Demand for apartment rentals surges unexpectedly as home sales slump via CNBC

Surging demand and strong occupancy in the nation's apartment market is "surprising" experts who say the continued strength is "unexpected."

Just a year ago, as dozens of cranes swarmed over major U.S. cities, there was concern that the rental apartment market was overheated and overbuilt.

Apartment absorption, which is the rate at which new units are rented out, is now at the highest level in three years, according to the U.S. Census. Apartment construction took off in 2012 and reached a 20-year high in 2017. It remained elevated this year, despite warnings that demand would slow as more millennials aged into their homebuying years.

Read more... Demand for apartment rentals surges unexpectedly as home sales slump via CNBC

Texas' low unemployment rate holds steady, as job growth moderates via Dallas News

Texas' record unemployment rate didn't budge in November after reaching new lows in back-to-back months, according to the Texas Workforce Commission.

The 3.7 percent jobless rate remains the lowest since 1976 when officials started collecting statewide unemployment data. Texas was one of 42 states — plus the District of Columbia — where the jobless rate held steady in November.

Read more...Texas' low unemployment rate holds steady, as job growth moderates via Dallas News

Texas Top-Ranked State for Firm Relocations via Dallas Fed

Texas is the leading destination for companies relocating from other states. The economic benefits of the moves may be best measured in terms of the ancillary activity generated rather than the benefits directly attributable to the relocations.

Read more...Texas Top-Ranked State for Firm Relocations via Dallasfed.org

Multifamily Effective Rents Are Up While Occupancy Slips via GlobeSt

The JLL research team recently dove into the latest apartment deliveries in the northern Dallas suburbs to break down assets along the Dallas North Tollway and the US 75 corridors. JLL notes that rents are up significantly in the last few years, with the newest offerings setting a watermark, especially along the Tollway.

Even though effective rents are way up, occupancy has slipped, coming down from 94% to 95% into the high 80s. Those softer conditions have impacted the ability of owners to push rents any further.

Read more...Multifamily Effective Rents Are Up While Occupancy Slips via GlobeSt

Hovering at the Peak? ULI Global Chief Ed Walter Discusses the Current CRE Climate via NREI

As 2018 comes to a close, NREI sat down with Urban Land Institute’s Global CEO Ed Walter to talk about what’s on the horizon for the commercial real estate industry in the next 12 months. Walter, a former Steers Chair in Real Estate at Georgetown University’s McDonough School of Business and the former CEO, president and director of Host Hotels and Resorts, discusses whether commercial real estate investors should prepare themselves for a downturn, which property types will offer the best returns in 2019 and the seismic shifts happening in the retail sector.

Read more...Hovering at the Peak? ULI Global Chief Ed Walter Discusses the Current CRE Climate via NREI

5 Reasons to Invest in Multifamily via NREI

The apartment sector is one of the most actively traded sectors in real estate, pushing past office buildings in the third quarter of 2018. Apartment investments offer owners a stable, diversified portfolio and high and consistent cash-flow yields compared with other commercial real estate sectors.

The apartment sector is compelling for a wide variety of reasons, which are explored in a new report from CBRE and Bay Area investment firm Hamilton Zanze. The paper looks at the top reasons individual investors should get into multifamily real estate.

Read more...5 Reasons to Invest in Multifamily via NREI

At the Heart of Texas: Cities’ Industry Clusters Drive Growth via Dallas Fed

The second edition of this special report is a comprehensive look at the industry clusters, history and demographics shaping eight of Texas' key metropolitan areas: Austin–Round Rock, Dallas–Plano–Irving, El Paso, Fort Worth–Arlington, Houston–The Woodlands– Sugar Land, McAllen–Edinburg–Mission, Midland–Odessa and San Antonio–New Braunfels. Four new metro areas are covered: Amarillo, Beaumont–Port Arthur, Lubbock and Tyler–Longview.

The report's authors identify the dominant industry clusters—those exceeding the national average in their share of employment—that drive each metro's economy.

Read more... At the Heart of Texas: Cities’ Industry Clusters Drive Growth via Dallasfed.org

Austin Economic Indicators December 2018 - Dallas Fed

The Austin economy expanded at a strong pace in October. The Austin Business-Cycle Index accelerated and continued above its long-term trend. Employment growth was robust, and employment in the health and education services sector continued to surge. Wages slightly decreased, and home prices climbed further.

Read more...Austin Economic Indicators December 2018 - Dallasfed.org

ALN Monthly Market Stats December 2018 via ALN Apartment Data

ALN Data just released their November 2018 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.

Read more...ALN Monthly Market Stats December 2018 via ALN Apartment Data

2019 Real Estate Report: How Does the Multifamily Market Look? via Kiplinger

Multifamily real estate posted another exceptional year in 2018. Whether judged by gains in property appreciation or income growth, multifamily fundamentals delivered. Mapping the year ahead, investors are positioning themselves now as the market signals that dynamic changes are underway.

Three primary impacts will move the multifamily market in 2019, including pressure from volatile financial markets, a growing housing supply and emerging development risks.

Read more...2019 Real Estate Report: How Does the Multifamily Market Look? via Kiplinger

Eleventh District Beige Book Dec 2018 via Dallas Fed

Expansion in the Eleventh District economy slowed to a moderate pace during the reporting period. A broad-based deceleration was seen across the manufacturing and retail sectors and in loan volume growth. Home sales were soft partly due to tight inventories and rising mortgage rates. Conversely, drilling activity increased and ample rainfall boosted crop conditions. Employment expanded, despite widespread labor shortages. Wage pressures were strong, and tariffs drove up input costs. Outlooks were less optimistic than the previous report due to increased uncertainty arising from trade disputes, rising interest rates, labor market constraints, and postelection politics.

Read more...Eleventh District Beige Book Dec 2018 via Dallas Fed

CBRE: Here’s where multifamily investors should be putting their money in 2019 via HousingWire

While most of the market attention tends to be focused on Class A multifamily buildings, new research from CBRE suggests that there is another class of multifamily housing that represents a much larger opportunity for investors – workforce housing.

According to CBRE, workforce housing, rental communities that are affordable for low- to median-income workers, has actually outperformed the overall multifamily market in each of the last four years, thanks to relatively low vacancy rates and above-average rent growth.

Read more...CBRE: Here’s where multifamily investors should be putting their money in 2019 via HousingWire

Exclusive Research: Defying Gravity via NREI

Multifamily has enjoyed a long run as a favored commercial property type over the past decade. And despite a recent surge in new supply that has taken some of the edge off of enthusiasm, market participants are holding onto a positive outlook.

Exclusive research conducted by NREI shows that a majority of survey respondents are predicting stable or improving fundamentals in the coming year, with a continued appetite to maintain or expand portfolios. The market remains optimistic even as concerns about high levels of construction move higher. Views on whether there is too much new construction occurring increased from 36.5 percent a year ago to 43 percent who now believe there is too much construction. Nearly one-third (35 percent) believe it is the right amount and 12 percent think it is too little, while 10 percent said they were unsure of the answer.

Read more...Exclusive Research: Defying Gravity via NREI

How Strong is Texas’ Economy? via GlobeSt

The major Texas markets are viewed very favorably in terms of near-term investment outlook. According to Emerging Trends in Real Estate: 2019, published by the Urban Land Institute and PWC, real estate investors favor markets with potential for more growth than the traditional gateway cities.

In the report, Dallas/Fort Worth was ranked number one, with potential for strong future growth but also with the liquidity of a gateway market. Austin ranked number six in the study while San Antonio ranked number 20. Houston ranked 37.

Read more...How Strong is Texas’ Economy? via GlobeSt

Dallas-Fort Worth Economic Indicators November 2018 via Dallas Fed

Growth in Dallas–Fort Worth remained widespread and brisk, with the metro area adding 9,500 jobs in October. Unemployment fell, and the Dallas and Fort Worth business-cycle indexes posted solid and above-trend growth. Housing affordability remained near record lows for Dallas and dipped in Fort Worth in the third quarter. Through September, growth in DFW housing permits was trailing the state's pace.

Read more...Dallas-Fort Worth Economic Indicators November 2018 - Dallasfed.org

U.S. Housing Starts Rise as Apartment Groundbreaking Gains via NREI

U.S. new-home construction picked up in October on a rebound in apartments and other multifamily housing, offering some hope that the market is stabilizing despite rising prices and borrowing costs.

Residential starts increased 1.5 percent to an annualized rate of 1.23 million from the prior month’s upwardly revised 1.21 million, government figures showed Tuesday. While that matched the median estimate of economists, single-family home starts fell for a second month. Permits, an indication of future construction, fell 0.6 percent to a 1.26 million rate, also in line with projections.

Read more...U.S. Housing Starts Rise as Apartment Groundbreaking Gains via NREI

Dallas No. 1, While Other Texas Markets Strong in Real Estate Investment Potential via Realty News Report

With Dallas-Fort Worth ranked No. 1 in the nation, Houston is a real estate market on the rise and “has it all” as cited in the investment market rankings of Emerging Trends in Real Estate 2019 by PwC and the Urban Land Institute.

Read more...Dallas No. 1, While Other Texas Markets Strong in Real Estate Investment Potential via Realty News Report

ALN Monthly Market Stats November 2018 via ALN Apartment Data

ALN Data just released their October 2018 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.

Read more...ALN Monthly Market Stats November 2018 via ALN Apartment Data

Dallas And Fort Worth Diverge On Rent Growth via Bisnow

Dallas and Fort Worth are acting surprisingly differently in apartment rent growth these days, with Fort Worth clocking a healthy 3.1% rent growth to Dallas’ sluggish 1.3% rent growth, according to third-quarter multifamily statistics from RealPage.

“It’s unusual for the performance patterns to be this far apart,” RealPage Chief Economist Greg Willett said. “The two metros normally move pretty closely together, and it really just reflects the large block of construction on the Dallas side.”

Read more...Dallas And Fort Worth Diverge On Rent Growth via Bisnow

Can you afford rising rents for Dallas apartments? via Dallas News

A single worker getting Texas' minimum wage of $7.25 an hour would gross $1,160 working four 40-hour weeks. That's $11 less than the average rent in the city of Dallas. Layer onto those stats news from a recent report showing that last year, almost 100 percent of the apartments built in Dallas-Fort Worth were high-end units, spurred in part by the increasing cost of labor and construction materials.

Occupancy rates are strong across all apartment segments in Dallas, even in the face of higher rents. That shows that the market has yet to hit "oversupply" territory. Class A properties have a lower occupancy rate because more are new builds seeking to fill up.

Read more...Can you afford rising rents for Dallas apartments? via Dallas News

Houston Economic Indicators via Dallas Fed

Houston economic conditions remain mostly positive, as does the overall outlook for the area. The business-cycle index continues to exhibit strong growth, and the Houston Leading Index is accelerating. Existing-home sales have cooled slightly, while the supply of lower-priced homes remains tight. Construction labor demand is very strong, driven by petroleum industries and residential building.

Read more... Houston Economic Indicators via dallasfed.org

Austin Economic Indicators November 2018 via Dallas Fed

The Austin economy expanded at a strong pace in September. The Austin Business-Cycle Index accelerated and continued above its long-term trend. Employment growth was robust, and construction and mining activity continued to surge. Wages continued to climb, while permits for new-home construction dipped from very high levels.

Read more...Austin Economic Indicators November 2018 - Dallasfed.org

Multifamily Deals Are Getting Harder to Pencil via GlobeSt

“How are you navigating current market conditions,” asked Mark Renard, executive vice chairman of the capital markets group at Cushman & Wakefield, at the opening of the Transaction Talks: The Art of Multifamily Dealmaking panel at RealShare Apartments this week. For some of the panelists, the response was that the market is challenging today—and it is getting more challenging—but there are still reasons to be excited about the multifamily market, including growing demand and class-B and secondary market rent growth.

Read more...Multifamily Deals Are Getting Harder to Pencil via GlobeSt

Big D is second only to the Big Apple in new building projects via Dallas News

A slowdown in commercial building this year hasn't been enough to knock Dallas-Fort Worth off its perch as one of the country's top commercial building markets.

Construction has started on more than $17 billion in D-FW area commercial and residential projects in the first nine months of 2018. Only New York City with $31.7 billion in construction starts has seen more building activity so far this year, according to the latest figures from Dodge Data & Analytics.

Read more...Big D is second only to the Big Apple in new building projects via Dallas News

Dallas-Fort Worth Economic Indicators October 24, 2018 via Dallas Fed

Dallas–Fort Worth economic growth moderated in September. Payroll employment expanded at a slower pace in the third quarter than the second. Unemployment held steady near record lows, and the Dallas and Fort Worth business-cycle indexes expanded further. Housing market indicators suggest a cooling in home price appreciation and sales; however, inventory still remains tight, particularly at the lower price points.

Read more...Dallas-Fort Worth Economic Indicators October 24, 2018 via Dallas Fed

Eleventh District Beige Book October 24, 2018 via Dallas Fed

Solid expansion continued in the Eleventh District economy. Manufacturing output increased robustly, although demand growth slowed from last period. Healthy growth continued in retail and nonfinancial services. Loan demand and volumes increased further, as did loan pricing. Home sales were flat to up over the past six weeks. Drilling activity was flat as limited pipeline and transportation capacity inhibited growth. Employment increased, and widespread labor shortages continued to pressure wages and even restrain business growth in some sectors. Price pressures stayed elevated, partly due to tariffs driving up input costs. Outlooks remained optimistic despite increased uncertainty stemming from trade disputes, rising interest rates, and labor constraints.

Read more...Eleventh District Beige Book October 24, 2018 via Dallas Fed

Texas Employment Forecast October 19, 2018 via Dallas Fed

Incorporating September employment growth of 1.7 percent and moderate growth in the Texas Leading index, the Texas Employment Forecast suggests jobs will grow 2.7 percent this year (December/December), with an 80 percent confidence band of 2.2 to 3.2 percent. Based on the forecast, 336,300 jobs will be added in the state this year, and employment in December 2018 will be 12.7 million.

Read more...Texas Employment Forecast October 19, 2018 via Dallas Fed

ALN Monthly Market Stats October 2018 via ALN Apartment Data

ALN Data just released their September 2018 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 2018 via ALN Apartment Data

Existing home sales fall for sixth straight month in September via CNBC

U.S. home sales fell in September by the most in over two years as the housing market continued to struggle despite strength across the broader economy.

The National Association of Realtors said on Friday that existing home sales dropped 3.4 percent to a seasonally adjusted annual rate of 5.15 million units last month.

Read more...Existing home sales fall for sixth straight month in September via CNBC

Apartment Permits in U.S. Hit Two-Year Low on Glut, Rising Costs via NREI

It looks like U.S. apartment and condominium builders are reacting to rising costs and a supply glut the same way: slowing down.

Multifamily housing permits -- - those for buildings with two or more units -- dropped last month to the lowest level since March 2016, government figures showed Wednesday. That follows signs of an oversupply of apartments in some U.S. markets, but higher costs are also having an impact.

Read more...Apartment Permits in U.S. Hit Two-Year Low on Glut, Rising Costs via NREI

Apartment Rentals Now Make Up a Larger Share of New Housing Units in the U.S. Than They Have in Decades via NREI

Apartment rentals have been luring residents away from other kinds of housing since the housing crash—and that is not likely to change in the foreseeable future.

“Apartments should continue to play a role in the total housing market that goes beyond the historical norm,” says Greg Willett, chief economist for Real Page Inc., a property management software and services provider based in Richardson, Texas.

In the years after the Great Recession, millions of people lost homes to foreclosure and had to move, often into apartments.

Read more...Apartment Rentals Now Make Up a Larger Share of New Housing Units in the U.S. Than They Have in Decades via NREI

The U.S. Cities Most Flooded with High-End Apartments via NREI

New data from RentCafe shows that more than 25 percent of apartment buildings in some U.S. cities are now high-end units.

Visit any urban center in a major U.S. city and you'll see a similar view: cranes dotting the landscape and billboards advertising units in the latest luxury apartment projects. Has the focus on high-end units gotten out of hand?

New research from RentCafe found that luxury rental properties had accounted for 79 percent of all apartment construction in the U.S. And in the 2018 that number has grown to a whopping 87 percent. In many cities, a full 100 percent of projects completed in the first half of the year were upscale units.

Read more...The U.S. Cities Most Flooded with High-End Apartments via NREI

Dallas-Fort Worth tops ranking of best real estate markets for 2019 via Dallas News

Dallas-Fort Worth tops the list of U.S. cities that real estate industry execs say will be the best for their business in 2019.

D-FW has been rated the highest for property investment and construction in a closely watched real estate beauty contest — the annual Emerging Trends in Real Estate report, which polled industry leaders on their outlook for 79 U.S. cities. The last time D-FW topped the list was in 2015, in the report looking ahead to 2016.

Read more... Dallas-Fort Worth tops ranking of best real estate markets for 2019 via Dallas News

Apartment Rent Growth Accelerates in the Third Quarter of 2018 via National Real Estate Investor

“The apartment market’s performance during the third quarter slightly surpassed expectations,” according to Greg Willett, chief economist for RealPage Inc., a provider of property management software and services.

Demand for apartment units softened slightly in recent years, as developers built thousands of new apartments. Now, demand is growing quickly once again, as the number of new households rises quickly and helps fill new units. This improved outlook comes after years of already strong rent growth and low vacancy rates.

Read more...Apartment Rent Growth Accelerates in the Third Quarter of 2018 | National Real Estate Investor

Rapid Growth Puts Pressure on Filling Multifamily Demand via GlobeSt

Multifamily development in DFW has been especially robust during the last few years to accommodate the ongoing growth of 100,000-plus jobs each year. The number of apartments under development has drifted higher as the affordable homebuilding market has struggled to deliver product, according to a JLL research report on multifamily development in North Texas.

“Quite simply, we’ve been growing so fast it is difficult to meet new housing demand from that sector, given rising land and construction costs, especially at relatively close-in locations where the jobs are being created,” says Jorg Mast, senior vice president, JLL Capital Markets.

Read more...Rapid Growth Puts Pressure on Filling Multifamily Demand via GlobeSt

Texas Economic Indicators October 3, 2018 via Dallas Fed

The regional economy continues to post strong growth and outpace the nation. Year to date, Texas employment growth is an annualized 3 percent, well above the U.S. growth of 1.7 percent. Regional activity is also expanding rapidly, with the September readings of the Dallas Fed Texas Business Outlook Surveys (TBOS) remaining near multiyear highs for production and revenue. Moreover, Texas personal income growth in the second quarter was the highest in the nation at 6 percent, which bodes well for second-quarter gross domestic product (GDP) growth (available on Nov. 14). First-quarter real GDP, the most recent GDP data available at the state level, shows the Texas economy grew an annualized 2.9 percent quarter over quarter compared with 2.2 percent for the nation.

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

Houston Economic Indicators October 1, 2018 via Dallas Fed

Houston’s economy continues to grow at a healthy pace despite signs of a slowdown in its core energy-related sectors. Employment and business-cycle indicators are increasing, and loan growth at Houston-based banks continues to outperform the nation. Overall, the outlook remains positive.

Read more... Houston Economic Indicators via dallasfed.org

Austin Economic Indicators October 4, 2018 - Dallas Fed

Austin economic growth was moderate in August. The Austin Business-Cycle Index stabilized but was below its long-term trend. Job growth rebounded after a sharp drop in July, while the unemployment rate ticked up slightly. Recently released gross domestic product (GDP) data for 2017 show a significant expansion in Austin metro output.

Read more...Austin Economic Indicators October 2018 - Dallasfed.org

Multifamily Investors Continue to Accept Low Cap Rates, But for How Long? via NREI

Experts keep waiting for the yield to rise on multifamily investments.

At conferences, leading investors and industry analysts repeat the same question: “Are interest rates going to go up any more and will capitalization rates respond?” says Jim Costello, senior vice president with research firm Real Capital Analytics (RCA), who is currently making the rounds of the fall apartment conferences, most recently at the Association of Foreign Investors in Real Estate (AFIRE), held in September in Ellicott City, Md.

Benchmark interest rates have already risen more than half a percentage point in the last year—and they seem to be rising further this fall. But cap rates for apartment properties seem frozen in place.

Read more...Multifamily Investors Continue to Accept Low Cap Rates, But for How Long? via NREI

RealPage: Multifamily performance remains strong in Q3, elevated supply worries remain via HousingWire

U.S. rent growth increased to 2.9% in the third quarter this year, up from last quarter’s 2.5%.

According to RealPage’s Q3 report, this is the result of unusually strong demand this quarter.

“Momentum in the apartment market’s performance during the third quarter slightly surpassed expectations,” RealPage Chief Economist Greg Willett said in the report.

Read more...RealPage: Multifamily performance remains strong in Q3, elevated supply worries remain via HousingWire

ALN Monthly Market Stats September 2018 via ALN Apartment Data

ALN Data just released their August 2018 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.

Read more...ALN Monthly Market Stats September 2018 via ALN Apartment Data

The top five amenities coming to an apartment near you via The Washington Post

A personal sous chef, pet concierge services, Pilates classes and a voice-control system that will pay your rent: When it comes to apartment living, it’s all about the amenities.

Across the industry, we’re seeing continued innovation as community owners satisfy their residents’ specific needs. In addition to technological advances, increased service offerings that cater to the on-the-go lifestyle of the typical young professional or millennial renter are on the rise.

So what’s the latest in the amenities market?

Read more...The top five amenities coming to an apartment near you via The Washington Post

The Top Countries Investing in U.S. Commercial Real Estate via National Real Estate Investor

Although some cross-border investors have taken a step back from U.S. real estate, there remains strong interest from buyers around the globe.

Canadian investors have been the most active buyers of U.S. real estate in the last 12 months, securing $19.63 billion in assets, according to a recent report from Real Capital Analytics (RCA). It's a familiar spot for the Great White North, which was also the top source of capital into the U.S. in 2017 and number two in 2016.

Read more...The Top Countries Investing in U.S. Commercial Real Estate | National Real Estate Investor

Eleventh District Beige Book 9/12/18 via Dallas Fed

Solid expansion continued in the Eleventh District economy, although the pace eased slightly compared with the last report. Manufacturing output increased, and loan demand and retail spending accelerated. Broad-based expansion in the service sector continued. Home sales slowed, and drilling activity was flat. The ongoing drought dampened crop and grazing conditions. Employment increased, and widespread labor shortages continued to pressure wages. Price pressures stayed elevated largely due to increases in input costs. Although outlooks remained fairly optimistic, trade-related concerns have heightened uncertainty.

Read more...Eleventh District Beige Book 9/12/18 via Dallas Fed

Austin Economic Indicators September 2018 via Dallas Fed

Austin economic growth weakened in July. The Austin Business-Cycle Index performed well below its long-term trend. The unemployment rate dipped and job growth softened, but wages inched up. Housing permits expanded, while housing affordability declined.

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

Older DFW apartments are seeing the biggest run-up in rents via Dallas News

Dallas-Fort Worth renters are paying record monthly rates for apartments.

An average North Texas apartment will run you more than $1,100 a month, according to the latest data from RealPage. That's up 35 percent from 2010.

But if you want to see real rent hikes don't look to the fancy Uptown towers or those new digs up in Plano's new Legacy West. The biggest rent increases have come in older rental communities.

Read more... Older D-FW apartments are seeing the biggest run-up in rents via Dallas News

It's better to rent than to buy in today's housing market via CNBC

It is easily the question most asked by anyone moving into their first home or downsizing into retirement. Should I buy or should I rent? For nearly a decade the answer has been buy. The crash in home prices, combined with record-low mortgage rates made buying and owning a home both cheaper than renting one and a better investment.

Now, the tide has turned.

Fast-rising home prices and higher mortgage rates have shifted the calculation to rent.

Read more... It's better to rent than to buy in today's housing market via CNBC

Do Widespread Rent Concessions in the Apartment Sector Signal a Problem? via National Real Estate Investor

Property managers are offering more months of free apartment rent to attract new tenants in markets across the United States.

Concessions “are in every market (133) we track,” says Doug Ressler, director of business intelligence with research firm Yardi Matrix.

Apartment vacancy rates are creeping above 5.00 percent in many cities and towns as more developers offer deeper concessions at newly built projects. However, strong demand for apartments is likely to eventually fill the new units now opening and bring the apartment market back into equilibrium.

Read more...Do Widespread Rent Concessions in the Apartment Sector Signal a Problem? | National Real Estate Investor

Job, Population Growth Bolsters Demand in Houston via Multi-Housing News Online

Recovering after the oil crisis and Hurricane Harvey, Houston’s economy is once again in full swing. While causing more damage than any other natural disaster in U.S. history except for Hurricane Katrina, Harvey has also contributed to moderating the supply imbalance of the past couple of years. After a prolonged dry spell, Houston rent growth is once again outpacing the U.S. average, having reached 3.9 percent year-over-year through June.

Read more... Job, Population Growth Bolsters Demand in Houston

Austin Economic Indicators August 2018 via Dallas Fed

The Austin economy continued to expand at a solid pace in June. The Austin Business-Cycle Index grew near its long-term trend. Although labor markets remained constrained, the metro posted solid employment growth. Wages continued to edge up, manufacturing activity grew moderately, and the housing market remained strong.

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

DFW Economic Indicators August 2018 via Dallas Fed

Economic expansion in Dallas–Fort Worth (DFW) remained broad based and swift, with the July jobs report showing the metro area growing at a 3.0 percent annualized rate—well above its long-run average. Unemployment dipped in the month, and the Dallas and Fort Worth business-cycle indexes posted above-trend growth. Home price appreciation has moderated compared with last year. Net absorption of office space rebounded in the second quarter, and activity in the industrial market continued to be robust.

Read more...Dallas-Fort Worth Economic Indicators August 2018 - Dallasfed.org

Sustainability and Profitability: How to Make a Positive Impact via Multi-Housing News

When implemented both wisely and strategically, sustainable green practices have an enormous positive impact on the bottom line for a multifamily housing property.

While the elusive task of “achieving” sustainability in an existing property may seem daunting, there are small steps owners and managers can take to create a positive social impact while keeping costs low, resident retention high and the bottom line healthy.

Read more... Sustainability and Profitability: How to Make a Positive Impact

DFW is a Millennial Money Magnet via GlobeSt

In almost all areas, unemployment is extremely low, at 4.2%. And Millennials (those aged 25 to 34 years old) shaping the current workforce, are in high demand. According to the Bureau of Labor Statistics, unemployment for that demographic is even lower at 3.9%.

Furthermore, wages have begun to move up at this point in the cycle for many jobs. Based on a recent study by JLL, the average US household income is now $83,700, and Millennials, many who are beginning or in the early stages of their careers, are not far behind at $75,400.

Read more... DFW is a Millennial Money Magnet via GlobeSt

Dallas-Fort Worth Economic Indicators 8/21/18 via Dallas Fed

Economic expansion in Dallas–Fort Worth (DFW) remained broad based and swift, with the July jobs report showing the metro area growing at a 3.0 percent annualized rate—well above its long-run average. Unemployment dipped in the month, and the Dallas and Fort Worth business-cycle indexes posted above-trend growth. Home price appreciation has moderated compared with last year. Net absorption of office space rebounded in the second quarter, and activity in the industrial market continued to be robust.

Read more... Dallas-Fort Worth Economic Indicators

ALN Monthly Market Stats August 2018 via ALN Apartment Data

ALN Data just released their July 2018 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 August 2018 via ALN Apartment Data

New York and DFW will have the most new apartments in 2018 via Dallas News

If you are looking for a new apartment, Dallas-Fort Worth is the right place.

More than 17,000 new apartments are set to open their doors in the DFW area this year. That's second only to New York City among the cities with the most new apartments on the way, according to a new report by Yardi Systems.

Read more... New York and D-FW will have the most new apartments in 2018 via Dallas News

59% of Dallas residents are renters, Zillow finds via Dallas News

Dallas is a city of renters.

And there are a lot more of them than a decade ago.

About 59 percent of Dallas residents are renting their apartment or home. That compares to a 36 percent nationwide renter rate in 2016, according to a just-released study by Zillow.

Read more... Six out of 10 Dallas residents are renters and not homeowners via Dallas News

Kingsley: Renter Satisfaction Continues to Rise in Q2, Renewal Intent Holds Steady via Multifamily Executive

National resident satisfaction continued to rise in the second quarter of 2018, with 77.3% of residents reporting they were satisfied overall with their renting experience. This increase continues the upward trend that began in the final quarter of 2017.

Read more... Kingsley: Renter Satisfaction Continues to Rise in Q2, Renewal Intent Holds Steady via Multifamily Executive

Renters Are On The Rise In Texas via GlobeSt

Families with minor children who traditionally buy homes by the time those children reach school-age are starting to fade. Fewer US families own homes due to soaring prices and a shortage of entry-level homes. In the decade between 2006 and 2016, the drop in the number of families with children who own homes has reached almost 3.6 million, while the same demographic living in rentals has increased by 1.9 million, according to a study by RentCafe.

Read more... Renters Are On The Rise In Texas via GlobeSt

Austin Economic Indicators 8-2-18 via Dallas Fed

The Austin economy continued to expand at a solid pace in June. The Austin Business-Cycle Index grew near its long-term trend. Although labor markets remained constrained, the metro posted solid employment growth. Wages continued to edge up, manufacturing activity grew moderately, and the housing market remained strong.

Read more... Austin Economic Indicators

Houston Economic Indicators 7-31-18 via Dallas Fed

The professional services sector continues to lead a broad-based acceleration in the Houston economy this year amid strong growth in the local labor force. Construction employment is surging as the existing-home market remains tight. Healthy growth in the Houston Leading Index and robust growth in the Houston Business-Cycle Index suggest a continued positive outlook.

Read more... Houston Economic Indicators

D-FW rent growth has slowed, but it's toughest for working families to find housing via Dallas News

Rents in Dallas-Fort Worth have climbed for yet another month, albeit at a diminished pace, following a national trend that's driven renters to pay historic amounts for their units.

The average monthly rent for all units in the D-FW area has climbed to $1,177 as of July, up by 0.4 percent from a month ago and by 3.4 percent since this time last year, according to research from rental listings site RENTCafe, which used data from multifamily real estate analytics firm Yardi Matrix to track rents for different apartment types in metro areas nationwide.

Read more... D-FW rent growth has slowed, but it's toughest for working families to find housing

Housing demand sees biggest drop in more than 2 years via CNBC

The long list of housing headwinds is finally taking its toll on potential buyers. Housing demand fell 9.6 percent in June, compared with June 2017, according to a monthly index from Redfin. That is the largest decline since April 2016.

Red-hot home prices, rising mortgage interest rates, very few listings at the entry level and a high rate of student loan debt have weighed on buyers for a while, but a strong economy and growing employment had mitigated those factors. Now, however, a market stalemate is developing as rates and prices continue to rise, further weakening affordability.

Read more... Housing demand sees biggest drop in more than 2 years via CNBC

Robust Expansion in Texas Manufacturing Continues; Uncertainty Picks Up via Dallas Fed

The robust expansion in Texas factory activity continued in July, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, rose six points to 29.4, signaling an acceleration in output growth.

Other indexes of manufacturing activity also indicated continued solid expansion in July.

Read more... Texas Manufacturing Outlook Survey

Texas Service Sector Outlook Survey 7/31/18 via Dallas Fed

Texas service sector activity accelerated in July, according to business executives responding to the Texas Service Sector Outlook Survey. The revenue index, a key measure of state service sector conditions, rose from 19.0 in June to a three-year high of 25.4 in July.

Read more... Texas Service Sector Outlook Survey

ALN Monthly Market Stats July 2018 via ALN Apartment Data

ALN Data just released their Jun 2018 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 July 2018 via ALN Apartment Data

Dallas-Fort Worth Economic Indicators 7/24/18 via Dallas Fed

The Dallas–Fort Worth economy continues to expand. The June jobs report indicated employment growth moderated, with DFW adding jobs at the slowest pace so far this year. Overall, the DFW economy remains strong, with 3.2 percent annualized job growth year to date. The unemployment rate ticked up in Fort Worth but remained flat in Dallas. Business-cycle indexes for both metros pointed to continued expansion. Home sales growth has been essentially flat in the first half of 2018, and inventory has ticked up but remains tight.

Read more... Dallas-Fort Worth Economic Indicators

Thousands of new renters are fueling demand for D-FW apartments via Dallas News

Some suburban Dallas communities are pushing back against apartment development, but with 40 percent of North Texas residents living in rental housing, more apartments are a must for the growing metropolitan area.

Between 2006 and 2016, the number of U.S. families with children living in rental housing grew by almost 2 million, according to a new report by Yardi Systems Inc. And the Dallas-Fort Worth area had the second highest increase in the country in renter families.

Read more...Thousands of new renters are fueling demand for D-FW apartments

Dallas: The Silicon Valley Of The South? via GlobeSt.com

Once associated almost exclusively with Cowboys and Rangers, Dallas, Texas, is increasingly becoming a town of Mavericks and Stars thanks to its ongoing transforming into one of the South’s premier tech hubs.

The population of the Dallas-Fort Worth Metroplex grew by 2.02 percent from 2016 to 2017 (trailing only Orlando’s 2.30 percent growth rate among the nation’s 25 most populous metro areas), and the area has added nearly a million new residents since 2010. Much of this growth has been driven by a 9 percent expansion of the Metroplex’s Millennial cohort (defined as those age 20 to 34), an expansion CoStar expects to continue through at least 2022.

Read more...Dallas: The Silicon Valley Of The South?

Eleventh District Beige Book 7/18/18 via Dallas Fed

Expansion in the Eleventh District economy continued at a solid pace. Manufacturing output increased, and loan demand and retail spending rose. Broad-based expansion in the energy and service sectors continued. Home sales rose modestly, while apartment markets softened slightly. The ongoing drought negatively affected crop and grazing conditions. Hiring remained strong, and widespread labor shortages continued putting pressure on wages. Price pressures stayed elevated largely due to increases in input costs, particularly steel and aluminum. Although outlooks remained fairly optimistic, tariffs and trade-related concerns were creating uncertainty.

Read more...Eleventh District Beige Book 7/18/18 via Dallas Fed

Dallas is still one of the top apartment building markets even though construction permits are down via Dallas News

Dallas area apartment-building activity is down a tad so far this year.

But the 1.5 percent decline in apartment-building permits wasn't enough to knock Dallas off its perch near the top of the list of the country's busiest apartment-building markets.

During the 12-month period ending in May, 20,191 multi-family homebuilding permits were recorded in the Dallas area, according to new data from RealPage.

Read more...Dallas is still one of the top apartment building markets even though construction permits are down

Some Key Apartment Markets See Essentially Flat Rents in Q2 via RealPage

U.S. apartment rent growth is moderating, and some of that slowdown is due to essentially flat rents in a handful of large metros.

Nationally, rents were up 2.5% annually as of mid-2018, the softest upturn since 2010. In five large markets, however, rent growth measured 1.0% or less, and 10 saw increases of 1.0% to 1.5%.

Read more...Some Key Apartment Markets See Essentially Flat Rents in Q2

Austin Economic Indicators 7/5/18 via Dallas Fed

Austin economic activity held steady in May. The Austin Business-Cycle Index continued to grow near trend. Job growth accelerated after softening in March and April, while the unemployment rate fell to its lowest rate since the beginning of the year. Recently released detailed job data for high-tech employment suggest that growth in both tech services and manufacturing was strong last year.

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

Texas is CNBC's Top State for Business in America this year via CNBC

Riding the rising tide of energy prices — and the job growth that goes with it — Texas lands the top spot in CNBC's 2018 America’s Top States for Business rankings.

This is familiar territory for the Lone Star State, which becomes the first four-time winner in our annual study, now in its 12th year. But it has been a long time coming. This is the first time since 2012 that Texas has claimed top honors. Not coincidentally, West Texas Intermediate Crude Oil — the state’s most important export — peaked at just over $108 per barrel that year, a figure it has not seen since. But it has risen enough — around 60 percent in the last year, powering through the $70-per-barrel mark in June — to turbocharge the $1.6 trillion Texas economy.

Read more...Texas is CNBC's Top State for Business in America this year

Rental Mismatch: Where do renters struggle to find the amenities they want? via Apartment List

At Apartment List, our goal is to help renters find homes that they love by making the apartment hunting process as smooth and enjoyable as possible. To do so, we take the time to ask renters important questions about their preferences. The answers power the product's tailored search experience and provide us with unique insights into which amenities renters are seeking in their next home.

In some cities, however, the types of amenities that renters desire may not match what is available in the marketplace.

Read more...Rental Mismatch: Where do renters struggle to find the amenities they want?

Apartment rents are actually falling in some DFW neighborhoods via Dallas News

Dallas-Fort Worth's net apartment leasing totaled 5,465 units in the second quarter.

That sounds like a lot, but it's not enough.

Developers completed almost 7,000 apartments in the last three months. And on an annual basis, apartment demand is lagging new supply by almost 10,000 units, according to the latest data from Richardson-based RealPage.

Read more...Apartment rents are actually falling in some D-FW neighborhoods

Average Dallas apartment costs rising at one of the slowest rates in U.S. via Dallas News

Two booming Texas cities are seeing some of the smallest apartment rent gains in the country.

Austin apartment rents were unchanged from a year ago and Dallas rents rose by less than 1 percent in a new nationwide rental market update from Richardson-based RealPage.

"Some of the country's biggest markets register largely flat rents, with prices up less than 1 percent from a year ago," RealPage analysts said in the just-released report. "Seattle and Dallas are among the metros where rent growth has slowed most dramatically during 2018."

Read more...Good news for renters: Average Dallas apartment costs rising at one of the slowest rates in U.S.

Dallas-area apartment building will outpace demand, new report warns via Dallas News

Dallas is on the list of cities where apartment builders may be overdoing it.

Apartment construction in the Dallas area will far outpace demand, according to a new report by Yardi Systems Inc.

The number of new apartments opening in the next two years in Dallas will be almost three times the projected demand, according to Yardi's new forecast.

Read more...Dallas-area apartment building will outpace demand, new report warns

ALN Monthly Market Stats June 2018 via ALN Apartment Data

ALN Data just released their May 2018 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 June 2018 via ALN Apartment Data

U.S. housing shifts gears with more owners, fewer renters via Dallas News

For the first time since the Great Recession, there are signs of a broad shift in America's housing market.

Homeownership rates are inching up, while the number of new rental households has declined slightly.

Read more...U.S. housing shifts gears with more owners, fewer renters via Dallas News

Do Multifamily Concessions Point To Softening? via GlobeSt.com

Developers are experiencing continued demand with upward rent pressure in cities with job growth, especially on the coasts and in the Sunbelt. More than 1 million new apartments have been built across the country since 2015, the most in 30 years. Multifamily construction starts continue to be unusually high, at 452,000 units, up 14% in March, the largest seasonally adjusted rate since October 2016, according to Census Bureau reports.

Texas has been one of the most prolific in creating new housing. Houston and Dallas can lay claim to being among the most dynamic: Those markets produced roughly twice as many apartments since 2015, with 60,964 and 57,000 respectively, according to the National Apartment Association.

Read more...Do Multifamily Concessions Point To Softening?

Demographic and Generational Shifts Seen as Key Supply-and-Demand Drivers for Apartment Operators via Costar

Deeming them nearly as important as development constraints and rising prices, experts at the National Apartment Association’s Apartmentalize conference in San Diego pointed to demographic and generational shifts as key supply-and-demand drivers in the U.S. multifamily industry.

Those factors play major roles in when consumers decide to rent, how long they stay in their apartments, and when - or if - they eventually leave apartment life to buy homes of their own. They also impact how apartment operators attract and retain tenants, and what kinds of on-site amenities and services they must offer.

Read more...Demographic and Generational Shifts Seen as Key Supply-and-Demand Drivers for Apartment Operators

DFW investment property buys slowed in the first quarter via Dallas News

Dallas-Fort Worth's deal flow took a dip in the first quarter.

Cushman & Wakefield reports that the volume of investment property sales in North Texas fell by 17 percent from first quarter 2017. The decline follows years of big gains in D-FW real estate activity.

There were first quarter, year-over-year declines in almost every type of investment property sales.

Read more...D-FW investment property buys slowed in the first quarter

Reis: Investor Interest in Multifamily Remains High via Multifamily Executive

Both GDP growth and employment growth have remained steady over the past eight years, Reis senior economist Barbara Byrne Denham reported in the firm's Q1 Capital Markets Briefing, held May 31.

GDP growth was 2.2% in the first quarter of 2018, despite the expectations of some analysts that the recent tax reform bill would boost GDP right away. Denham attributes the quarter’s “sluggish” GDP growth to low consumption growth, at 1.0%, and a 2.0% drop in residential fixed investments, and notes that many believe the impact of the new tax code will be felt in later quarters.

Read more...Reis: Investor Interest in Multifamily Remains High

Austin Economic Indicators 6/8/18 via Dallas Fed

Austin economic activity held steady in April. The Austin Business-Cycle Index continued to grow well above trend. Although job growth softened in April, the unemployment rate remained low. Wages continued to rise, aiding home affordability.

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

At long last, all Dallas apartments will have to offer recycling via Dallas News

Dallas apartment complexes with eight or more units will have to provide recycling for their residents by 2020.

The City Council voted unanimously Wednesday to approve the new recycling mandate, which is meant to help push Dallas toward its "zero-waste" goals and divert some materials from landfills. Council member Sandy Greyson said the new ordinance "is really going to move the needle considerably."

Read more...At long last, all Dallas apartments will have to offer recycling via Dallas News

Multifamily Investors Face a Cutback in Loan Size via National Real Estate Investor

Rising interest rates are already making a difference for apartment properties. Borrowers can no longer secure the large permanent loans that have become used to.

“Delivering full-leverage loans has become a challenge,” says Dustin Dulin, managing director in the capital markets platform of real estate services firm JLL. “It is not as easy to underwrite the deals… Back in 2015, almost every deal underwrote cleanly.”

The change is carving a hole in the budgets of borrowers who need to buy or refinance apartment properties.

Read more...Multifamily Investors Face a Cutback in Loan Size | National Real Estate Investor

Multifamily Rent Growth Stalls in Top Markets via National Real Estate Investor

While apartment rents are still growing nationally, in a few cities and submarkets rents are growing more slowly or even beginning to shrink.

“The only spots where you might find effective rents dropping are in locations affected by a large number of new developments leasing up,” says Ron Witten, founder of data firm Witten Advisors, based in Dallas. “The concessions which these projects offer during initial lease-up sometimes spread to nearby properties.”

Read more...Multifamily Rent Growth Stalls in Top Markets | National Real Estate Investor

Eleventh District Beige Book 5/30/18 via Dallas Fed

The Eleventh District economy expanded at a solid pace over the past six weeks. Growth in manufacturing increased. Expansion in the energy and service sectors continued at about the same pace, while retail spending was mixed. Home sales continued to rise but apartment markets softened slightly. Hiring was solid across most sectors, and widespread labor shortages continued. Wage and price pressures remained elevated, and several contacts noted a sharp rise in the cost of steel and aluminum. Outlooks remained fairly optimistic, but tariffs and trade-related concerns were creating uncertainty.

Eleventh District Beige Book - Dallasfed.org

Houston Economic Indicators 5/29/18 via Dallas Fed

Overall, the outlook for Houston remains positive. Recent job growth has been very strong and broad based, and the region is likely to receive a tailwind from continued strength in the U.S. and Texas economies. Local leading economic indicators suggest continued positive job gains the remainder of the year but at a somewhat slower pace.

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

Multifamily Rent Growth Stalls in Top Markets via National Real Estate Investor

While apartment rents are still growing nationally, in a few cities and submarkets rents are growing more slowly or even beginning to shrink.

“The only spots where you might find effective rents dropping are in locations affected by a large number of new developments leasing up,” says Ron Witten, founder of data firm Witten Advisors, based in Dallas. “The concessions which these projects offer during initial lease-up sometimes spread to nearby properties.”

Read more...Multifamily Rent Growth Stalls in Top Markets | National Real Estate Investor

Apartment Market Weathers the Storm of New Supply via National Real Estate Investor

Apartment landlords can no longer raise rents like they used to. So many new apartment units are opening that the percentage that vacancy is inching higher across the country.

This year “will likely remain challenging for many landlords and apartment investors," says Victor Calanog, chief economist and senior vice president in the New York City office of data firm Reis Inc.

Strong demand for apartments has helped limit the damage from new supply. Apartment rents are likely to keep growing on average through 2019, even though rents are not growing nearly as much as they used to.

Read more...Apartment Market Weathers the Storm of New Supply

Yardi: Multifamily Rent Growth Stays Strong in April via Multifamily Executive Magazine

The national average U.S. multifamily rent rose by $4, to $1,377, in April 2018. This marks the second straight month of $4 growth and a $10 increase in the national average over the past two months, following a period of relatively flat rent growth from the summer of 2017 through February 2018.

On a year-over-year (YOY) basis, rents rose 2.4% through April, down 20 basis points (bps) from March but close to the market’s 2.5% average growth range. The "Renter by Necessity" (RBN) apartment market’s rents rose 3.0% YOY at the national level, maintaining a 140 bps rent-growth difference from the "Lifestyle" renter market's rent growth (1.6% YOY).

Read more...Yardi: Multifamily Rent Growth Stays Strong in April | Multifamily Executive Magazine

MBA Forecasts a Dip in Mortgage Originations via National Real Estate Investor

Lenders facing stiff competition to place capital may face an even tougher road ahead given the latest forecast from the Mortgage Bankers Association that is predicting a 2 percent decline in originations in 2018.

Last year was a record year for commercial and multifamily mortgage originations at $530 billion. “We’re anticipating that 2018 will be down just a little bit from 2017, but we are still expecting a strong year,” says Jamie Woodwell, vice president in the MBA’s Research and Economics group.

Read more...MBA Forecasts a Dip in Mortgage Originations

New report: Dallas' skyline has most room to grow of any U.S. city via Dallas News

Dallas' skyline has a lot more room to grow if researchers have it right.

When it comes to development sites, downtown Dallas has the greatest development potential, according to a new study.

Big D already has one of the busiest downtowns with new apartments and retail developments, office buildings opening and a program to build four new downtown parks.

But there's even more property available to ramp up construction in downtown Dallas, according to a new report by researchers at Yardi Systems Inc.

Read more...New report: Dallas' skyline has most room to grow of any U.S. city | Real Estate | Dallas News

ALN Monthly Market Stats May 2018 via ALN Apartment Data

ALN Data just released their April 2018 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 May 2018 via ALN Apartment Data

Commercial Vacancy Rates Remain Low, but Rent Growth Slowed in 2018:Q1 via Nareit

Vacancy rates remained low in the first quarter of 2018 for the major commercial property sectors. Vacancy rates were unchanged among national office, retail and industrial markets, and ticked down 10 basis points in apartment markets, according to recent data from CoStar.

Market conditions cooled a bit, however, as rent growth decelerated slightly for most property sectors. Industrial properties are outpacing the other sectors with rent growth of 6.0 percent over the past year, only slightly off the pace in 2016 and 2017. Rent growth of office and retail properties decelerated as well, to 1.7 percent and 1.8 percent, respectively. Apartments were the outlier again, with a 20 basis point pickup in rent growth, to 2.6 percent.

Read more...Commercial Vacancy Rates Remain Low, but Rent Growth Slowed in 2018:Q1 | Nareit

First Quarter Performance Shows US Apartment Market Coming Back to Earth via CoStar Group

The high-flying apartment sector, which led all other property types in the economic recovery and became the darling of investors, is coming back to earth.

CoStar’s first quarter multifamily review and forecast predicts apartment rents will still increase but at a much slower pace and, in some markets, occupancy rates for multifamily properties will stall.

One factor in the moderating demand for apartments has been a change in homeownership rates.

Read more...First Quarter Performance Shows US Apartment Market Coming Back to Earth - CoStar Group

Dallas apartments offer one of the country's largest shares of free rent via Dallas News

North Texas has had one of the busiest apartment-building markets in the country the last few years.

And, the construction of thousands of apartments in a short period is creating opportunities for local renters.

Dallas is now one of the top U.S. markets for apartment freebies because of all the building, according to a report from Richardson-based RealPage.

Read more...Dallas apartments offer one of the country's largest shares of free rent | Real Estate | Dallas News

Has Multifamily Turned a Corner? via GlobeSt.com

The multifamily market appears to have turned a corner, with demand outpacing deliveries by more than two-to-one, according to Berkadia’s first quarter 2018 Houston multifamily report. Renters newly occupied 2,971 apartment units during the first quarter of the year–more units by far than any other metro area, except Dallas-Fort Worth and New York City (with 4,340 and 3,148 units newly occupied respectively).

Rea more...Has Multifamily Turned a Corner? | GlobeSt.com

Houston Economic Indicators 4/30/18 via Dallas Fed

Overall, the outlook for Houston remains positive. Coincident and leading indicators continue to suggest healthy growth in activity in the region. Exports are expanding, while real estate and construction data are more mixed. The existing-home market remains tight and construction employment has been boosted by post-Hurricane Harvey demand, but office vacancy rates have increased.

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

Austin Economic Indicators 5/4/18 via Dallas Fed

Austin economic activity accelerated in March. The Austin Business-Cycle Index grew at its fastest pace since late 2015, bolstered by strong employment growth over the first quarter of this year. The unemployment rate increased slightly but remained near a two-decade low. Regional real estate indicators point to robust housing growth, while manufacturing indicators suggest positive but moderating activity.

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

Single-Asset Sales Pick Up in the First Quarter via National Real Estate Investor

Investment sales volume lagged in the first quarter, possibly as a result of investors’ concerns over the cost of financing.

Data from research firm CoStar indicates that investment sales dropped 10 percent year-over-year—or about $13 billion—continuing a trend from 2017. Experts had already anticipated that the first quarter might be slow. Compared to the fourth quarter, sales volume dropped 26.0 percent. The fourth quarter is typically the strongest for investment sales.

Read more...Single-Asset Sales Pick Up in the First Quarter

DFW Economic Indicators 4/24/18 via Dallas Fed

Dallas–Fort Worth economic growth continued to be healthy in March. Payroll employment in the first quarter expanded at its fastest rate in a year and a half. Unemployment remained near multiyear lows, and the Dallas and Fort Worth business-cycle indexes expanded further. Office leasing activity moderated in the first quarter, while industrial demand remained solid.

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

Economic, Supply Growth Remains High in Dallas via Multi-Housing News

Fueled by one of the country’s best-performing economies and rapid population growth, the Dallas–Fort Worth multifamily market has stayed in high gear. While many large coastal metros are reaching saturation, both development and investment in DFW remain relatively unfazed.

The metro added 91,700 jobs in 2017, and its demographic expansion was nearly three times the U.S. average. Continuing to be a business-friendly area and a magnet for talent and corporate relocations, North Texas is rapidly generating positions across employment sectors, pushing up housing demand.

Read more...Economic, Supply Growth Remains High in Dallas

Texas Employment Forecast 4/20/18 via Dallas Fed

Incorporating March employment growth of 2.3 percent and leading index data, the Texas Employment Forecast suggests jobs will grow 3.4 percent this year (December/December), with an 80 percent confidence band of 2.2 to 4.6 percent. Based on the forecast, 417,500 jobs will be added in the state this year, and employment in December 2018 will be 12.8 million (Chart 1).

Read more...Texas Employment Forecast - Dallasfed.org

How to Find Continued Value in Apartment Acquisitions via National Real Estate Investor

The stability, durability and continued capital flows into multifamily investing permeate today’s headlines, with industry pundits believing apartments to be the most popular product type with real estate investors in 2018, second only to industrial. Mixed signals abound among varying markets, and it’s important to dissect and triangulate the real data as the analytics don’t always tell the full story.

Read more...How to Find Continued Value in Apartment Acquisitions

As Interest Rates Rise, Where Do Valuations and Transaction Volumes Go? via Multi-Housing News Online

ears of warnings that rising Treasury rates would depress commercial real estate prices—during an extended period when rates stayed low and acquisition yields fell to record lows—have given the concept a “boy who cries wolf” quality.

Those warnings, however, will be tested now that the 10-year Treasury seems poised to continue its growth of the past 18 months, and volatility has roiled the bond and equity markets. No longer can the market rely on the unusually large premium between Treasury rates and cap rates to buffer the impact of higher interest rates and the likely increase in mortgage coupons.

Read more...As Interest Rates Rise, Where Do Valuations and Transaction Volumes Go?

Eleventh District Beige Book 4/18/18 via Dallas Fed

he Eleventh District economy expanded at a moderate pace over the past six weeks. Growth in the nonfinancial services sector accelerated, and retail sales rebounded. Loan demand growth picked up. Robust expansion in the energy industry continued, while growth in manufacturing eased somewhat. Home sales continued to rise. Hiring was solid across most sectors, and widespread labor shortages continued. Wage and price growth remained elevated, and several contacts noted a marked rise in the cost of steel. Outlooks, while still optimistic, have become more uncertain due to new tariffs and trade concerns.

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

Competition Intensifies for Value-Add Assets via National Real Estate Investor

For the past several years, investors have turned to the value-add strategy when seeking outperformance in a competitive commercial real estate landscape.

And it appears the interest in these type of deals has only intensified lately, with competition becoming increasingly stiff as the industry faces the likely end of the cycle and rent growths have moderated for core assets.

Read more...Competition Intensifies for Value-Add Assets | National Real Estate Investor

ALN Monthly Market Stats April 2018 via ALN Apartment Data

ALN Data just released their March 2018 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 April 2018 via ALN Apartment Data

Austin Economic Indicators 4/5/18 via Dallas Fed

Austin economic activity accelerated in February. The Austin Business-Cycle Index grew at its fastest pace since late 2015, bolstered by strong employment growth over the first two months of this year. The unemployment rate increased slightly but remained near a two-decade low. Regional real estate indicators point to robust housing growth. Census data for 2017 suggest that Austin’s population growth was well above the state average.

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

Prices Keep Rising for Apartment Properties via National Real Estate Investor

Investors keep looking for apartment buildings to buy at good prices. The search is leading them to smaller properties in smaller markets.

“Things continue to be very good in multifamily,” says John Sebree, national director of the national multi housing group with brokerage firm Marcus & Millichap.

The amount of money multifamily investors are spending has stabilized at a high level. Investors continue to accept relatively low yields on their acquisitions, even though interest rates rose substantially in 2017 and are expected to rise further. Part of the reason is that apartment rents continue to rise across the country, attracting investors to bid for new properties.

Read more...Prices Keep Rising for Apartment Properties

March 2018 Shows Best Rent Growth Performance via Multi-Housing News Online

March multifamily rents had its best performance since last summer, with average U.S. rents increasing by $4 to $1,371. Despite this, growth dropped 10 basis points year-over-year to 2.5 percent, decelerating from its peak of 5.4 percent growth in early 2016. Major concerns for the industry included peaking supply, declining occupancy rates and affordability, which had led many to speculate if the flattening growth since last summer was a natural pattern or if rents would remain flat for an extended period of time.

Read more...March 2018 Shows Best Rent Growth Performance

Apartment Completions Are Booming, But So Are Rents via CandysDirt.com

There may be a lot of apartments being built in Texas, but that’s not necessarily translating to more affordable rents, one economist said at a recent conference on affordable housing held at the Federal Reserve Bank of Dallas.

Greg Willett, chief economist at RealPage, told the group assembled that the same affordable housing issues that have begun to block families from purchasing homes have begun to crop up in the rental sector as well.

“We are starting to see the same affordability challenges in rental housing,” he said, adding that this issue is occurring despite a boom in apartment completions across the country.

Read more...Apartment Completions Are Booming, But So Are Rents

Houston Economic Indicators 4/3/18 via Dallas Fed

The outlook for Houston remains positive. Houston has had a robust start to 2018 job growth, broad measures of output have expanded, energy-related activity and related imports have continued to improve, and oil prices remain in a healthy range for the energy industry. However, lagged data on wages and retail sales suggest that income and spending had not yet turned up by the third quarter of 2017.

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

Embracing Disruption: The Apartment of the Future via Property Management Insider

As stewards of the multifamily housing industry, we each have visions for the apartment of the future. Some may see it as a techno-eccentric unit, a place in a world unto itself that stimulates the imagination and promotes self-indulgence in urban playgrounds. Others could argue it supports sophistication, lifestyle and basic essentials and redefines the old real estate axiom of location, location, location.

Talk to any developer or apartment operator and they’ll agree that the shape of multifamily now is likely to morph into something far beyond the traditional, even by today’s standards.

Read more...Embracing Disruption: The Apartment of the Future

It’s Time to Solve the Workforce Housing Supply Problem via Multifamily Executive Magazine

Drive down the road in most U.S. cities and it seems like every new multifamily development is billed as a luxury living experience. This situation is more than just clever marketing; it belies a growing problem: Many U.S. markets have a robust supply of high-end units but not much in the way of workforce housing.

According to the Urban Land Institute, workforce housing serves households making 60% to 120% of the area median income (AMI).

Read more...It’s Time to Solve the Workforce Housing Supply Problem | Multifamily Executive Magazine | Workforce Housing, Affordable Housing, Affordability, construction costs, Density, Land Costs, low-income housing tax credits, Urban Land Institute

RealPage: Rents Have Grown 28.5% This Cycle, Paced by Bay Area Metros via Multifamily Executive Magazine

Although the pace is slowing, apartment rental rates have been growing nationally for eight consecutive years, a new report from RealPage shows. And overall this cycle, which began in 2010, U.S. apartment rates have grown 28.5%.

On an individual basis, markets on the West Coast have led the way in terms of rent growth, including six of the top 10 leaders since 2010.

Read more...RealPage: Rents Have Grown 28.5% This Cycle, Paced by Bay Area Metros | Multifamily Executive Magazine | Rents, Rent Trends, Local Markets, Rent Growth, Markets, San Francisco-Oakland-Fremont, CA, San Jose-Sunnyvale-Santa Clara, CA

Texas Economic Indicators 3/26/18 via Dallas Fed

Texas economic growth remained robust in February. The state posted strong job gains, and unemployment remained low. The Texas Leading Index ticked down following several months of strong growth. Home inventories remained low, and home sales rose in the month, while indicators of residential construction were mixed.

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

Monthly Review of the Texas Economy 3/27/18 via Real Estate Center at Texas A&M

The Texas economy continues to outpace the U.S. economy in job creation. The state gained 285,200 nonagricultural jobs from February 2017 to February 2018, an annual growth rate of 2.3 percent, higher than the nation's employment growth rate of 1.6 percent (Table 1 and Figure 1). The nongovernment sector added 283,500 jobs, an annual growth rate of 2.8 percent, also higher than the nation's employment growth rate of 1.8 percent in the private sector (Table 1).

Read more...Monthly Review of the Texas Economy - Real Estate Center

Houston Economic Indicators 3/21/18 via Dallas Fed

Recent economic data remain positive for Houston. January employment growth was healthy, and job growth in 2017 was stronger than initially estimated. Though business bankruptcy filings remain elevated, leading indicators of local employment growth have been improving and suggest Houston will receive a tailwind from the state and national economies.

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

Dallas-Fort Worth Economic Indicators 3/28/18 via Dallas Fed

DFW economic growth continued in February, with payroll employment expanding and unemployment staying low. Looking at the two-month period, employment growth has been strong at 3.0 percent. The Dallas and Fort Worth business-cycle indexes expanded last month. Housing affordability remained low in Dallas but improved slightly in Fort Worth in the fourth quarter. DFW house price gains outstripped those nationally last year, and home inventories remained very tight in February.

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

D-FW apartment rents inch up in first quarter as construction surges via Dallas News

North Texas apartment demand couldn't keep up with construction in the first quarter.

But residents still didn't escape a rent increase.

Average apartment rents in the Dallas-Fort Worth area were up 1.9 percent from the first quarter of 2017 to $1,081 a month, according to the latest data from RealPage. The Richardson-based apartment industry service firm estimates that net D-FW apartment leasing totaled 1,721 units in the first three months of 2018.

Read more...D-FW apartment rents inch up in first quarter as construction surges | Real Estate | Dallas News

RealPage® Reports Cooling in U.S. Apartment Market Performance During the First Quarter’s Slow Leasing Period via RealPage

The U.S. apartment market’s performance stumbled during the first quarter of 2018. Occupancy backtracked to 94.5 percent in March, down from 95 percent a year earlier, according to real estate technology and analytics firm RealPage, Inc. (NASDAQ:RP). Annual rent growth cooled to 2.3 percent, the slowest pace of increase since the third quarter of 2010.

Read more...RealPage® Reports Cooling in U.S. Apartment Market Performance During the First Quarter’s Slow Leasing Period - News

Job Growth Strengthens Among Top 10 Metros in January via MPF Research

Hiring momentum experienced a slight pullback in January, with U.S. employers adding nearly 2.1 million jobs in the year-ending January 2018. That figure grew the nation’s job base 1.4%, according to preliminary data from the Bureau of Labor Statistics (BLS).

Among U.S. metropolitan areas, eight of the top 10 metros from December returned to the list for January, though in somewhat scrambled order. For the year-ending January 2018, New York retained its #1 spot with 91,000 jobs gained – up from 84,200 one month prior – and Los Angeles jumped three spots to #2. That move pushed Dallas to #3, despite the metro posting a job gain total roughly 2,600 greater than its December mark.

Read more...Job Growth Strengthens Among Top 10 Metros in January - MPF Research

When will D-FW overtake Chicago to become the nation's 3rd largest metro area? via Dallas News

The Dallas-Fort Worth region, once again, added the most new residents of any metro area in the country -- roughly 400 per day, or a total of 146,238, over the year that ended in July, census data released Thursday shows.

That kept D-FW firmly in its spot as the nation’s fourth-largest metro, though the region is catching up to Chicago, whose population has been sliding as economic factors tip the scales in favor of Texas, experts say.

Read more...When will D-FW overtake Chicago to become the nation's 3rd largest metro area? | Demographics | Dallas News

ALN Monthly Market Stats March 2018 via ALN Apartment Data

ALN Data just released their February 2018 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 March 2018 via ALN Apartment Data

Dallas-Fort Worth Economic Indicators 3/14/18 via Dallas Fed

Dallas–Fort Worth economic growth was moderate in January. Revised data indicate that DFW employment expanded 2.4 percent in 2017—the second-fastest rate among Texas’ large metro areas, providing some momentum for continued sound growth in 2018. Unemployment remained low, and the Dallas and Fort Worth business-cycle indexes expanded in January following solid growth in 2017. Continued healthy job creation has been the driver for the DFW office and industrial markets.

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

February Rent Growth Hits Record Low via Multi-Housing News Online

U.S. multifamily rents barely changed within the last 30 days, according to Yardi Matrix’s monthly survey of 121 markets. Rents rose $1 to $1,364, an increase of 2.7 percent year-over-year through February. Down 10 basis points from the previous month, February’s growth was the weakest seasonal gain since the recovery started. According to the report, its been seven years since rents had increased any less than the current amount.

Read more...February Rent Growth Hits Record Low

U.S. Has Gap of Over 7.2 Million Affordable and Available Rental Homes via Housing Finance Magazine

The nation has a staggering shortage of 7.2 million affordable and available rental homes for extremely low-income (ELI) renter households, those with incomes at or below the poverty level or 30% of their area median income, according to the National Low Income Housing Coalition (NLIHC).

The organization’s new report, The Gap: A Shortage of Affordable Homes, calls for expanding investments in affordable housing programs that serve those with the lowest incomes.

Read more...U.S. Has Gap of Over 7.2 Million Affordable and Available Rental Homes | Housing Finance Magazine

Uncertainty is Taking a Toll on the EB-5 Program via National Real Estate Investor

The EB-5 Immigrant Investor program is approaching yet another critical extension deadline. If Congress sticks to its recent pattern, it is likely to make an 11th hour move to approve a short-term extension while it continues to negotiate reforms to the program. Yet that strategy of kicking the can down the road may be putting the program in jeopardy.

“Over the last few years, the EB-5 program has been plagued by these very short-term renewals,” says Jim Butler, chairman, global hospitality group, at the law firm Jeffer Mangels Butler & Mitchell LLP in Los Angeles. “That creates a lot of uncertainty and makes it very difficult for all the players in the industry to know what’s a sound move,” he adds.

Read more...Uncertainty is Taking a Toll on the EB-5 Program | National Real Estate Investor

Apartment Occupancy Rate Remains Strong, Though Down from its Peak via National Real Estate Investor

Developers opened a tremendous number of new apartment units in 2017. But the percentage of apartments that are occupied has barely shifted, despite competition for potential residents. Rents continue to grow in most markets.

“Occupancy is hovering around 95 percent, and that’s a healthy rate, especially with lots of product moving through initial lease-up,” says Greg Willett, chief economist with RealPage Inc., a provider of property management and software services.

Read more...Apartment Occupancy Rate Remains Strong, Though Down from its Peak | National Real Estate Investor

Preparing Multifamily Assets for Possible Market Correction via National Real Estate Investor

As the cycle matures, savvy multifamily investors are taking a look at the reality: a market correction could occur at any time. In advance of any downward movement, the best owners and managers are examining what can be done proactively to recession-proof properties.

Read more...Preparing Multifamily Assets for Possible Market Correction | National Real Estate Investor

Texas Employment Forecast 3/9/2018 via Dallas Fed

Incorporating January employment growth of 2.5 percent and leading index data, the Texas Employment Forecast suggests jobs will grow 3.3 percent this year (December/December), with an 80 percent confidence band of 1.8 to 4.8 percent. This is up from the previous estimate of 2.8 percent. Based on the forecast, 407,900 jobs will be added in the state this year, and employment in December 2018 will be 12.8 million (Chart 1).

Read more...Texas Employment Forecast - Dallasfed.org

More Apartment Landlords Offer Free Rent to Lure Tenants via National Real Estate Investor

As the percentage of vacant apartments creeps higher in cities and towns across the country, more property managers are offering months of free rent to potential residents to get them to sign leases.

Not all segments of the market are afflicted equally, however. Managers of apartments at newly constructed properties and those that compete with new construction for renters are the most likely to have to offer something extra to close the deal.

Read more...More Apartment Landlords Offer Free Rent to Lure Tenants

Austin Metro Report: March 2018 via Zumper

The Zumper Austin Metro Report analyzed active listings in February across 13 metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Texas state median rent was $921 last month.

Read more...Austin Metro Report: March 2018

Eleventh District Beige Book 3/7/18 via Dallas Fed

The Eleventh District economy expanded at a moderate pace over the past six weeks. The manufacturing sector continued to expand robustly, energy activity increased, and home sales continued to rise. Growth slowed slightly in financial and nonfinancial services, while retail sales declined modestly. Hiring was strong across most sectors. Widespread reports of labor market tightness and difficulty finding qualified workers continued, and more firms responded by raising wages than in prior reporting periods. Price pressures remained elevated, and in some cases intensified. Outlooks remained broadly optimistic, although some uncertainty persisted.

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

Austin Economic Indicators 3-2-18 via Dallas Fed

Austin economic growth remained robust in January. According to revised data, employment grew 4.2 percent in 2017, the fastest rate among Texas’ large metro areas. Third-quarter data show high-tech services employment accelerated sharply and likely finished the year at a pace well above overall job growth. Housing affordability was steady in the fourth quarter, while survey data suggest manufacturing activity has flattened out in recent months.

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

Why do D-FW apartment rents vary so much, even within the same complex? via Dallas News

If you’re a renter in Dallas — particularly if you moved here from California, where combing through Craigslist posts is a rite of passage — you’ve likely experienced the disorientation that comes with apartment-hunting in one of the nation’s fastest-growing markets.

Plug in a few criteria on websites like Apartments.com, and you’ll get pulled down a rabbit hole full of vaguely enticing descriptions of pools, fitness centers and luxury interiors. Accompanying those descriptions, though, is a sometimes puzzling tangle of rental prices.

Read more...Why do D-FW apartment rents vary so much, even within the same complex? | Real Estate | Dallas News

Who pays the highest and lowest rents in the Dallas area? via Dallas News

Dallas-Fort Worth has one of the hottest economies in the country.

And it's bringing thousands of new residents to the area every year.

While many newcomers opt for apartments, there's also a huge demand for rental houses.

Read more...Who pays the highest and lowest rents in the Dallas area? | Real Estate | Dallas News

Job Growth Accelerates in December Data via MPF Research

Nationwide hiring picked up in December, with U.S. employers adding around 2.3 million jobs in 2017. That figure grew the country’s job base 1.6%, according to preliminary data from the Bureau of Labor Statistics (BLS).

Among U.S. metropolitan areas, nine of the top 10 metros from November returned to the list for December, but several changed places. New York, Dallas, Boston and Atlanta retained the top four spots, although Dallas and Atlanta experienced significant declines in total jobs gained compared to last year – down 41,600 and 34,700 positions, respectively. Those four markets, in addition to #5 Los Angeles, each made Amazon’s short list for HQ2. In an analysis of the remaining contenders, RealPage recently ranked Dallas and Atlanta among the three apartment markets best positioned for Amazon.

Read more...Job Growth Accelerates in December Data - MPF Research

Texas’ Fastest-Growing Apartment Market Cuts Rents in 2017 via MPF Research

Among the 50 largest U.S. apartment markets, only one suffered rent cuts in 2017 – Austin. Apartment operators in the Texas capital metro lowered rental rates 0.7% in the past year.

Pricing power has been pretty strong in Austin throughout much of the current cycle, despite heavy construction activity. In fact, 2017 marks the metro’s first annual rent decline in more than seven years. While it’s typical for Austin to lose pricing momentum toward the end of the year, the 4th quarter dive in 2017 was sharper than usual, with rents coming down 2.4%.

Read more...Texas’ Fastest-Growing Apartment Market Cuts Rents in 2017 - MPF Research

Rising mortgage rates hit new home sales hard, a bad sign for builders via CNBC

Sales of newly built homes are falling, and the culprit is clear. Homebuyers increasingly can't afford what they want. Higher mortgage rates, combined with the loss of homeowner tax breaks in some of the nation's most expensive markets, are taking away buying power.

Sales fell in December, when the new tax law was signed and then again in January, when mortgage rates moved higher. Sales are now at their lowest level since August of last year.

Read more...Rising mortgage rates hit new home sales hard, a bad sign for builders

Cap Rates’ Likely Direction is Up via GlobeSt.com

The general direction for cap rates this year will be up, CBRE says in its latest North America Cap Rate Survey. “The recent spike in inflation and anticipated higher interest rates this year will add upward pressure on cap rates, offsetting the downward forces of expected strong institutional and global capital flows,” says Spencer Levy, senior economic advisor and head of Americas research at CBRE.

This outlook follows a six-month period in which cap rates fell slightly overall, although they increased in the retail sector in last year’s second half, mainly on account of power centers. ”US cap rates were largely flat outside of the retail sector in H2 2017 though a shift from sale to refinance activity contributed to lower transaction volumes,” Levy says.

Read more...Cap Rates’ Likely Direction is Up | GlobeSt.com

ALN Monthly Market Stats February 2018 via ALN Apartment Data

ALN Data just released their January 2018 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 February 2018 via ALN Apartment Data

Apartment Completions Reach 30-Year High in 2017 via Multifamily Executive Magazine

Apartment completions reached a 30-year high in 2017 and beat the 2016 level by 30%, according to RealPage.

Last year, 364,713 units were completed in the 150 largest U.S. metros, more than doubling the long-term average and growing the U.S. apartment stock 2.1%.

The peak in completion volume was driven by 15 metros where construction has been particularly active in urban core areas, RealPage notes. Those 15 metros contributed roughly half of the nation’s new units in the past year.

Read more...Apartment Completions Reach 30-Year High in 2017 | Multifamily Executive Magazine