Wednesday, May 12, 2021

Multifamily Markets Rebounded in First Quarter While Office Continued Slide via Nareit

Multifamily markets rebounded in the first quarter with the second-highest quarterly demand growth on record, according to data recently released by CoStar, while the deterioration in office markets continued. Retail markets have stabilized somewhat, with small positive net absorption for the second quarter in a row after significant negative net absorption in the second and third quarters of 2020. Industrial markets enjoyed robust demand, with net absorption of 89 million square feet, the highest demand growth in three years.

Read more...Multifamily Markets Rebounded in First Quarter While Office Continued Slide via Nareit

Despite moratoriums, Dallas renters weren’t actually protected from eviction during pandemic via Dallas News

Do you know what to do if you find an eviction notice posted on your apartment door?

Many renters don’t – and a patchwork of quickly conceived eviction protections and confusing legal interpretations at all levels of government failed a number of Dallas County renters they were supposed to protect, a new study concludes.

Read more...Despite moratoriums, Dallas renters weren’t actually protected from eviction during pandemic via Dallas Morning News

20 Top Markets for Apartment Construction Completions via WMRE

The multifamily industry had a more challenging than usual year, dealing with both the COVID-19 pandemic and skyrocketing materials prices, but new units continued to be added in markets throughout the country. According to a recent report from real estate services firm CBRE, the nation’s 24 top markets for construction saw a total of 282,500 apartment units completed from the second quarter of 2020 through the end of the first quarter of 2021, an increase of 1.8 percent compared to existing inventory.

Read more...20 Top Markets for Apartment Construction Completions via WMRE

Tuesday, May 11, 2021

Apartment Owners Are Out $8B From Missed Rent Payments This Quarter via GlobeSt

The money lost by property owners from missed rent payments is up, but the number of delinquent tenants is declining, the Mortgage Bankers Association Research Institute for Housing America reported recently.

Rental property owners lost as much as $7.85 billion in first-quarter revenue from missed rent payments up from over $7.41 billion in the fourth quarter.

Read more...Apartment Owners Are Out $8B From Missed Rent Payments This Quarter via GlobeSt

Monday, May 10, 2021

Apartment Rents Rose Last Month at Fastest Pace Seen in a Decade via GlobeSt

US apartment rent growth is back in a big way, now that the country’s reopening local economies are fueling household creation and stimulating robust demand for all types of housing.

Effective asking rents for US apartments climbed 1.3% in April, rising at the fastest pace seen during a single month for the past decade or so and likely at the fastest pace ever. (RealPage’s long-term performance history for rents measured change by quarter, rather than by individual month.)

Read more...Apartment Rents Rose Last Month at Fastest Pace Seen in a Decade via GlobeSt

Friday, May 7, 2021

North Texas led the country in population gains during the pandemic via Dallas News

If you’re searching for the reason North Texas has a severe housing shortage, look no further than just-released census numbers.

The Dallas-Fort Worth area led the country in 2020 population growth — which includes births and in-migration. The area added almost 120,000 residents, according to the latest data from the U.S. Census. During the last five years, D-FW’s population has grown by more than 650,000.

Read more...North Texas led the country in population gains during the pandemic via Dallas Morning News

Thursday, May 6, 2021

Texas Economic Activity Springs Ahead as Growth Strengthens via Dallas Fed

Following a winter-storm-related contraction in February, Texas employment rebounded in March, expanding an annualized 11.3 percent, compared with 8 percent for the U.S.

The growth in March was the strongest since June 2020 and contributed to an overall employment gain of 4.7 percent in the first quarter.

As a result of the strong performance and other economic tailwinds, the 2021 Texas employment forecast improved to 6.6 percent growth from 6.0 percent.

Read more...Texas Economic Activity Springs Ahead as Growth Strengthens via Dallas Fed

‘Stunning momentum’: D-FW apartment rents are heading higher via Dallas Morning News

Dallas-area apartment rents are rebounding after setbacks during the pandemic. Average North Texas apartment rent increases stalled in 2020 when the COVID-19 pandemic hit. Landlords increased the number of freebies used to attract renters.

But with the economy opening up and migration to the area continuing, local rents are again headed higher.

Read more...‘Stunning momentum’: D-FW apartment rents are heading higher via Dallas Morning News

Wednesday, May 5, 2021

Federal judge overturns national eviction ban via CNBC

Federal Judge Dabney Friedrich struck down on Wednesday the national eviction moratorium, potentially leaving millions of Americans at risk of losing their homes.

The Centers for Disease Control and Prevention has banned most evictions across the country since September. President Joe Biden extended that protection to renters until July.

Read more... Federal judge overturns national eviction ban via CNBC

Apartments Have Stabilized Earlier Than Expected via GlobeSt

In Q1 2021, the US multifamily market stabilized a quarter earlier than expected, according to a new report from CBRE.

While vacancy rose by 20 basis points to 4.7% in the quarter, the average rent rose 0.4%. That was the first quarterly rent increase since the pandemic began. Still, the average rent was down 4.2%, and vacancy was up 50 basis points compared to a year ago.

Read more...Apartments Have Stabilized Earlier Than Expected via GlobeSt

Friday, April 30, 2021

D-FW construction starts turned positive in the first quarter via Dallas Morning News

North Texas construction starts turned the corner in the first quarter of 2021 after big declines during the worst of the pandemic.

Starts for residential and commercial buildings in the Dallas-Fort Worth area were up 7% in the first three months compared with first-quarter 2020 totals, according to the latest report by Dodge Data & Analytics.

In 2020, the D-FW area saw a 20% decline in construction activity because of COVID-19.

Read more...D-FW construction starts turned positive in the first quarter via Dallas Morning News

Thursday, April 29, 2021

Texas Service Sector Outlook Survey April 2021 via Dallas Fed

Activity in the Texas service sector in April increased at its fastest pace since late 2014, 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 21.6 in March to 26.1 in April.

Read more...Texas Service Sector Outlook Survey April 2021 via Dallas Fed

Dallas-Fort Worth Economic Indicators April 2021 via Dallas Fed

DFW apartment absorption was strong, and rents rose in the first quarter, according to ApartmentData.com. Demand is generally sluggish in the first quarter, but absorption exceeded expectations with a total of 5,727 units absorbed, up from 2,009 units in the fourth quarter. Average monthly rents in DFW ticked up to $1,193 per unit, up 1.6 percent year over year (Chart 4). Rent concessions were ongoing, largely in Class A properties. Occupancy rose as well to 91 percent; however, it remained extremely low in Class A properties that were in the lease-up phase.

Read more...Dallas-Fort Worth Economic Indicators April 2021 via Dallas Fed

Houston Economic Indicators April 2021 via Dallas Fed

High-frequency data through March indicate continued recovery in Houston. Housing markets are very tight with elevated sales, low inventories, and rising input and selling prices for both new and existing homes. Vacancy rates in commercial office and industrial markets are elevated. Overall, the data point to further recovery and a positive outlook for Houston.

Read more... Houston Economic Indicators April 2021 via Dallas Fed

Texas No. 1 state for business for 17th year in a row, CEOs say via Dallas Business Journal

It seems many CEOs are able to look past Texas' recent winter storm, which caused massive headaches for some businesses, because the state's low taxes and robust talent pool are just too good to pass up.

On Wednesday, Texas topped Chief Executive's list of the best states for business for the 17th year in a row.

Read more...Texas No. 1 state for business for 17th year in a row, CEOs say via Dallas Business Journal

Rents in Dallas up 1.6% month-over-month via Dallas Business Journal

Rents in Dallas increased 1.6 percent month-over-month, compared to 1.9 percent nationally, according to the latest rent report from apartmentlist.com.

Median rents in Dallas now stand at $1,013 for a one-bedroom apartment and $1,215 for a two-bedroom.

Read more...Rents in Dallas up 1.6% month-over-month via Dallas Business Journal

Wednesday, April 28, 2021

Apartment Renters’ Shifted Amenities Preferences Are Likely to Last After COVID-19 via WMRE

During the pandemic, the kinds of amenities apartment renters looked for shifted. Outdoor spaces, reliable Internet connectivity and extra space for working all became “must haves” for some renters. And apartment industry experts say that even after the coronavirus pandemic is over, renters are likely to keep wanting more space in their apartments and more technology to keep them connected.

Read more...Apartment Renters’ Shifted Amenities Preferences Are Likely to Last After COVID-19 via WMRE

Monday, April 26, 2021

Federal Aid to Renters Moves Slowly, Leaving Many at Risk via The New York Times

Four months after Congress approved tens of billions of dollars in emergency rental aid, only a small portion has reached landlords and tenants, and in many places it is impossible even to file an application.

The program requires hundreds of state and local governments to devise and carry out their own plans, and some have been slow to begin. But the pace is hindered mostly by the sheer complexity of the task: starting a huge pop-up program that reaches millions of tenants, verifies their debts and wins over landlords whose interests are not always the same as their renters’.

Read more...Federal Aid to Renters Moves Slowly, Leaving Many at Risk via The New York Times

Apartment Rents Rise; Perks, Discounts Fade via WSJ

Americans are paying more to rent homes again, ending a stretch during the pandemic when they enjoyed flat or falling rental prices and widespread landlord concessions.

Federal government stimulus payments and expanding payrolls are boosting savings, enabling building managers to lift rent prices on apartments and houses nationwide. A record-low inventory of homes for sale also leaves more people renting.

Read more...Apartment Rents Rise; Perks, Discounts Fade via WSJ

Thursday, April 22, 2021

Yardi Matrix Anticipates 18- to 24-Month Recovery for Urban Cores via Multifamily Executive Magazine

In the spring 2021 edition of Yardi Matrix’s Multifamily National Outlook, vice president Jeff Adler and Jack Kern, director of institutional research, took a look at current market conditions as they affect multifamily and how they could play out in the near future—particularly with the ongoing vaccine rollout as a flashpoint for renter movements and preferences.

As of April, the economy is heating up, with 916,000 jobs added to the market in March and unemployment down to 6%. Gateway markets and urban cores are still struggling, but appear to be turning a corner, while tech hubs continue to grow. Yardi owes the strength there is to the ongoing approval and distribution of COVID-19 vaccines. Inflation is a concern to watch, as asset and input prices are on the rise.

Read more...Yardi Matrix Anticipates 18- to 24-Month Recovery for Urban Cores via Multifamily Executive Magazine

Multifamily Industry Sees Signs of Optimism via Multifamily Executive Magazine

The multifamily industry is seeing improved market conditions, according to the National Multifamily Housing Council’s quarterly survey of apartment market conditions for April.

“We are finally seeing improvement in most markets around the country,” noted NMHC chief economist Mark Obrinsky. “While gateway metros are still generally facing lower occupancy and rent levels compared to a year ago, conditions now appear to be on an upward trajectory. On the other hand, many Sun Belt markets continue to see substantial rent growth and strength in fundamentals.”

Read more...Multifamily Industry Sees Signs of Optimism via Multifamily Executive Magazine

Resident Retention Heads Back to Normal via GlobeSt

Apartment resident retention rates went on a wild ride during the course of the past year or so, but the ability to hold onto renters at lease expiration now is returning to more typical levels for the country as a whole.

Looking at what happened for leases that expired in 1st quarter 2021, 53.7% of households opted to stay in place, rather than move. That figure exactly matches results seen when averaging the share of households renewing their leases in the initial quarters of 2018, 2019 and 2020.

Read more...Resident Retention Heads Back to Normal via GlobeSt

Wednesday, April 21, 2021

Q1 Was a 'Turning Point' For US CRE via GlobeSt

With the end of the COVID-19 pandemic (potentially) in sight, CRE activity is bouncing back, according to a new report from Crexi.

The first quarter of 2021 “represented a turning point both for the US and the economic disruption the coronavirus caused,” the report, which outlines key national CRE trends over Q1, states. “While maintaining caution and taking the crisis seriously, the world of commercial real estate managed to steer away from the worst-case scenario and is now poised to capitalize on opportunities both in burgeoning sectors and those most impacted by the pandemic.”

Read more...Q1 Was a 'Turning Point' For US CRE via GlobeSt

Texas Economic Indicators 4/19/21 via Dallas Fed

The Texas economic recovery picked up in March as payrolls grew robustly and the unemployment rate was flat. The Texas Business-Cycle Index grew for the 10th month in a row. Texas Business Outlook Survey respondents reported strong growth in March, and energy prices ticked up in the week ending April 16. The share of seriously delinquent student loans in Texas dropped in February, but overall loan delinquencies increased, driven by a rise in credit card delinquencies.

Read more... Texas Economic Indicators 4/19/21 via Dallas Fed

Wednesday, April 14, 2021

Eleventh District Beige Book 4/14/21 via Dallas Fed

The Eleventh District economy accelerated to a solid pace during the reporting period. Growth in the manufacturing, retail, and nonfinancial services sectors picked up markedly, though activity stayed below normal levels. Home sales and single-family construction remained vibrant, and apartment demand increased. Overall loan volume rose, supported by continued strength in real estate lending. Energy activity increased. Employment rose and wages increased moderately. Supply chain disruptions led to longer lead times and intensified upward price pressures in the construction, manufacturing, and retail sectors. Most contacts reported being adversely affected by Winter Storm Uri in mid-February, and some noted damages to facilities, equipment, and inventories. Outlooks were more optimistic and less uncertain than in the last report, though there was some trepidation about the impact of supply shortages and/or tighter regulation on activity.

Read more...Eleventh District Beige Book 4/14/21 via Dallas Fed

Market Spotlight: Dallas – Fort Worth via ALN Apartment Data

With population growth in the neighborhood of 20% over the last decade, the Dallas – Fort Worth market has been one of the most active in the country in recent years both in terms of new multifamily supply as well as apartment demand. For the latest installment in the Market Spotlight series, let’s have a closer look.

Read more...Market Spotlight: Dallas – Fort Worth via ALN Apartment Data

ALN Monthly Market Stats April 2021 via ALN Apartment Data

ALN Data just released their March 2021 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 April 2021 via ALN Apartment Data

Tuesday, April 13, 2021

Crexi: Asking Prices on the Rise Again in March via Connect Media

The overall asking price per square foot for commercial properties climbed once again in March, following a February drop across the board, Crexi reported. The average asking price jumped 7.89%, with all asset classes showing growth except for multifamily.

Read more...Crexi: Asking Prices on the Rise Again in March via Connect Media

Thursday, April 8, 2021

Multifamily Rents Jump in March, Post Strong Quarter via GlobeSt

Average multifamily rents rose by $6 to $1,407 on a year-over-year (YOY) basis in March, according to Yardi Matrix.

With the 0.6% YOY and 0.8% quarter-over-quarter jump, multifamily rents had one of the strongest first quarters in a few years, according to Yardi. Additionally, rents posted a 0.4% month-over-month growth in March, rising 20 basis points from February.

Out of 134 markets surveyed, 114 had flat or positive YOY rent growth. Additionally, 19 of the top 30 metros had flat or positive YOY rent growth in March.

Read more...Multifamily Rents Jump in March, Post Strong Quarter via GlobeSt

Tuesday, April 6, 2021

Dallas-Fort Worth Economic Indicators March 2021 via Dallas Fed

Dallas–Fort Worth’s economic recovery stayed on track in January. Job growth continued for the ninth straight month and unemployment dipped. Movement in the business-cycle indexes was mixed. Housing market indicators reflected a vibrant market in February, with record-low inventories and rising prices. Home sales dipped last month largely due to activity coming to a standstill during Winter Storm Uri.

Read more...Dallas-Fort Worth Economic Indicators March 2021 via Dallas Fed

Austin Economic Indicators March 2021 via Dallas Fed

The Austin economy continued to expand in February, albeit at a slower pace. The Austin Business-Cycle Index grew at a moderate clip. While jobs were added at a healthy pace, the unemployment rate increased slightly. COVID-19 hospitalizations declined further since peaking in mid-January, and regional consumer spending has been strong. Existing-home sales weakened sharply in February, likely impacted by Winter Strom Uri.

Read more...Austin Economic Indicators March 2021 via Dallas Fed

Welcome to Texas: Thousands of folks from California, Illinois and New York moved to D-FW in 2020 via Dallas Morning News

During the pandemic, there’s been lots of chatter about people moving to North Texas from other states. But so far, there have been few hard numbers on the immigrant totals.

Now a new study from commercial real estate giant CBRE confirms the thousands of people heading to Dallas-Fort Worth last year and where they came from.

No surprise at the top: The largest number of new D-FW transplants comes from California.

Read more...Welcome to Texas: Thousands of folks from California, Illinois and New York moved to D-FW in 2020 via Dallas Morning News

Friday, April 2, 2021

D-FW apartment leasing picks up as construction declines via Dallas Morning News

Apartment leasing rose in the first three months of Dallas-Fort Worth as construction declined.

Net apartment leasing in the first quarter totaled 4,068 units — the strongest demand for the period in more than a decade.

Even with the economic declines that have come during the COVID-19 pandemic, North Texas still led the country in first-quarter net apartment leasing, according to a just-released report from RealPage.

Read more...D-FW apartment leasing picks up as construction declines via Dallas Morning News

Thursday, April 1, 2021

Does Multifamily Benefit from the $2T Federal Infrastructure Plan? via Multi-Housing News Online

A wide-ranging $2.3 trillion infrastructure plan released by President Joe Biden Wednesday that includes $213 billion to address affordable housing issues for low- and middle-income renters and buyers, upgrades the nation’s public housing stock and seeks to remove barriers to development received wide approval from multifamily executives who said housing has historically helped lead the country out of recession.

Read more...Does Multifamily Benefit from the $2T Federal Infrastructure Plan? via Multi-Housing News Online

Urban Apartments Eye a Long Road to Recovery via WMRE

As many Americans fled cities during the pandemic and generated a glut of empty apartments, landlords in Manhattan and other urban metros slashed rents and offered draw-dropping concessions, including covering moving costs, free internet, months of free rent and other sweeteners.

Now, with millions of vaccine shots going out daily and the promise of a post pandemic future drawing closer, things are beginning to change. As more lockdown measures are eased, prospective urban residents are being lured back by city life and lower rents.

Read more...Urban Apartments Eye a Long Road to Recovery via WMRE

Wednesday, March 31, 2021

Top 20 U.S. Markets for Apartment Net Absorption via WMRE

These markets saw the strongest net absorption of apartment units in 2020, even amid a pandemic.

While the past year hasn’t gone without hiccups for the U.S. multifamily sector, with some households struggling to pay rents and a few gateway cities seeing spiking vacancies, the sector still posted a surprisingly strong performance, according to a March report from real estate data firm Yardi Matrix. Net absorption of apartment units declined by only 12 percent compared to 2019, to 252,000 units or 1.7 percent of the country’s total apartment stock. The average national apartment occupancy rate at the end of December stood at 94.7 percent.

Read more...Top 20 U.S. Markets for Apartment Net Absorption via WMRE

Apartment Rent Index Posts Largest Monthly Increase Since 2017 via GlobeSt

Apartment rents continue to rebound across the country, according to the latest data from Apartment List.

In March, Apartment List’s national index jumped by 1.1%, which was its largest monthly increase going back to the beginning of 2017. That doubled historical growth in the month. In the previous three years, March’s year-over-year rent growth was 0.6%. In addition, the rent growth in March knocks out COVID’s declines in Apartment List’s index.

Read more...Apartment Rent Index Posts Largest Monthly Increase Since 2017 via GlobeSt

Tuesday, March 30, 2021

Texas Service Sector Outlook Survey March 2021 via Dallas Fed

Activity in the Texas service sector in March increased at its fastest pace since mid-2019, according to business executives responding to the Texas Service Sector Outlook Survey. The revenue index, a key measure of state service sector conditions, surged from 2.6 in February to 21.6 in March.

Read more...Texas Service Sector Outlook Survey March 2021 via Dallas Fed

Monday, March 29, 2021

CDC will extend national eviction ban through June 30 via CNBC

The Centers for Disease Control and Prevention has extended the national ban on evictions through the end of June.

“The COVID-19 pandemic has presented a historic threat to the nation’s public health,” CDC director Dr. Rochelle Walensky said in a statement. “Keeping people in their homes and out of crowded or congregate settings — like homeless shelters — by preventing evictions is a key step in helping to stop the spread of COVID-19.”

Read more... CDC will extend national eviction ban through June 30 via CNBC

Texas Manufacturing Outlook Survey March 2021 via Dallas Fed

Texas factory activity expanded at a markedly faster pace in March, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, surged 28 points to 48.0, its highest reading in the survey’s 17-year history.

Other measures of manufacturing activity also pointed to sharply faster growth this month. The new orders index rose 18 points to 30.5, and the growth rate of orders index rose 11 points to 22.7. The capacity utilization index rocketed from 16.5 to 46.1, an all-time high. The shipments index rose 17 points to 33.1.

Read more...Texas Manufacturing Outlook Survey March 2021 via Dallas Fed

Wednesday, March 24, 2021

These Cities Are Dominating The COVID-Era Multifamily Market via GlobeSt

The Inland Empire and Sacramento are showing the top gains as the multifamily market continues its swift rebound from the COVID-19 pandemic, with rents up 7.6% and 6.4%, respectively.

A new multifamily report from Yardi Matrix shows the markets are also among the top three for occupancy growth year-over-year, with occupancy in the Inland Empire ticking up 2.2% in January and Sacramento showing a 1.2% increase. They also showed strong rent growth thanks to limited new supply coming online.

Read more...These Cities Are Dominating The COVID-Era Multifamily Market via GlobeSt

COVID-19 Relief Throws a Lifeline to Renters and Small Landlords via WMRE

Millions of renters missed payments because of the chaos caused by the coronavirus pandemic. They had often missed several months—racking up thousands of dollars of debt, on average, for a total of $57 billion across the U.S., according to an analysis of Census data. That strained the budgets of the apartment properties where these renters live—often small properties with just a few units apiece run by small investors who own just a handful of properties.

Congress threw these renters and their landlords a lifeline with the $1.9 trillion American Rescue Plan Act, signed by President Biden earlier this month—and that is in addition to help already included in the last coronavirus relief bills.

Read more...COVID-19 Relief Throws a Lifeline to Renters and Small Landlords via WMRE

Tuesday, March 23, 2021

Houston Economic Indicators March 2021 via Dallas Fed

Houston ended 2020 behind the nation in its comeback from the COVID-19-driven job collapse. Last year’s employment data were revised down to show that the area had recovered only about a third of jobs lost during the pandemic downturn versus the previous estimate of nearly half. However, COVID statistics for Houston have been improving since mid-January and, despite the chilling effects of Winter Storm Uri, high-frequency barometers of economic activity like mobility and restaurant demand indicate that the local economy has been picking up steam. Together, the data paint a positive picture for the near-term outlook in Houston.

Read more... Houston Economic Indicators March 2021 via Dallas Fed

Monday, March 22, 2021

Low-Income Renters Aren’t Benefiting From Price Declines via GlobeSt

While rents have declined in many areas of the country during the pandemic, low-income renters haven’t necessarily benefited.

In its February market report, Zillow said the more-expensive metro submarkets softened the most, providing little respite for renters in lower-priced areas. In fact, Zillow found rents remained “stubbornly high in more-affordable areas.”

Read more...Low-Income Renters Aren’t Benefiting From Price Declines via GlobeSt

Thursday, March 18, 2021

Time is Running Out for Multifamily Owners That Received Forbearance via GlobeSt

Temporary mortgage forbearance was a critical stopgap for multifamily property owners during the pandemic, particularly for smaller, non-institutional mom-and-pop owners, according to a new report from the Government Accountability Office.

In the pre-pandemic days of 2020, the FHA and RHS reported having no multifamily loans in forbearance—but by June, thanks largely to a provision of the CARES Act requiring servicers to provide up to 90 days of forbearance for multifamily properties with federally backed mortgages, about 7.3% of loans backed by the agencies and enterprises were under a forbearance agreement.

Read more...Time is Running Out for Multifamily Owners That Received Forbearance via GlobeSt

Treasury Issues New Guidance for Emergency Rental Assistance Funds via GlobeSt

The Treasury Department has released an update to its FAQs regarding the $25 billion Emergency Rental Assistance Program announced on January 5, the latest in a string of guidance to state and local grantees tasked with disseminating rental assistance funds.

The program, which was designed to help households unable to pay rent and utilities due to the COVID-19 pandemic, will also benefit from an additional $21.5 billion from the American Rescue Plan Act signed into law by President Joe Biden.

Read more...Treasury Issues New Guidance for Emergency Rental Assistance Funds via GlobeSt

Wednesday, March 17, 2021

ALN Monthly Market Stats March 2021 via ALN Apartment Data

ALN Data just released their February 2021 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 March 2021 via ALN Apartment Data

Monday, March 15, 2021

Here are the Multifamily Markets With the Strongest Tailwinds via GlobeSt

Cities across the Sunbelt and Mountain West are experiencing the strongest tailwinds in the multifamily sector, as fewer job losses and fast-growing populations drive demand for quality rental products.

A new report summarizing the multifamily investment forecast from Marcus & Millichap cites Atlanta, Austin, Charlotte, Dallas-Fort Worth, Denver, Nashville, Phoenix, Raleigh, and Salt Lake City as the top markets benefiting from what it calls “in-migration momentum.”

Read more...Here are the Multifamily Markets With the Strongest Tailwinds via GlobeSt

Where the Apartment Market Stands One Year After COVID via GlobeSt

COVID-19 became a real thing for lots of people on March 11, 2020.

Over the past year, many of us at RealPage have referred to the date as Tom Hanks Day, since it’s when America’s Dad shared that he and wife Rita Wilson had contracted the virus. It’s also when the NBA shut down pro basketball play and when the World Health Organization first classified what was happening as a global pandemic.

As with so many things, then, the US apartment market entered a fundamentally different period one year ago today.

Read more...Where the Apartment Market Stands One Year After COVID via GlobeSt

Developers Face Construction Delays, Materials Scarcity: NMHC via Multi-Housing News Online

More than a year into the COVID-19 pandemic, a majority of multifamily developers are still experiencing construction delays as well as increases in construction material pricing, according to the National Multifamily Housing Council’s latest survey.

The organization released its sixth installment of its COVID-19 Construction Survey, which showed that 75 percent of respondents are facing construction delays in the markets they operate in. The report showed that 77 percent of those who experienced delays said the cause was permitting, while 75 percent reported a delay with starting construction.

Read more...Developers Face Construction Delays, Materials Scarcity: NMHC via Multi-Housing News Online

Friday, March 12, 2021

One year after pandemic, Dallas’ job market heats up again, even while some sectors are still hurting via Dallas Morning News

Carletta Castillo had been working in the hotel industry for 21 years when the coronavirus pandemic was declared a national emergency on March 13, 2020. She was laid off the same day.

A year later, she’s still unemployed and on Tuesday, she started using her pickup to deliver packages to businesses in downtown Dallas and beyond. She began at 6:30 a.m. at a warehouse and delivered her 48th box about 13 hours later.

“Oh my gosh, that’s a lot of work, but I’m happy I did it,” Castillo said, adding that she expects to continue the contracting job occasionally while taking online classes toward a college degree.

Read more...One year after pandemic, Dallas’ job market heats up again, even while some sectors are still hurting via Dallas Morning News

Thursday, March 11, 2021

DFW: One Of The Country's Hottest Apartment Markets As Price Per Unit Soars via Bisnow

The Dallas-Fort Worth metro area recorded the most multifamily transactions in the nation in 2020, with a total of 146 deals closed.

It's the latest in a bull run for DFW, which ranks as one of the hottest apartment markets in the U.S. with 2,227 multifamily transactions tied to 516,000 units completed in the Metroplex since 2009 at a total sales volume of $46.6B, according to a new study from CommercialSearch.

Read more...DFW: One Of The Country's Hottest Apartment Markets As Price Per Unit Soars via Bisnow

Freddie and Fannie Extend Multifamily Forbearance Again via GlobeSt

The Federal Housing Finance Agency has announced that Freddie Mac and Fannie Mae will extend multifamily forbearance for COVID-19. Qualifying multifamily property owners will be eligible for forbearance through June 30, 2021. The program was scheduled to expire on May 31, 2021.

Read more...Freddie and Fannie Extend Multifamily Forbearance Again via GlobeSt

Average Asking Prices Drop the Most Since Pandemic’s Start via GlobeSt

Average asking prices per square foot across all CRE property types dropped the most in February since the pandemic began a year ago, according to new data released by commercial database Crexi. At the same time, the average square footage of listings went up. Newly listed asking price averages decreased 7.34% over January numbers, owing in part to some listings being marked as “unpriced,” while square footage across asset classes rose by 11.2%.

Read more...Average Asking Prices Drop the Most Since Pandemic’s Start via GlobeSt

Wednesday, March 3, 2021

Eleventh District Beige Book 3/3/21 via Dallas Fed

The Eleventh District economy expanded at a moderate pace, though output in most industries remained below normal levels. Growth in the manufacturing and nonfinancial services sectors picked up in early February after stalling in January, while retail activity remained flat. Unprecedented winter storms and widespread power outages in mid-February severely disrupted economic activity, though the impact is mostly expected to be transitory. The housing market continued to be a bright spot, with vigorous new home construction. Overall loan volume decreased slightly, though real estate lending continued to rise. Energy activity improved further. Employment rose and wages increased moderately. Marked price increases were seen in the manufacturing and retail sectors, due in part to supply chain disruptions. Outlooks were generally positive, but uncertainty persisted.

Read more...Eleventh District Beige Book 3/3/21 via Dallas Fed

Investors: Most Asset Classes Will See Values Rise This Year via GlobeSt

Investors are most bullish on the industrial sector as 2021 marches on, followed by the self-storage and multifamily sectors, according to a recent survey of 500 commercial real estate investors by Marcus & Milichap.

Investors were asked to consider only the property in their current real estate portfolio in answering whether they expect property values to increase, decrease, or remain the same in 12 months, according to Marcus & Millichap senior vice president and director of research services John Chang in a recent video.

Read more...Investors: Most Asset Classes Will See Values Rise This Year via GlobeSt

Tuesday, March 2, 2021

Millions of Tenants Fall Further Behind on Rent as They Await Federal Covid-19 Assistance via WSJ

Tenants who are behind on their rent are still waiting for $25 billion in assistance that Congress appropriated in December, as millions of households and landlords fall deeper into debt.

Many states are still determining how to distribute money they have received from the Treasury Department to help an estimated 13 million renters. Meanwhile, Congress is poised to appropriate another $20 billion in rental assistance.

Read more...Millions of Tenants Fall Further Behind on Rent as They Await Federal Covid-19 Assistance via WSJ

Monday, March 1, 2021

Multifamily Concessions To Keep Falling in 2021 via GlobeSt

Despite being handed out like candy in 2020, multifamily concessions are now on the decline, according to new research from Yardi Matrix.

Concessions hit their peak over the summer but decreased in the fourth quarter, owing in part to job market gains and an increase in consumer sentiment as the economy reopened and COVID-19 vaccines began their rollouts. That optimism has boosted demand, according to Yardi. And generally, multifamily demand has shifted from more expensive properties and metro areas to cheaper areas.

Read more...Multifamily Concessions To Keep Falling in 2021 via GlobeSt

Apartment Rents Hit Biggest Growth Spurt Since 2019 via GlobeSt

Apartment rent trends may have hit a new stride. The Apartment List national rent index increased by .7% month-over-month in February, the largest monthly increase since June 2019. The increase also represents the second consecutive month of rent growth, a possible turn in the downward trend in rates catalyzed by the pandemic.

Considering historic rent growth trends, the month-over-month increase represents a substantial bump forward. For the past three years, February rent growth was .3% month-over-month. The report from Apartment List notes that the 2021 increase is more than double February 2020. In January, rent growth also outpaced the prior year’s average.

Read more...Apartment Rents Hit Biggest Growth Spurt Since 2019 via GlobeSt

Friday, February 26, 2021

CRE Transactions Retreat in January After Closing 2020 with a Bang via GlobeSt

US commercial real estate transaction volume started the year with a whimper. A new report from Real Capital Analytics shows a 58% decrease in year-over-year transaction volume in January.

The fumble comes on the heels of record activity in December, when transactions volumes increased 8% year-over-year. January experienced similar declines to the second and third quarters of 2020, which directly followed the onset of the pandemic.

Read more...CRE Transactions Retreat in January After Closing 2020 with a Bang via GlobeSt

Federal Judge Finds CDC’s Eviction Moratorium Unconstitutional via GlobeSt

US District Judge John Barker in Texas has ruled that an eviction moratorium put in place by the Centers for Disease Control and Prevention last year and then extended until March is unconstitutional. The ruling does not affect states’ eviction moratoriums.

The judge did not issue a preliminary injunction.

The plaintiffs in the lawsuit argued that the federal government does not have the authority to order property owners not to evict specific tenants; rather the decision whether to enact an eviction moratorium rests with a given state.

Read more...Federal Judge Finds CDC’s Eviction Moratorium Unconstitutional via GlobeSt

Tuesday, February 16, 2021

Multifamily Market Sees Record 4th Quarter: Newmark via Multi-Housing News Online

The fourth quarter of 2020 was the strongest quarter on record for the U.S. multifamily market, which saw investment sales volumes totaling $56.7 billion, up 115.2 percent quarter-over-quarter. Most of that volume came in December, when pent-up demand helped fuel nearly $25 billion in sales.

Despite the record fourth-quarter results and a strong third quarter, the multifamily market ended 2020 at $138.7 billion, down 27.6 percent from 2019 due to the market slowdown earlier in the year because of the COVID-19 crisis, according to the 4Q20 United States Multifamily Capital Markets Report from Newmark.

Read more...Multifamily Market Sees Record 4th Quarter: Newmark via Multi-Housing News Online

Dallas, Fort Worth renters rank high in U.S. for on-time payments via Dallas Business Journal

Some 87.5 percent of Dallas renters paid February rent on time — a relatively solid number compared to markets nationwide and amidst the coronavirus pandemic and related spike in unemployment.

Nationally, 79.2 percent of households had paid their rent for February through Feb. 6, according to the latest data from Richardson-based RealPage and the National Multifamily Housing Council’s Rent Payment Tracker.

Read more...Dallas, Fort Worth renters rank high in U.S. for on-time payments via Dallas Business Journal

ALN Monthly Market Stats February 2021 via ALN Apartment Data

ALN Data just released their January 2021 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 February 2021 via ALN Apartment Data

Thursday, February 11, 2021

Apartment Resident Retention Gets Messy via GlobeSt

After a decade when apartment resident retention gradually got better and better, it’s now harder for property owners and operators to hold onto renters in some metros and some apartment product segments.

Influencing that shift, the world has simply changed over the past year. Many households have experienced income disruptions, and sometimes challenges in employment have led to shifts in household composition. Even if there are no significant changes in household finances, more people working from home can shift choices in apartment location as well as space needs and preferences.

Read more...Apartment Resident Retention Gets Messy via GlobeSt

Wednesday, February 10, 2021

Behind on rent? Texans can soon apply for pandemic rental and utility assistance online and by phone via Dallas Morning News

Texans looking to tap $1 billion in stimulus money for rental assistance can apply for aid through the state, beginning Feb. 15.

The state created the program to administer rental assistance funds allocated under the most recent COVID-19 stimulus bill passed by Congress in December.

Read more...Behind on rent? Texans can soon apply for pandemic rental and utility assistance online and by phone via Dallas Morning News

Dallas beats out Austin as favorite Texas city for new residents during pandemic via CultureMap Dallas

New York Mayor Bill de Blasio recently tweeted a link to a Forbes article along with the following caption: "Move over Austin, because as the song says, if you can make it here, you can make it anywhere — and it’s easier than ever for young dreamers to make it in the greatest city in the world!"

Though it's a stretch to say de Blasio was trying to start a "feud," the tweet does illustrate the national hype surrounding Austin — from major news outlets reporting on a COVID-induced wave of people trading big cities for a better quality of life in Central Texas to companies such as Oracle moving their operations to the Capital City.

But new data from Redfin says it's actually not Austin pulling the most newcomers into Texas. It's ... Dallas.

Read more...Dallas beats out Austin as favorite Texas city for new residents during pandemic - CultureMap Dallas

Tuesday, February 9, 2021

Our K-shaped recovery: Dallas has regained almost all its lost jobs of the past year - if you exclude leisure and hospitality losses via Dallas Morning News

The pandemic economy has created sharply uneven outcomes, devastating some industries and families while improving the prospects for others.

The recovery is proceeding in a similar K-shaped fashion with some job sectors mired in high unemployment while others are posting strong growth.

Such disparities extend to regions, too. Consider this: By the end of December, the Dallas-Plano-Irving metro division had recovered nearly all its lost jobs over the previous 12 months -- if the hard-hit leisure and hospitality sector were excluded.

Read more...Our K-shaped recovery: Dallas has regained almost all its lost jobs of the past year - if you exclude leisure and hospitality losses via Dallas Morning News

Multifamily Fundamentals Expected to Stabilize By Q2 via GlobeSt

Multifamily fundamentals are expected to stabilize as soon as the second quarter of this year, according to new research from CBRE. In a new report, the firm says it expects “steady market recovery” through the second half of 2021.

Net absorption for multifamily during the fourth quarter of 2020 totaled 55,600 units, a number the firm described as “far better than expected” since leasing is normally anemic during these months of any year, as well as during recessions. Absorption for the past four quarters clocked in at 190,600 units, and suburban submarkets, smaller markets, and the Midwestern, Mountain West and Southeast regions fared better than average—as did Class B and C assets.

Read more...Multifamily Fundamentals Expected to Stabilize By Q2 via GlobeSt

What Q4 Tells Us About the Multifamily Market: CBRE via Multi-Housing News Online

CBRE’s Q4 U.S. Multifamily Figures report shows a sector still impacted by the COVID-19 crisis with average rent declining 1.6 percent for the quarter and 4.2 percent from the fourth quarter of 2019. But there were some bright spots, like Q4 net absorption coming in much higher than anticipated at 55,600 units, and investment volume marking a new quarterly high that indicates overall multifamily fundamentals should stabilize by the second quarter, with steady market recovery expected later in 2021.

Read more...What Q4 Tells Us About the Multifamily Market: CBRE via Multi-Housing News Online

Friday, February 5, 2021

A different kind of surge: Why Texas and D-FW are poised to lead a strong recovery when the pandemic fades via Dallas Morning News

Is it too soon to talk about green shoots?

We’re still in the throes of the pandemic economy with over 1 million Texans looking for work and an unemployment rate twice as high as a year ago.

But there are encouraging signs, including strong interest from outsiders, which has always been crucial to Texas’ growth story.

Read more...A different kind of surge: Why Texas and D-FW are poised to lead a strong recovery when the pandemic fades via Dallas Morning News

Houston Economic Indicators February 2021 via Dallas Fed

Recent indicators continue to portray an ongoing recovery hampered by the second wave of coronavirus infections. COVID-19 statistics for the Houston area worsened through mid-January, and weekly unemployment claims increased. However, COVID hospitalizations were easing heading into February and vaccinations of the general public were ramping up. Houston jobs continued to recover through the end of 2020, lagging the rest of Texas but on par with the nation. Local and international measures of manufacturing activity improved in December, while exports through Houston-area ports leveled off.

Read more... Houston Economic Indicators February 2021 via Dallas Fed

Austin Economic Indicators February 2021 via Dallas Fed

The Austin economy expanded in December as strong job growth and a lower unemployment rate boosted the Austin Business-Cycle Index. Recent COVID-19 hospitalizations have declined since peaking in mid-January. Regional consumer spending has held at pre-COVID-19 levels since early December. However, existing-home sales weakened in December.

Read more...Austin Economic Indicators February 2021 via Dallas Fed

Thursday, February 4, 2021

Apartment Rents Are Near Pre-Pandemic Highs via GlobeSt

Average rents for US apartments now are within a hair of the all-time highs seen in early 2020, as more individual metros are moving back into price growth mode.

Across the country’s largest 150 metros, effective asking rents for new leases in January 2021 came in only 0.3% below the rates seen at the start of 2020, before the spread of COVID-19 and the resulting economic struggles led to rent cuts.

The nation’s average effective asking rent is now $1,382 per month.

Read more...Apartment Rents Are Near Pre-Pandemic Highs via GlobeSt

Texas Employment Forecast​ January 2021 via Dallas Fed

Texas employment grew an annualized 7.1 percent in December after increasing a revised 5.2 percent in November. Jobs had been rising since May, but they still ended the year down 4.5 percent from December 2019. The Texas Leading Index increased for the eighth consecutive month in December, indicating continued positive growth over the next six months.

Read more...Texas Employment Forecast​ January 2021 via Dallas Fed

Wednesday, February 3, 2021

DFW Economic Indicators February 2021 via Dallas Fed

Dallas–Fort Worth’s economic recovery gained some momentum in December, following softening in the previous month. Job growth accelerated and unemployment dipped, boosting the Dallas and Fort Worth business-cycle indexes. Apartment demand outpaced expectations in the fourth quarter, while absorption of office space remained negative. Strong industrial leasing activity kept vacancy stable and below its historical average, despite elevated supply.

Read more...Dallas-Fort Worth Economic Indicators February 2021 via Dallas Fed

Wednesday, January 27, 2021

Homeownership Trends Having Little Effect on Multifamily Investment via WMRE

Just because more people are buying homes, that doesn’t have to hurt the outlook for investment in rental apartments, according to housing economists.

The percentage of people who own their own homes rose sharply in the second and third quarters of 2020, according to U.S. Census data. Usually such a spike would mean millions of renters had moved out of their apartments and bought homes of their own. And for much of 2020, there were many anecdotal stories of Americans relocating during the pandemic from urban apartments to suburbs or less expensive secondary and tertiary urban markets.

Read more...Homeownership Trends Having Little Effect on Multifamily Investment via WMRE

Texas Economic Indicators 1/26/21 via Dallas Fed

The Texas economy showed signs of growth in December as payroll employment strengthened and the unemployment rate inched down. Respondents to the Texas Business Outlook Surveys indicated healthy activity in December, followed by weaker results in January. Oil prices and the Texas active rig count continue to climb, while the level of dining out in Texas varied by metro. The dramatic rise in hospitalizations in the state and nation due to COVID-19 in recent months is putting a strain on the health care system.

Read more... Texas Economic Indicators 1/26/21 via Dallas Fed

Tuesday, January 26, 2021

Treasury Releases Emergency Rental Assistance Frequently Asked Questions via NMHC

On January 19, the U.S. Treasury published a Frequently Asked Questions (FAQ) regarding the $25 billion Emergency Rental Assistance Program (ERAP), approved in the COVID-19 relief package signed into law December 27.  These FAQs answer 14 questions and provide information on participation requirements, recordkeeping and definitions.

The FAQ outlines criteria for both prospective rent, rental arrears, utilities and home energy costs.  Specifically, the following are among some provisions included:

Read more...Treasury Releases Emergency Rental Assistance Frequently Asked Questions via NMHC

Freddie Mac Expects Rebound in Multifamily Lending This Year via Connect Media

Overall multifamily origination volume will rebound in 2021, growing to $340 billion by year-end as the economy is boosted by another federal stimulus package, Freddie Mac says in a new report.

The recovery is supported in part by growth in smaller metropolitan markets, like Phoenix and Tampa, with larger cities expected to recovery more gradually, the report says.

Read more...Freddie Mac Expects Rebound in Multifamily Lending This Year via Connect Media

Rent Collection Is Down, and Apartment Owners Feel the Squeeze via WSJ

The apartment business has weathered the Covid-19 pandemic better than most of the real-estate sector. That is starting to change.

Owners of multifamily buildings are falling behind on loan payments. Banks view a greater number of rental loans as high risk, and fewer lenders are available to help struggling developers with financing. Eviction protections, lower rent collections and unprecedented declines in the asking rent in some urban markets are also taking their toll on apartment owners.

Read more...Rent Collection Is Down, and Apartment Owners Feel the Squeeze via WSJ

Friday, January 22, 2021

Lots More Apartments Are On the Way in 2021 via RealPage

Look for another round of substantial apartment completions across the U.S. in 2021. Scheduled deliveries top 2020’s already big volumes in many metros, including most of the gateway markets where rent achievement has deteriorated so much during recent months.

RealPage project-by-project information for ongoing development shows 583,280 market-rate units under construction across the country’s 150 largest metros at the end of 2020. That figure is off its recent peak by nearly 100,000 units, reflecting that building starts slowed during the course of 2020.

Read more...Lots More Apartments Are On the Way in 2021 via RealPage

The Fastest-Growing Suburban Markets for Renters via Multifamily Executive Magazine

Given the shift to working from home, whether by preference or by necessity, RENTCafe researcher Sanziana Bona notes that the suburbs have a “newfound appeal” for renters, as they often offer larger apartments, lower density, and lower rents than big cities. Based on Yardi Matrix data for large-scale apartment buildings of 50 units or more, the markets best equipped to meet this new demand are those where the multifamily supply has already been expanding, with a spike in population growth—and in turn new apartment construction—over the past five years.

Read more...The Fastest-Growing Suburban Markets for Renters via Multifamily Executive Magazine

U.S. Multifamily Tenants Owe $70B in Unpaid Rent via WMRE

Renters have racked up a stunning $70 billion in unpaid rent since the start of the economic crisis cause by the coronavirus, according to an analysis of Census data by Moody’s Analytics. And that pain is not evenly spread. Top tier properties tend to have tenants who have been less affected by the pandemic and who have been able to continue to pay regularly. Meanwhile class-B and class-C apartments, where residents have been more likely to have hours cut or lost their jobs entirely, have increasingly struggling to collect rents, especially as the federal government was slow to extend further aid after initial rounds of legislation helped keep many Americans afloat throughout the first half of 2020.

Read more...U.S. Multifamily Tenants Owe $70B in Unpaid Rent via WMRE

The New Rental Assistance Program is Tremendous But Has Five Big Flaws via GlobeSt

When Congress passed the Consolidated Appropriations Act in late December, renter advocates and housing providers achieved a long-fought, milestone win with $25 billion going toward the newly created Emergency Rental Assistance program. The legislation uniquely unites renters and landlords together with funds to keep at-risk renters in their homes while also protecting property owners from losing their businesses.

Renter distress was a crisis that long pre-dates the pandemic – a problem largely ignored by policymakers until COVID-19 brought it to the forefront. Lawmakers initially responded with eviction bans, but that quickly backfired on both landlords and renters.

Read more...The New Rental Assistance Program is Tremendous But Has Five Big Flaws via GlobeSt

Tuesday, January 19, 2021

National Multifamily Report – December 2020 via Multi-Housing News

Multifamily rents continue to decline, showing a 0.8 percent drop in December on a year-over-year basis. Rents declined $4 to $1,462, dropping 30 basis points from the month before. This marks the largest one-month decline since the beginning of the pandemic, when rents dropped by $5 back in April.

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

Bank Economists See Brighter Days Ahead via GlobeSt

While the American Bankers Association’s Economic Advisory Committee expects the economy to decelerate in this quarter, it says there are brighter days ahead.

The committee predicts that the US economy will grow at about 4% over the four quarters of 2021, which will be the most robust growth in nearly two decades.

As mass vaccinations across the nation bring many consumers back to stores, restaurants, movie theaters and travel, the committee members agree that the economic outlook will brighten considerably.

Read more...Bank Economists See Brighter Days Ahead via GlobeSt

Friday, January 15, 2021

Multifamily Permits and Starts Jump in November via RealPage

Despite the weakened economy and a resurgence in new COVID-19 cases, multifamily permitting and starts both experienced a significant jump in November.

According to the U.S. Census Bureau, multifamily permitting increased 22.8% from October’s annual rate to 441,000 units, while multifamily starts were up 8% over the same period to 352,000 units.

Read more...Multifamily Permits and Starts Jump in November via RealPage

Builders tapping the brakes on apartment construction in DFW via Dallas Morning News

North Texas apartment builders are tapping the brakes on construction.

Permits for new multifamily residential construction are down more than 40% in Dallas-Fort Worth. And the number of D-FW apartments under construction fell below 40,000 units at the end of 2020 for the first time in five years.

But North Texas still leads the country in apartment construction. And it’s unclear whether the slowdown in new rental community development is a temporary pause or will last longer due to the pandemic.

Read more...Builders tapping the brakes on apartment construction in Dallas-Fort Worth via Dallas Morning News

Thursday, January 14, 2021

ALN Monthly Market Stats January 2021 via ALN Apartment Data

ALN Data just released their December 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 January 2021 via ALN Apartment Data

Wednesday, January 13, 2021

Eleventh District Beige Book 1/13/21 via Dallas Fed

The Eleventh District economy expanded at a moderate pace, but activity in most industries remained below normal levels. Recovery in the manufacturing and service sectors picked up, while retail activity remained weak. The housing market continued to be a bright spot, with robust home sales and strengthening apartment demand. Overall loan volume increased, led by real estate lending. Energy activity showed mounting signs of improvement after a prolonged contraction. Employment rose moderately, though wage growth remained subdued. Input cost increases continued to outpace growth in selling prices. Outlooks were generally positive, but uncertainty remained high. Several contacts voiced concern about rising COVID-19 infection rates impacting their short-term business prospects, though there was optimism about the vaccine paving the way to a resumption of more normal activity this year.

Read more...Eleventh District Beige Book 1/13/21 via Dallas Fed

Millions of Renters Are In a Deep Financial Hole via GlobeSt

The recent stimulus will help millions of renters.

The additional stimulus payments will bring their typical rent burdens from more than 80% of their income to less than half of that percentage, according to a Zillow analysis. But even with this help, millions of people are behind on their rent payments and face an incredible challenge catching up.

At least three million renters who were employed last March lost their jobs and were still out of work in November, according to Zillow.

Read more...Millions of Renters Are In a Deep Financial Hole via GlobeSt

Multifamily Properties Are Positioned for a Strong 2021 via WMRE

The multifamily sector weathered the storm in 2020, living up to its reputation as one of the most stable commercial real estate asset classes. The forecast for apartments in the new year is also bright. And even with where things sit today with the still raging pandemic and the terrifying scene that unfolded in the nation’s capital last week, observers point to the continued rollout of vaccines and the likelihood of new COVID-19 relief measures with the new administration and Democratic control of Congress as reasons for high hopes for the balance of 2021.

Read more...Multifamily Properties Are Positioned for a Strong 2021 via WMRE

Tuesday, January 12, 2021

Austin Economic Indicators January 2021 via Dallas Fed

The Austin economy slowed in November as the Austin Business-Cycle Index decelerated due to an increase in the unemployment rate. Nonetheless, job growth was positive in most industries, and regional consumer spending since mid-July continues to hold at pre-COVID-19 levels. Office space demand continued to weaken, and existing-home sales contracted slightly in November.

Read more...Austin Economic Indicators January 2021 via Dallas Fed

The Metrics You Should Be Watching in 2021 via GlobeSt

When the Bureau of Labor Statistics (BLS) publishes its monthly jobs numbers, the world takes notice. Markets move and politicians tweet. But for commercial real estate professionals, K.C. Conway, chief economist for CCIM Institute, thinks there are more insightful indicators that, taken together, would provide a better understanding of what’s ahead for the CRE industry.

Read more...The Metrics You Should Be Watching in 2021 via GlobeSt

Renters are Flocking to These Suburbs via GlobeSt

With the pandemic translating to a work-from-home shift for countless companies, the suburbs have a new-found appeal for renters with their abundance of space, larger apartments and homes and often lower rents compared to big cities.

With thousands of new suburban apartments opening in recent years, renters have many popular locations from which to choose. And if work-from-home becomes the new normal, a significant reversal of recent homebuilding patterns may emerge, according to a housing study by Harvard University.

Read more...Renters are Flocking to These Suburbs via GlobeSt

Renting Has Become More Affordable Than Owning in Many Counties via GlobeSt

Renting remains more affordable than homeownership in nearly three-quarters of the most populated counties in the United States, according to ATTOM Data Solutions’ 2021 Rental Affordability Report.

Renting is more affordable than buying a home in 18 of the country’s 25 most populated counties, and in 29 of 44 counties with a population of 1 million or more, including Los Angeles, Houston, San Diego, Chicago, and Orange County, Calif. It’s also more affordable to rent than buy in counties in the New York City, Seattle, Dallas, San Francisco, San Jose, Boston, and Riverside, Calif., areas.

Read more...Renting Has Become More Affordable Than Owning in Many Counties via GlobeSt

Monday, January 11, 2021

U.S. Apartment Performance Divide Persists Across Metros via RealPage

The U.S. apartment market has ended 2020 with sustained healthy occupancy but very mixed results across metros in terms of rent achievement.

Occupancy Holds Up
December occupancy in the country’s 150 largest metros came in at 95.5%, only a hair under the year-earlier figure of 95.6%.

Read more...U.S. Apartment Performance Divide Persists Across Metros via RealPage

Pricing Drops Were Not That Drastic After All Last Year via GlobeSt

Predictably, commercial real estate prices decreased last year, although the price changes were not uniform across property types. Industrial and manufactured home park values increased about 10% in 2020, while pricing of hardest-hit sectors fell 15 to 25%, according to Green Street. And, the Green Street Commercial Property Price Index was unchanged in December.

Read more...Pricing Drops Were Not That Drastic After All Last Year via GlobeSt

Multifamily Transactions See Dramatic Drop in 2020 via Multifamily Executive Magazine

Multifamily transactions were down sharply in 2020 due to the COVID-19 pandemic, according to a Yardi Matrix report.

Through the first three quarters of 2020, $50.6 billion of multifamily property sales had been completed nationwide, dropping 41.7% from $86.5 billion through the same period in 2019. According to Yardi Matrix, it will be a challenge for full-year volume to get close to 2019’s record high of $127.8 billion.

Read more...Multifamily Transactions See Dramatic Drop in 2020 via Multifamily Executive Magazine

Wednesday, January 6, 2021

Multifamily Leaders Concerned about Rent Issues, Economy: Survey via CPExecutive

As the COVID-19 battle moves into its second year, a survey of multifamily industry leaders said timely rent payment was the most challenging issue of 2020. Optimism about rent growth and the overall economy dropped to the lowest levels in a decade among respondents in an annual survey by J Turner Research.

Optimism for the national economy for the next 12 months dropped to 3.0, down from 3.7 in 2019 and the lowest outlook since 2010, according to the survey of senior-level and onsite multifamily personnel that began in 2008.

Read more...Multifamily Leaders Concerned about Rent Issues, Economy: Survey via CPExecutive

Tuesday, January 5, 2021

How Class C Apartment Residents are Getting By via GlobeSt

The pandemic’s impact on apartment dwellers hasn’t been uniform.

In its third-quarter National Housing Survey, Fannie Mae found that nearly one-third of respondents have experienced non-voluntary employment changes, including reduced working hours, layoffs, furloughs, pay cuts or their employers going out of business.

Fannie Mae found that lower-income households, renters and minorities are two to three times more likely to be concerned about their ability to pay their bills.

Read more...How Class C Apartment Residents are Getting By via GlobeSt

Nearly 90% Of Renters Paid Up in December via GlobeSt

Call it another casualty of COVID-19: rent collections have fallen 3.4% year-over-year in December 2020, according to National Multifamily Housing Council data.

The NMHC’s Rent Payment Tracker, which surveys 11.5 million units of professionally managed apartments across the country, found that 89.8% of apartment households made either a full or partial rent payment by December 20. That’s 393,952 fewer households than the share who paid rent by that date in 2019. NMHC data shows that 90.3 percent of households paid rent by November 20, 2020.

Read more...Nearly 90% Of Renters Paid Up in December via GlobeSt

Monday, January 4, 2021

D-FW apartment leasing jumped in the final months of ‘20 via Dallas Morning News

A surge in North Texas apartment leasing during the final months of 2020 was good news for rental landlords.

But reductions in rent — however slight — didn’t make for much merriment at the end of the year.

Net apartment rentals in Dallas-Fort Worth totaled 4,455 units during the final three months of 2020.

Read more...D-FW apartment leasing jumped in the final months of ‘20 via Dallas Morning News

More Renters Stayed Put Last Year via GlobeSt

The COVID-19 pandemic kept more people in their apartments last year.

This may come as a surprise, given the data that show more Americans moving to lower-cost areas of the country. Yet in a recent report, RENTCafé said that 10% fewer renters applied for a new apartment last year, which broke a years-long trend of single-digit increases. These results were consistent with a RENTCafé survey in April of 2020, when 11% of renters said they were staying put.

Read more...More Renters Stayed Put Last Year via GlobeSt

GSEs Extend Multifamily Forbearance Programs via Multi-Housing News

Fannie Mae and Freddie Mac have extended their COVID-19 mortgage forbearance programs for multifamily landlords through March 31, 2021, providing more flexibility for struggling property owners as well as protections for renters at a time of continuing stress for the industry.

The programs were due to expire Thursday, December 31, before the extensions announced by the Federal Housing Finance Agency (FHFA) last week. The move gives multifamily operators more time to request new or supplemental forbearance agreements if they are facing pandemic-related financial hardship.

Read more...GSEs Extend Multifamily Forbearance Programs via Multi-Housing News