Tuesday, June 26, 2018

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

Friday, June 22, 2018

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

Tuesday, June 19, 2018

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

Monday, June 18, 2018

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

Friday, June 15, 2018

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

Thursday, June 14, 2018

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

Tuesday, June 5, 2018

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