DFW Economic Indicators August 2019 via Dallas Fed

Dallas–Fort Worth economic growth strengthened in July. Payroll employment grew at a rapid clip, and unemployment stayed low. The Dallas and Fort Worth business-cycle indexes expanded further. Housing market indicators suggest a cooling in home price appreciation and homebuilding activity, and inventories remained tight, particularly at the lower price points. Revised (benchmarked) data indicate that DFW employment grew 2.6 percent in the first seven months of 2019—slightly above its long-term trend rate.

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

Why Now is the Ideal Time to Invest in Multifamily via GlobeSt

It’s the end of the cycle and there are fears that supply may be catching up with demand in some markets. But Burns, managing director at Walker & Dunlop, insists that now is the ideal time to invest in the multifamily asset class—especially if you are also seeking financing. “10-year Treasury rates are low which has made for a busy first half of the year,” he tells GlobeSt. “The market is experiencing steady rent growth and an active acquisition environment which makes deals easy to finance. Bottom line, dropping rates and rising rents make for a great combo.”

Read more...Why Now is the Ideal Time to Invest in Multifamily via GlobeSt

Multifamily borrowing surges 10% in Q2 via HousingWire

Mortgage originations in commercial and multifamily surged 10% annually in the second quarter, according to the Mortgage Banker Association’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

Not only did multifamily and commercial originations increase from the previous year, they also rose by 29% from the first quarter of 2019.

Read more...Multifamily borrowing surges 10% in Q2 via HousingWire

Chicago and Dallas Most Improved for Resident Satisfaction via Multifamily Executive Magazine

National renter satisfaction has increased again in the second quarter, with 78.6% of residents reporting “good” or “excellent” satisfaction with their overall renting experience. This quarter’s increase continues the upward national trend that began in the last quarter of 2017.

Similar to the first quarter, every market except Atlanta saw a year-over-year increase in satisfaction this quarter. Boston has the highest overall satisfaction with 83.8%, followed by Chicago with 83.6% of residents satisfied with their living experience. Dallas once again topped out the markets for improvement from the prior year with a 3.5 percentage point increase from this time last year. Chicago and Miami are close behind with 2.5 and 2.4 percentage point increases, respectively. Both Dallas and Chicago also saw the largest year-over-year increases in residents’ likelihood to renew this quarter.

Read more...Chicago and Dallas Most Improved for Resident Satisfaction via Multifamily Executive Magazine

Apartment Occupancy Rate Hits a New High via NREI

Despite more than a decade of strong growth under its belt, the apartment sector occupancy rate continues to hit new highs.

"Terrific absorption has pushed occupancy upward to highs for this economic cycle," say Greg Willett, chief economist for RealPage Inc., a provider of property management software and services.

That might seem strange. The occupancy rate in the U.S. has already been high for a very long time.

Read more...Apartment Occupancy Rate Hits a New High via NREI

Texas Economic Indicators August 19, 2019 via Dallas Fed

Texas’ economic performance remains solid. The state saw robust job growth in July, and the unemployment rate held steady at a record low, indicating continued tightness in labor markets. The state’s business-cycle index grew strongly. Texas exports dipped in June, as did permits for single-family housing construction.

Read more... Texas Economic Indicators August 2019 via dallasfed.org

HUD proposes changes to fair housing rules via HousingWire

The Department of Housing and Urban Development on Friday proposed making changes to the nation’s fair housing rules, a move that fair housing advocates claim is part of a Trump administration effort to “gut” federal protections against housing discrimination.

HUD announced Friday that it is proposing changes to its interpretation of the Fair Housing Act’s disparate impact standard, a rule enacted by HUD during the Obama administration and used as a way to enforce the Fair Housing Act.

Read more...HUD proposes changes to fair housing rules via HousingWire

DFW Apartment Dwellers Catching Up to Homeowners When it Comes to Property Taxes via CandysDirt.com

Allen Gwinn is a number cruncher. Or a gadfly. Or a muckraker/local political analyst. By day, he teaches at SMU School of Business as a Professor of Practice.

Basically a detailed data miner, he has taught information technology at SMU Cox School of Business for 30 years. For years, Gwinn also ran a popular website called Dallas.org, which was 18,000 registered users rich, as large as many local media sites. As he puts it, “I had lots of bandwidth.”

Now Gwinn is gearing up a reboot of Dallas.org, because he believes that taxpayers need a constant stream of data about government spending. An informed citizenry, he feels, makes better voting decisions, which is why he analyzes public data.

Read more...DFW Apartment Dwellers Catching Up to Homeowners When it Comes to Property Taxes via CandysDirt.com

U.S. Rent Concessions Near 20-Year Lows, But Still Extensive in Some Markets via RealPage

Nationwide, the percentage of units offering rental concessions is at some of its lowest levels in nearly two decades. Still, some markets – mostly the country’s big construction centers – are offering concessions at notably higher rates.

After peaking at 65.8% in 4th quarter 2009, the percentage of stabilized apartments in the U.S. offering concessions has been on a steady downward trajectory. As of 2nd quarter 2019, concessions were available in only 14.1% of apartments, one of the lowest rates the market has seen since mid-2002.

Read more...U.S. Rent Concessions Near 20-Year Lows, But Still Extensive in Some Markets via RealPage

Multifamily occupancy rates keep rising via HousingWire

Apartment occupancy rates climbed in July to their highest level since in since 2000, according to a report from RealPage, which revealed that occupancy rates rose 0.4% from last year to reach 96.2% last month.

Meanwhile, rent growth held firm in July at 3.1%, as average rent prices across the U.S. rose to $1,414.

Read more...Multifamily occupancy rates keep rising via HousingWire

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

The multifamily market continues to perform positively as we head into the third quarter of 2019. Much like what was predicted back in January, the sector’s rent growth percentages keep increasing. At mid-year, growth has stabilized at more than 3 percent and according to Yardi Matrix’s Summer 2019 U.S. Multifamily Outlook, rents are expected to increase 2.6 percent for the full year. This would be the seventh year in a row that surpasses the 2.5 percent long-term average.

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

ALN Monthly Market Stats August 2019 via ALN Apartment Data

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

Multifamily Continues to Rule CRE via GlobeSt

The multifamily sector showed the most robust growth amongst all CRE sectors—multifamily, office, industrial, retail and hotel—in the first quarter of 2019, according to Ten-X Commercial’s Multifamily Market Outlook.

The first quarter of 2019 marked the first time in five years there was a decline in the number of new rental properties coming to market, according to the report. This decrease helped the multifamily market vacancy rate hold steady in the upper-4% range, the level it’s been since Q3 2018. Yet these figures are relative as the actual number of vacant apartment units remains at its highest since mid-2012, Ten-X reported. As the number of new apartments begins to decline, those on the market will be rented faster.

Read more...Multifamily Continues to Rule CRE via GlobeSt

How Rising Temperatures Impact Real Estate via Multi-Housing News Online

A new Urban Land Institute report delved into the effects of extreme heat and how it will change real estate in the U.S.

Extreme heat is becoming a growing concern for U.S. cities due to a combination of climate change and continuing urban development. By the end of the century, a majority of states will experience average summer temps of at least 80 degrees with some areas in California, Nevada and Texas experiencing an average of 100 degrees for summer, the report noted. Another report released earlier this year by GeoPhy also focused on climate change and pointed out how it would shape real estate.

Read more...How Rising Temperatures Impact Real Estate via Multi-Housing News Online

AMLI Report: Most Renters Worry About Climate Change via Multi-Housing News Online

Multifamily developer and owner AMLI Residential has released the findings of its third annual Sustainable Living Index, a survey of more than 3,500 residents of the company’s communities nationwide. The 2019 survey found that the vast majority of residents are concerned about climate change and a majority of renters would pay more to live in a community with sustainable features.

Read more...AMLI Report: Most Renters Worry About Climate Change via Multi-Housing News Online

Freddie Mac Foresees 4 Percent Rent Growth in 2019 via Multi-Housing News Online

Multifamily projects are being built at an elevated pace across the U.S., but leasing demand is robust and the nation’s housing shortage isn’t going away anytime soon, according to a report by Freddie Mac.

The government-sponsored enterprise’s midyear outlook report notes that multifamily completions have reached an annualized 365,000 units as of June—up from 345,000 units in each of the two prior years, according to U.S. Census Bureau data. At the same time, the industry is still struggling to build enough housing, as total households have increased by an average of 1.4 million each year during the past three years, while only 1.1 million units of housing per annum have been added.

Read more...Freddie Mac Foresees 4 Percent Rent Growth in 2019 via Multi-Housing News Online

DFW leads the country in apartment construction and leasing via Dallas Morning News

Dallas-Fort Worth is hanging on to its ranking as the country's top market for new apartments.

And the outlook for next year is that more new rental units will open their doors in North Texas, according to a new report by RealPage.

This year, developers are expected to add 19,632 new apartments in the D-FW area.

Read more...D-FW leads the country in apartment construction and leasing via Dallas Morning News

CRE Lending Activity Increases in Q2 via GlobeSt

After a slow start in Q1, lending activity gained traction in Q2, according to the CBRE Lending Momentum Index, which closed at a value of 244 in June, up by 2.3% from March’s close. Compared with a year ago, the index is up 20.8%.

Read more...CRE Lending Activity Increases in Q2 via GlobeSt

Texas Economic Indicators August 2019 via Dallas Fed

The Texas economy continues its expansion, paced by robust job gains in construction and services. Sluggish growth in manufacturing is attributable to softening demand for durables, which appears tied to a slowing energy sector. Unemployment is at a record low, keeping wage pressures elevated.

Read more... Texas Economic Indicators August 2019 via dallasfed.org

Apartment Rent Growth Accelerates Despite Slow Deliveries via Mortgage Bankers Association

Multifamily rents grew for the ninth straight month and are now up 3 percent year-over-year, reported Zillow, Seattle. The median monthly rent now equals $1,483.

Rents are up year-over-year in 49 of the nation's 50 largest markets with Milwaukee as the only exception, the Zillow Real Estate Market Report said. "Nationally, rent growth has not been this strong since 2016 when pressure in the rental market spurred record numbers of multifamily permits," the report said.

Read more...Apartment Rent Growth Accelerates Despite Slow Deliveries via Mortgage Bankers Association

Economy and CRE Markets Slowing Back to Trend in Second Half of 2019 via Nareit

One of the biggest challenges when interpreting macroeconomic data and news on the commercial real estate market is distinguishing between short-term moves and longer-term trends. Today that is manifest in a recent GDP report showing the economy slowed in the second quarter, as well as data showing that demand for some real estate sectors fell short in the spring. Are these harbingers of a coming downturn?

Read more...Economy and CRE Markets Slowing Back to Trend in Second Half of 2019 via Nareit