Texas Service Sector Outlook Survey December 2020 via Dallas Fed

Activity in the Texas service sector returned to positive territory in December, according to business executives responding to the Texas Service Sector Outlook Survey. The revenue index, a key measure of state service sector conditions, rose from -0.7 in November to 4.2 in December, indicating a modest increase in activity.

Read more...Texas Service Sector Outlook Survey December 2020 via Dallas Fed

Dallas-Fort Worth Economic Indicators December 31, 2020 via Dallas Fed

Dallas–Fort Worth’s economic recovery waned in November, following strong growth in October. Employment growth moderated, and movements in the Dallas and Fort Worth business-cycle indexes were mixed. Initial unemployment claims dipped in the second week of December after rising in the previous week. Low-wage workers appear to have been the hardest hit by the pandemic. Multifamily permits rose for the third straight month in November but were down year to date relative to 2019. Housing market indicators pointed to slight improvement in affordability in third quarter 2020.

Read more...Dallas-Fort Worth Economic Indicators December 31, 2020 via Dallas Fed

Texas Manufacturing Outlook Survey December 2020 via Dallas Fed

Expansion in Texas factory activity picked up in December, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, rebounded from 7.2 to 25.5, indicating an acceleration in output growth.

Other measures of manufacturing activity also point to stronger growth this month.

Read more...Texas Manufacturing Outlook Survey December 2020 via Dallas Fed

Did Congress Give the Multifamily Community Enough Aid? via GlobeSt

Congress passed a $900 billion stimulus package this week, which contained some— but not all—of the measures that the commercial real estate industry had been seeking.

Among the measures is a $25 billion rental assistance program to be distributed by state and local governments with populations of 200,000 or more, with each state receiving $200 million.

Read more...Did Congress Give the Multifamily Community Enough Aid? via GlobeSt

Relief Bill ‘Good for the Industry,’ Apartment Groups Say via Multi-Housing News

After months of back-and-forth between lawmakers in Congress, an agreement was finally reached on Sunday night between Republicans and Democrats for the next COVID-19 relief stimulus bill. For the multifamily industry, the timing was crucial, coming weeks before two key measures expired: the federal eviction moratorium and additional unemployment insurance that was part of the CARES Act.

Late Monday evening, the $900 billion package was passed by Congress and sent to President Donald Trump for his signature. According to the Associated Press, the 5,593-page bill is the longest in history.

Read more...Relief Bill ‘Good for the Industry,’ Apartment Groups Say via Multi-Housing News

Texas Employment Forecast 12/18/20 via Dallas Fed

Texas employment grew 4.0 percent annualized in November after increasing a slightly revised 10.9 percent in October. While jobs have increased since May, they are still down sharply from December 2019. The Texas Leading Index increased for the seventh consecutive month in November, indicating continued positive growth over the next six months.

Using a top-down model based on national forecasts, COVID-19 infection rates and oil futures prices, we estimate that job growth will weaken further in December.

Read more...Texas Employment Forecast 12/18/20 via Dallas Fed

National Multifamily Report – November 2020 via Multi-Housing News

Multifamily rents declined for the sixth month in a row, declining by 0.5 percent in November year-over-year, according to a Yardi Matrix report of 127 markets. Despite this, more than 100 secondary and tertiary markets are performing better than the national average.

Once again, markets such as the Inland Empire, Sacramento, Phoenix and Indianapolis led the pack in terms of rent growth, increasing 6.6 percent, 5.9 percent, 4.3 percent and 3.9 percent, respectively.

Read more...National Multifamily Report – November 2020 via Multi-Housing News

CRE Pricing Marks Fastest Monthly Increase Since Pandemic’s Start via GlobeSt

While commercial property prices grew at the fastest rate since the beginning of the pandemic in November, the gains weren’t universal.

Real Capital Analytics’ National All-Property Index increased by 5.7% year-over-year in November, but it was the strong price gains in the apartment and industrial sectors that really drove those increases. Industrial prices climbed 9.5% in November, though deal volume is down 26% YOY in the sector, according to RCA. That is the shallowest drop among the major income-producing property types during the pandemic year.

Read more...CRE Pricing Marks Fastest Monthly Increase Since Pandemic’s Start via GlobeSt

What the $900B Relief Package Holds for Multifamily via Multi-Housing News

Congressional leaders have unveiled the final details of the $900 billion bipartisan relief package expected to pass final votes in both chambers of Congress today. Apart from one-off direct payments to individuals, the package includes a revival of the Paycheck Protection Program for small businesses, $25 billion in rental assistance and an extension of the federal eviction moratorium.

Read more...What the $900B Relief Package Holds for Multifamily via Multi-Housing News

As pandemic deepens, Texas’ unemployment rate rises to 8.1% in November via Dallas Morning News

The unemployment rate in Texas jumped to 8.1% in November, up from 6.9% in October, as COVID-19 cases, hospitalizations and deaths continued to rise.

Texas’ rate easily topped the national unemployment rate of 6.7% and has not been below the U.S. mark since August.

Texas also was among just seven states reporting statistically significant increases in the unemployment rate last month, according to the U.S. Bureau of Labor Statistics. Twenty-five states and the U.S. recorded declines in the metric for November.

Read more...As pandemic deepens, Texas’ unemployment rate rises to 8.1% in November, easily eclipsing U.S. rate via Dallas Morning News

Beware the Grey Swans of 2021 via GlobeSt

Without a doubt, 2020 was the year of the Black Swan event. No one outside of epidemiologist circles had foreseen a pandemic, and very few were prepared for its effects on the economy. With vaccine distribution underway, 2021 has a brighter outlook.

Still, there are risks to the economy. Fortunately, these risks are a known quantity—grey swans, as S&P Global Market Intelligence calls them in a recent post.

Read more...Beware the Grey Swans of 2021 via GlobeSt

Class C Apartment Rent Cuts Continue for Second Month via RealPage

Throughout most of the pandemic, the nation’s most affordable apartment niche managed to avoid lowering rents like the more expensive Class A and B product lines. That changed in October, and Class C operators reduced rents again in November.

Following a 1% year-over-year cut in October, Class C product logged rent change of -0.5% in November.

Read more...Class C Apartment Rent Cuts Continue for Second Month via RealPage

DFW dethrones Manhattan as nation's top CRE investment market, new report says via Dallas Business Journal

While every commercial real estate market has been impacted by the pandemic, North Texas was impacted the least of all U.S. markets.

This is according to new data from Real Capital Analytics, which ranked Dallas-Fort Worth as the No. 1 market for commercial real estate deals between January and November this year.

While total deal volume year-over-year has decreased by 28 percent in DFW, the region has seen $15.39 billion in commercial real estate deals close as of November.

Read more...DFW dethrones Manhattan as nation's top CRE investment market, new report says via Dallas Business Journal

Rental Applications Drop 10% in 2020 via Multifamily Executive Magazine

The COVID-19 pandemic has had a big impact on rents and leasing activity in 2020, according to RentCafe’s year-end report. To get the big-picture overview, the firm analyzed 5.8 million renter applications nationwide from RentGrow and rent data from Yardi Matrix.

The findings revealed several trends heading into 2021.

Rental activity has been 10% slower, with a shorter rental season that started after a two-month delay caused by stay-at-home orders. While the busiest renting season typically is from March to August, this year it didn’t kick off until May with a 27% monthly increase in renter activity. The moving season also was cut short, lasting for about two months, as renter movement dropped by 13% in July.

Read more...Rental Applications Drop 10% in 2020 via Multifamily Executive Magazine

Vaccine Approval Could Mark a Turning Point in CRE Price Discovery via NREI

Investors hoping to cash in on a COVID-19 pricing discounts may see opportunities slip away as emergency-use approval of the first vaccine against in the virus was granted to Pfizer and with availability expected to grow as other firms gain approvals in the coming weeks and months.

The coming widespread distribution of vaccines could very well prove to be the long-awaited light at the end of the tunnel for some struggling assets. Many buyers in the market have been hoping to negotiate at least some COVID-19 discount on pricing, even a slight five percent to 10 percent discount based on weaker rent growth. “I think there could still be some deals made in that range, but the combination of the vaccine outlook combined with more and more active liquidity in debt markets are going to make it more difficult to find those opportunities in the near term,” says David Bitner, head of Americas Capital Markets Research at Cushman & Wakefield.

Read more...Vaccine Approval Could Mark a Turning Point in CRE Price Discovery via NREI

U.S. Poised for Wave of Evictions in January as Federal Ban Expires via WSJ

Millions of U.S. renters face the prospect of eviction in January unless federal officials extend protections put in place during the Covid-19 pandemic.

That month is when the Centers for Disease Control and Prevention’s ban on evictions is set to expire. The moratorium protects tenants who have missed monthly rent payments from being thrown out of their homes if they declare financial hardship. The CDC ordered the halt on evictions under the Public Health Service Act, which allows the federal government to enact regulations that help stop the spread of infectious diseases.

Read more...U.S. Poised for Wave of Evictions in January as Federal Ban Expires via WSJ

Multifamily Rent Collections Down 24% in December via GlobeSt

Apartment rent payments continued to decline in December. As of December 10, rent collections were down 24% from March collections, according to research from Rentec Direct, which aggregates rent collection data to analyze the impact of the pandemic.

Rent payments continue to trend well below March collections; however, payments have improved since September 2020, when collections were 35% below March and a record low for the pandemic. In October collections were down 28%, and in November, payments were 27% below March.

Read more...Multifamily Rent Collections Down 24% in December via GlobeSt

ALN Monthly Market Stats December 2020 via ALN Apartment Data

ALN Data just released their November 2020 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 December 2020 via ALN Apartment Data

Mark Cuban: Dallas is best place in Texas for tech HQ relocations via Dallas Business Journal

The Dallas region’s most well-known tech entrepreneur stepped up for his own area after Austin got a big win with a massive database and software company.

Mark Cuban took to Twitter to talk up Dallas over the weekend and potential moves by companies out of Northern California. The post followed news that Oracle — sometimes called “Big Red” — was moving its headquarters out of the Silicon Valley and to Austin.

Read more...Mark Cuban: Dallas is best place in Texas for tech HQ relocations via Dallas Business Journal

Big-city apartment rents are seeing big declines during pandemic, except in Dallas via Dallas Morning News

Some big-city markets are seeing huge declines in apartment rents thanks to the COVID-19 pandemic.

Looking nationwide at one-bedroom units, monthly rents are still up about 1% from a year ago. But in some of the biggest U.S. apartment markets, there have been huge declines in monthly rental rates.

The biggest drops are in San Francisco, where the median rent on a one-bedroom apartment has fallen more than 27% during the last year.

Read more...Big-city apartment rents are seeing big declines during pandemic, except in Dallas via Dallas Morning News

Single-Family Permits Keep Climbing, Multifamily Levels Of via RealPage

Multifamily permits and starts have plateaued in recent months, while single-family activity has surged.

Roughly 365,000 building permits for multifamily construction were issued on a seasonally adjusted annual rate in October. Permit levels were down 5.9% from September and more than 30% from last year. Multifamily permits have plateaued, averaging at about 380,000 units since August.

Read more...Single-Family Permits Keep Climbing, Multifamily Levels Of via RealPage

Houston Economic Indicators December 2020 via Dallas Fed

Local employment data show further improvement in October, though Houston continued to lag the rest of Texas due to weakness in the energy sector. Higher-frequency data (number of hourly employees working) suggest that the recovery weakened in November and early December when accounting for the Thanksgiving holiday.

Read more... Houston Economic Indicators December 2020 via Dallas Fed

Dallas-Fort Worth Economic Indicators December 2020 via Dallas Fed

Dallas–Fort Worth’s recovery from the economic effects of COVID-19 progressed further in October. Payrolls expanded broadly, unemployment dipped and the Dallas and Fort Worth business-cycle indexes rose. Activity in the housing market remained a bright spot, characterized by soaring sales, prices and construction activity. Apartment rent collections in November slightly trailed both October and year-earlier levels.

Read more...Dallas-Fort Worth Economic Indicators December 2020 via Dallas Fed

A Look at Where the Multifamily Market Stands: NAREE via Multi-Housing News

As 2020 comes to a close, many in the multifamily industry are looking back on the unprecedented events of the year and how they impacted the market. During the National Association of Real Estate Editors’ annual conference Dec. 9-10, Editorial Director of Multi-Housing News and Commercial Property Executive Suzann Silverman moderated a panel in which she spoke to National Multifamily Housing Council’s Vice President of Research Caitlin Sugrue Walter on how multifamily fundamentals have fared this year compared to previous years and where things stand on major issues like rent collections and potential stimulus relief.

Read more...A Look at Where the Multifamily Market Stands: NAREE via Multi-Housing News

The Multifamily Industry Preps for Permanent Remote Work via GlobeSt

Before the pandemic, remote work was already growing in the US. In 2019, work-from-home employees accounted for as much as 11.9% of the total labor market. During the pandemic, that number has shot up to 35%, according to a new report from Newmark. While most of these workers will return to the office once the pandemic ends, it is clear that the remote-work segment of the market will grow significantly.

Read more...The Multifamily Industry Preps for Permanent Remote Work via GlobeSt

Where Value-Add Investing Stands via Multi-Housing News

The practice of purchasing an underperforming multifamily asset at a discount, implementing significant renovations and raising rental prices, has grown in popularity over the last several years. But like much else in the multifamily industry, value-add investment suddenly became the subject of uncertainty when COVID-19 took hold in early 2020.

Value-add apartment sales totaled $32 billion in transaction volume in 2018—16 percent of all multifamily deals—according to Real Capital Analytics. But the unpredictability of the pandemic caused many investors to pull back or put deals on pause, and to reexamine their business strategies. The second quarter represented the lowest multifamily investment sales for any quarter in almost a decade.

Read more...Where Value-Add Investing Stands via Multi-Housing News

These are the DFW cities with the most new apartments via Dallas Business Journal

Dallas-Fort Worth is forecast to construct more new apartment units in 2020 than any other U.S. metro area. If that happens, DFW will push 40,000 new units this year, topping the charts for the third consecutive year.

So far this year within DFW, Frisco, Carrollton, Farmers Branch, North Fort Worth and Addison are leading the way in terms of additional units built to date and cities with the most multifamily construction in the pipeline, according to an analysis by Richardson-based RealPage Inc.

Read more...These are the DFW cities with the most new apartments via Dallas Business Journal

Austin Economic Indicators December 2020 via Dallas Fed

The Austin economy continued to recover in October. The Austin Business-Cycle Index accelerated as recent job growth was positive in most industries, and the unemployment rate declined. Regional consumer spending continues to increase and is well above pre-COVID-19 levels. Office space demand continued to weaken, building permits deteriorated slightly and home inventories were unchanged.

Read more...Austin Economic Indicators December 2020 via Dallas Fed

Apartment Values are Coming Back via GlobeSt

When COVID hit, transactions in the apartment market, like many commercial real estate sectors, ground to a halt.

For a short period, there was a 5% to 10% discount on deals that did move in the summer, according to Noah E. Hochman, co-chief investment officer and head of Capital Markets for TruAmerica.

But that didn’t last long.

Read more...Apartment Values are Coming Back via GlobeSt

DFW cuts year-over-year job loss to under 100,000 for first time in pandemic era via Dallas Morning News

North Texas is making steady progress in recouping jobs lost during the COVID-19 era.

New data from the U.S. Bureau of Labor Statistics shows that Dallas-Fort Worth picked up nearly 62,000 jobs in October, the most recent month available, to cut its year-over-year losses to fewer than 100,000 for the first time since the pandemic began.

Read more...DFW cuts year-over-year job loss to under 100,000 for first time in pandemic era via Dallas Morning News

Multifamily Rent Trends are Back on Track via GlobeSt

Although this year’s peak season was significantly disrupted due to the COVID-19 pandemic, Apartment List’s national index has stabilized back to a more typical trend during the past few months. Rents fell by 0.5% last month, which is consistent with historical rental trends in which rents have declined 0.5% from October to November in each of the last three years. Year-over-year, national rents are now down 1.3%.

Read more...Multifamily Rent Trends are Back on Track via GlobeSt

Eleventh District Beige Book 12/2/20 via Dallas Fed

The Eleventh District economy expanded at a modest pace, but activity in most industries remained below normal levels. Recovery in the manufacturing, retail, and services sectors slowed. The housing market continued to outperform expectations, but office leasing remained weak. Overall loan volume fell, though residential real estate lending continued to be robust. Energy activity remained depressed but showed some signs of improvement. Employment rose modestly, and several firms said weak demand and uncertainty about the course of the pandemic and/or related regulations were a drag on hiring. Input costs rose moderately, while selling prices were flat to up slightly. Outlooks were generally positive but uncertain, with political uncertainty and the trajectory of the pandemic weighing heavily on growth expectations for 2021.

Read more...Eleventh District Beige Book 12/2/20 via Dallas Fed

Look at Which City is Leading the US in CRE Deals via GlobeSt

In a year of firsts, another record has been set in commercial real estate. In normal years, Manhattan would occupy the top spot for US transaction volume, hands down. At various times of market disruption, Los Angeles would topple Manhattan for shorter periods, but this year, Dallas has logged more time at the top of the leader board, or three consecutive quarters, than either city, according to research by Real Capital Analytics.

Read more...Look at Which City is Leading the US in CRE Deals via GlobeSt

Homebuyers Brace for Pain in a Post-Pandemic Market: Conor Sen via NREI

As coronavirus vaccines approach a widespread rollout, the next six months of economic activity are going to be dominated by the impact of society's growing immunity — and easing fears. Combined with historically low levels of housing inventory, that could make the traditional spring homebuying season a particularly frustrating one for buyers.

Read more...Homebuyers Brace for Pain in a Post-Pandemic Market: Conor Sen via NREI

In Brief: CBRE Outlook for 2021 Sees Strength in Industrial, Data Centers, and Multifamily via Urban Land Institute

CBRE has released the 2021 U.S. Real Estate Market Outlook, calling for a strengthened recovery of all U.S. commercial real estate sectors as the broader economy bounces back from the pandemic-induced recession and even as a potentially split federal government tempers fiscal stimulus plans.

Read more...In Brief: CBRE Outlook for 2021 Sees Strength in Industrial, Data Centers, and Multifamily via Urban Land Institute

CRE Prices Continue Their K-Shaped Recovery via GlobeSt

Commercial real estate prices continue to nudge along, or not, depending on their asset class. Their journey reflects a larger economic concept made popular in this recession: the K-shaped recovery, meaning that different parts of the economy are improving at different rates. While pricing in the retail and hospitality sectors continue to slide, apartment and industrial are posting gains, according to the RCA CPPI.

Pricing in the office sector sits between these two groups. Namely, for October, the US National All-Property Index rose 3.6% from a year ago, the apartment index rose 7.2% and the industrial index 8.5%. Retail prices were down 5.2% from a year prior. The office sector continued to fall at about a 1% annual rate, with suburban offices leading that slide, falling 1.6% year-over-year in October.

Read more...CRE Prices Continue Their K-Shaped Recovery via GlobeSt

Texas homeownership hits record high as sales surge via Dallas Morning News

The COVID-19 pandemic hasn’t put a pause on the increase in Texas homeowners.

The state’s homeownership rate just hit an all-time high of 70%, according to a new report from the Real Estate Center at Texas A&M University.

Texas' homeownership share now tops the nationwide rate of 67.4%. It’s the first time in eight years that Texas has surpassed the national average.

Read more...Texas homeownership hits record high as sales surge via Dallas Morning News

Apartment landlords lure renters with more freebies via Dallas Morning News

Renters searching for an apartment deal in North Texas won’t have to look far.

More than 41% of apartment properties are offering some kind of freebie to attract tenants, according to a new report from Zillow.

Apartment rental concessions in the Dallas-Fort Worth area and across the country have zoomed higher in the last year as landlords have scrambled to sign new tenants during the pandemic.

Read more...Apartment landlords lure renters with more freebies via Dallas Morning News

Texas Rebound Likely Slowed by Renewed COVID-19 Impact on Services, Retail via Dallas Fed

The Texas economy’s recovery from COVID-19 in the spring continues, though a resurgence of the virus likely contributed to a recent slowing of growth in the service and retail sectors.

Overall, Texas jobs grew at an annualized 3.6 percent in the third quarter, falling short of the national growth rate of 11.9 percent.

Read more...Texas Rebound Likely Slowed by Renewed COVID-19 Impact on Services, Retail via Dallas Fed

Suburbs Apartment Rents Close to Their Pre-Pandemic Peak via GlobeSt

Though the rental market in major cities has been hard hit by the Coronavirus pandemic—plagued with a mass migration by remote workers seeking larger homes, as well as relocations because of social distancing concerns—it appears that the suburbs have not just survived COVID-19’s wrath, they’re thriving in spite of it.

“While rents have declined steadily in the larger, denser, principal cities at the core of each metropolitan region, rents in the outlying suburban areas have, on the whole, rebounded to pre-pandemic levels,” according to a new report from Apartment List.

Read more...Suburbs Apartment Rents Close to Their Pre-Pandemic Peak via GlobeSt

ALN Monthly Market Stats November 2020 via ALN Apartment Data

ALN Data just released their October 2020 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 2020 via ALN Apartment Data

NMHC: Pandemic Continues to Impact Multifamily Construction via Multifamily Executive Magazine

The ongoing COVID-19 pandemic continues to affect multifamily development, according to the latest round of the National Multifamily Housing Council (NMHC) Construction Survey.

Conducted between Oct. 6 and Oct. 27, 57% of multifamily developer respondents reported construction delays in the jurisdictions where they operate. Out of this group, 90% reported delays in permitting, which is the greatest share seen in the five survey installments since the end of March.

Read more...NMHC: Pandemic Continues to Impact Multifamily Construction via Multifamily Executive Magazine

CBRE Chief Economist: Cap Rates Will Trend Down When Crisis Alleviates via GlobeSt

Despite seeing economic headwinds in the short-term, and fall-out from the Presidential election, CBRE Global chief economist and head of Americas research Richard Barkham anticipates a recovery starting to take place in 2021. The executive has authored a new paper on the firm’s outlook for next year and was interviewed last week for CBRE’s Weekly Take podcast.

GDP growth this year appears to be at minus 4%, he said, but “we’re looking at the reverse of that in 2021, somewhere between 4% and 5% GDP growth.”

Read more...CBRE Chief Economist: Cap Rates Will Trend Down When Crisis Alleviates via GlobeSt

Can Apartment Players Finally Exhale? via Multifamily Executive Magazine

After months of suffering because of the Coronavirus pandemic, the multifamily sector is finally getting not just one good report but, instead, a healthy batch of good news. Several indicators are pointing to a change in landlords’ near-term fortunes while, for both the medium and long-term, the beginnings of a recovery are expected to emerge.

The number of rent payments received this month increased from October collections, albeit only by 1%, according to a new report from Rentec Direct.

Read more...Can Apartment Players Finally Exhale? via Multifamily Executive Magazine

We’re On Track to be a Renter Nation Again via GlobeSt

When the Great Recession sent scores of Americans out of their homes and Millennials began to move out on their own, renting took off in the early 2010s.

By the mid-2010s, 111 million people were renting in the US, according to RENTCafe.com.

Then, for the first time since 2004, the number of renters declined in 2016, ticking down 0.1%, according to RENTCafe.com. Since then, the renter population has been on a downward trend, decreasing by 1% in 2019.

Read more...We’re On Track to be a Renter Nation Again via GlobeSt

Why Apartment Rents Have Remained Strong Through the Pandemic via GlobeSt

Apartment rent payments overall have remained stable throughout the pandemic—a welcome surprise considering the rapid increase in unemployment. The reason? Renters have been prioritizing rent payments. This is according to Freddie Mac, which recently reviewed several apartment rent data sources, including National Multifamily Housing Council, The Household Pulse Survey, LeaseLock, Apartment List and National Association of Real Estate Investment Trusts.

Read more...Why Apartment Rents Have Remained Strong Through the Pandemic via GlobeSt

Apartment Demand Declines as Young Adults Return Home for the Pandemic via GlobeSt

The pandemic has driven gen-Z and millennials back home to live with parents or relatives— a trend that will negatively impact apartment demand, according to a new report from Marcus & Millichap.

Unemployment has been the biggest driver of young adults moving home, but college closures have also had an impact. In April and May, there was an increase in young adults age 18 to 34 moving home, and by June, 27.7 million young adults had moved home, according to Marcus & Millichap.

Read more...Apartment Demand Declines as Young Adults Return Home for the Pandemic via GlobeSt

Austin Economic Indicators November 2020 via Dallas Fed

The Austin economy continued to recover in September, although the pace of growth slowed. The Austin Business-Cycle Index decelerated. Job growth was broad based in the third quarter, but the unemployment rate recently ticked up. Regional consumer spending since mid-July continues to hold at pre-COVID-19 levels. Existing-home sales and building permit activity posted strong performances, and home inventories declined to a record low.

Read more...Austin Economic Indicators November 2020 via Dallas Fed

What Pandemic? CRE Prices Notch Up via GlobeSt

Right now, many commercial real estate investors are sitting and waiting for distressed deals.

But a look at the September US RCA CPPI National All-Property Index from Real Capital Analytics suggests they might have to wait a little longer.

The RCA CPPI rose just 1.4% year-over-year in September. To be sure, some investors have taken haircuts.

Read more...What Pandemic? CRE Prices Notch Up via GlobeSt

Multifamily Rents Declined at Record Pace in Q3 via GlobeSt

Job losses, combined with the expiration of unemployment benefits, may finally be taking its toll on the apartment market.

After multifamily held up reasonably well in Q2, national asking and effective rents declined at a record pace in the third quarter, falling by 1.8% and 1.9%, respectively, according to Moody’s Analytics REIS. That is the largest quarterly decline since 1999 when the company began publishing quarterly data. Before 2020, the most significant decrease occurred in Q4 2001—right after 9/11.

Read more...Multifamily Rents Declined at Record Pace in Q3 via GlobeSt

Small Apartment Pricing Improves in Q3 via GlobeSt

Throughout the COVID-19 recession, it has been anticipated that smaller apartment owners would bear the brunt of the problems in the multifamily sector.

If rent payments are late or units are empty, there are fewer apartments to spread that revenue loss over. Also, many tenants in smaller apartments are likely to have lost jobs in this recession.

Read more...Small Apartment Pricing Improves in Q3 via GlobeSt

Houston Economic Indicators November 2020 via Dallas Fed

Houston’s recovery from the pandemic progressed further in September and October. Houston continued to add jobs in September, and staffing levels in small firms and mobility and engagement improved in October. Existing-home sales have been a bright spot. However, business bankruptcies and vacancy rates for commercial real estate worsened in the third quarter.

Read more... Houston Economic Indicators November 2020 via Dallas Fed

Real Estate Investors Adopt Divergent Strategies Amid Uncertainty via NREI

More than six months into the 2020 recession caused by the global health crisis, questions at the forefront for commercial real estate are how much investors dial back their economic outlook, property performance expectations and their plans to invest more capital. Yet the latest edition of the NREI / Marcus & Millichap Investor Sentiment Survey yields a surprising mix of both positive and negative views.

The Investor Sentiment Index has proved to be a reliable barometer for views on the commercial real estate industry across its more than 16-year history. Investor sentiment dropped sharply from 166 just ahead of the pandemic in the first half 2020 survey to 140 in the current second half survey that polled industry participants in late-August.

Read more...Real Estate Investors Adopt Divergent Strategies Amid Uncertainty via NREI

Multifamily Rides Out Pandemic With Minimal Changes via GlobeSt

In her new role as head of Agency Finance at Capital One, Kate Byford has wide visibility in the apartment sector.

The sector, like every part of the economy right now, faces headwinds. But Byford, who came to Capital One as senior vice president before serving as head of Capital Markets and Multifamily Operating Officer for Capital One Multifamily Finance, likes its long-term prospects.

Read more...Multifamily Rides Out Pandemic With Minimal Changes via GlobeSt

A Closer Look at Multifamily’s Widening Cracks via GlobeSt

Six months ago in the pre-pandemic world, concerns about matters such as rental growth stagnation for the multifamily asset class would have been laughable. Even as COVID-19 began to spread within the US, multifamily properties held their own, however more recently, a slightly different picture has emerged and cracks in the asset class have begun to widen. GlobeSt.com takes a closer look at what was once a seemingly unassailable asset class.

Read more...A Closer Look at Multifamily’s Widening Cracks via GlobeSt

Apartment building permits are dropping in D-FW and the U.S. via Dallas Morning News

The pandemic is a continuing drag on North Texas building starts.

Permits for new Dallas-Fort Worth apartment construction were down again in September.

“Dallas multifamily permits are down almost 20% from last year, but the market remains in the top five nationally with more than 13,300 units permitted for construction in the year ending in September,” RealPage’s Chuck Ehmann wrote in a new report. "Multifamily permitting has slowed even further in Fort Worth, which was down 29% from last September with 5,699 units permitted.

Read more...Apartment building permits are dropping in D-FW and the U.S. via Dallas Morning News

The Supply-Demand Imbalance Still Makes Multifamily an Attractive Investment via GlobeSt

Before the pandemic struck, the multifamily market suffered from a severe supply-demand imbalance that fueled an affordability crisis both nationally and in states like California. Nothing has changed. The supply-demand imbalance remains, and the pandemic has only exacerbated the problem. As a result, multifamily remains an attractive investment bet.

“Multifamily has long been a favored asset class, in large part because of an extreme supply/demand imbalance. The home ownership rate plummeted—from about 69% to 64%—since the Great Financial Crisis causing millions of American homeowners to rent,” Mitch Siegler, senior managing director and co-founder of Pathfinder Partners, tells GlobeSt.com.

Read more...The Supply-Demand Imbalance Still Makes Multifamily an Attractive Investment via GlobeSt

Texas Manufacturing Outlook Survey October 2020 via Dallas Fed

Texas factory activity expanded in October for the fifth month in a row following a record contraction due to the COVID-19 pandemic, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, rose three points to 25.5, indicating a slight acceleration in output growth.

Read more...Texas Manufacturing Outlook Survey October 2020 via Dallas Fed

Dallas-Fort Worth Economic Indicators October 2020 via Dallas Fed

The DFW economy continued to expand in September, although the pace of growth slowed from August. Job growth moderated, and the unemployment rate increased. Movement in the Dallas and Fort Worth business-cycle indexes was mixed. Activity in the housing market remained robust. Apartment demand picked up in the third quarter, while office leasing activity weakened further.

Read more...Dallas-Fort Worth Economic Indicators October 2020 via Dallas Fed

15 U.S. Cities Most Popular with Millennial Renters via NREI

In the following cities, millennials have been filling out more than a third of all apartment rental applications.

Millennials are the largest living generation in size and are increasingly taking up a greater share of the U.S. workforce. For this reason, commercial real estate professionals are keeping close tabs on where millennials prefer to live, especially as a large portion of them continues to rent rather than own their homes. Last year, 18.4 million of the estimated 45.9 million households that rent apartments identified as millennials, according to the Pew Research Center.

Read more...15 U.S. Cities Most Popular with Millennial Renters via NREI

Rents Plummet on Urban Apartments via NREI

Thousands of apartments stood empty in August 2020 that had been occupied only a few months before in urban cores across the country, including in previously white-hot markets like San Francisco and New York.

Desperate owners have been dropping rents and offering eye-popping concessions and optimizing on-site amenities in attempts to lure tenants. But it’s not nearly been enough to offset the trend of residents relocating to more spacious and less expensive markets as well others, including many young renters, who have lost jobs and moved back home to live with their parents.

Read more...Rents Plummet on Urban Apartments via NREI

Yardi: Rent Growth Falls by 0.3% YOY in September via Multifamily Executive Magazine

The national average multifamily rent rose by $1 in September, up to $1,463 overall, according to the latest Multifamily National Report by Yardi Matrix. Despite initial fears, rents have only risen or fallen by a few dollars each month since the beginning of the COVID-19 pandemic, amounting to an $8 rent decline overall since February.

Read more...Yardi: Rent Growth Falls by 0.3% YOY in September via Multifamily Executive Magazine

Texas Multifamily Still Attractive to Global Apartment Investors via Realty News Report

The coronavirus pandemic has taken a chunk out of another American real estate market. But Texas was still able to find some good in the depressing numbers

CBRE’s U.S. Multifamily Inbound Investment Trends report for the first half of 2020 says global spending in the U.S. multifamily sector decreased by 49.2% year-over-year from the first half of 2019. Outside-the-U.S. investors purchased $3.1 billion in multifamily property during the first six months of 2020.

Read more...Texas Multifamily Still Attractive to Global Apartment Investors via Realty News Report

Eleventh District Beige Book 10/21/20 via Dallas Fed

Economic growth resumed in the Eleventh District after a spike in COVID-19 infections over the summer disrupted the budding recovery. Growth in the services and manufacturing sectors picked up pace in September, and retail sales increased. However, revenues remained well below normal levels in most industries. The housing market continued to perform well. In the banking sector, real estate lending picked up further but was offset by declines in consumer and commercial and industrial loan volumes, and most contacts expect an increase in nonperforming loans over the next six months. Energy activity remained depressed but started to show some signs of improvement. Employment in the district edged higher, with increasing reports of hiring. Input costs rose modestly while selling prices were flat to up slightly. Outlooks were largely positive but highly uncertain, particularly with regard to the presidential election and the unknown trajectory of the COVID-19 pandemic.

Read more...Eleventh District Beige Book 10/21/20 via Dallas Fed

Class A Apartments in Top Markets Are Leading the Rise in Concessions via GlobeSt

Apartment concessions are increasing in the nation’s most expensive markets. The coronavirus pandemic has undoubtedly put pressure on the apartment market, and many metros are seeing an increase in concessions as a result. However, metros with higher rent levels and also more construction are seeing a substantially higher increase in concessions than lower priced metros, according to research from Fannie Mae.

Read more...Class A Apartments in Top Markets Are Leading the Rise in Concessions via GlobeSt

Texas Adds 40,700 Nonfarm Positions Over the Month via Texas Workforce Commission

The Texas unemployment rate rose to 8.3 percent in September, after dipping from the high of 13.5 percent in April 2020 when the peak of COVID-19 impacts occurred. The increase was due to the civilian labor force shrinking as the number of individuals actively looking for work contracted, while the unemployed rose.

Read more...Texas Adds 40,700 Nonfarm Positions Over the Month via Texas Workforce Commission

Time’s up: After a reprieve, a wave of evictions expected across U.S.​ via Reuters

On Sept. 1, U.S. health officials announced they would suspend evictions across the United States to help stem further spread of the novel coronavirus.

That was three days too late for Latrise Bean.

About 72 hours before the declaration by the U.S. Centers for Disease Control and Prevention (CDC), Bean, 35, was ordered evicted from her Milwaukee apartment. She’d lived there for three years despite the sagging ceilings, smell of urine in the hallways and homeless squatters in the basement - because it was all she could afford.

Read more...Time’s up: After a reprieve, a wave of evictions expected across U.S. via Reuters

Vast majority of D-FW renters are keeping up with payments via Dallas Morning News

The number of renters falling behind in payments due to the pandemic continues to grow slowly.

But Dallas-Fort Worth fares much better.

As of Oct 13, 86.8% of tenants in apartments owned by major landlords had paid their monthly rent, according to the National Multifamily Housing Council, which represents more than 11 million U.S. rental units.

Read more...Vast majority of D-FW renters are keeping up with payments via Dallas Morning News

Despite Overall Economic Struggles, Multifamily Foundation Looks Strong via Multifamily Executive Magazine

While the fundamentals are adjusting for the multifamily market, the foundation is still solid, and industry experts are optimistic looking ahead to the long term.

“As we go through this economic cycle and we look over the next year or two, I’m very optimistic about how multifamily is going to play out because I think the demand is going to remain extremely high,” John Sebree, senior vice president, national director at Marcus & Millichap, told attendees during the virtual Multifamily Executive Conference's Economic Outlook session at the end of September. “We can have a quarter or two that is soft with some uncertainty, but the underlying fundamentals are very strong.”

Read more...Despite Overall Economic Struggles, Multifamily Foundation Looks Strong via Multifamily Executive Magazine

D-FW ranks as one of the top U.S. property markets for 2021 via Dallas Morning News

For the second year in a row, Austin outshines Dallas-Fort Worth in a long-running real estate beauty contest.

But the real star of the annual “Emerging Trends in Real Estate” report is Raleigh-Durham, N.C., which was voted the top metro market to watch in the year ahead.

Read more...D-FW ranks as one of the top U.S. property markets for 2021 via Dallas Morning News

Demand Returns in Q3, but Rent Growth Lags via ALN Apartment Data

The holiday season approaches, and another quarter is in the books. The second quarter was a rough one for multifamily, as with the broader economy, but some positive signs emerged in the last few months. This month we take a closer look at Q3 performance and, as always, numbers will refer to conventional properties of at least 50 units.

Read more...Demand Returns in Q3, but Rent Growth Lags via ALN Apartment Data

Multifamily Stabilization Weighed Down By Rising Concessions via GlobeSt

The multifamily market is beginning to show signs of improvement and stabilization—but still has challenges ahead in certain areas, such as a rising level of concessions.

A new report from MRI Real Estate Software found that move-in numbers have improved, behind only 3% compared to last year as of September. On the other hand, concession volume is up 21% compared to last year, while concessions values are up 13%. Since April, concession values have increased 82%.

Read more...Apartment Leasing Rebounds to Normal Levels via GlobeSt

ALN Monthly Market Stats October 2020 via ALN Apartment Data

ALN Data just released their September 2020 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 October 2020 via ALN Apartment Data

Austin Multifamily Report – Summer 2020 via Multi-Housing News

Austin’s multifamily market displayed weakening fundamentals in the second quarter, but was kept afloat with help from the growing presence of tech companies. Still, the pandemic’s impact and high number of completions have pressured rents, which contracted 0.2 percent to $1,372 on a trailing three-month basis through July. Meanwhile, the occupancy rate in stabilized properties was down 90 basis points in 12 months, to 94.0 percent as of July.

Read more...Austin Multifamily Report – Summer 2020 via Multi-Housing News

Some Multifamily Borrowers are Struggling to Find Small Balance Loans via NREI

Amid the broader challenges facing the commercial real estate market, many investors who own smaller apartment buildings are struggling to find financing in the current climate.

Many of the banks these sorts of investors rely on to finace deals have become more cautious in the pandemic—especially because smaller apartment buildings are more likely than larger properties to have residents hurt by the crisis that are falling behind in rent. Facing potential distress on existng loans, some banks are lowering origination volumes and hesitating to make new loans. Meanwhile, for the deals that are getting done, terms are becoming more stringent.

Read more...Some Multifamily Borrowers are Struggling to Find Small Balance Loans via NREI

DFW apartment rent payments down roughly 3% from year ago, but outpacing nation via Dallas Business Journal

Some 79.4 percent of national apartment households and more than 87 percent in Dallas-Fort Worth had paid their rent for October by the 6th of the month — a relatively healthy sign for the multifamily industry, which feared rent payments would plunge because of job loss and other ramifications associated with the pandemic.

Read more...DFW apartment rent payments down roughly 3% from year ago, but outpacing nation via Dallas Business Journal

Multifamily Permits Remain Muted as Single-Family Ramps Up via RealPage

Multifamily permit volumes declined by double digits in August, while single-family permitting is on the rise.

Building permits for multifamily construction fell to 381,000 units on a seasonally adjusted annual rate in August, down 17.4% from July and 28.5% below the rate from last August. Current rates are well below recent averages.

Read more...Multifamily Permits Remain Muted as Single-Family Ramps Up via RealPage

Multifamily: An Unassailable Asset Class Develops Some Cracks via GlobeSt

As a provider of joint venture and general partner equity, real estate investment firm RanchHarbor has been seeing an influx lately of multifamily investment opportunities presented by sponsors as value-add. However, upon a closer look at the underwriting, these deals do not actually fit the typical value-add investment profile, says Adam Deermount, co-founder and managing director of the company. Instead, these opportunities end up being cap rate compression plays under the guise of value-add and are priced to perfection in today’s market. “Most of the return on investment is generated by rent inflation buoyed in the early years of the investment by positive debt service arbitrage due to interest only terms,” Deermount says.

Read more...Multifamily: An Unassailable Asset Class Develops Some Cracks via GlobeSt

US will ‘become a renter nation,' says real estate investor via Yahoo News

Rising home prices are keeping prospective buyers out of homeownership — and some investors say it could be good for the rental market.

High demand, low supply and low mortgage rates have driven up home prices to historic highs this summer. And for every $1,000 price increase, some 150,000 potential buyers are priced out of a home purchase — keeping them in the rental market.

Read more...US will ‘become a renter nation,' says real estate investor via Yahoo News

Exclusive Research: Waiting for the Worst to Pass via NREI

Exclusive research results from NREI’s seventh annual multifamily survey show that industry participants have dialed back expectations on performance and access to capital. Yet they continue to view multifamily favorably relative to other property types.

“People generally view multifamily as being more resilient, and that is playing out in the data as well,” says Mike Sebastian, industry principal, investment management at commercial real estate software firm AppFolio Inc.

Read more...Exclusive Research: Waiting for the Worst to Pass via NREI

CRE Struggles to Adapt to a K-Shaped Recovery via GlobeSt

The lopsided nature of the K-shaped recovery continues to impact commercial real estate in varying ways.

At its heart is the dichotomy between higher-paid workers, who are weathering the recession and lower-paid laborers that are struggling.

“Individuals with less education were more than twice as likely to be out of work as college graduates,” according to Marcus & Millichap in a new research brief.

Read more...CRE Struggles to Adapt to a K-Shaped Recovery via GlobeSt

More DFW commercial properties are coming back to market, experts say via Dallas Business Journal

After shelter-in-place brought the commercial investment market to a near standstill in March, sellers and would-be buyers are both out in the market again looking to get deals done.

"There was really not a whole lot happened in April, May and June. Then, about 60 days ago, our RFP and (broker opinion of value) activity really picked up. We're starting to see deals come out from that," said Todd Savage, managing director of Capital Markets for JLL's Dallas office.

Read more...More DFW commercial properties are coming back to market, experts say via Dallas Business Journal

D-FW apartment leasing surges after slowdown early in the pandemic via Dallas Morning News

Dallas-Fort Worth’s apartment market turned its back on the pandemic with a surge in third-quarter leasing activity.

Net apartment leasing in North Texas totaled almost 9,000 units — the most of any U.S. metro area, according to the latest survey by RealPage.

Leasing more than doubled from the 3,832 net apartment total in the previous quarter, which reflected the worst of the COVID-19 shutdown.

Read more...D-FW apartment leasing surges after slowdown early in the pandemic via Dallas Morning News

Austin Economic Indicators October 2020 via Dallas Fed

The Austin economy continued to improve in August. The Austin Business-Cycle Index accelerated. While jobs and the unemployment rate improved in June, July and August, neither metric has returned to its March level. Regional consumer spending since mid-July held at pre-COVID-19 levels. Existing-home sales dipped but remained strong, and building permits rose.

Read more...Austin Economic Indicators October 2020 via Dallas Fed

Apartment Rents Have Dropped in Nearly Half of the Top 100 Markets via GlobeSt

Rents are declining in markets across the country. A new national apartment rent report from the Apartment List shows that rents have declined in 41 of the top 100 markets in the country since the onset of the pandemic in March. San Francisco, New York and Seattle have seen the steepest decline in rental rates, with 17.8%, 11.6% and 9.9% drops in average rent, respectively. This has cleared all of the rent growth from the last year in those markets.

Read more...Apartment Rents Have Dropped in Nearly Half of the Top 100 Markets via GlobeSt

Which Apartment Residents Are Most Affected by Job Losses? via National Multifamily Housing Council

Millions of Americans have filed for unemployment insurance since the outbreak of COVID-19 in mid-March, resulting in four consecutive months of double-digit unemployment rates (the U.S. unemployment rate improved to 8.4 percent in August). But not all industries have been affected equally.

In this issue of Research Notes, we identify which occupations have faced the most significant job losses during to the COVID-19 pandemic and, of those, which employ the greatest number of apartment residents. We also examine what metro areas have the highest concentrations of apartment residents in affected occupations.

Read more...Which Apartment Residents Are Most Affected by Job Losses? via National Multifamily Housing Council

Dallas-Fort Worth Economic Indicators September 2020 via Dallas Fed

The Dallas–Fort Worth economy expanded in August. Payrolls rose strongly, and the unemployment rate dipped further; however, the recovery has been uneven across sectors. Initial unemployment claims also continued their downward trend but remained elevated. The Dallas and Fort Worth business-cycle indexes rose. Homebuilding activity reversed course, rising strongly in the summer. Apartment rent collections in the first three weeks of September slightly trailed year-earlier levels.

Read more...Dallas-Fort Worth Economic Indicators September 2020 via Dallas Fed

Houston Economic Indicators September 29, 2020 via Dallas Fed

Indexes of economic activity for Houston continued to show growth over the second half of the summer thanks to a boost from the services sector. However, the pace of the recovery in the region has slowed, due mostly to ongoing weakness in the energy sector that is weighing down Houston’s recovery relative to Texas and the nation. Taken together, these data suggest that while Houston’s recovery is likely to continue, it will lag the state.

Read more... Houston Economic Indicators September 29, 2020 via Dallas Fed

Dallas-area apartment building permits are down via Dallas Morning News

The Dallas area had the largest drop in permits for new apartments of any of the 10 largest U.S. markets.

But the local decline was significantly less than the nationwide fall off in multifamily building permits in August compared with a year ago, U.S. census figures show.

Read more...Dallas-area apartment building permits are down via Dallas Morning News

Rent Payment Struggles Continue via Multi-Housing News

More than six months into the coronavirus pandemic, multifamily trade groups and advocates are worried about the cascading effects of falling rent payments.

While some reports have found that collections haven’t dropped as drastically as many had feared, numbers are still down from the same time last year. And with federal rent relief measures stalled in Congress, the expiration of additional unemployment benefits and continued job losses across the country, industry leaders fear the worst is yet to come.

Read more...Rent Payment Struggles Continue via Multi-Housing News

Low Interest Rates Still Aren’t Moving the Needle for CRE Buyers via GlobeSt

Interest rates may be at record lows, but that is not enough to spark CRE sales activity.

Normally, low interest rates would stimulate commercial real estate investment, but that isn’t the case in 2020, according to Real Capital Analytics.

RCA’s US Capital Trends shows that these low rates have not resulted in new acquisitions. National sales activity fell 68% year-over-year in August. Transactions are down 36% for the year to date.

Read more...Low Interest Rates Still Aren’t Moving the Needle for CRE Buyers via GlobeSt

Apartment rents sliding in Dallas and other markets via Dallas Morning News

Apartment rents are sliding in many U.S. markets — including the Dallas area — as landlords offer concessions to lure tenants.

Rental communities around the country have come under increasing pressure during the COVID-19 outbreak but so far have not suffered significant declines in occupancy, according to a report from RealPage.

Read more...Apartment rents sliding in Dallas and other markets via Dallas Morning News

Homeownership Becomes Less Affordable for Average Workers via GlobeSt

In spite of wage growth and a decline in mortgage rates, other market factors are placing home ownership out-of-reach for many Americans than ever before.

Sharp increases in single-family home prices are moving faster than increasing wages and historic dips in mortgage rates, according to ATTOM Data Solutions. As a result, a greater percentage of wages is needed to buy a home, and affordability has decreased in a large swath of the nation.

Read more...Homeownership Becomes Less Affordable for Average Workers via GlobeSt

'A 3,000% increase in activity’: Commercial real estate listings rise as D-FW owners leave the sidelines via Dallas News

Warehouses at DFW International Airport, landmark buildings in downtown Dallas, Uptown high-rises — the list of major properties just listed for sale is growing.

During the early months of the COVID-19 pandemic, commercial property sellers headed for the sidelines. Now that the local economy is starting to rebound, more investment properties are coming up for sale.

Read more...'A 3,000% increase in activity’: Commercial real estate listings rise as D-FW owners leave the sidelines via Dallas Morning News

Landlords Report a 75% Rise in Evictions Since the Start of COVID-19 via Multifamily Executive Magazine

More than half of residential tenants are currently struggling to pay their rent, largely as a result of the COVID-19 pandemic, according to a new survey of property managers released by real estate technology company Snappt. One-quarter of these residents are paying late, while 17% pay less than full rent and 11% have stopped paying altogether.

Respondents to the 2020 Effects of the COVID-19 Pandemic on Residential Rentals Survey reported that evictions have risen by 75% since the start of the COVID-19 pandemic, with a current eviction rate of 21%.

Read more...Landlords Report a 75% Rise in Evictions Since the Start of COVID-19 via Multifamily Executive Magazine

Texas Economy Improves Despite Lagging Sectors as COVID-19 Cases Decline via Dallas Fed

Continued growth is projected for the rest of the year, but it may be somewhat restrained by the expiration of federal stimulus programs and election uncertainty. Small-business closures may accelerate if the economy doesn’t strengthen sufficiently.

Risks to the outlook are to the downside and include a possible resurgence of the virus and sustained lower oil prices. Early arrival of a safe and effective COVID-19 vaccine would be a game changer, although it would take time for broad dissemination and administration.

Read more...Texas Economy Improves Despite Lagging Sectors as COVID-19 Cases Decline via Dallas Fed

Renters more pessimistic than homeowners during economic downturn via Real Estate Center

The Census Bureau has released phase two of its Household Pulse Survey (HPS) after a month-long hiatus. This round includes new questions regarding respondent sentiments on the likelihood of either eviction or foreclosure.

Throughout the summer, the HPS revealed a stark difference in optimism between homeowners and renters. Texas homeowners typically felt more likely to be able to make their next housing payment than renters.

Read more...Renters more pessimistic than homeowners during economic downturn via Real Estate Center

Apartment Leasing Rebounds to Normal Levels via GlobeSt

The pandemic immediately impacted apartment leasing activity, but about six-weeks into the pandemic, leasing activity rebounded to normal levels. Quarantine, distance learning and work-from-home policies encouraged people to move to more accommodating homes, driving leasing demand. However, the leasing process has changed since the onset of the pandemic, and those changes—virtual leasing—will take longer to return to normal.

Read more...Apartment Leasing Rebounds to Normal Levels via GlobeSt

How Some Multifamily Metrics Can Mislead in This Current Environment via GlobeSt

As a provider of joint venture and general partner equity, real estate investment firm RanchHarbor has been seeing an influx lately of multifamily investment opportunities presented by sponsors as value-add. However, upon a closer look at the underwriting, these deals do not actually fit the typical value-add investment profile, says Adam Deermount, co-founder and managing director of the company. Instead, these opportunities end up being cap rate compression plays under the guise of value-add and are priced to perfection in today’s market.

“Most of the return on investment is generated by rent inflation buoyed in the early years of the investment by positive debt service arbitrage due to interest only terms,” Deermount tells GlobeSt.com.

Read more...How Some Multifamily Metrics Can Mislead in This Current Environment via GlobeSt

We Are Living in the Weirdest Real Estate Market Ever via D Magazine

Nothing is normal in this year of the pandemic. That includes Dallas’ housing market, which is hot in a really strange way. One real estate agent describes the situation as “a near frenzy.” Another calls it simply “weird.”

Back in early March, it was neither. It was normal. Houses were selling at a brisk pace. The market wasn’t as hot as it was in, say, 2016, but sellers were still making a buck and buyers had to work to find a deal. Then the coronavirus arrived.

Read more...We Are Living in the Weirdest Real Estate Market Ever via D Magazine

Top Texas Metros for Multifamily Development in 2020 via Multi-Housing News Online

The Texas job market performed strongly before the onset of the pandemic, with all three of its major markets showing up across rankings related to economic and demographic development. This created substantial demand for apartments, pressuring developers to keep up. Land availability, a friendly business climate, good weather and a high quality of life, all contributed to the rapid expansion of the state’s rental market.

Read more...Top Texas Metros for Multifamily Development in 2020 via Multi-Housing News Online

The Strain on Apartment Renters Intensifies as Pandemic Wears On via GlobeSt

The strain on apartment renters is increasing as the pandemic continues. Research from Apartment List found that more than 30% of apartment renters in the US owed back rent payment in September. The number was nearly unchanged compared from August. About half of renters owe less than $1,000 and only 5% owe more than $2,000; however, the report suggests that another round of stimulus checks would be helpful if not necessary to help renters settled these debts and to help landlords recoup losses.

Read more...The Strain on Apartment Renters Intensifies as Pandemic Wears On via GlobeSt

Freddie Mac Multifamily Index Turns Negative via GlobeSt

The Freddie Mac Multifamily Apartment Investment Market Index fell by 0.3% in the second quarter, after posting a quarterly increase of 1.8% in the first quarter of 2020. NOI also fell, by 1.2%, marking the first time in index history where AIMI and NOI were negative together in the second quarter.

AIMI combines multifamily rental income growth, property price growth and mortgage rates to provide a single index that measures multifamily market investment conditions.

Read more...Freddie Mac Multifamily Index Turns Negative via GlobeSt

Adjustments in Pricing Lag a Decline in Property Values via NREI

One thing that buyers and sellers can agree on these days is that there has been a reset in property values across many sectors and geographic markets. Yet the sticking point that continues to stall transactions is determining exactly how much of a discount should be applied.

Pricing is relatively transparent when the market is gliding along with stable conditions, which makes it which makes it easy to gauge values.

Read more...Adjustments in Pricing Lag a Decline in Property Values via NREI

Lenders Appetite for Commercial Property Debt Dwindles via GlobeSt

Commercial property activity has declined substantially this year, but it isn’t for lack of demand. Cash equity seeking commercial property deals is at an all-time high, according to data from Reonomy. At the close of 2019, there was $147 billion in cash equity available for commercial property acquisitions, and in the first half of 2020, nearly $24 billion had been raised. However, lender appetite for commercial property debt has dwindled, and the lack of debt financing had impacted commercial property investment.

Read more...Lenders Appetite for Commercial Property Debt Dwindles via GlobeSt

Apartment Tenants Are Transitioning to Short-Term Leases via GlobeSt

Apartment tenants with pending renewals are beginning to opting for short-term or month-to-month leases rather than long-term leases, according to the latest survey from the National Apartment Association, which found that nearly 35% of landlords said that some portion of tenants renewing leases signing short-term lease structures. The previous monthly report—this latest survey was conducted from July 20 through July 24—did not address short-term lease structure, however, the data notes that tenants’ preference for short-term leases has been increasing since March.

Read more...Apartment Tenants Are Transitioning to Short-Term Leases via GlobeSt

Texas unemployment fell to 6.8% in August as state added 106,800 jobs via Dallas Morning News

Texas' unemployment rate fell again in August to 6.8% as the state added 106,800 jobs over the month, according to new data from the Texas Workforce Commission.

The state unemployment rate for August is below the seasonally adjusted national unemployment rate of 8.4%. In July, Texas' unemployment rate was 8%.

Read more...Texas unemployment fell to 6.8% in August as state added 106,800 jobs via Dallas Morning News

Yardi: Multifamily Rents See Second Consecutive Month of Growth via Multifamily Executive Magazine

U.S. average rent growth saw a second consecutive month of continued growth in August, creeping up by an average of $1 to $1,463. However, on a year-over-year basis, rents decreased 0.3% in August, unchanged from July.

However, with millions of Americans unemployed, it’s still unclear what the remainder of the year will hold for the multifamily industry, according to the latest Yardi Matrix National Multifamily Report.

Read more...Yardi: Multifamily Rents See Second Consecutive Month of Growth via Multifamily Executive Magazine

ALN Monthly Market Stats September 2020 via ALN Apartment Data

ALN Data just released their August 2020 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 2020 via ALN Apartment Data

Apartment Rent Collections Continue to Decline via GlobeSt

Multifamily fundamentals continue to show signs of distress in the wake of the widespread job and economic losses created by the Coronavirus.

The latest report from the National Multifamily Housing Council’s Rent Payment Tracker, which measures the number of apartment households that make a full or partial rent payment, shows a drop of 2.4%—or 279,457 households—year-over-year, as well as a monthly decline. According to the NMHC Tracker, 86.2% of apartment households made a full or partial rent payment by September 13, compared to 86.9% that paid by August 13 of this year.

Read more...Apartment Rent Collections Continue to Decline via GlobeSt

Multifamily Lease Pricing Down As Properties Opt for Shorter-Term Incentives via GlobeSt

Pricing for new apartment leases was down 5% in August from the prior year and lease renewals for under 12 months were on the rise, according to a monthly report on Covid-19’s impact on multifamily housing from MRI Software.

The August drop in new lease pricing continues a trend from July, with properties using shorter-term pricing incentives for leases of less than a year. This shows “good expiration management practices” to protect summer 2021 leases and avoid late-year expirations, said the MRI Software report, which is based on data from its property management software users.

Read more...Multifamily Lease Pricing Down As Properties Opt for Shorter-Term Incentives via GlobeSt

Apartment construction rebounds from pandemic slowdown via Dallas Morning News

Apartment construction activity is bouncing back after declines early in the COVID-19 pandemic.

After big drops in building in April, May and June, nationwide permits for new apartments and multifamily projects saw a surge in July, according to a new report from RealPage.

Read more...Apartment construction rebounds from pandemic slowdown via Dallas Morning News

The flip side of Trump's eviction ban: Landlords face big crunch via Politico

The White House’s move to ban evictions across the country during the coronavirus crisis is having an unintended side effect: It's threatening the livelihood of millions of landlords.

The sweeping order effectively requires landlords to subsidize distressed tenants’ housing through the end of the year or face criminal penalties and hefty fines. That’s a tall order for the country’s 8 million independent landlords — most of whom lease a unit here or there on property they own without the financial backing of professional management companies.

Read more...The flip side of Trump's eviction ban: Landlords face big crunch via Politico

The Pandemic Stifles Rent Growth in Urban Apartments via GlobeSt

Even before COVID-19, apartments in some downtown locations were facing pressure from new supply. Eighty percent of 611,000 units under construction are at the top end of the market, according to CoStar Group.

“I think we’ve been talking about this on the multifamily side for a while,” says CoStar Portfolio Strategy Senior Consultant Juan Arias. “There was going to be a significant supply overhang, specifically in luxury urban multifamily, if a recession came. They were building a lot of apartments. Before the pandemic, we were seeing a sufficient amount of demand coming in, but obviously, all bets are off at this point.”

Read more...The Pandemic Stifles Rent Growth in Urban Apartments via GlobeSt

Over 87% of Dallas-Fort Worth apartment renters made their September payments via Dallas Morning News

With the halt in federal unemployment payments, the share of renters who aren’t making their monthly payments has risen significantly.

As of last week, 76.4% of U.S. apartment renters had made their September payments. That’s almost five percentage points less than a year ago and more missed rent payments than earlier in the pandemic.

Read more...Over 87% of Dallas-Fort Worth apartment renters made their September payments via Dallas Morning News

September Rent Payments Reach 76 Percent: NMHC via Multi-Housing News Online

More than 76 percent of U.S. rental households have made rent payments as of Sept. 6, according to the latest report on rent payments from the National Multifamily Housing Council.

The report comes a month after additional $600 a week unemployment benefits expired and about a week after the Trump administration announced a nationwide eviction moratorium through the end of the year.

Read more...September Rent Payments Reach 76 Percent: NMHC via Multi-Housing News Online

DFW apartment leasing shows signs of a rebound via Dallas Morning News

Demand for apartments in Dallas-Fort Worth and nationwide plunged this year with the pandemic. But there are signs that the apartment market is bouncing back with a flurry of new leasing.

During the last week of July, new apartment lease signings were up 11% from a year earlier, according to a new report from RealPage.

Read more...D-FW apartment leasing shows signs of a rebound via Dallas Morning News

Houston Economic Indicators September 2020 via Dallas Fed

Indicators for Houston employment, unemployment and manufacturing improved in July. Leading and coincident indexes also showed gains. Higher-frequency data on mobility and engagement point to a tepid end-of-summer recovery from a COVID-19-driven midsummer lull. Taken together, the data suggest that Houston continues to make strides toward economic recovery, but the pace has likely slowed.

Read more... Houston Economic Indicators September 2020 via Dallas Fed

Finance Rates For Small Multifamily Real Estate Find Stability via GlobeSt

The cap rates for small multifamily properties barely budged between the first and second quarters of 2020, according to a new report by Chandan Economics and Arbor Realty Trust.

Cap rates narrowed by 5 bps in the second quarter, landing at 5.8%, explained the article, which was published on lender Arbor Realty Trust’s website.

Read more...Finance Rates For Small Multifamily Real Estate Find Stability via GlobeSt

Austin Economic Indicators September 2020 via Dallas Fed

The Austin economy continued to improve in July. The Austin Business-Cycle Index expanded. Recent payrolls posted healthy gains, and while jobs and the unemployment rate improved in June and July, both remain significantly below their March levels. Regional consumer spending since mid-July held at pre-COVID-19 levels. Existing-home sales remained strong, and building permits rebounded.

Read more...Austin Economic Indicators September 2020 via Dallas Fed

New Lease Signings for Apartments Pick Up in July via RealPage

New lease signings continued to increase across most major apartment markets in July. Some of the gains in leasing activity were due to pent-up demand, as stay-at-home orders due to COVID-19 were lifted. But normal seasonal renting patterns were also at play.

From late March through early May, new lease signings across the nation plummeted as COVID-19 forced most leasing offices to shutter amid shelter-in-place orders.

Read more...New Lease Signings for Apartments Pick Up in July via RealPage

Eleventh District Beige Book​ 9/2/20 via Dallas Fed

Increasing COVID-19 infections in the Eleventh District have disrupted the budding economic recovery in some sectors and is the biggest risk to the near-term outlook. While manufacturing activity continued to expand and loan volumes increased in the financial sector, service sector activity declined overall in July but resumed its nascent recovery in August. Retail sales fell steeply in July but stabilized somewhat in August. Energy activity remained depressed. Activity in the housing market was a bright spot, with home sales rising sharply. Employment remained fairly stable, according to contacts. Input costs rose modestly while selling prices were flat to down. Outlooks were increasingly uncertain, with numerous contacts expressing concern over surging COVID-19 cases and the resulting disruption to business.

Read more...Eleventh District Beige Book​ 9/2/20 via Dallas Fed

CDC Declares Eviction Moratorium That Will Last Until Year’s End via GlobeSt

The Centers for Disease Control and Prevention is using its quarantine authority to temporarily halt evictions in order to keep COVID-19 from spreading.

This order will take effect immediately and last until Dec. 31, 2020.

Renters must say they are not able to pay their rent or are likely to become homeless if they are evicted. People earning under $99,000 a year or couples earning less than $198,000 a year are eligible.

Read more...CDC Declares Eviction Moratorium That Will Last Until Year’s End via GlobeSt

Apartment Rent Payments Fall for Third Straight Month via GlobeSt

Apartment rent payments continued their downward drift in August. But the industry’s eyes are focused on September, as states try to fill in the gap from expired unemployment benefits provided by the CARES Act.

The number of households paying rent through August 27 stood at 92.1%, down from 93.3% in July and 94.2% in June, according to the National Multifamily Housing Council’s Rent Payment Tracker. The rate was down 1.9 percentage points year-over-year from August 2019′s 94%.

Read more...Apartment Rent Payments Fall for Third Straight Month via GlobeSt

As Another Month’s Bill Comes Due, Renters at Small Apartment Buildings Struggle via NREI

The vast majority of residents kept paying rent this summer at larger apartment communities–despite the economic crisis caused by the spread of the novel coronavirus. But smaller apartment properties typically do not have professional management companies–they are not included in the data that shows renters are still paying rent. And many renters who live in these building have stopped.

Read more...As Another Month’s Bill Comes Due, Renters at Small Apartment Buildings Struggle via NREI

Free rent deals double with the pandemic via Dallas Morning News

Apartment landlords are ramping up the freebies to attract tenants during the pandemic.

The share of rental units offering concessions to tenants has almost doubled since early this year as COVID-19 has swept the country, according to a new study by Zillow.

More than 30% of nationwide rentals are offering some kind of concessions.

Read more...Free rent deals double with the pandemic via Dallas Morning News

Texas Quarterly Apartment Report 2Q2020 via Real Estate Center

Economic activity contracted sharply in second quarter 2020 due to COVID-19 shelter-in-place restrictions, but then rebounded as the economy re-opened during May and June. Putting the health crisis in a historical context, neither the Great Depression nor the Great Recession nor any other recession over the past two centuries caused such a steep, sudden economic decline. The strength and pace of the recovery are unknown because they depend on health outcomes that allow or impede the complete re-opening of the economy. Barring a second wave of the virus and another economic shutdown, 2Q2020 should represent the worst of the economic slump.

Read more...Texas Quarterly Apartment Report 2Q2020 via Real Estate Center

Dallas-Fort Worth Economic Indicators August 2020 via Dallas Fed

The Dallas–Fort Worth economy saw continued signs of a nascent recovery in July, though the pace of growth slowed from June. Payrolls expanded moderately, and the unemployment rate dipped. The housing market was a bright spot, with home sales rising sharply and reaching new highs. Home prices increased moderately, and apartment leasing improved, though rents remained flat.

Read more...Dallas-Fort Worth Economic Indicators August 2020 via Dallas Fed

Pandemic takes toll on Dallas-Fort Worth multifamily market via Dallas Business Journal

Thanks largely to a rebounding jobs market, Dallas-Fort Worth apartment owners are faring better than owners in other parts of the country in the COVID-19 market, Greg Willett, chief economist for RealPage, said in a webinar Thursday.

Even so, it isn’t pretty.

Read more...Pandemic takes toll on Dallas-Fort Worth multifamily market via Dallas Business Journal

Texas Employment Forecast 8/21/20 via Dallas Fed

Texas job growth fell to 2.5 percent in July after increasing a revised 14.7 percent in June. Private sector jobs fell 1.1 percent. Employment is down 10.4 percent since December 2019. The Texas Leading Index increased for the third consecutive month in July after sharp declines in March and April.

Using a top-down model based on national forecasts, COVID-19 infection rates and oil futures prices, we estimate that Texas jobs will continue to recover in the second half of the year but not enough to fully offset the losses in March and April. The Texas Employment Forecast projects jobs will decline 5.2 percent this year (December/December).

Read more...Texas Employment Forecast 8/21/20 via Dallas Fed

It's Getting Worse. Landlords and Renters Drain Savings to Make Ends Meet Amid Covid-19 via GlobeSt

The struggle to pay rent and meet mortgage payments continues as the COVID-10 pandemic stretches into its sixth month according to a nationwide survey conducted in August 2020 by Avail.

Based on the survey, of the 2,932 renters, the largest group of respondents (31.6%) were between the ages of 30 and 39. And 35.2% (the most common response) of respondents had a total household income ranging from $24,000-$49,999 before taxes last year.

Read more...It's Getting Worse. Landlords and Renters Drain Savings to Make Ends Meet Amid Covid-19 via GlobeSt

Employment Numbers Mask Severity of Labor Market Situation via CPExecutive

Despite the national unemployment rate falling to 10.3 percent and a jobs reports added 1.8 million jobs in July, the labor situation in the United States is more dire than it appears on the surface.

The official unemployment rate fails to capture the 4.5 million workers who have left the labor market since February and have yet to return. Nearly every economic statistic that has been released in recent months has shown severe swings that were previously unprecedented and unfathomable, and the drop in labor force participation is no exception.

Read more...Employment Numbers Mask Severity of Labor Market Situation via CPExecutive

The K-Shaped US Economic Recovery Theory and What It Means for CRE via GlobeSt

An uneven economic recovery from the COVID-19 crash is increasing the divide between the haves and have-nots, and the rift will extend to the commercial real estate market, according to a new report.

The report explores how some economists’ theory that the country will see a “K-shaped” economic recovery might also create an unequal recovery in the office, retail and housing segments of the real estate industry.

Read more...The K-Shaped US Economic Recovery Theory and What It Means for CRE via GlobeSt

Millions of Apartment Renters Sit at the Brink of Disaster via NREI

Millions of apartment residents have fallen behind on their rent payments, according to data from the U.S. Census—and the damage is likely to spread as the economic crisis caused by the novel coronavirus continues.

Federal assistance that helped millions of renters stay current on their rents even after they lost their jobs has now expired with little clarity from Washington on whether it will be renewed.

Read more...Millions of Apartment Renters Sit at the Brink of Disaster via NREI

Cloudy Prospects for Multifamily Amid Economic Comeback via Multi-Housing News Online

The U.S. economy is expected to stage a comeback in the third quarter, bolstering a strong residential market, according to new research by Fannie Mae’s Economic & Strategic Research (ESR) Group—but job losses and budget cuts on the state and local level could weigh on multifamily development.

The group now forecasts that domestic GDP will grow by an annualized rate of 27.2 percent during the quarter as the economy continues to reopen. Factoring in the historic decline of the second quarter, GDP is projected to grow by 3.1 percent in 2020.

Read more...Cloudy Prospects for Multifamily Amid Economic Comeback via Multi-Housing News Online

ALN Monthly Market Stats August 2020 via ALN Apartment Data

ALN Data just released their July 2020 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 2020 via ALN Apartment Data

DFW ranks fourth for U.S. commercial property investment at 2020 midpoint via Dallas Morning News

The Dallas-Fort Worth area ranked fourth nationally for total real estate investment at midyear.

Property market investment in North Texas totaled about $23 billion for the 12-month period ending in June, according to researchers at CBRE and Real Capital Analytics.

That’s down 7.5% from the previous year because of the COVID-19 pandemic.

But the year-over-year decline in investment in North Texas was tiny compared to the almost 70% drop nationwide for properties such as offices, apartments, hotels, shopping centers and industrial buildings.

Read more...Dallas-Fort Worth ranks fourth for U.S. commercial property investment at 2020 midpoint via Dallas Morning News

COVID-19 Slowdown Cuts Apartment Construction by 12% via GlobeSt

The slow pace of construction, crew shortages and construction bans that came with COVID-19 has cut apartment construction by 12%, according to a new report.

There are 283,000 new apartment units expected to hit the market this year, which is much less than a peak in 2018, said the report by RENTCafe Blog.

The downward trend is beginning to mirror the hit from the 2008 economic recession, according to the article by Florentina Sarac, “Apartment Construction in 2020 at 5-Year Low Nationally, Down 12% from Previous year.”

Read more...COVID-19 Slowdown Cuts Apartment Construction by 12% via GlobeSt

How to Bolster Apartment NOI During COVID-19 via Multifamily Executive

It’s easy to hit your numbers when times are good.

But for multifamily pros navigating the fallout of COVID-19, 2020 has been about finding ways to maximize net operating income (NOI), even when times are tough.

Read more...How to Bolster Apartment NOI During COVID-19 via Multifamily Executive

COVID Hits Class C Apartments Hard via GlobeSt

So far, the apartment market has held up relatively well after COVID-19. But Jake Reiter, president of Verde Capital, does see some issues on the horizon.

“Maybe multifamily holds up better if it’s not C class,” Reiter says. “But C is not weathering the storm as well because its [renter] demographic is more likely to be unemployed and less likely to be able to make payments.”

Read more...COVID Hits Class C Apartments Hard via GlobeSt

Texas homeownership hits record high via Dallas Morning News

A summer surge in buying has pushed Texas’ homeownership rate to the highest level on record.

As of June, 67.5% of Texans owned their homes, according to a new report from the Real Estate Center at Texas A&M University.

In Dallas-Fort Worth, the homeownership rate rose to 64.7% at midyear.

Read more...Texas homeownership hits record high via Dallas Morning News

COVID-19 Downturn Fuels Q2 Falloff in Multifamily Demand via Multi-Housing News Online

The second quarter is usually strongest in demand for multifamily housing. But that was not the case this year, when net absorption plummeted to the lowest Q2 level in 11 years, only 21,100 units. This was among the findings of CBRE’s Multifamily Figures Report for Q2 2020, which termed the COVID-19 economic malaise a drag on apartment demand.

The fact net absorption in the quarter was positive indicated the multifamily market fared better than some anticipated, given headwinds exerted by the pandemic and the faltering economy, CBRE reported. Key to that performance were stimulus programs at the state and federal level, which assisted apartment residents in affording their rents. CBRE added net absorption is anticipated to trend negative for the remainder of this year.

Read more...COVID-19 Downturn Fuels Q2 Falloff in Multifamily Demand via Multi-Housing News Online

Austin Economic Indicators August 2020 via Dallas Fed

The Austin economy showed signs of improvement in June following the impact of COVID-19. The Austin Business-Cycle Index surged. While employment and the unemployment rate improved in June from May, both remain significantly below their February levels. Consumer spending has improved considerably since mid-April in Travis County. While existing-home sales increased sharply in June, building permits declined.

Read more...Austin Economic Indicators August 2020 via Dallas Fed

Texas Economy’s Rebound Stalls in July after Gains in May, June via Dallas Fed

The resurgence of COVID-19 in July appears to have reversed economic gains in Texas that emerged when the virus’ frequency abated in May and June. Employment and other activity had increased strongly from April lows during initial pandemic disruptions in the state.

As a result, the Texas Employment Forecast suggests that on net the number of jobs will decline 4.8 percent this year on a December-over-December basis.

Texas employment improved in June—though more slowly than May’s pace—after historic contractions in April. The state recovered about 522,000 jobs in May and June, about 40 percent of the 1.3 million jobs lost during March and April.

Read more... Texas Economy’s Rebound Stalls in July after Gains in May, June via Dallas Fed

Monthly rental payments continue to lag via Dallas Morning News

Less than 80% of U.S. apartment residents had made their August rent payments as of last week.

That’s a decline from a year ago but is about the same as this time in July, according to the latest update from the National Multifamily Housing Council.

The Washington, D.C.-based apartment industry trade group tracks 11.4 million professionally managed rental units for its monthly nationwide survey.

Read more...Monthly rental payments continue to lag via Dallas Morning News