Texas Economic Indicators November 2019 via Dallas Fed

The Texas economy continues to grow at a moderate pace. Job growth ticked up in October, and the September growth rate was revised up. The unemployment rate remained at a record low, indicating continued tightness in the labor market. The Texas Leading Index edged up, and firms responding to the Texas Business Outlook Surveys reported increases in capital expenditures on net. September existing-home sales were steady. Electricity generated in Texas perked up in August, though electricity generated from renewable resources slipped.

Read more... Texas Economic Indicators November 2019 via Dallas Fed

Eleventh District Beige Book November 2019 via Dallas Fed

Moderate expansion continued in the Eleventh District economy. Growth held fairly steady in services and retail but decelerated slightly in manufacturing. Home sales remained on the rise while energy activity continued to decline. The agriculture picture was mixed, with continued drought conditions but rising prices and decent production prospects. Employment growth was solid and upward wage pressures continued. Selling prices were largely flat, as firms' ability to pass through increased costs remained limited. Outlooks generally improved, except in energy and financial services. Uncertainty generally remained elevated, driven by trade tensions, the political climate, and weaker global growth.

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

Dallas-Fort Worth Economic Indicators November 2019 via Dallas Fed

Dallas–Fort Worth’s economic expansion slowed in October as payroll employment contracted after 17 straight months of growth. Unemployment edged up but remained near historical lows. The Dallas Business-Cycle Index expanded, and the Fort Worth index contracted. Apartment leasing and construction remained solid, and housing affordability improved in the third quarter.

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

Urban Core Areas See Improved Rent Growth Momentum via RealPage

he nation’s downtown neighborhoods have generally underperformed their suburban counterparts for rent growth in the past few years. Recently, however, urban core areas have made notable progress, and that performance gap is closing.

Across the country’s 50 largest markets, apartments in downtown locales averaged year-over-year new-lease rent growth of 2.3% in 3rd quarter. This was the fourth consecutive quarter annual rent growth has hovered near the 2% mark, after the pace of increases averaged at only about half that level between late 2016 and fall 2018. While rent growth in the nation’s urban core submarkets is still not fantastic, this recent momentum is encouraging.

Read more...Urban Core Areas See Improved Rent Growth Momentum via RealPage

Several Markets See Best-Ever Prime Leasing Season in 2019 via RealPage

This year’s prime leasing season proved strong across the U.S. as several individual markets posted all-time high apartment demand.

Seasonality plays a big role in apartment leasing as renters prefer to move in 2nd quarter and 3rd quarter when the weather warms, and they tend to stay put in the colder months. While seasonality is more extreme in some especially cold-winter apartment markets, most experience at least a slight bump during this peak time frame from April through September.

Read more...Several Markets See Best-Ever Prime Leasing Season in 2019 via RealPage

A Recession Is Multifamily Investors’ Top 2020 Concern via GlobeSt

A recession is among the biggest concerns for apartment investors in 2020, but recent interest rates cuts could have stopped a recession from hitting in 2020. However, there are still expectations that the economy could slow next year, and investors are preparing to hedge against increased risk.

Read more...A Recession Is Multifamily Investors’ Top 2020 Concern via GlobeSt

Breaking Down CBRE’s 2020 Market Outlook via NREI

CBRE provided NREI with an exclusive sneak peek at its 2020 Real Estate Market Outlook report.

CBRE sees more growth ahead for the U.S. commercial real estate industry in 2020, although the pace of expansion could slow thanks to already strong fundamentals that will be tough to improve upon combined with some broader economic headwinds as part of its 2020 Real Estate Market Outlook. Specifically, uncertainty surrounding trade negotiations, weakness in manufacturing and the approach of the presidential election season will hang over the industry in 2020.

Read more...Breaking Down CBRE’s 2020 Market Outlook via NREI

Apartment Sector Likely to Experience Continued Rent Growth, Albeit at a Slower Pace via NREI

Apartment rents are likely to keep rising, even if the economy continues to slow over the next year, according to industry experts.

“The occupancy outlook probably will allow rents to continue to grow, although at a pace a little under the increases recorded of late,” says Greg Willett, chief economist with RealPage Inc., a provider of property management software and services.

Read more...Apartment Sector Likely to Experience Continued Rent Growth, Albeit at a Slower Pace via NREI

Multifamily Building Permits Retreat from Recent High via RealPage

After reaching a four-year high in August, multifamily permit levels fell in September, according to U.S. Census figures.

Multifamily permits fell about 7.5% from August but remain up about 20.8% from a year ago. The seasonally adjusted annual rate (SAAR) for annual multifamily (of projects with five-plus units) starts fell by more than 28% from August and by 5.8% from September 2018.

Read more...Multifamily Building Permits Retreat from Recent High via RealPage

Austin Economic Indicators November 2019 via Dallas Fed

The Austin economy continued to expand in September. The Austin Business-Cycle Index expanded near its long-term growth average. During the third quarter, the labor market remained tight with the jobless rate near historic lows, and jobs grew slightly. Demand for office space remained strong. Housing prices in the metro swelled, while residential construction permits and home sales contracted slightly.

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

What Apartment Renters Really Want via GlobeSt

Smart technology. Green space. Sustainability. For years apartment owners have been in search of the ideal mix of amenities and building features to attract the best renters. In return, they have been met with an avalanche of suggestions, some of which have hit the mark and others washing out.

For example, while virtual tours of apartments have been heavily marketed by vendors as the next big thing, research has found that the majority of renters still prefer an in-person tour with a community representative.

Read more...What Apartment Renters Really Want via GlobeSt

This Year Could Break a Record for Multifamily Sales Volume via NREI

Despite concerns about potentially slowing economic growth and new rent control laws around the country, investors continue to go after apartment properties.

The volume of U.S. multifamily acquisitions in the first nine months of 2019 was higher than during any other comparable period since this expansion cycle began a decade ago. In fact, this year might set a record for multifamily sales volume, says Alexis Maltin, manager of analytics with New York City-based research firm Real Capital Analytics (RCA). Investors spent $130.6 billion on multifamily acquisitions in the first three quarters of 2019, according to RCA.

Read more...This Year Could Break a Record for Multifamily Sales Volume via NREI

Strong Demand for Apartments Leads Mixed CRE Markets in Q3 via Nareit

Apartment markets led commercial real estate in the third quarter, with solid demand that outpaced an elevated level of construction. Vacancy rates declined to 5.8%, the lowest since 2014, and rent growth accelerated a bit.

Other sectors were mixed, however. There was little or no excess demand (net absorption minus completions, as a percent of existing stock) in the office and retail property sectors. Leasing and construction activity were slow and vacancy rates were flat, while rent growth decelerated.

Read more...Strong Demand for Apartments Leads Mixed CRE Markets in Q3 via Nareit

ALN Monthly Market Stats November 2019 via ALN Apartment Data

ALN Data just released their October 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 November 2019 via ALN Apartment Data

Texas Economy Still Growing, Though Pace Slows via Dallas Fed

The regional economy is growing at a slower pace in recent months, with Texas labor markets remaining tight. Energy activity has declined, and export growth has slowed this year. Initial unemployment claims increased slightly in early October, indicative of labor market cooling. Apartment rental markets continue to be strong, and inflation has ticked up since dipping in June.

Read more... Texas Economy Still Growing, Though Pace Slows via dallasfed.org

Multifamily vacancies haven’t been this low since 2000 via HousingWire

It’s getting harder and harder to find an available unit in multifamily real estate.

In the third quarter of this year, multifamily vacancy fell to 3.6%, down 40 basis points from 2018, to the lowest level since 2000, according to a report from CBRE.

On average, rent rose 2.9% year over year, slightly higher than the historical average of 2.6%.

Read more...Multifamily vacancies haven’t been this low since 2000 via HousingWire

Dallas-area led the country in summer apartment leasing via Dallas Morning News

Net apartment leasing in the Dallas-area during the last six months has hit the highest volume in almost two decades.

The more than 16,500 apartments leased in the Dallas-area during the second and third quarters was the greatest rental demand of any major metro area in the country, according to RealPage.

Read more...Dallas-area led the country in summer apartment leasing via Dallas Morning News

DFW apartment rents, occupancy expected to rise in 2020 via Dallas Morning News

Despite widespread construction, Dallas-Fort Worth apartment vacancy rates will dip during the year ahead, according to a new 2020 forecast.

With fewer empty apartments, rents should rise about 3% in North Texas, according to the new report from the Real Estate Center at Texas A&M University.

The forecast looked at apartment conditions in all of Texas’ major markets.

Read more...D-FW apartment rents, occupancy expected to rise in 2020 via Dallas Morning News

Texas Quarterly Apartment Report 2Q2019 via Real Estate Center

The Texas economy remained strong in the midst of the longest U.S. expansion. Payroll employment grew at a steady pace, and unemployment remained historically low. Headline wage growth rate levels were sluggish despite labor-market tightness and decreased inflationary pressure. Low interest rates and job growth supported commercial investments and pushed housing sales to a record high. Total commodity exports stalled in the first quarter and could continue to struggle amid the ongoing U.S.-China trade spat. Political tension, trade uncertainty, and a slowdown in the global economy present the greatest challenges to extending the current expansion.

Read more...Texas Quarterly Apartment Report 2Q2019 via Real Estate Center

2019 Rent Growth via Multi-Housing News Online

After months of continued increases, multifamily rent growth has now hit a wall—dropping $1 to $1,471 for the month of September. Despite year-over-year growth falling 20 basis points to 3.2 percent, the market remains healthy as 2019 has shown another year of above-average rents, according to a Yardi Matrix survey of 127 markets.

Nationally, rents are up 2.9 percent year-to-date, raising 0.3 percent in the third quarter alone. Although this has been one of the weaker performing quarters, rents are on track to reach 3 percent for the sixth time in the last seven years, notes the report.

Read more...2019 Rent Growth via Multi-Housing News Online