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

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

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

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

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

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

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

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

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

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

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

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

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

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