Y'all Street: Could Dallas oust New York City as a global financial capital? via Dallas Morning News

The document’s title holds a dire warning for Wall Street — the place, not the stock market:

“AT RISK,” it says, is “New York’s Future as the World Financial Capital.”

The 2015 report, by business group Partnership for New York City, proceeds to lay out the reasons that the Big Apple is slowly losing its grip on the finance industry, as major players in the sector shift operations elsewhere.

Read more...Y'all Street: Could Dallas oust New York City as a global financial capital? | Dallas Morning News

Apartment market 'increasingly jittery' for investors via CNBC

Rents are soaring and demand for apartments is historically high, but some developers and landlords are overestimating the strength of the U.S. apartment market — and paying for it in quarterly earnings.

Others are warning that the second half of this year will be even tougher.

Read more...Apartment market 'increasingly jittery' for investors

Freddie: Apartment Market Remains Strong via GlobeSt.com

Multifamily investment fundamentals remain strong both nationally and in most of the 13 major metro areas tracked by Freddie Mac in its quarterly Apartment Investment Market Index, although there are signs of moderation. Reflecting data for the first quarter, the latest AIMI shows the index up slightly—0.30%—to 107.4 from 107 in Q4 of 2015. However, Freddie says that on a year-over-year basis, AIMI continues to trend down, both nationally and in 12 out of the 13 metro areas it tracks, as property value growth exceeds NOI growth in a flat interest rate environment.

Read more...Freddie: Apartment Market Remains Strong | GlobeSt.com

Texas Economic Indicators July 2016 via Dallas Fed

The Texas economy expanded in June. Payroll employment grew during the month, although unemployment ticked up. The Dallas Fed’s Texas Manufacturing Outlook Survey showed that production held steady in July. Construction contract values increased in June, but the five-month moving average dipped. Exports fell in May for the second month. The estimated value of the Texas Leading Index edged down in June.

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

Info for your next rent rant: Dallas sets record for average monthly rate via Dallas Morning News

Dallas-area apartment renters can't catch a break.

They are on average paying about $60 a month more than they were a year ago and there is no sign of a rent slowdown.

Apartment analyst Axiometrics says that average Dallas-area rents in June were $1,129 - an all time high.

Read more...Info for your next rent rant: Dallas sets record for average monthly rate | Dallas Morning News

DFW Economic Indicators July 2016 via Dallas Fed

Dallas–Fort Worth economic growth slowed in June as employment contracted and unemployment rose. After benchmark revisions, DFW employment was flat in the first half of the year, slightly better than the state’s −0.1 percent rate. DFW’s office and industrial markets saw continued expansion in the second quarter, and home prices rose further. The Dallas Fed business-cycle indexes indicate continued modest growth for the metroplex.

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

MPF Research Reports on Apartment Construction via Property Management Insider

On the whole, apartment construction continues to be strong in the current cycle. As is always the case, while some markets are on fire, others are lackluster.

Since 2012, inventory across the nation’s top 100 metros has expanded by 8.9%.

The South is seeing the most action, with inventory up 12.2% since 2012. Inventory expansion of only 5.1% leaves the Northeast in the bottom position, with the West and Midwest regions falling in-between.

Read more...MPF Research Reports on Apartment Construction

Relief for Renters Will Prolong Fed’s Wait to Hit Inflation Goal via Bloomberg

Welcome news for America’s renters could be unhelpful for the Federal Reserve.

A 42-year high in the number of apartment buildings under construction points to an impending surge in supply that portends a moderation in the cost of shelter, which in June capped the biggest 12-month jump in almost a decade. Any cooling in the most pronounced driver of inflation means the Fed will have to wait even longer to reach their 2 percent price target -- a prerequisite for some policy makers to raising interest rates.

Read more...Relief for Renters Will Prolong Fed’s Wait to Hit Inflation Goal - Bloomberg

US Home Rental Price Growth Pulls Even With Wages via ABC News

U.S. renters are seeing their housing costs rise at a much more manageable pace, as new construction has tempered years of runaway increases in rent.

Real estate data firm Zillow says that median rent rose a seasonally adjusted 2.6 percent in June from a year ago, matching the gains in average hourly wages. Rental costs have decelerated after consistently exceeding earnings growth in previous years, a sign that additional building is giving more options.

Read more...US Home Rental Price Growth Pulls Even With Wages - ABC News

Economy Watch: Apartment Market Not Quite the Juggernaut of Recent Years via Commercial Property Executive

The U.S. apartment market still has considerable strength, according to the latest National Multifamily Housing Council‘s quarterly survey on apartment market conditions, which was released on Thursday, but the surge of supply is finally catching up with persistent demand—for part of the market, that is.

For the third quarter in a row, the organization’s Market Tightness Index was unchanged at 43, showing that supply is a bit stronger than demand. Almost one-third of respondents (31 percent) reported looser conditions than three months ago. At the other end, 18 percent noted tighter conditions, while more than half (51 percent) reported no change.

Read more...Economy Watch: Apartment Market Not Quite the Juggernaut of Recent Years

ALN Monthly Newsletter July 2016 via ALN Apartment Data

ALN Data just released their June 2016 stats on occupancy and rents for over 80 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 July 2016 via ALN Apartment Data

Kingsley: Renewal Intentions Hit All-Time Low via Multifamily Executive Magazine

While overall resident satisfaction remains unchanged this quarter, with 76.7% of residents indicating their overall satisfaction is "good" or "excellent," renewal intentions have reached an all-time low. Only 51.4% residents this quarter responded that they "probably would" or "definitely would" renew their lease, down 0.9% from one year ago.

Read more...Kingsley: Renewal Intentions Hit All-Time Low | Multifamily Executive Magazine | Resident Life, Property Management, Kingsley Associates

Commercial Real Estate’s Slow-Motion Slowdown: E-Commerce and Other Disruptors of the Seven-Year Boom via Urban Land Magazine

These are heady times for commercial real estate. Fueled by cheap money, low levels of new construction (except for apartments), and modestly improving demand, commercial real estate values have more than doubled from their financial-crisis lows of 2009.

Nevertheless, prices are leveling off as investors have become concerned that the period of extraordinarily low interest rates may soon be coming to an end. In addition, job growth—the source of much real estate demand—will inevitably slow as the economy approaches full employment. At the same time, supply will pick up as more construction is completed in 2017 and 2018.

Read more...Commercial Real Estate’s Slow-Motion Slowdown: E-Commerce and Other Disruptors of the Seven-Year Boom - Urban Land Magazine

Best and Worst Apartment Markets in 2016 via NREI

It’s a tough time to pick the strongest apartment markets. That’s because the markets with the strongest demand from renters are also the places where developers are the most eager to build new projects. As a result, the strongest and weakest markets so far in 2016 tend to be places where some kind of surprise has upset developers’ calculations—for better or worse.

Strong despite new supply

Rents are growing quickly in a few cities, including Seattle and Nashville, Tenn., despite very high levels of new construction. “The San Francisco Bay Area, Denver and Seattle have easily been the best performing major markets this cycle,” says Jay Denton, vice president with data firm Axiometrics. “Of that group, Seattle is the only one that remains in the upper-tier of rent growth today.”

Read more...Best and Worst Apartment Markets in 2016

Demand for Apartments Bounces Back in Second Quarter via NREI

Demand for rental apartments roared back this spring, filling empty units and making up for a weak start to the year.

“Apartment demand surged in second quarter,” says Greg Willett, chief economist for MPF Research, a division of Real Page Inc. “Strong demand pushed occupancy back to the post-recession peak.”

Read more...Demand for Apartments Bounces Back in Second Quarter

Austin Economic Indicators July 2016 via Dallas Fed

The Austin economy grew at a healthy pace in May. The Austin Business-Cycle Index further decelerated but expanded at a rate above its long-term trend. Job growth picked up compared with April and was well above that of the state, while the unemployment rate held steady at a 15-year low.

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

DFW Jumps to Number Six for Tech Talent via GlobeSt.com

For the first time, Dallas/Fort Worth jumped to a top 10 position on the annual tech talent scorecard, part of CBRE Group Inc.’s annual Scoring Tech Talent research report, which ranks 50 US and Canadian markets according to the ability to attract and grow tech talent. By adding tech jobs at a faster pace than tech degrees can be issued, DFW is one of the top brain gain markets on the list. DFW-area universities produced 19,129 tech graduates between 2010 and 2014, and added 44,620 tech jobs between 2011 and 2015, for a net gain of 25,491 tech jobs, which was second only to the San Francisco Bay Area.

Read more...DFW Jumps to Number Six for Tech Talent | GlobeSt.com

Dallas Beige Book July 13, 2016 via Dallas Fed

Economic activity in the Eleventh District expanded slightly over the past six weeks. Manufacturing activity fell, while demand for nonfinancial services increased. Retail sales rose slightly on net, with automobile sales remaining strong. Real estate activity continued to expand in most markets. The energy sector saw improved sentiment, although demand for oil field services largely remained depressed. Loan growth softened and agricultural conditions remained favorable. Reports of employment changes and price pressures varied. Outlooks were generally positive but more cautious, with the upcoming presidential elections and the Brexit vote driving some of the uncertainty.

Read more...Dallas Beige Book - Dallas Fed

DFW Economic Indicators June 2016 via Dallas Fed

The Dallas–Fort Worth economy continued to expand in May. Year to date through May, DFW employment grew an annualized 2.7 percent, twice as fast as the nation’s 1.3 percent rate. DFW home prices continued to climb in the first quarter, and sales were up in April. New-home construction was solid, and multifamily construction, although elevated, appears to be slowing. Unemployment remained near multiyear lows, suggesting continued tightness in the labor market. The Dallas Fed business cycle indexes indicate continued growth for the metroplex.

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

As Growth in Apartment Rents Slows, U.S. Developers Press Pause via NREI

Developers Steven Shores and Marc Pollack found a way to stand out from the crowd rushing to build apartments in Atlanta’s ritziest neighborhood: they’re putting their 315-unit project in Buckhead on hold.

“We found ourselves wondering if it makes sense now to move forward on a project when four or five others are on the exact same schedule,” said Shores, whose company, Pollack Shores Real Estate Group, will wait a year then reassess its plan for the luxury building. “We are in it for the long term. There’s no reason we can’t hold off temporarily.”

Read more...As Growth in Apartment Rents Slows, U.S. Developers Press Pause

Reis: Apartment Vacancy Rate unchanged in Q2 at 4.5% via Calculated Risk

Reis reported that the apartment vacancy rate was at 4.5% in Q2 2016 to 4.5%, unchanged from Q1, and up from 4.2% in Q2 2015. The vacancy rate peaked at 8.0% at the end of 2009, and bottomed at 4.2% in 2014 and early 2015.

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

Read more...Calculated Risk: Reis: Apartment Vacancy Rate unchanged in Q2 at 4.5%

Dallas Beats Austin And Houston In Apartment Stats, But It's Not A Good Thing via BISNOW

Dallas takes the 21st spot in new national rankings from Zumper—but not for an accolade consumers will like. According to an analysis of 1 million active users per month, Dallas is the 21st most expensive city for apartment rentals. Austin, Plano, Houston and Fort Worth ranked 24, 28, 31 and 50, respectively.

Dallas rents are up 11% from last year for one-bedroom apartments and 12% for two-bedrooms, with an average one-bedroom renting for $1,220. Austin rents are down about 2% for both one- and two-bedrooms (you read that correctly: Austin rents are down) with an average one-bedroom price at $1,110.

Read more...Dallas Beats Austin And Houston In Apartment Stats, But It's Not A Good Thing - Multifamily: "DALLAS IS THE 21ST MOST EXPENSIVE APARTMENT MARKET IN US"