Job Growth and Millennials Driving Multifamily Demand via GlobeSt

During the digging deeper multifamily market outlook panel at the 2019 NMHC Apartment Strategies Outlook Conference here in San Diego, a panel of expert industry analysts, moderated by Mark Obrinsky, chief economist and SVP of research at NMHC, examined multifamily housing trends leading in to 2019. Topics discussed included which markets are experiencing supply constraints, Millennials, and where there opportunities still are for growth.

Read more...Job Growth and Millennials Driving Multifamily Demand via GlobeSt

Houston Economic Indicators January 28, 2019 via Dallas Fed

Growth in Houston leading and coincident economic indicators weakened in December. Job growth slowed, but the local labor force expanded. Heavy and civil construction posted stellar job growth last year, and the existing-home market ended the year on healthy footing despite rising mortgage rates.

Read more... Houston Economic Indicators January 28, 2019 via dallasfed.org

Dallas-Fort Worth led nation in jobs growth in 2018, topping New York and Houston via Dallas News

Dallas-Fort Worth led the nation's metro areas in job growth in 2018, according to new data from the Bureau of Labor Statistics.

The Dallas-Fort Worth region added 116,400 jobs over the course of the year. New York and Houston followed closely behind, with 115,500 and 108,300 new jobs, respectively.

Read more...Dallas-Fort Worth led nation in jobs growth in 2018, topping New York and Houston via Dallas News

Texas Economic Indicators January 2019 via Dallas Fed

Texas economic indicators were mixed in December. The state finished 2018 with strong job growth and continued labor market tightness, but forward-looking indicators suggest that the state’s economic outlook has softened. The leading index dipped for the third month, and the Dallas Fed’s 2019 employment forecast shows slower growth than the state’s long-run average. The Texas Business Outlook Surveys suggest that current output growth slowed, and firm sentiment about broader economic conditions and company outlooks deteriorated.

Read more...Texas Economic Indicators January 2019 via Dallasfed.org

Dallas-Fort Worth Economic Indicators January 2019 via Dallas Fed

The Dallas–Fort Worth economy ended 2018 on a solid note. Employment growth was robust in December, with DFW adding jobs at its fastest pace in 13 months, and unemployment remained near multiyear lows. The Dallas and Fort Worth business-cycle indexes strengthened at year end, providing some momentum for continued growth in 2019. The DFW apartment market saw healthy absorption in 2018, but rent growth and construction activity moderated.

Read more...Dallas-Fort Worth Economic Indicators January 2019 - Dallasfed.org

Houston only major U.S. market to lose renters in 2018 via Houston Chronicle

Houston-area apartment occupancy spiked after Hurricane Harvey as thousands of displaced homeowners sought temporary rentals. That bounce came and went, new data show.

Houston was the only major U.S. market to lose renters in 2018, according to RealPage, a software and data analytics firm based in Richardson. The company ranked Houston last among major markets in several key apartment performance metrics.

Read more...Houston only major U.S. market to lose renters in 2018 - Houston Chronicle

2019 Multifamily Outlook via Multi-Housing News Online

After a positive performance throughout 2018, the multifamily industry shows no means of slowing down. Demand is expected to stay healthy, according to Yardi Matrix’s Winter 2019 U.S. Multifamily Outlook, as long as job growth remains positive and more people turn to renting instead of homeownership.

Read more... 2019 Multifamily Outlook

Eleventh District Beige Book Jan 2019 via Dallas Fed

Expansion in the Eleventh District economy slowed to a more modest pace over the reporting period. While the level of activity generally remained healthy, growth decelerated broadly across the manufacturing, services, retail, and energy sectors. Loan volumes declined slightly and new home sales fell modestly. Conversely, ample soil moisture has boosted crop conditions and improved prospects for the agricultural sector this year. Employment expanded, albeit at a slightly slower pace, despite continued widespread labor shortages. Wage growth remained elevated, while price growth abated to more normal levels. Outlooks were notably less optimistic than in the previous report due to declining oil prices, political and trade uncertainty, higher interest rates, and stock market volatility.

Read more...Eleventh District Beige Book Jan 2019 via Dallas Fed

ALN Monthly Market Stats January 2019 via ALN Apartment Data

ALN Data just released their December 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 January 2019 via ALN Apartment Data

Apartment Rents Expected to Rise Faster Than Inflation in 2019 via NREI

Rents are likely to rise faster for older, class-B apartments in 2019 than for any other class of apartment property.

“We expect Class-B to continue to have the strongest average rent growth, as it has through recent history,” says Andrew Rybczynski, senior consultant at research firm the CoStar Group.

Rents continue to rise for new class-A luxury apartments as well.

Read more...Apartment Rents Expected to Rise Faster Than Inflation in 2019 via NREI

2018 Multifamily Rent Growth Ends Strong via Multi-Housing News Online

The multifamily market continues to perform strongly, with an increase in national rent growth of 31 percent over the last eight years. According to a survey of 127 markets by Yardi Matrix, annual rent growth has risen at least 2.9 percent every year and has surpassed 3 percent in six of the last eight years. December year-over-year rent growth was at 3.2 percent, but rents remained at $1,419 from the previous month.

Read more... 2018 Multifamily Rent Growth Ends Strong

Here's Why the Multifamily Cycle Still Has Room to Run via GlobeSt

In its December 2018 multifamily report, Yardi Matrix theorizes that the multifamily asset class could be on a trajectory much like hotels, which have had nine consecutive years of above-trend revenue growth. “Hotels benefit from business profitability and travel, but also from lifestyle changes that lead individuals to spend more on experiences,” the report said.

So it goes with the multifamily sector, which just wrapped up its eighth straight year of robust performance. It is an impressive record but it also leads to the question of just how long this cycle can go.

Read more...Here's Why the Multifamily Cycle Still Has Room to Run via GlobeSt

Houston Economic Indicators January 9, 2019 via Dallas Fed

Houston employment and the business-cycle index continue to register healthy growth, and drilling activity has flattened at a high level. However, oil prices have fallen significantly and the Houston leading index fell to near neutral. Stock indexes are also down. Overall, the outlook for Houston has weakened but remains positive.

Read more... Houston Economic Indicators January 2019 via dallasfed.org

Austin Economic Indicators January 2019 via Dallas Fed

The Austin economy grew at a strong pace in November. The Austin Business-Cycle Index expanded and remained above its long-term trend. Employment growth by sector was mixed, with the health and education services sector continuing its surge and financial activities declining. Hourly wages were unchanged, while home construction permits weakened and housing affordability improved.

Read more...Austin Economic Indicators January 2019 - Dallasfed.org

Dallas apartment residents can expect higher rent increases in 2019 via Dallas News

Dallas-area apartment renters may have to dig a little deeper this year.

Dallas apartment rents are forecast to rise by more than 4 percent after a slowdown in 2018 cost increases.

The new forecast by Yardi Systems is one of several recent updates on the local apartment market.

Read more...Dallas apartment residents can expect higher rent increases in 2019 via Dallas News

High Level of New Construction Will Continue to Strain Apartment Demand in 2019 via NREI

Developers will keep adding pressure on the apartment sector in 2019, with plans to open hundreds of thousands of new luxury units in 2019.

New renters filled most of the new apartments delivered to the market in 2018, but not all of them. The percentage of apartments that will be occupied in 2019 is likely to keep falling.

Read more...High Level of New Construction Will Continue to Strain Apartment Demand in 2019 via NREI

Despite Fears of Overbuilding, Lenders Remain Willing to Fund Multifamily Development via NREI

Despite rising interest rates and the nagging anxiety that developers are already building too many apartments in some markets, banks remain active lenders for multifamily construction projects.

“There is certainly no shortage of capital,” says Danny Kaufman, managing director in the Chicago office of HFF.

Apartment developers are paying more interest on their construction loans—but that isn’t keeping developers from planning and financing new projects.

Read more...Despite Fears of Overbuilding, Lenders Remain Willing to Fund Multifamily Development via NREI

Are Apartments Still A Good Investment In 2019? via Forbes

Yes, apartments are still a good investment, but for more fundamental reasons than during the past eight years. What I mean by this is apartments have always been a good investment. Unlike other commercial real estate investments, apartments are tied much more to residential trends and demographics. Starting in 2010 and continuing through early 2018, the fallout from the crash and recession created an imbalance in homeownership that gave rise to an increase in apartment rental rates. The rent increase directly correlates to an increase in the value of apartment buildings. But apartments are still a good investment for traditional reasons versus heavy appreciation, even with changing circumstances such as rising interest rates, rising property taxes and a potential recession. If investors focus on property fundamentals, hone their investment strategy and conservatively underwrite for today’s market, apartments are still a high-performing investment in 2019.

Read more...Are Apartments Still A Good Investment In 2019? via Forbes

Texas Economic Indicators December 2018 via Dallas Fed

The Texas economy continues to grow at a solid but slightly slower pace, with job growth broad based across industries and regions. The Austin, Houston and San Antonio metro areas led the state in job growth during the three months ending in November. The Texas Business Outlook Surveys indicate that growth in the manufacturing sector has moderated from the highs seen earlier in the year. Wage pressures have eased somewhat in recent months as well but remain elevated. The Texas labor market will likely tighten further in the months ahead; however, if oil prices continue to linger around $50 per barrel, job growth in the state may begin to decelerate. Texas exports are also likely to weaken.

Read more...Texas Economic Indicators December 2018 via Dallasfed.org

Dallas-Fort Worth Economic Indicators December 2018 - Dallas Fed

The Dallas–Fort Worth economy expanded at a modest pace. Employment growth was subdued in November, with DFW adding jobs at the slowest pace in seven months. Overall, the DFW economy remains solid, with 2 percent annualized job growth year to date (nearly 68,000 jobs). Business-cycle indexes for both metros pointed to continued expansion. Home sales fell for the second straight month in November, and inventory ticked up but remains tight. House price appreciation has moderated, particularly in Dallas.

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