Going Green in Multifamily Construction is Fast Becoming the Standard via Property Management Insider

The future for going green in new home building and apartment construction looks rosy.

Builders and remodelers seem to be shaking perceptions that green building is too expensive and plan to incorporate sustainable construction practices in future homes. Architects and construction companies that specialize in multifamily say it’s not rocket science to go green, and, in some cases, the cost is negligible.

Read more...Going Green in Multifamily Construction is Fast Becoming the Standard | Property Management Insider

Multifamily Dynamics Will Remain Strong Through 2016 via Multifamily Executive Magazine

It comes as no surprise that some in the commercial real estate industry are talking about the multifamily sector reaching a “bubble” in 2016. And even though the pundits have been making the exact same prediction for the past several years now, there's still a strong case to be made for asking, “How could things get any better than last year?”

Multifamily occupancy rates were at 94.6% through the first half of 2015, and renewal rates were trending 5.4% higher than 2014's levels. None of the major rental markets was experiencing significant overbuilding as rental demand and absorption continued to outpace supply.

Read more...Multifamily Dynamics Will Remain Strong Through 2016 | Multifamily Executive Magazine | Multifamily Trends, Occupancy and Vacancy Rate, Construction Finance, Class B Properties, Secondary Markets, Debt and Equity, Investing, Uber:



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Kingsley: Satisfaction Steady But Fewer Intend to Renew via Multifamily Executive Magazine

The last few years in multifamily have been better than ever, but as the industry continues to climb, many are starting to look for the first signs we’re reaching the peak. To help you keep an eye on the market, Kingsley Associates and MFE are partnering to provide you with a quarterly update on resident satisfaction and renewal intentions, both across the country and by market.

Here, we're starting off with Q1 2016, where we're noticing things are still rosy, but not as bright as they used to be.

Read more...Kingsley: Satisfaction Steady But Fewer Intend to Renew | Multifamily Executive Magazine | Customer Satisfaction, Property Management, renewal intent , renter satisfaction, Kingsley Associates

The Affordability Crisis: What Happens When Millennials Can't Afford to Buy Homes? via Apartment List Rentonomics

Apartment List recently conducted a survey of more than 30,000 renters across the United States, asking questions about their plans for homeownership, affordability, and savings for a down payment. Our research indicates that the vast majority of millennial renters (79%) want to purchase a home, but that affordability is the biggest obstacle that they face. The issue is particularly acute on the west coast: more than 80% of millennials in Portland, Seattle, SF, LA, and San Diego say they cannot afford to buy.

Worryingly, we find that millennial renters in expensive metropolitan areas significantly underestimate the amount they need to save for a down payment, in many cases by 50% or more. Using data on starter home prices and millennials’ average savings rates currently, we estimate that many renters will need a decade or more before they can afford a 20% downpayment on a home.

Read more...The Affordability Crisis: What Happens When Millennials Can't Afford to Buy Homes? - Apartment List Rentonomics

DFW Economic Indicators April 2016 via Dallas Fed

The Dallas–Fort Worth economy expanded in March. Housing affordability declined further in the fourth quarter, and home prices continued to increase in January. Unemployment ticked up in March, and the Dallas Fed business-cycle indexes point to continued growth for the metroplex.

Read more...DFW Economic Indicators April 2016 via Dallas Fed

Apartment Market Softens Slightly via Commercial Property Executive

The NMHC's April 2016 apartment market survey shows consumer demand for apartments decline this quarter, while property sales volume went up.

U.S. apartment markets, so long tilting favorably toward landlords, are going in a more mixed direction now, according to the National Multifamily Housing Council‘s quarterly survey, which was released on Thursday. The report put two of its four indexes below the breakeven level of 50.

Read more...Apartment Market Softens Slightly

ALN Monthly Newsletter April 2016 via ALN Apartment Data

ALN Data just released their March 2016 stats on occupancy and rents for over 70 markets. In Texas, it includes DFW, Austin, Houston, San Antonio, Lubbock, Amarillo, Abilene, Corpus Christi and more. It is a must read from a great provider of apartment data.

Read more...ALN Monthly Newsletter April 2016 via ALN Apartment Data

Texas Economic Indicators April 2016 via Dallas Fed

The Texas economy continued to slow in March. Payroll employment remained relatively flat during the month, and unemployment held steady. The Texas Manufacturing Outlook Survey production index climbed into positive territory. February exports surged, and the estimated value of the Texas Leading Index rose for the first time since October 2015.

Texas employment grew at a 0.1 percent annualized pace in March, while the nation’s grew at a 1.8 percent rate. Texas gained 520 jobs in March after adding 7,900 in February. Current Texas employment stands at nearly 12.0 million, according to the payroll survey (Current Employment Statistics).

Read more...Texas Economic Indicators April 2016 via Dallas Fed

Dallas Beige Book April 13, 2016 via Dallas Fed

Economic activity in the Eleventh District was flat to up slightly over the past six weeks. Manufacturing held fairly steady on net while demand for nonfinancial services increased modestly. Retail sales edged down except for automobiles, where sales pushed to even stronger levels. Real estate activity continued to expand in most markets, while the energy sector contracted further. Reports of price pressures and employment trends were varied. Outlooks were still somewhat optimistic, although generally cautious, with oil price volatility and the presidential election driving some of the uncertainty.

Read more...Dallas Beige Book - Dallas Fed

Houston Economic Indicators April 2016 via Dallas Fed

Revised data suggest that Houston’s economy was slightly stronger than originally estimated at the end of 2015. However, despite those revisions and a very modest increase in oil prices since February, mining-related industries continue to be a significant drag on Houston. Health, leisure and hospitality, and retail trade are softening the impact, but overall, the near-term outlook is tepid at best.

Read more...Houston Economic Indicators April 2016 via Dallas Fed

DFW Economic Indicators March/April 2016 via Dallas Fed

The Dallas–Fort Worth economy expanded in February. Home sales dipped during the month but remained well above year-earlier levels, and home inventories continued to be tight. Home prices trended upward in the fourth quarter. Dallas Fed business-cycle indexes point to continued growth for the metroplex.

DFW employment grew an annualized 3.6 percent in February.

Read more...DFW Economic Indicators March/April 2016 via Dallas Fed

Atlanta developer: Tough climate for Houston multifamily via Houston Chronicle

Worthing Cos. has developed three apartments communities across Houston recently, and the Atlanta-based firm is not planning more any time soon.

"Houston is oversaturated with multifamily," said Leigh Scofield, regional director for new development for the Worthing Cos. "It's just an area that's taken a big beating."

Read more...Atlanta developer: Tough climate for Houston multifamily - Houston Chronicle

Austin Economic Indicators April 2016 via Dallas Fed

The Austin economy continued to expand steadily in February. The Austin Business-Cycle Index rose at a rapid pace, although job growth was somewhat anemic compared to historical norms. The unemployment rate remained flat for a second month, indicating no alleviation in local labor market tightness.

Read more...Austin Economic Indicators April 2016 via Dallas Fed

Brian O’Boyle: Dallas Multifamily Continues to Impress via D Real Estate Daily

North Texas continues to be the No. 1 market in the United States for multifamily development. From an investment standpoint, value-add deals are still the most sought after, as buyers are finding that thoughtful upgrades can lead to long-term results in profit and demand. In some cases, value-add opportunities are selling at cap rates below core assets, with many international equity sources playing an important role. Some of the most common international groups acquiring multifamily assets in Dallas-Fort Worth are from Hong Kong, the Middle East, and Canada.

Read more...Brian O’Boyle: Dallas Multifamily Continues to Impress | D Real Estate Daily

Rent growth eases: Why it is happening here and not there via CNBC.com

Sky-high apartment rents are finally beginning to crack.

Annual gains in the first quarter were still a relatively strong 4.1 percent nationally, but that is a significant drop from the 5 percent gains the market was seeing one year ago, according to Axiometrics. The first quarter rate was also 52 basis points lower than that reported in the fourth quarter of 2015. Rent growth has been 4 percent or higher for seven-straight quarters, but wage growth is nowhere near strong enough to meet the gains, leaving renters more cash-strapped than ever before.

Read more...Rent growth eases: Why it is happening here and not there

Rising U.S. Apartment Vacancies Lead to Slowing Growth in Rents via Bloomberg

U.S. apartment vacancies climbed in the first quarter as a flood of newly built units hit the market, slowing the rate of rent increases.

Effective rents, or what tenants pay after landlord concessions, rose 4.5 percent in the first quarter from a year earlier, down from 5 percent growth at the end of 2015, Reis Inc. said. The vacancy rate climbed to 4.5 percent from 4.4 percent in the previous quarter and a low of 4.2 percent a year earlier, according to the real estate research firm.

Read more...Rising U.S. Apartment Vacancies Lead to Slowing Growth in Rents - Bloomberg

Sharp decline in D-FW apartment leasing raises red flag for developers via Dallas Morning News

While North Texas apartment developers are ramping up construction to the highest level in decades, demand for new rental units has slipped.

First quarter apartment leasing in the Dallas-Fort Worth area was at the lowest pace in three years.

“If the second quarter is this weak, too, I’m going to be really concerned,” said Greg Willet, vice president with Dallas-area apartment analyst MPF Research. “For the first time since developers went back into expansion mode, we’re seeing some meaningful cracks begin to emerge.”

Read more...Sharp decline in D-FW apartment leasing raises red flag for developers | | Dallas Morning News

Dallas Fed economists: Low oil prices ‘greatest risk’ to Texas job growth via Dallas Morning News

Texas managed to add jobs in 2015 despite sharply falling oil prices — but that might not be the case this year, if prices average less than $30 per barrel, a new report says.

“Besides further decreasing energy and manufacturing employment, low oil prices could increase problem loans at financial institutions with exposure to the industry,” Keith R. Phillips and Christopher Slijk wrote in the most recent edition of Southwest Economy, which was released by the Federal Reserve Bank of Dallas.

Read more...Dallas Fed economists: Low oil prices ‘greatest risk’ to Texas job growth | | Dallas Morning News