Texas Economic Indicators September 2019 via Dallas Fed

The regional economy is growing at a moderate pace, and labor markets remain tight. Construction activity is rising, and the housing industry remains a bright spot, with higher sales and a pickup in prices. Against this robust backdrop, however, the outlook among Texas firms has deteriorated due to concern about tariffs, trade policy uncertainty and slowing global growth.

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

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

The rental market continues to be a positive performer, showcasing August rental growth of another $2 to $1,472. Despite the monthly increase, year-over-year growth declined to 3.3 percent, according to a Yardi Matrix survey of 127 markets. This, however, has not hindered market performance, as the long-term rent growth amount has been steady at more than 3 percent for the past 12 months and has surpassed the long-term average for the past two years.

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

ULI, PwC Emerging Trends Report Forecasts Continued Strength in CRE in 2020 via NREI

The commercial real estate market remains strong, despite talk of an approaching recession, according to an Emerging Trends in Real Estate 2020 report produced by the Urban Land Institute (ULI) and consulting firm PwC and released at this week’s ULI fall meeting.

“Real estate is in a very good space,” said Mitch Roschelle, partner and business development leader with PwC, at the event. “The real estate community caused two recessions: it caused it in housing, and it caused it in the savings and loan crisis. This go-around, whatever happens, it ain’t going to be [real estate’s] fault.”

Read more...ULI, PwC Emerging Trends Report Forecasts Continued Strength in CRE in 2020 via NREI

ALN Monthly Market Stats September 2019 via ALN Apartment Data

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

Domestic Migration to Texas Slows as National Labor Markets Tighten via Dallas Fed

Has Texas lost its edge, or is there something else going on that has reduced the incentive for people to pack up their belongings and head to the Lone Star State?

“With nearly half its workers born outside of the state, Texas depends on—and is shaped by—migration,” an article in Southwest Economy noted in first quarter 2018. State population growth is about double that of the nation, due primarily to strong international and domestic migration, the authors wrote. Also, since 2010, Texas has ranked second after Florida in the net number of domestic migrants, and surveys show that just over half of cross-state movers to Texas relocated for a job.

Read more...Domestic Migration to Texas Slows as National Labor Markets Tighten via Dallas Fed

Still building: Housing shortage will be with us for years to come via Dallas Morning News

Nationwide home mortgage rates are near record lows. Employment rates are near record highs. And demand for housing is strong in most U.S. metro areas.

You'd think homebuilding would be booming.

But you'd be wrong.

Single-family home construction across the country and in North Texas is nowhere close to reaching the levels we saw before the Great Recession.

Read more...Still building: Housing shortage will be with us for years to come via Dallas Morning News

Austin Economic Indicators September 2019 via Dallas Fed

The Austin economy posted a solid performance in July. The Austin Business-Cycle Index has increased strongly in recent months due to rapid job growth and a lower unemployment rate. Jobs were added in most industries, although health and education services continued to contract. Hourly wages fell in July, while housing construction permits picked up and home sales increased.

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

New apartments add billions to the D-FW economy while raising the ire of suburban homeowners via Dallas Morning News

Apartments may be the bane of many suburban homeowners.

But the rental housing units are a big contributor to local economies around the country, including the Dallas-Fort Worth area.

Apartment construction, operation, management and so forth adds more than $3.4 trillion a year to the national economy, according to a study by Hoyt Advisory Services for the rental housing industry.

In North Texas, the apartment industry contributed more than $98 billion a year to the economy, the study shows.

Read more...New apartments add billions to the D-FW economy while raising the ire of suburban homeowners via Dallas Morning News

Multifamily Cap Rates Rise as Rent Control Gains Momentum via GlobeSt

Rent control has become a highly-charged issue in many cities and states. Oregon and New York have passed measures placing caps on rent increases; California is considering a similar measure to name a few examples.

Indeed, housing affordability is a serious issue but rent control may not be the best way to address this concern, concludes an analysis by Real Capital Analytics. Already, writes Jim Costello, new demands for rent control are repricing assets in a way that may lead to loan defaults and lower housing availability over the long run. Namely, he writes, “Investors and lenders are repricing assets in markets where rent control exists or is being introduced.”

Read more...Multifamily Cap Rates Rise as Rent Control Gains Momentum via GlobeSt

Eleventh District Beige Book September 2019 via Dallas Fed

Moderate expansion continued in the Eleventh District economy. Output growth in manufacturing strengthened, and expansion in the service sector was strong in July but eased in August. Home sales rose, and loan volumes expanded albeit at a slower pace. Retail sales were flat and drilling activity continued to decline. Agricultural conditions deteriorated due to hot and dry weather. Employment growth was solid and wage pressures remained elevated. Selling prices rose modestly, as firms’ ability to pass through cost increases remained limited. Outlooks improved slightly in manufacturing but softened in the service, energy, and agricultural sectors, with uncertainty surrounding trade policy, tariffs, stock market volatility, and slowing global growth weighing on business sentiment.

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