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