Dallas and U.S. apartment renters are more likely staying put instead of move via Dallas Morning News

Dallas-Fort Worth apartment renters are staying put longer in their homes.

The turnover rate for apartment renters in the D-FW area and nationwide is now at its lowest level in decades.

Nationwide, about 47.5% of apartment renters move when their lease is up.

Read more...Dallas and U.S. apartment renters are more likely staying put instead of move via Dallas Morning News

Freddie Mac: Multifamily Market Still Going Strong via Multi-Housing News Online

The multifamily market is still strong for investment, according to Freddie Mac’s market index that rose slightly in the first quarter of 2019.

Their Multifamily Apartment Investment Market Index (AIMI) combines several factors like rental income, property prices and mortgage rates to offer investors a holistic view of the sector.

Read more...Freddie Mac: Multifamily Market Still Going Strong via Multi-Housing News Online

DFW Economic Indicators July 2019 via Dallas Fed

Dallas–Fort Worth economic growth strengthened in June. Payroll employment in the second quarter expanded at its fastest rate in over two years. Unemployment remains low, and the Dallas and Fort Worth business-cycle indexes expanded further. Office leasing activity and industrial demand remained solid in the second quarter.

Read more...Dallas-Fort Worth Economic Indicators July 2019 via Dallas Fed

More DFW residents are renters as homeownership rate declines via Dallas Morning News

Fewer Dallas-Fort Worth residents are living in their own home.

In the second quarter less than 60% of North Texas residents were homeowners, according to the latest data from the U.S. Census Bureau.

More than four out of 10 area residents are renters.

Read more...More D-FW residents are renters as homeownership rate declines via Dallas Morning News

Focus Investing On Existing Multifamily Properties To Advance The American Dream via Forbes

With the real estate development industry struggling to profitably deliver new multifamily product in a price range that more people can afford, an answer to affordability may be found by looking to the past — specifically Class B and C properties built 20, 30 or even 50 years ago. I have focused almost exclusively on non-Class A properties since founding what has become one of the leading multifamily real estate investment companies in Texas. Over the past 11 years, we've found ways to breathe new life into thousands of units in older buildings in great locations to deliver budget-conscious alternatives for working individuals and families. Here are a few reasons why carving quality, affordable “new” inventory out of existing or older multifamily properties is a smart move for investors.

Read more...Focus Investing On Existing Multifamily Properties To Advance The American Dream via Forbes

'Red-hot economy': Texas unemployment falls again to new historic low in June via Dallas Morning News

After breaking previous records in May, Texas' unemployment rate once again fell to a new historic low of 3.4% in June, according to the Texas Workforce Commission.

The then all-time low set in May was 3.5%, a number not seen in the state since it started keeping track in 1976.

"It's a red-hot economy," Federal Reserve Bank of Dallas senior economist Pia Orrenius said.

Read more...'Red-hot economy': Texas unemployment falls again to new historic low in June via Dallas Morning News

Millennial magnet: Dallas outranks all in attracting young professionals via Dallas Morning News

More millennials are moving to Dallas than any other city in the U.S., a new analysis of Census Bureau data shows.

Personal finance website SmartAsset analyzed net migration rates and found that 10,371 millennials moved to Dallas in 2017, the most recent data available. It defined millennials as those between the ages of 20 and 34.

Read more...Millennial magnet: Dallas outranks all in attracting young professionals via Dallas Morning News

San Antonio Multifamily Report – Summer 2019 via Multi-Housing News Online

The nation’s seventh-largest city is facing a sizable economic shift, which is spilling over into the multifamily market. Despite continued robust supply, year-over-year rent growth in San Antonio was on par with the U.S. average, at 2.5 percent through May, more than double the figure recorded at the same time last year. The surge in completions met healthy demand and the occupancy rate in stabilized assets actually inched up 20 basis points over 12 months, to 92.9 percent as of April.

Read more...San Antonio Multifamily Report – Summer 2019 via Multi-Housing News Online

Multifamily Rent Growth Gets Serious via GlobeSt

June was an inflection point for US multifamily rent growth, according to new figures by Yardi-Matrix. Following several months this year of slow rent growth, rents rose robustly in the second quarter by $12 to reach $1,465, the company says. Average rents increased by 2% in the second quarter of 2019, and they are up 2.6% so far this year. Year-over-year growth increased to 3.3%, up by 40 basis points from May.

Read more...Multifamily Rent Growth Gets Serious via GlobeSt

Austin Climbs to Second-Largest Rent Spot via GlobeSt

Average multifamily rents in Texas recorded slow changes compared to last month, but the most significant differences are observed when comparing today’s rents to June 2018 and the beginning of 2019. RentCafe’s mid-year rent report recently analyzed the evolution of monthly rents in 260 US cities.

In the top spot, Midland maintains its reign with rents averaging $1,591. However, it is the only city to record a rental cost cooldown compared to June last year, after a decrease of $22.

Read more...Austin Climbs to Second-Largest Rent Spot via GlobeSt

Eleventh District Beige Book July 2019 via Dallas Fed

Moderate expansion continued in the Eleventh District economy. Growth in nonfinancial services and manufacturing sectors picked up in June. Retail sales and drilling activity declined. Home sales continued to climb, buoyed by lower mortgage rates. Loan volumes rose at a faster pace, and crop and pasture conditions were mostly favorable. Employment expanded moderately and wage growth remained elevated. Input cost pressures rose in manufacturing, which multiple contacts attributed to the tariffs. Outlooks improved among service sector contacts but worsened among manufacturers and uncertainty increased due to growing concern over tariffs and trade tensions. About 28 percent of respondents to the supplemental questions in the June Texas Business Outlook Surveys indicated being negatively affected by the tariffs while only 5 percent noted a positive impact.

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

Apartment Buildings in the U.S. Keep Getting Bigger via NREI

Last year, developers in the U.S. completed 211,000 new housing units in buildings of 50 units or more, the biggest number on record. The total number of new apartments constructed didn’t come close to setting any records, though.

These numbers are from Characteristics of New Housing, an annual Census Bureau data release that is so chock-full of interesting information (for example: 88% of apartments completed in 2018 had in-unit laundry facilities) that I briefly contemplated interrupting my vacation to write about it when it came out two weeks ago.

Read more...Apartment Buildings in the U.S. Keep Getting Bigger via NREI

ALN Monthly Market Stats July 2019 via ALN Apartment Data

ALN Data just released their June 2019 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 July 2019 via ALN Apartment Data

Cap Rates on Apartment Acquisitions Take a Slight Dip in the First Half of 2019 via NREI

For years, apartment experts predicted that yields on investments in apartment rental properties would rise. Years passed, but cap rates in the sector remain historically low, and are getting lower.

“Cap rates have not risen in the last five years,” says Chris Espenshade, managing director with real estate services firm JLL. “Why should we expect they would rise in the next five?”

New investors keep finding reasons to buy apartment properties, and prices for these assets keep rising. That strong demand from buyers seems likely to keep cap rates low.

Read more...Cap Rates on Apartment Acquisitions Take a Slight Dip in the First Half of 2019 via NREI

What Difference Does a Year Make to US Cap Rates? via Real Capital Analytics

What difference does a year make to cap rates? None. The answer is none.

This time a year ago we looked at how Federal Reserve moves to raise interest rates were impacting commercial real estate. The answer at the time was that the rate environment was affecting deal volume and not cap rates. The story is still the same a year later. Even though the direction of interest rates is now entirely opposite, commercial real estate markets are not moving as quickly.

Read more...What Difference Does a Year Make to US Cap Rates? via Real Capital Analytics

Houston's apartment market seeing demand surge via Houston Chronicle

In the first half of the year, renters occupied an additional 10,000 units in the Houston metro, exceeding so-called absorption during all of 2018, commercial real estate firm JLL said in a midyear report. Occupancy has inched up to 90.2 percent, compared with 89.6 percent at the beginning of the year.

Experts attribute the market's improvement to a growing economy.

This Houston market ranked No. 3 (after Dallas/Ft. Worth and Chicago) on a list of cities with the the most multifamily demand, a study from real estate data firm RealPage shows.

Read more...Houston's apartment market seeing demand surge - Houston Chronicle

Gary Shilling: The Recession May Have Already Begun via GlobeSt

A U.S. recession “may already be underway,” and the bond market rally that began in the early 1980s is still intact, says Gary Shilling, founder of the investment advisory firm A. Gary Shilling & Co.

In his latest Insight report released just before Friday’s stronger-than-expected jobs report, Shilling writes that the 10-year Treasury note yield will drop to 1% in a year and the 30-year Treasury bond will drop to 2% a year after the recession starts, delivering double-digit returns. In that case, the 10-year Treasury would gain close to 12%, and the 30-year Treasury bond 14%.

Read more...Gary Shilling: The Recession May Have Already Begun via GlobeSt

Apartment rental demand soars as more millennials believe it’s cheaper than owning a home via CNBC

n the D.C. suburb of Chevy Chase, Maryland, a massive apartment rental and condominium complex is going up, and apparently it can’t happen fast enough. Demand for rental apartments in and near cities across America is soaring, just when most thought it wouldn’t be. The expectation was that rental demand would fall as millennials aged into their homebuying years.

Apartment demand in the second quarter of 2019 spiked 11% from a year ago. That, in turn, pushed rents up an average 3% nationally to $1,390 per month, according to RealPage, a real estate software and analytics company.

Read more... Apartment rental demand soars as more millennials believe it’s cheaper than owning a home via CNBC

Austin Multifamily Report – Summer 2019 via Multi-Housing News Online

Austin’s multifamily market is poised for a stable 2019, with rent growth rising 3.7 percent year-over-year through April, outperforming the national rate by 70 basis points. Developers are struggling to keep up with demand, and the labor shortage is not helping: The occupancy rate in stabilized properties rose 50 basis points over 12 months, to 94.4 percent as of March

Read more...Austin Multifamily Report – Summer 2019 via Multi-Housing News Online

Houston Economic Indicators July 2019 via Dallas Fed

Houston business-cycle and leading indexes pointed to a growing economy in May. Employment, particularly mining-related jobs, accelerated, but the U.S. rig count and oil prices have fallen in recent months. Manufacturers reported negative impacts from tariffs, while measures of global manufacturing showed signs of slowing—including for Houston trade partners. Taken together, the outlook for the region remains positive.

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

Austin Economic Indicators July 2019 via Dallas Fed

The Austin economy remained healthy in May. The Austin Business-Cycle Index accelerated and remained above its long-term trend. Labor force growth remained restricted, though recent job growth was strong, particularly in the construction and mining and information sectors. Hourly wages declined further in May, while total construction permits rose.

Read more...Austin Economic Indicators July 2019 via Dallas Fed

Pricing Continues its Monthly Decline via Multi-Housing News Online

The Ten-X Commercial Nowcast shows that commercial real estate pricing continued to languish in May, posting its second consecutive monthly decline. The Ten-X Commercial All-Property Nowcast fell 0.2 percent from the month prior, bringing the annual growth rate to just 0.4 percent.

Read more...Pricing Continues its Monthly Decline via Multi-Housing News Online

Looking for an apartment? Demand in Dallas-Fort Worth reaches 20-year high to lead all U.S. markets via Dallas Morning News

The Dallas-Fort Worth area is the top rental market in the country.

Net apartment leasing in the D-FW area grew by more than 10,400 rental units in the second quarter. That's more apartment demand than any other U.S. metro area and a near record for local rentals, according to new data from Richardson-based RealPage.

Read more...Looking for an apartment? Demand in Dallas-Fort Worth reaches 20-year high to lead all U.S. markets via Dallas Morning News