Monday, August 31, 2020

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

Thursday, August 27, 2020

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

Monday, August 24, 2020

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

Wednesday, August 19, 2020

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

Tuesday, August 18, 2020

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

Thursday, August 13, 2020

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

Wednesday, August 12, 2020

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