Dallas Beige Book 11/30/16 via Dallas Fed

Economic activity in the Eleventh District expanded modestly over the past six weeks. Manufacturing activity rose, and demand for nonfinancial services increased. Retail sales fell, and automobile sales softened. Real estate activity continued to expand in most markets. Loan demand was stable, and the energy sector saw slight improvement. Agricultural producers faced mixed conditions, as low commodity prices pressured farm revenues, despite higher crop yields and good pasture conditions. Upward price pressures remained limited. Employment increased and wage pressures were more widespread. Outlooks were mostly positive but cautious.

Read more...Dallas Beige Book - Dallas Fed

Houston Economic Indicators November 2016 via Dallas Fed

Recent data continue to affirm a more positive outlook for Houston. Several leading indicators for the region have improved, and service sector job growth is accelerating. Employment has grown in each of the past four months, though recent gains in energy have been offset by losses in construction. The health care industry continues to grow, and construction activity for that sector is likely to expand. While recent data can be revised significantly and thus should be interpreted with caution, Houston is showing broad signs of improvement.

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

Top Markets for Expected Rent Growth in 2017 via Multifamily Executive Magazine

California once again dominates the list of rent-growth leaders for the coming year, with more than half of the top markets, but it may come as a slight surprise to some.

Oakland tops the list, with San Francisco and San Jose still in the top 10. Oakland’s rent-growth pace has slowed significantly recently, and San Francisco and San Jose are both experiencing rent cuts. There’s been a lot of fear about oversupply in these markets, which could be contributing to the current situation. The Bay Area economy has experienced a notable decline recently, but its job-addition volumes are substantial.

Read more...Top Markets for Expected Rent Growth in 2017 | Multifamily Executive Magazine | Rent Trends, Rents

Texas Manufacturing Outlook Survey via Dallas Fed

Texas factory activity increased again in November, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, posted a fifth consecutive positive reading and edged up to 8.8.

Other measures of current manufacturing activity showed mixed movements. The new orders and growth rate of orders indexes posted their third consecutive negative readings in November but moved up, coming in at -1.4 and -0.8, respectively. The capacity utilization index rose three points to 3.6, while the shipments index dipped slightly negative to -1.9.

Read more...Texas Manufacturing Outlook Survey - Dallas Fed

DFW Economic Indicators November 2016 via Dallas Fed

The Dallas–Fort Worth economy expanded in October. Employment grew during the month, continuing to outperform job growth in the state as a whole, and unemployment fell. Leasing activity in the DFW office and industrial markets strengthened in the third quarter, and construction stayed elevated.

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

Yardi Matrix: Austin’s Fundamental Growth via Commercial Property Executive

Austin continues to be one of the rapidly growing metros in the U.S. Its economy is experiencing healthy gains, with employment and population growth well above national averages. Job gains are broad-based, with the most substantial amount of activity registered in the trade, transportation and utilities; professional and business services; and education and health-care sectors.

Read more...Yardi Matrix: Austin’s Fundamental Growth

Yardi Matrix: Houston Hits the Brakes via Multi-Housing News Online

Traditionally an energy-driven market, Houston is trying to reshape its economy as the drop in oil prices has decimated job growth in some segments and put a damper on the housing market. There are pockets of progress, though. The metro’s first-rate health-care system, growing hospitality sector and international investment are starting to gain momentum.

Read more...Yardi Matrix: Houston Hits the Brakes

Over Renters on the Rise in Fort Worth via CandysDirt.com

There is a new buzz word in real estate: Over Renter. This term is used to describe individuals or families that make $150,000 or more annually that choose to rent a home or apartment in lieu of purchasing a traditional home. These high-income renters certainly can purchase a home but elect to pay top dollar for renting smaller, more conveniently located living spaces … and they are happy about it.

According to a recent study by RentCafe, in the Fort Worth market alone, the number of high-income renters has increased 77 percent since 2014.

Read more...Over Renters on the Rise in Fort Worth | CandysDirt.com

Texas Adds 10,900 Jobs in October; State Employment Forecast Revised Up to 1.5% for 2016 via Dallas Fed

Texas added 10,900 jobs in October, according to seasonally adjusted and benchmarked payroll employment numbers released today by the Federal Reserve Bank of Dallas.

The state added a revised 28,800 jobs in September. Year to date, jobs have increased at an annualized pace of 1.5 percent after rising 1.3 percent in 2015. The monthly annualized growth rate in October was 1.1 percent.

Read more...Dallas Fed: Texas Adds 10,900 Jobs in October; State Employment Forecast Revised Up to 1.5 Percent for 2016 - Dallas Fed

Yardi Matrix: Dallas’ Dynamism via Multi-Housing News Online

Displaying solid fundamentals, the Dallas-Fort Worth metro continues to be one of the fastest-growing multifamily markets in the United States. Gaining more than 520,000 residents in the last four years and 110,000 jobs in the last 12 months alone, the dynamic metro is rapidly adding stock. At the same time, the market’s steady and above-trend rent growth is putting industry players at ease, projecting sustainable investments for the foreseeable future.

Read more...Yardi Matrix: Dallas’ Dynamism

Why the Multifamily Market Still Has Room to Run via GlobeSt.com

Population and demographic trends like reduced homeownership and millennials delaying marriage and children create long-term structural advantages for multifamily that other sectors lack, according to Colliers International’s chief economist Andrew Nelson. As the company readies its latest multifamily spotlight, GlobeSt.com spoke exclusively with Nelson, along with Cindy H. Cooke, senior EVP of multifamily investments, and Will Mathews, VP and principal for Colliers’ multifamily advisory group in the East region, about what puts multifamily in the driver’s seat among commercial asset classes, and why investors still see opportunity in the sector.

Read more...Why the Multifamily Market Still Has Room to Run | GlobeSt.com

Housing Starts in U.S. Surged to a Nine-Year High in October via Bloomberg

U.S. new-home construction jumped to a nine-year high in October as an outsized advance in the number of apartment projects accompanied a strong pickup for single-family housing.

Residential starts surged 25.5 percent to a 1.32 million annualized rate, the fastest since August 2007 and exceeding the highest projection in a Bloomberg survey, a Commerce Department report showed Thursday. The increase from September was the biggest since July 1982. Multifamily-home building was up a whopping 68.8 percent.

Read more...Housing Starts in U.S. Surged to a Nine-Year High in October - Bloomberg

Dallas Metro Report: November 2016 via The Zumper Blog

The Zumper Dallas Metro Report analyzed around 20,000 active listings in October across the 14 most populated cities in the area to highlight the most expensive cities and cities with the fastest growing rents.

Read more...Dallas Metro Report: November 2016 | The Zumper Blog

Apartment Demand, Rental Rates Hold Steady Against Unprecedented Supply in Healthy-But-Slowing Apartment Market via CoStar Group

The U.S. multifamily market continued its historic run in the third quarter as demand for apartment units remained strong, matching a surge in new supply as developers continue to add new units at a record pace.

Total net absorption of apartment units for the third quarter held steady at almost 45,000 units. On a four-quarter basis, renters leased a robust 172,000 units, although lower than the prior 12-month period.

Read more...Apartment Demand, Rental Rates Hold Steady Against Unprecedented Supply in Healthy-But-Slowing Apartment Market - CoStar Group

Austin, Dallas/Fort Worth Top ULI List for Real Estate Development via Property Management Insider

The city built by J.R. offered some good ole Lone Star hospitality for the Urban Land Institute Fall Meeting in October, but it’s no coincidence that Dallas/Fort Worth and Austin got some top billing.

The cities capped the Top 10 list of markets for real estate development and investment at ULI’s 38th edition of the Emerging Trends in Real Estate 2017 for 18-hour cities known for their vibrant economies, relative affordability, and authentic neighborhoods. The report was one highlight of the four-day event that attracted more than 6,000 real estate professionals to Dallas’ Kay Bailey Hutchison Convention Center.

Read more...Austin, Dallas/Fort Worth Top ULI List for Real Estate Development | Property Management Insider

Apartment Rents Drop in Houston, Bucking National Upward Trend via Realty News Report

If you’re looking for an apartment at a decent price, best you point your feet in the direction of the Bayou City – Houston.

A new report says apartment rents are rising virtually everywhere in the US, but in Houston, rent hikes have slowed to a snail’s pace – if at all. Decreases are being seen in some of the charges for apartment units in the southeast Texas metro market.

Read more...Apartment Rents Drop in Houston, Bucking National Upward Trend | Realty News Report

Multifamily Rent Growth Ranks Among Nation’s Highest via GlobeSt.com

The robust Dallas Fort Worth multifamily is still on top after many years of upward momentum. In addition, mixed-use development continues to dot the tristate area. Even with supply keeping up with demand, market leaders are feeling the pressures of retail strains, changes in senior living and millennial requirements.

With regard to the supporting numbers, Dallas and Fort Worth average apartment rents declined slightly in October, though the two metros’ rent-growth performance continued to rank among the highest in the nation, according to Axiometrics, the apartment and student housing number cruncher.

Read more...Multifamily Rent Growth Ranks Among Nation’s Highest | GlobeSt.com

Yardi Matrix: Austin’s Fundamental Growth via Multi-Housing News Online

Austin continues to be one of the rapidly growing metros in the U.S. Its economy is experiencing healthy gains, with employment and population growth well above national averages. Job gains are broad-based, with the most substantial amount of activity registered in the trade, transportation and utilities; professional and business services; and education and health-care sectors.

Read more...Yardi Matrix: Austin’s Fundamental Growth

What’s Ahead for Multifamily in 2017 via Multifamily Executive Magazine

The past few years have been extremely favorable to the multifamily market. Developers are building apartments to catch up on a lull of construction over previous years in a race to complete projects and capitalize on continuously rising rents. Investors are aggressively seeking opportunities to purchase multifamily properties, specifically core and value-add assets in top-tier markets, pushing cap rates as low as 4%.

Yet what remains to be seen is whether the “darling” of the commercial real estate industry will remain so, or whether the market will experience flattening or even a slight cooling in the coming year.

Read more...What’s Ahead for Multifamily in 2017 | Multifamily Executive Magazine | Capital Markets, Apartment Trends, Economic Conditions, Multifamily, Forecast, Investing, Rent Growth, Class B Properties, Franklin Street

Yardi Matrix: Houston Hits the Brakes via Commercial Property Executive

Traditionally an energy-driven market, Houston is trying to reshape its economy as the drop in oil prices has decimated job growth in some segments and put a damper on the housing market. There are pockets of progress, though. The metro’s first-rate health-care system, growing hospitality sector and international investment are starting to gain momentum.

Read more...Yardi Matrix: Houston Hits the Brakes

ALN Monthly Newsletter November 2016 via ALN Apartment Data

ALN Data just released their October 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 November 2016 via ALN Apartment Data

DFW Economic Indicators October 2016 via Dallas Fed

Dallas–Fort Worth economic growth was solid in September. Employment expanded during the month and continued to outperform the state as a whole, and unemployment remained below state and national rates. The DFW multifamily housing market strengthened in the third quarter, and apartment construction stayed elevated. Home sales grew in September despite low inventories. The Dallas Fed business-cycle indexes point toward continued growth for the metroplex.

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

Could This Be the End of the Texas Slump? via Dallas Fed

Regional economic activity appears to be improving, and the oil-driven slump may be nearing an end.

Texas job growth continues to accelerate, rising an annualized 2.1 percent in September and lifting year-to-date growth to an annualized 1.4 percent. After incorporating the second-quarter early benchmark, the Dallas Fed revised its forecast for 2016 employment growth up to 1.5 percent (December/December), which, if it comes to fruition, would surpass last year’s 1.3 percent increase. If there are additional downward revisions to state employment data, like those in the first half of the year, third-quarter growth could come in weaker than the current 2.6 percent increase.

Read more...Could This Be the End of the Texas Slump? - Dallas Fed

Houston Economic Indicators October 2016 via Dallas Fed

Recent data suggest that Houston may have put the worst of the oil bust behind it, but some lingering effects likely remain. Employment expanded in each of the past four months as growth broadened in services and losses slowed in goods-producing sectors. However, new job ads in the metro continue to decline. Overall, Houston is shifting from a modestly negative to a flat or even slightly positive trend.

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

Matrix Monthly: October Rents Moderate via Multi-Housing News Online

October's rent growth numbers marked the biggest drop in three years, but a new report from Yardi Matrix states that the recent deceleration is no cause for concern.

The past month’s decline in rent marked the largest in three years with average monthly rents falling by $3 in October, according to Yardi Matrix’s monthly survey of 123 markets. At $1,216, the country’s average rent growth has dropped the most since the average fell by $3 in October 2013. On a year-over-year basis, rents grew 4.4 percent, a 30-basis-point decline from September, and a 230-basis-point decline from the recent high in October 2015 of 6.7 percent. According to Yardi Matrix’s report, “The decline demonstrates a reversion to more ‘normal’ rent growth that we forecast at the beginning of the year.”

Read more...Matrix Monthly: October Rents Moderate

Austin Economic Indicators November 2016 via Dallas Fed

The Austin economy continued to grow moderately in September. Growth in the Austin Business-Cycle Index declined marginally and remains well below its long-term trend. Jobs declined slightly, and the unemployment rate ticked up slightly. However, growth in average wages remains robust, and Austin’s core sectors such as high-tech services and government continue to grow strongly.

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