Rent Growth Slows Down in the SFR Sector via National Real Estate Investor

While owners of single-family rental (SFR) properties are still raising rents, they are not doing so as quickly as they had over the last few years.

“Rent growth is still solid, but generally decelerating when you compare year-over-year growth now to the year-over-year growth seen one year ago,” says Rick Palacios, director of research of John Burns Real Estate Consulting, an independent research firm based in Irvine, Calif.

Read more...Rent Growth Slows Down in the SFR Sector | National Real Estate Investor

It’s 6 Months Running for Price Declines via GlobeSt.com

Commercial property pricing slipped by 0.2% in October, marking the sixth month in a row of declining values, Ten-X said Thursday afternoon. At just 3.1%, year-over-year growth in pricing across commercial real estate sectors is now the weakest since Ten-X instituted its monthly Commercial Real Estate Nowcast.

“With a sixth consecutive month of decline, the market’s malaise can safely be described as a legitimate trend,” says Peter Muoio, chief economist with Ten-X. “The Ten-X CRE Nowcast’s annual growth rate has again reached its lowest level since we conceived the index, falling well below the 3.4% annual growth recorded last month, which was the previous low.”

Read more...It’s 6 Months Running for Price Declines | GlobeSt.com

Dallas-Fort Worth Economic Indicators via Dallas Fed

The Dallas–Fort Worth economy strengthened in September. The Dallas and Fort Worth business-cycle indexes expanded further. Job gains were solid last month, and unemployment in both metros fell to its lowest level in nearly a year, pointing to further tightening in labor markets. Recently released data show DFW outpaced the U.S. in real median household income and real gross domestic product (GDP) growth in 2016.

Read more...Dallas-Fort Worth Economic Indicators - Dallasfed.org

Report shows renters getting older and better educated via ConsumerAffairs.com

Only a couple of decades ago, renters were typically people in their 20s who lived in dingy apartments in poorly maintained old buildings until they saved enough to buy a place.

Well, as Bob Dylan noted back in the 60s, the times, they are a changin'.

Today's renters are a different breed who want a place offering a convenient, quality lifestyle, a comfortable living space, a place to exercise, and a place to socialize -- all in one package.

A report from RentCafé points to data from the Census Bureau, which shows that there have been numerous changes to renting since 2009 -- around the time when the housing meltdown had more people looking at renting rather than owning.

Read more...Report shows renters getting older and better educated

Q3 Multifamily Occupancy and Rents Review via ALN Apartment Data

Nationally, the multifamily market performed well in the third quarter of 2017 with average occupancy for conventional properties rising 0.4% to 92.2%. However, compared to this time last year average occupancy is down 0.4% as new construction outpaced absorption in many markets. Effective rents are up 0.7% over three months ago to $1.39 per square foot and $1246 per unit. Compared to the end of Q3 2016, effective rents are up a healthy 6.1%, though some markets are seeing a slowdown in rent growth. Here a look at the different regions and how they fared in the quarter.

Read more...Q3 Multifamily Occupancy and Rents Review - ALN Apartment Data

Rent prices are dropping in Dallas, according to this study via CultureMap Dallas

Earlier this month, Abodo Apartments released its October rent report, sharing rental price trends from September to October. As the fourth quarter in business begins for real estate companies, Abodo examined trends in the Dallas rental market and the major changes seen throughout the quarter.

What happened in the Dallas rental market last quarter? A few key findings include:

Read more...Rent prices are dropping in Dallas, according to this study - CultureMap Dallas

Developers Are Building for the Next Cycle via GlobeSt.com

“There is going to be a pause at some point in time, and what we want to do is queue up the land for the next cycle,” Jim Andersen, SVP of Trammell Crow Co., said on the Growing Top Metros: Geographical Opportunities panel at RealShare Los Angeles. The panel of development and investment players—which included panel moderator Laurie Lustig-Bower, EVP at CBRE; Scott R. McClave, senior principal of transactions and finance at The Bascom Group; Dylan Simon, SVP at Colliers International; and Natalie Cariola, VP of Sales at Zumper—discussed where they are looking for opportunities in this market.

Read more...Developers Are Building for the Next Cycle | GlobeSt.com

ALN Monthly Market Stats October 2017 via ALN Apartment Data

ALN Data just released their September 2017 market 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. Check out their new website.

Read more...ALN Monthly Market Stats October 2017 via ALN Apartment Data

Fundamentals for Rental Demand Are Good via GlobeSt.com

A steady US economy and net positives in the multifamily sector are keeping prices in the core markets high. And the consensus is that demographics will continue to keep demand for apartments strong. But will apartments continue to ride the wave of these trends for the foreseeable future, or will the momentum abate as the uncertainties—including wage growth, overbuilding and global factors—come into sharper focus?

Expert panelists at RealShare Apartments, a national two-day event at the Westin Bonaventure in Los Angeles, took on those questions and the consensus was that strong apartment demand will continue.

Read more...Fundamentals for Rental Demand Are Good | GlobeSt.com

D-FW apartment rent increases stuck on slow in September via Dallas News

Dallas-Fort Worth apartment rent increases slowed to a crawl in September.

Average D-FW area rents were up 1.9 percent from September 2016. That's just a third of average annual rent gains in the last few years, according to a report from Richardson-based Axiometrics.

Read more...D-FW apartment rent increases stuck on slow in September | Real Estate | Dallas News

Eleventh District Beige Book Oct 18 2017 via Dallas Fed

The Eleventh District economy continued to expand at a moderate pace over the past six weeks, and most contacts do not expect significant long-term disruption due to Hurricane Harvey. Manufacturing output strengthened, and activity in nonfinancial services increased. Retail sales growth continued to accelerate, with a surge in auto sales to replace vehicles damaged by the hurricane. Homes sales weakened during the reporting period and prices were flat. Growth in the financial services and energy sectors continued but at a slower pace, and crop conditions remained mostly favorable. Employment, wages and prices increased, particularly in manufacturing. Outlooks remained positive overall.

Read more...Eleventh District Beige Book - Dallasfed.org

Harvey’s Impact on Houston Apartment Market via Axiometrics.com

A month or so after Hurricane Harvey, Houston’s apartment occupancy and rents are trending upward once more. However, pricing is not spiking, partly reflecting that the metro’s major owners and operators of apartment product recognize the importance of assisting displaced households as the rebuilding process begins.

Metro Houston’s overall occupancy rate in the September performance survey comes in at 93.0%, up 82 basis points (bps) from the August result of 92.2%. These findings suggest the operable apartment stock is as much as 98% to 99% full, as RealPage’s count of apartments temporarily offline points to a figure that could reach up to 43,000 units.

Read more...Axiometrics.com | September 2017 Market Trends

Displaced Residents Boost Rentals, Accelerating Recovery via GlobeSt.com

Hurricane Harvey was the strongest storm to hit the region in more than 55 years, dumping 1.2 trillion gallons of rain in a matter of days. A quickly draining construction pipeline and reduced inventory due to flooding is causing supply to tighten.

At the same time, demand from displaced single-family residents, contract workers and natural growth is favoring landlords in increased rentals. Harvey effectively accelerated the multifamily recovery timeline, propelling Houston into a landlord-favored market approximately 18 months ahead of schedule.

Read more...Displaced Residents Boost Rentals, Accelerating Recovery | GlobeSt.com

5 Trends in Multifamily Investing for 2018 via Multi-Housing News Online

As 2017 ends, it’s time to predict upcoming trends in the multifamily rental market. If you’re a multifamily investor, there will be a few surprises and some changes you should be prepared for. Here are five areas to follow.

BUILDING RENOVATIONS STAY THE COURSE
There’s a considerable amount of new construction in cities where there is demonstrated and structural job growth, including Portland, Seattle, Los Angeles and Denver. Traditionally, developers have been able to pencil in growth and get a good return for the risk of that development. New multifamily units being constructed in urban areas, urban cores or high-growth and high-job areas have caused a softening in the Class A market for the first time in years. In the new-built market, we’re finally seeing a plateau where supply is meeting demand. Do we need more Class B properties built in suburban locations to meet demand? Absolutely. Are they going to get built? Probably not. The risk/return for developers just doesn’t pencil. The upside to a softening market? Older existing Class B multifamily units built in the ‘70s, ‘80s and even ‘90s, which have been renovated will be in higher demand.

Read more...5 Trends in Multifamily Investing for 2018

Costs, Regs Challenge Profitability in Years Ahead via Multifamily Executive Magazine

Apartments have been the darling of the real estate industry for almost a decade. Even this deep into a long, bullish run, investment dollars are still available to be placed into the sector. However, the tide has shifted, making it harder for less-savvy investors and developers to keep up their streak of profitability, or even to remain in the game. Those left—undoubtedly, those more seasoned—are dealing with the challenges of the day, including land sourcing, rising construction costs, and less aggressive financing from construction lenders.

Read more...Costs, Regs Challenge Profitability in Years Ahead | Multifamily Executive Magazine | Capital Markets, Finance, Construction Finance, Debt and Equity, Financing, value-add, Dodd–Frank

Investors Pour into Small Markets, Drive Price Momentum via CoStar Group

Commercial real estate investors priced out of major U.S. markets have expanded their scope to secondary and tertiary markets to find properties yielding more generous returns, a trend typical of late-inning property cycles.

But the robust demand for real estate and the current cycle's longevity set this growth period apart from past ones and suggest that smaller markets will continue to reap investment for some time.

Read more...Investors Pour into Small Markets, Drive Price Momentum - CoStar Group

The Right Multifamily Investment Opportunities for HNW Investors via National Real Estate Investor

As high-net-worth (HNW) investors and family offices look to increase their portfolio allocations in real estate, the multifamily sector continues to offer attractive investment opportunities. HNW investors demanding predictable cash flows from core properties or value‑add yields on ground-up and redevelopment projects can meet these objectives in the multifamily sector. In this context, what are the market cues that can help pick opportunities that will generate returns that align with portfolio goals?

Read more...The Right Multifamily Investment Opportunities for HNW Investors | National Real Estate Investor

Apartment rents rising in Harvey's wake via Houston Chronicle

Apartment seekers suddenly are facing higher rents as occupancy tightens across Houston and the damage estimate for flooded units reaches into the tens of thousands.

Complexes that stayed dry in heavily flooded areas like west Houston, Kingwood and Spring have been slammed with new tenants. Landlords there are finding their apartments are worth much more than they were before Hurricane Harvey, when there was a glut of empty units and flagging demand.

Read more...Apartment rents rising in Harvey's wake - Houston Chronicle

Austin Economic Indicators October 2017 via Dallas Fed

The Austin economy expanded at a moderate pace in August. Growth in the Austin Business-Cycle Index continued to fall below its long-term trend as jobs declined in August, although the area unemployment rate remained flat at a low level. Data on real output growth show that Austin was the fastest-growing Texas metro in 2016.

Read more...Austin Economic Indicators - Dallasfed.org

D-FW's apartment boom has peaked but don't expect a crash via Dallas News

A big chunk of North Texas' building boom is apartments.

For the last few years, the Dallas-Fort Worth area has led the nation in new apartments. More than 100,000 new units have opened their doors in the last four years. And average rents in the area have jumped by almost 30 percent since 2012.

While there are still almost 48,000 rental units under construction in the D-FW area, a slowdown in rent growth and soaring building costs are likely to tamp down the hot apartment building market in the coming year.

Read more...D-FW's apartment boom has peaked but don't expect a crash | Real Estate | Dallas News

Adopting Recycling is Becoming Easier and More Desirable in Multifamily via Property Management Insider

Contracting with a waste management vendor is the first step toward getting the ball rolling on community recycling. But the presence of recycling bins isn’t always enough to get residents involved in one of the most common earth-friendly initiatives.

The success of any multifamily recycling program comes from within. Property managers and leasing staff hold the keys to community wide participation, not just the waste management vendor.

“The staff on each property is as important as anybody in starting a program,” says Susan Holley, Community Waste Disposal’s Director of Business Development. “It takes promotion from the management company’s onsite personnel. Many residents want recycling.”

Read moe...Adopting Recycling is Becoming Easier and More Desirable in Multifamily

Moderate Pace Continues for Apt. Rent Gains via GlobeSt.com

Although lower in velocity than the apartment sector saw a few years ago, rent growth is continuing across the board, RealPage Inc. said Wednesday. However, occupancy has slipped fractionally and the balance of 2017 poses a question mark around this metric.

Effective rents for new leases climbed 0.9% in the third quarter and 2.6% year over year, according to data from RealPage and Axiometrics. Annual rent growth has maintained a rate between 2.5% and 3% thus far this year, slowed considerably by an influx of new product. In contrast, annual growth of 5% or better was not uncommon in 2015.

Read more...Moderate Pace Continues for Apt. Rent Gains | GlobeSt.com

Good news for Dallas-area apartment residents: Rent increases are slowing via Dallas News

North Texas apartment residents will be happy to hear that rent increases are moderating after several years of steep gains.

Apartment rents were about 3 percent higher in the third quarter compared with the same period a year ago, analysts at RealPage Inc. said Tuesday. That's half the 6 percent jumps the Dallas-Fort Worth area saw in 2015 and 2016.

Read more...Good news for Dallas-area apartment residents: Rent increases are slowing | Real Estate | Dallas News

What Renters Say: 21 Percent Have No Plans To Ever Buy via Rental Housing Journal

Renters say the three most important factors when considering a place to live are affordability, neighborhood safety and commute, according to a new survey.

Also for those renters surveyed, rent is the single largest expense each month for 82 percent of them, according to Zumper’s 2017 survey of U.S. renters. Most also say they think they pay too much in rent.

And, one in five people (21% of those surveyed) do not plan to purchase a home in the future.

Read more...What Renters Say: 21 Percent Have No Plans To Ever Buy

Multifamily Outlook via The Balance Sheet - Yardi Corporate Blog

Yardi Matrix reports another strong summer for the multifamily real estate sector. The fundamentals were downgraded from “great” to “consistently good” but several factors suggest continued, healthy performance.

Even rapid development in some of the nation’s hottest markets has slowed to a more sustainable pace due to construction labor shortages. The shortages may have longer-lasting effects due to disaster recovery efforts throughout the United States.

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

Prices Rise for Apartment Buildings, But Fewer Properties Sell via National Real Estate Investor

Investors continue to buy fewer apartment properties than they did last year. Yet prices continue to rise.

“It’s another down month for volume, but prices are still increasing,” says James Costello, senior vice president for Real Capital Analytics (RCA), a New York City-based research firm.

Read more...Prices Rise for Apartment Buildings, But Fewer Properties Sell | National Real Estate Investor

As Many as 43,000 Apartments Appear Off Line in Metro Houston via MPF Research

Up to 43,000 apartments in metro Houston were knocked out of operation due to flooding from Hurricane Harvey. That tally represents about 6% of the nation’s fourth-largest apartment market.

Flooding damage extends across many neighborhoods as a result of the rainfall in Houston, reported now by the National Weather Service at a U.S. record of more than 64 inches. Many of Houston’s apartment properties lie in or near 100-year flood plains, as the metro’s landscape is very flat.

Read more...As Many as 43,000 Apartments Appear Off Line in Metro Houston - MPF Research

Reis: Vacancy Rate Rises to 4.5% in Q3 2017 via Multifamily Executive Magazine

Asking rents grew by 1.0% across the country in the third quarter of 2017, up to a national average of $1,356, while effective rents grew by 0.9% over the same period, up to a $1,295 national average, according to Reis’s Q3 2017 Apartment Preliminary Trends Announcement. The healthy rent-growth rates reflect confidence in the current market, as well as in the continued balance between demand growth and expected supply growth, notes the research firm.

Read more...Reis: Vacancy Rate Rises to 4.5% in Q3 2017 | Multifamily Executive Magazine