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