Apartment Transactions Fall 30% in July via Multifamily Executive Magazine

The apartment transaction market fell 30% year over year (YOY) in July, according to a new Real Capital Analytics (RCA) report. But a 33% increase in June means sales are still up 1% YOY for the summer so far.

“The monthly declines in sales volume for the apartment sector were widespread, with all subtypes and deal structures down from a year earlier,” RCA wrote. “This said, the elevated pace of deal activity in June almost suggests acquisitions aimed at hitting midyear goals, with July as a time to pull back and regroup.”

Read more...Apartment Transactions Fall 30% in July | Multifamily Executive Magazine | Dispositions and Transactions, Sales, Cap Rates, Transactions

Multifamily Performance Continues to Lag via GlobeSt.com

With job growth still at a low point and apartment construction as heavy as ever, performance in the market is continuing to lag. However, there is a bright spot on the horizon, albeit in 2018, says Axiometrics, provider of apartment and student housing market intelligence.

“One sunny spot is that the pace of annual effective rent growth decline leveled out a bit,” says Stephanie McCleskey, vice president of research for Axiometrics. “But until the amount of new supply diminishes and the energy sector starts adding jobs again, Houston’s apartment market will likely be sluggish. And effects of supply relief likely won’t be felt until 2018.”

Read more...Multifamily Performance Continues to Lag | GlobeSt.com

Economy Watch: Apartment Starts Gain, Inflation Stays Low via Multi-Housing News Online

Though some U.S. markets are facing a sizable number of apartment properties coming on line— especially in the upper price points in markets such as Seattle and Denver—overall the development of apartment product continues at a fairly strong pace, according to data released by the Census Bureau in its report on housing permits and starts on Tuesday.

In July, apartment starts gained 8.3 percent for the month, noted the bureau (which tracks buildings with more than five units as its multifamily category).

Read more...Economy Watch: Apartment Starts Gain, Inflation Stays Low

Steady Growth in the U.S. Apartment Market via National Apartment Association

Moderation is the word across several apartment market metrics through the first half of 2016. According to MPF Research, annual rent growth slowed somewhat to 4.5%, compared to 4.9% at this time last year. This is still an impressive figure given the duration of the growth cycle, as well as the 15-year average growth rate of 2.4%. Absorption outstripped new supply and occupancy rates inched up 20 basis points to 96.2% after weakening late last year and into the first few months of 2016, exhibiting the continued resilience of apartment market fundamentals.

Read more...Steady Growth in the U.S. Apartment Market | National Apartment Association

ALN Monthly Newsletter August 2016 via ALN Apartment Data

ALN Data just released their July 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 August 2016 via ALN Apartment Data

Research: Diverging Trends In Market Performance via Realtor.org

With a slowdown in global economic activity, financial market volatility and a contentious presidential campaign, commercial real estate investors have taken a step back in the early months of 2016. The U.S. economy sputtered during the first quarter of 2016, with gross domestic product advancing at a weak 1.0 percent annual rate. The corporate outlook took a downward turn, while international trade bore the brunt of a soft economic environment and rising dollar. However, the markets remained divided along valuation lines, with small cap commercial real estate maintaining momentum against the broader moderation.

Read more...Research: Diverging Trends In Market Performance | realtor.org

Rent Trends in Larger Markets Drive Down National Apartment Performance According to Axiometrics via MultifamilyBiz.com

National annual effective rent growth remained nicely above the long-term average in July 2016, though continued slides in the San Francisco Bay Area, New York and Houston affected apartment rent trends, driving the national rate down to 3.1%, according to Axiometrics, the leader in apartment and student housing market research and analysis.

The July rate was the lowest since the 2.8% of February 2014.

Read more...Rent Trends in Larger Markets Drive Down National Apartment Performance According to Axiometrics | MultifamilyBiz.com

Yardi Matrix: San Antonio’s Investor Appeal via Commercial Property Executive

San Antonio’s multifamily market continues to be healthy, with the metro adding jobs and households at an above-trend rate. The metro’s central location within the U.S. and the skill set of the local workforce are attracting investors interested in secondary market expansion.

Read more...Yardi Matrix: San Antonio’s Investor Appeal

Houston apartment rents drop most among major metro areas via Houston Chronicle

Houston topped a list of metro areas with the biggest declines in rent, a new study shows.

The average rent in Houston fell by 14 percent to $1,306 for a one-bedroom apartment in July, down from $1,521 in July, apartment listing firm Abodo reported.

The drop likely reflects a slowing of job growth at the same time the supply of apartments has increased, the company said. Developers will have added about 35,000 units in the area from January 2015 through December 2016.

Read more...Houston apartment rents drop most among major metro areas - Houston Chronicle

CRE Investors Experiencing Déjà vu in Search for Yield via CoStar Group

When I began writing this story on the search for yield in a low-yield environment this week, it had a familiar ring. Turns out this was the same gist of a story I wrote in 2007 -- at the last peak of CRE valuations.

Back then, I wrote: Companies are less likely to bite on deals, but there is no lack of sellers pushing product and capital doesn't appear to be too constricted, just that lenders are a little more demanding.., The majority of real estate CEOs and senior executives expect 2007 to be a year of revenue growth and higher profits, marked by a race to find appropriate investments and take advantage of growth opportunities in a market that continues to be flooded with capital.

Read more...CRE Investors Experiencing Déjà vu in Search for Yield - CoStar Group

Texas Employment Revised Down in First Quarter, Rebounds in Second via Dallas Fed

Texas employment grew at a 1.1 percent annualized rate in June; however, a big downward revision to first-quarter job growth resulted in a year-to-date decline of 0.1 percent on an annual basis. The Texas unemployment rate rose slightly to 4.5 percent in June from 4.4 percent in May. Texas real GDP growth slowed to a 0.3 percent annualized rate in the first quarter from 1.4 percent in fourth quarter 2015, in line with the deceleration observed in the labor market.

Read more...Texas Employment Revised Down in First Quarter, Rebounds in Second - Dallas Fed

Yardi Matrix: Dog Days Take Toll on July’s Rent Growth via Commercial Property Executive

Since the beginning of the year, the multifamily industry has feared that its exceptional period of rent growth is due for deceleration. However, in yet another banner month, average U.S. rents increased $4 in July, resulting in a monthly record of $1,217. On a year-over-year basis, rents increased 5.5 percent, which is 10 basis points less than in June, 60 less than in April and 120 basis points less than the recent peak last October.

According to Yardi Matrix’s monthly report analyzing 121 markets, “July’s numbers show that the big picture about the multifamily market continues to be positive.”

Read more...Yardi Matrix: Dog Days Take Toll on July’s Rent Growth

Price Growth Regains Speed in Q2 via GlobeSt.com

Commercial property prices benefited from renewed investor confidence in the second quarter, and pricing growth for Q2 reflects that, CoStar Group said Friday. Both of CoStar’s composite Commercial Repeat Sale Indices were up as Q2 ended, following a Q1 that reflected a slowdown, with pricing seeing gains of nearly 2% across all four major property types in the most recent quarter.

The value-weighted US Composite Index, which is influenced by the sale of high-quality, larger assets, advanced by 3.3% from the previous quarter. Meanwhile, the equal-weighted US Composite Index, which includes the more numerous sales of smaller properties, rose 2.1% in Q2.

Read more...Price Growth Regains Speed in Q2 | GlobeSt.com