to perform better than their long-term historical average, with the exception of equity REIT returns, retail and apartment total returns, retail vacancy rates and single-family housing starts.

Read more...Latest ULI Consensus Forecast Sees Stage Set for Sustainable Growth into 2017 - CoStar Group

Economy Watch: Apartment Absorption Outruns Construction via Multi-Housing News Online

The development of new apartments nationwide has been nothing if not brisk since the end of the recession, but it does have its ups and downs. In the first quarter, the delivery of new units was low enough that demand handily outstripped the new supply by about 8,500 units, driving down overall vacancies somewhat. In fact, the slightly more than 28,800 new units that came on line in Q1 2015 represented the lowest number since the first quarter of 2013, according to the first quarter apartment report by Reis Inc., which was published recently, as prepared by the company’s senior economist and director of research Ryan Severino.

Read more...Economy Watch: Apartment Absorption Outruns Construction | Multi-Housing News Online

Top 10 Metros for Population Growth, Rental Rates via Commercial Property Executive

Changes in population is one of the most commonly cited drivers for rental change. Listed below are the top ten MSA’s for population growth from 2013 to 2014. At over a 3 percent growth, Austin significantly outperforms all other metros.

Read more...Top 10 Metros for Population Growth, Rental Rates | Commercial Property Executive

DFW Economic Indicators March 31 2015 via Dallas Fed

The Dallas–Fort Worth economy continued to expand in February. DFW employment has grown 3.1 percent year to date, compared with 1.4 percent for the state and 2.3 percent for the nation. Home price appreciation has continued at a rapid clip, and apartment demand remains strong. Unemployment in Dallas and Fort Worth fell in February. Dallas Fed business-cycle indexes point to solid growth for the metroplex.

DFW employment expanded at a moderate, 1.7 percent annual rate in February. It was the slowest pace since October 2013, when DFW payrolls grew 1.6 percent, adding 4,100 jobs. Over the past 12 months, the metroplex has created jobs at 3.9 percent pace—the fastest among the major Texas metros.

Read more...DFW Economic Indicators March 31 2015 via Dallas Fed

Austin Economic Indicators April 2015 via Dallas Fed

The Austin economy grew strongly in February. Jobs increased at an annualized rate of 4.5 percent—over 3 percentage points faster than the state. The unemployment rate also fell sharply to 3.4 percent, its lowest level since early 2001. Austin home prices continued to appreciate as the median sales price rose 6.8 percent year over year in February.

Despite moderating slightly, the Austin Business-Cycle Index expanded at an 8.5 percent annualized rate over the six months ending in February. While the index is monthly, retail sales and wages enter the index quarterly and with a lag. Real retail sales data for third quarter 2014 show an annualized 4.2 percent contraction, but real wage growth accelerated to 7.3 percent over this time. Combined with recent strong job expansion and a declining unemployment rate, the index is up 8.5 percent over the past five months.

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

San Antonio Economic Update April 2015 via Dallas Fed

The San Antonio economy accelerated in February. Employment grew at an annualized rate of 5.9 percent, far outpacing Texas job growth of 1.3 percent. The unemployment rate fell to 3.8 percent, its lowest level since mid-2007. Indicators of retail activity suggest continued strength. Housing affordability increased in the final quarter of 2014, and indicators point to sustained vigor in residential construction and housing.

The San Antonio Business-Cycle Index accelerated to an annualized pace of 7.1 percent over the six months through February. Retail sales and wages, two of the less-timely components of the index, showed a substantial pickup in third quarter 2014. Combined with more recent strength in employment and declines in the unemployment rate, the index is growing at its fastest pace since 2005.

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

Texas Nonagricultural Job Growth Up 3.2 Percent in February via Real Estate Center at Texas A&M

The Texas economy gained 362,400 nonagricultural jobs from February 2014 to February 2015, an annual growth rate of 3.2 percent compared with 2.4 percent for the United States.

According to the Real Estate Center’s latest Monthly Review of the Texas Economy, the state’s nongovernment sector added 344,100 jobs, an annual growth rate of 3.6 percent compared with 2.8 percent for the nation’s private sector.

Read more...Texas Nonagricultural Job Growth Up 3.2 Percent in February via Real Estate Center at Texas A&M

Reis: Apartment Vacancy Rate decreased in Q1 to 4.1% via Calculated Risk

Reis reported that the apartment vacancy rate declined in Q1 2015 to 4.1%, down from 4.2% in Q4 2014, and the same as in Q1 2014. The vacancy rate peaked at 8.0% at the end of 2009.

A few comments from Reis Senior Economist and Director of Research Ryan Severino:

Read more...Calculated Risk: Reis: Apartment Vacancy Rate decreased in Q1 to 4.1%

Texas demand jumps into U.S. apartment markets via Real Estate Center at Texas A&M

Demand for apartments across the U.S. is continuing to rise, and the rapid leasing pace is pushing up occupancy and rent growth, according to MPF Research.

Running counter to the historically typical pattern of seasonally slow leasing during the winter months, apartment demand for a total of 64,297 units registered across the country’s 100 largest metropolitan areas in first quarter 2015.

Read more...Texas demand jumps into U.S. apartment markets via Real Estate Center at Texas A&M

Mulitfamily's Q1 Metrics Power Up via GlobeSt.com

By a number of metrics, the first quarter demonstrated that multifamily’s reign is far from over. Axiometrics said Wednesday that annual effective rent growth for apartments hit the highest level in three-and-a-half years, and also posted the best Q1 performance since 2006. Absorption during Q1 was up by double digits year over year, according to MPF Research, while Real Capital Analytics said last week that for the first two months of this year, investment sales volume in the sector rose 57% from the year-ago period.

Dallas-based Axiometrics says annual effective rent growth of 4.9% during Q1 represented a 21-basis-point increase over the 4.7% recorded in Q4 2014. The figure is the highest since Q3 2011, when rent growth was also 4.9%, and is the highest first-quarter rate since it reached 5.8% in Q1 ’06. Q1 rent growth was up about 59% Y-O-Y, according to Axiometrics data.

Read more...Mulitfamily's Q1 Metrics Power Up - Daily News Article - GlobeSt.com

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

Berkadia has released its 2014 Sales Summary for the North Texas multifamily market.

Sales velocity of multifamily properties in 2014 decreased 9.5 percent from 2013, though activity was 55 percent greater than average transactions from the prior five-year period.

Investors acquired 314 properties with total volume of $5.2 billion, a 3.8 percent reduction from 2013.

Read more...Berkadia: DFW 2014 Multifamily Sales Summary via Real Estate Center at Texas A&M

D-FW is nation’s top market for apartment leasing, construction via Dallas Morning News

Apartment construction in North Texas took off during the first months of 2015 with more than 34,000 units currently under construction.

The surge in building comes as the Dallas-Fort Worth area tops the country in demand for apartment homes. Net apartment leasing in the D-FW area has totaled more than 18,000 units in the past 12 months – significantly more than any other market in the nation, according to a new report by MPF Research Inc.

Tenants leased an additional 3,537 D-FW apartments in the first quarter alone, according to the Carrollton-based apartment analyst.

Read more...D-FW is nation’s top market for apartment leasing, construction | Dallas Morning News