Wednesday, May 25, 2016

Texas Not Headed For Recession, Says Dallas Fed Economist via Dallas Fed

Despite the impact of the oil price slump, the Texas economy is not headed for recession, Federal Reserve Bank of Dallas senior economist Keith R. Phillips said in a new video from the Dallas Fed. In fact, based on current data, the probability that Texas will go into recession this year is around 15 percent or lower, Phillips said.

Read more...Texas Not Headed For Recession, Says Dallas Fed Economist - Dallas Fed

Could New Supply of Apartments Slow Rising Rents? via Urban Land Magazine

Landlords are confident that apartments are not overbuilt, and rents continue to increase in many markets, but real estate investment trust (REIT) investors are less certain. This is not the first time that investors have become skittish. Concerns about new supply led the REIT sector to pull back in 2013, but the market maintained several additional years of strong growth, fueled by the growing economy, demographic trends that favored renting, and new supply that did not materialize as quickly as expected. This year, deliveries are reaching new peaks, and investor worries about a market softening are reflected in the sector’s –1.12 percent year-to-date total return.

Read more...Could New Supply of Apartments Slow Rising Rents? - Urban Land Magazine

See Austin's rising rents on a map via Austin Business Journal

Austin's rising rents, like overall housing prices in the region, are not slowing down.

Austin was the 20th-most expensive city in the U.S. for renters in April, according to a blog post from real estate website

Read more...See Austin's rising rents on a map - Austin Business Journal

Young people now more likely to live with parents than partners via The Washington Post

For the first time in modern history, living with parents has overtaken other living arrangements for 18- to 34-year-olds, according to a Pew Research Center report released Tuesday.

In 2014, 32.1 percent of young adults lived in their parents’ homes, edging out all other living arrangements, including marriage or cohabitation, living alone, or living as single parents or with roommates.

Read more...Young people now more likely to live with parents than partners - The Washington Post

Monday, May 23, 2016

Dallas Fed: Texas Adds 10,700 Jobs in April; State Employment Forecast Revised Up to 1.5 Percent for 2016 via Dallas Fed

Texas added 10,700 jobs in April, according to seasonally adjusted and benchmarked payroll employment numbers released today by the Federal Reserve Bank of Dallas.

The state added a revised 1,000 jobs in March. Year to date in 2016, jobs have grown at an annualized pace of 1.1 percent after growing 1.3 percent in 2015. The monthly annualized growth rate in April was 1.1 percent.

Incorporating April’s employment data, the Texas employment forecast stands at 1.5 percent growth for 2016, suggesting 179,000 jobs will be added in Texas this year. This is an upward revision from the 1.0 percent forecast that was released by the Bank in April.

Read more...Dallas Fed: Texas Adds 10,700 Jobs in April; State Employment Forecast Revised Up to 1.5 Percent for 2016 - Dallas Fed

Apartment Construction Hits 'Peak Year' as Rents, Occupancies Edge Higher via CoStar Group

Multifamily developers continue to churn out record levels of new supply ahead of what is expected to be a 'peak year' for apartment construction in 2016. The number of new apartments under construction is at its highest level since the 1980s, and double the annual historical average seen over the last 34 years.

Almost 205,000 units delivered over the four quarters ending March 31, 2016, a 2% annual increase, including 46,000 units added during the seasonally slow first quarter. With more than 240,000 units expected to deliver across the top 54 U.S. markets this year, CoStar projects 2016 to be the peak year in the current cycle for new apartment construction.

Read more...Apartment Construction Hits 'Peak Year' as Rents, Occupancies Edge Higher - CoStar Group

Wednesday, May 18, 2016

Apartment boom seeing some pullback as lenders tighten their purses via Dallas Morning News

North Texas’ apartment building binge may be hitting a ceiling.

Dallas-Fort Worth apartment building permits dropped by 17 percent in the first quarter, and industry analysts say that funding for new projects is more challenging after years of construction increases.

“We are starting to see the first signs we’ve hit that peak in building activity,” Greg Willett, vice president with apartment analyst MPF Research, told an industry group Tuesday morning. “Of late, the money sources have gotten a little bit more skittish.

Read more...Apartment boom seeing some pullback as lenders tighten their purses | | Dallas Morning News

Monday, May 16, 2016

Multifamily Investment via The Balance Sheet - Yardi Corporate Blog

This week, Yardi’s Jeff Adler (Vice President of Matrix) and Jack Kern (Director of Research/Publisher of MHN, CPE) presented a biannual webinar on the health and welfare of the U.S. multifamily investment sector.

In an hour-long presentation, Adler and Kern summarized the various forces that impact investment, including job growth, oil prices, rent growth and supply. Data is derived from the reports created by Yardi Matrix, the industry’s most comprehensive apartment market intelligence platform.

While striking a more cautionary note than six months prior, the outlook for multifamily investment remains very positive, Adler said. Occupancy is high and rent growth strong at 6 percent.

Read more...Multifamily Investment | The Balance Sheet - Yardi Corporate Blog

Downtown Fort Worth Captures Remarkable Housing Growth as Apartment Occupancy Remains High via

Downtown Fort Worth, Inc. has released its 2015 State of Downtown Report, a yearly publication that offers in-depth analysis of Downtown's primary real estate performance indicators and economic, social and education data.

According to data from the report, Downtown has maintained a 91.9% average retail occupancy rate and experienced an 89.9% increase in clothing store sales since 2006. Findings from the report also indicate a growing demand for Downtown housing. Apartment occupancy remained above 96.5% for the year. Investment in Downtown housing is expanding, currently 2,532 residential units are planned or under construction which is a 73% increase in downtown housing inventory.

Read more...Downtown Fort Worth Captures Remarkable Housing Growth as Apartment Occupancy Remains High |

Friday, May 13, 2016

MF Renewal Rates Dip But Stay Strong via

In a case of the glass remaining more than half full even if it emptied slightly, apartment lease renewal rates remained above 50% in April, according to MPF Research. The 52.2% renewal rate among expiring leases last month, down 290 basis points from the 10-year high seen in February and 70 bps from the year-ago period, represented only the third Y-O-Y decline in the past 36 months.

“Declining renewal rates had been expected with so much new supply hitting the market, pulling some renters out of existing top-tier properties,” says Jay Parsons, VP of MPF Research. “And the overall renewal retention rate in April was still quite high relative to the norms.”

Read more...MF Renewal Rates Dip But Stay Strong |

ALN Monthly Newsletter May 2016 via ALN Apartment Data

ALN Data just released their April 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 May 2016 via ALN Apartment Data

Strong Profit Growth Keeps Apartments as Favored Property Type via CoStar Group

Apartment property performance in 2015 continued to outperform even the strong performance seen in 2014 and 2013, according to the latest financial data collected on thousands of multifamily complexes. And the net operating income performance for the property sector may still head higher.

The combined 2015 net operating income at nearly 5,900 conventional multifamily complexes reporting year-end numbers totaled $8.16 billion, according to Fannie Mae and Freddie Mac data collected through April and analyzed by CoStar Group. Those complexes contained 1.16 million apartment units -- consequently representing NOI per unit of $7,044.

Read more...Strong Profit Growth Keeps Apartments as Favored Property Type - CoStar Group

Wednesday, May 11, 2016

JLL: Q1 2016 Apartment Market’s Strongest First Quarter via Multi-Housing News Online

JLL’s latest research indicates the multifamily sector’s first quarter of 2016 was the strongest first quarter ever recorded, with figures reaching $34.5 billion.

The power of private equity is one reason multifamily is continuing its more than six-year boom period. The investor group accounted for more than $8.2 billion in activity during the first quarter, more than doubling comparable activity from the first half of 2015. Suburban, garden-style properties are the primary target of the group.

Read more...JLL: Q1 2016 Apartment Market’s Strongest First Quarter

Tuesday, May 10, 2016

Apartment Asset Development Slows via National Real Estate Investor

Developers plan to start construction on fewer new apartments this year.

“We believe 2015 was the peak for this cycle,” says Ron Witten, founder of apartment research firm Witten Advisors, based in Dallas.

Developers increased the number of new apartment starts every year since the recovery began. But now, the number of new apartments may have finally caught up with the number of new renters who need these units. The percentage of vacant apartments has begun to creep upwards, though it’s still well under 5.0 percent on average in the U.S., according to most apartment researchers. Lenders are also much less willing to provide capital for new development.

Read more...Apartment Asset Development Slows

Monday, May 9, 2016

Dallas Fed Economist: Slower Growth Ahead for Texas Economy as Impact of Low Oil Prices Spreads via Dallas Fed

Texas will likely see continued job growth this year, but at a slower pace as the impacts of low oil prices ripple through the economy, said Federal Reserve Bank of Dallas economist Emily Kerr in the Bank’s latest Texas Economic Update video.

State job growth has slowed to a 1.1 percent annualized pace in the first quarter of 2016, according to the Dallas Fed’s most recent Regional Economic Update. That’s down from 1.3 percent growth in 2015 and 3.7 percent growth in 2014, when oil prices were still high for much of the year.

Read more...Dallas Fed Economist: Slower Growth Ahead for Texas Economy as Impact of Low Oil Prices Spreads - Dallas Fed

Apartment Investment Market Index via Freddie Mac

Understanding historical market conditions is an essential part of the multifamily industry. To help with this analysis, we’ve created an Index that offers a look at how the market conditions of investing in a multifamily property have changed over time.

AIMI (pronounced “Amy”) stands for Freddie Mac Multifamily Apartment Investment Market IndexSM. Updated quarterly, the Index combines three market factors to create its value—multifamily mortgage rates, growth rates in multifamily prices, and growth rates in multifamily rental income. The Index’s value can be used to gauge investment market conditions over time on the national level and for specific metros.

In combination with corresponding quarterly analysis from our multifamily research team, an investor will have a unique insight into understanding the market conditions for multifamily properties.

Read more...Apartment Investment Market Index - Freddie Mac

Friday, May 6, 2016

Dallas Tops State for Rent Prices via Candy's Dirt

If it seems like rent is high in Dallas, you’re not imagining things.

According to a new report from Apartment List, Dallas has the highest rents in the state, with two-bedroom apartments having a median rent of $1,580 per month, and one-bedrooms at $1,220. Dallas rents have grown year-over-year by 5.4 percent, higher than both statewide and national averages.

Read more...Dallas Tops State for Rent Prices | Candy's Dirt

Houston Economic Indicators May 2016 via Dallas Fed

Revised data suggest that Houston’s economy was slightly weaker than originally estimated at the end of 2015 and that it has weakened since. Port activity and industries driven by local demand, such as health care, are holding up but may begin losing steam as losses in the energy sector mount. With leading indicators still weak, the outlook for Houston is modestly negative.

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

Austin Economic Indicators May 2016 via Dallas Fed

The Austin economy grew at a strong pace in March. The Austin Business-Cycle Index continued its steady deceleration but remained well above trend. Job growth was moderate and faster than in the state. The unemployment rate ticked up after reaching a 15-year low. While overall expansion has decelerated this year compared with last, the region’s relative insulation from the state’s oil and gas sector decline should allow for continued above-average growth.

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

Pampered Pooches: Creating Pet-Friendly Multifamily Communities via Property Management Insider

Callie just seems to be spoiled rotten. She’s the Blackwells’ baby girl at the tender age of 8, and gets nothing but the best.

A plentiful supply of bones and snacks are always a nudge of the paw away, and she has a fashionable Thunder Shirt in her wardrobe to calm her on those stormy nights. Callie is easily identifiable by her embroidered name on her collar and “overnight” bag. When mom and dad travel, she lounges in a suite (sometimes with a TV) and has social time with other guests.

Read more...Pampered Pooches: Creating Pet-Friendly Multifamily Communities | Property Management Insider

Millennials are moving, but mortgages don’t follow via

It is the No. 1 barrier to entry for young, would-be homebuyers: credit. Millennials are the first generation to come of age in a post-almost-apocalyptic housing market, where lenders, eight years later, are still paying billions in reparations for mortgage misconduct and outright fraud.

Millennial homebuyers are also paying a price.

"The mortgage industry is poised to experience a monumental shift as more millennial homebuyers begin to enter the market," said Joe Tyrrell, executive vice president of corporate strategy at Ellie Mae, a mortgage software and data company.

Read more...Millennials are moving, but mortgages don’t follow