Residential construction up more than 40% across Dallas-Fort Worth via Dallas Business Journal

Residential construction in North Texas surged by more than 40 percent last month compared to a year earlier, as home and apartment builders moved to meet mounting demand despite escalating new home and multifamily rental prices.

New home construction in Dallas-Fort Worth rose 42 percent last month to just under $1.4 billion, versus $982.9 million in May 2020, according to a new report by Dodge Data & Analytics.

Read more...Residential construction up more than 40% across Dallas-Fort Worth via Dallas Business Journal

Texas Economic Indicators June 2021 via Dallas Fed

The Texas economic recovery continued in May as payroll growth ticked up and the unemployment rate continued to decline. The Texas Business-Cycle Index grew for the 12th month in a row, and Texas Business Outlook Surveys respondents reported solid increases in wages and benefits. Oil prices and the rig count both grew in the week ending June 18. Home prices across the state saw record year-over-year growth in the first quarter.

Read more... Texas Economic Indicators June 2021 via Dallas Fed

Apartment Price Growth Eclipses Industrial Increases via GlobeSt

Apartment prices have overtaken industrial as the fastest-growing in May, with increases coming in at 10.1% year-over-year.

Industrial price growth, conversely, grew by 9.5%, according to the most recent data from Real Capital Analytics. The US National All-Property Price Index increased 0.8% over April numbers and 8.9% from a year ago, while office and retail price growth clocked in at 2.9% and 2.3%, respectively.

Read more...Apartment Price Growth Eclipses Industrial Increases via GlobeSt

The Days of Discounted Pandemic Rents Are Over via GlobeSt

The pandemic hit at the worst time possible for apartment owners. As spring leasing season was picking up in 2020, the word went into lockdown.

Apartment List’s national index hovered around 4% below its projected level for the remainder of the year when that happened.

But things turned quicker than expected. After a strong 2021 performance, that gap has been eliminated. In May 2021, the national median rent price hit $1,189, just above the projected price of $1,185.

Read more...The Days of Discounted Pandemic Rents Are Over via GlobeSt

Dallas renews rental assistance program with $50 million in federal money via Dallas Morning News

The Dallas City Council approved a deal Wednesday to add more than $50 million in federal money to programs to help with rent and utilities.

To qualify for help with rent, Dallas residents must have an annual income at or below 80% of the area median income, or $48,000 for a single-person household.

Read more...Dallas renews rental assistance program with $50 million in federal money via Dallas Morning News

CDC Extends Federal Eviction Moratorium Through July via WSJ

The Biden administration has issued a monthlong extension of a moratorium, through July, on the eviction of tenants who have fallen behind on their rent during the pandemic, the Centers for Disease Control and Prevention said on Thursday.

An extension is needed to prevent a wave of evictions before states and local governments can distribute about $47 billion of rental assistance authorized by Congress to cover unpaid back rent, administration officials said. Progress has been slow.

Read more...CDC Extends Federal Eviction Moratorium Through July via WSJ

Sluggish recovery? Not in Dallas-Plano-Irving, where half the state’s new jobs were created in May via Dallas News

May’s job growth for Texas and the U.S. was disappointing, but Dallas-Plano-Irving has a different story.

The eastern side of the metro area created 17,400 jobs last month, accounting for half the new jobs statewide. That’s more than double its usual share and easily led Texas metros.

May’s job gains also were the highest for Dallas-Plano-Irving since November. They provided a sharp contrast to the state’s slow pace of growth, which lagged the U.S. increase in May.

Read more...Sluggish recovery? Not in Dallas-Plano-Irving, where half the state’s new jobs were created in May via Dallas Morning News

Apartments' Flexibility Provide Inflation Hedge via GlobeSt

Unlike other segments of commercial real estate, apartments offer owners flexibility. With shorter leases, often running between six and 24 months, apartment operators can be more attuned to a changing economy.

“As those leases roll-off, you’re able to readjust those rent roles based on current market conditions,” says David Vincent, Cadre’s Investment Specialist. “So you have a lot more flexibility than say industrial or office.”

Read more...Apartments' Flexibility Provide Inflation Hedge via GlobeSt

Texas Unemployment Rate falls to 6.5 % in May via Texas Workforce Commission

In May, the seasonally adjusted Texas unemployment rate was 6.5 percent, down 0.2 percentage points from April 2021. Texas added 34,400 total nonagricultural jobs over the month, making gains in 12 of the last 13 months. Texas added a total of 804,200 jobs since May 2020.

"Texas employers continue to add jobs, strengthening our economy and creating opportunities for Texas workers to connect to a rewarding career," said TWC Chairman Bryan Daniel. "Job seekers can access skills enhancement resources to prepare for these newly created jobs via our local Workforce Solutions partners and through TX.metrixlearning.com."

Read more...Texas Unemployment Rate falls to 6.5 percent in May via Texas Workforce Commission

Texas adds over 34,000 jobs in May as recovery continues via Dallas News

Texas added 34,400 nonfarm jobs in May as the economic recovery continued to gain momentum, and the state’s unemployment rate ticked down to 6.5%, the Texas Workforce Commission reported on Friday.

The gains in May were more than double the hiring in April but were still far short of the 109,700 jobs added in March. So far this year, Texas has added over 195,000 jobs, with monthly changes varying widely.

Read more...Texas adds over 34,000 jobs in May as recovery continues via Dallas Morning News

Dallas-Fort Worth Economic Indicators June 2021 via Dallas Fed

The pace of economic recovery in Dallas–Fort Worth eased in April. Payrolls expanded broadly but at a slower rate than in March. Unemployment dipped, and the business-cycle indexes for both Dallas and Fort Worth rose. Existing-home sales climbed in March and April, and home price gains accelerated further. Recently released data from the Census Bureau show that DFW ranked No. 1 among U.S. metros in net population increase in 2020.

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

Houston Economic Indicators June 2021 via Dallas Fed

The most recent data show continued economic recovery in Houston. In April, payrolls and the labor force increased, unemployment was down, the burden of COVID on the region continued to recede, and mobility moved sideways. Inflation and input prices have picked up. Overall, the outlook remains positive.

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

May Rental Data: U.S. Rental Prices Reach Highest Point in Two Years via Realtor.com

Nationally, monthly rents are finally growing faster than their pre-COVID rates, driving rental prices to their highest point in 27 months.

Last March, prior to the onset of the pandemic, rents in the 50 largest metro areas were growing by 3.2% year-over-year. That growth gradually slowed throughout the pandemic, down to 0.6% in February 2021. However, as of May 2021, the median national rent reached $1,527, up 5.5% ($79) year-over-year. Rents have fully recovered in many of the nation’s largest cities, and are on track to speedy recovery in many others. Because national rents slowed but never fell on a year-over-year basis during the pandemic, rents are up 7.5% over the last two years.

Read more...May Rental Data: U.S. Rental Prices Reach Highest Point in Two Years via Realtor.com

U.S. Apartments Have Risen to the Top of Foreign Investors’ Wish Lists via WMRE

International investors have a new favorite type of real estate. They now spend just as much money on apartment buildings in the U.S. as they spend on their old favorite property type, U.S. office space.

The change has been a long time coming. Foreign investors once had little knowledge of U.S. rental housing. Now they want the consistent, resilient income from apartments mixed into their investment portfolios and several are spending billions to buy apartment properties.

Read more...U.S. Apartments Have Risen to the Top of Foreign Investors’ Wish Lists via WMRE

Austin Economic Indicators June 2021 via Dallas Fed

The Austin economy turned in a healthy performance in April. The Austin Business-Cycle Index grew at a robust rate, the unemployment rate declined and recent payroll gains were broad based across sectors. COVID-19 hospitalizations have steadily declined since increasing briefly in late April. Existing-home sales decelerated in April, and regional consumer spending remained strong.

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

Urban Multifamily Back from the Dead via ALN Apartment Data

2021 for the multifamily industry has been partially characterized by a very active new construction pipeline and a robust rebound in apartment demand. In ALN newsletters and blog posts these developments have been touched upon from various angles including price class, market size, and evaluation of specific markets. One area that has yet to be addressed is how all of the action of 2021 has played out across the urban-suburban-outlying area divide.

Read more...Urban Multifamily Back from the Dead via ALN Apartment Data

ALN Monthly Market Stats June 2021 via ALN Apartment Data

ALN Data just released their May 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 June 2021 via ALN Apartment Data

Logjams Are Keeping Much of $47 Billion in Federal Aid From Renters via WSJ

Many renters who missed rent payments during the pandemic are unable to access billions of dollars in federal rent aid that started flowing to states and cities five months ago.

Local governments across the U.S. have struggled with how to distribute the money, and some have complained that their staffs are being deluged by a flood of aid requests. Numerous renters are being disqualified for failing to correctly complete their applications, local officials say.

Read more...Logjams Are Keeping Much of $47 Billion in Federal Aid From Renters via WSJ

Multifamily Is CRE’s Most Liquid Sector via GlobeSt

Multifamily transaction volume topped $138 billion last year and hit $32 billion in the first quarter of 2021, making the asset class the most liquid among all commercial real estate property types.

A new report from JLL shows that closed-end fund closings targeting multi-housing assets have totaled $68.4 billion since 2016 and “will provide an ongoing source of liquidity,” especially as pricing discovery in the midst of COVID-19 resulted in more opportunities for private capital to invest in the space. That’s particularly true for high net worth individuals and institutional investors.

Read more...Multifamily Is CRE’s Most Liquid Sector via GlobeSt

‘We’re hiring like crazy’: Why DFW’s labor market is about to turn — with lasting changes via Dallas News

It’s a cliché to say the pandemic year was unlike any other, and don’t be surprised to hear the same about 2021, because both descriptions are likely to be true.

In Dallas-Fort Worth, where job growth feels like a birthright, the region lost nearly 122,000 jobs last year, according to seasonally adjusted data from the Federal Reserve Bank of Dallas. That’s the highest annual job loss ever for D-FW, and 12,000 more than in 2009 during the Great Recession.

Read more...‘We’re hiring like crazy’: Why DFW’s labor market is about to turn — with lasting changes via Dallas News

With the pandemic subsiding, apartment rents are heading higher in DFW via Dallas News

North Texas apartment renters are going to need deeper pockets.

After a slowdown during the early days of the pandemic, rents in Dallas-Fort Worth are rising again at the fastest clip in years.

Rents for new apartment leases were up almost 5% year-over year in May. It’s the biggest such increase since 2016, according to a new report by RealPage, a Richardson real estate technology firm.

Read more...With the pandemic subsiding, apartment rents are heading higher in Dallas-Fort Worth via Dallas News

U.S. housing regulator extends eviction freeze for some multifamily property via Reuters

A U.S. housing regulator announced Thursday it was extending until the end of September an ongoing moratorium on evictions at multifamily properties backed by Fannie Mae and Freddie Mac.

The move from the Federal Housing Finance Agency (FHFA) applies to any multifamily property owners who have sought forbearance with the enterprises due to financial hardship. Under the extension, which is now in effect until Sept. 30, those property owners cannot evict tenants for not paying rent, or charge late fees for unpaid rent.

Read more...U.S. housing regulator extends eviction freeze for some multifamily property via Reuters

Texas Quarterly Apartment Report 1Q2021 via Real Estate Center

Economic activity within Texas moderated during first quarter 2021 but remained on the path to recovery despite weather-related disruptions in February. Robust hiring in March resulted in solid first-quarter payroll growth, although joblessness in the Lone Star State was still higher than the national average. Moreover, inflation-adjusted headline wage numbers flattened compared with year-ago levels while initial unemployment claims surged unexpectedly. On the bright side, oil prices rebounded, contributing to increased export values.

Read more...Texas Quarterly Apartment Report 1Q2021 via Real Estate Center

Dallas renters can now apply for up to 1 year of rental assistance. Here’s how via Dallas News

DHA Housing Solutions for North Texas is accepting applications for up to 12 months of past due and future rent assistance.

The program, made possible by federal CARES Act funding, has $18 million to dole out before the end of 2021. It’s intended to provide assistance to people whose financial situations were negatively affected by the COVID-19 pandemic.

Read more...Dallas renters can now apply for up to 1 year of rental assistance. Here’s how via Dallas News

CoStar reports rising multifamily property prices via Yield PRO

A recent report from CoStar indicates that multifamily property prices are maintaining steady growth on a year-over-year basis.

The CoStar report focuses on a relative measure of property prices called the CoStar Commercial Repeat Sales Index (CCRSI). The index is computed based on the resale of properties whose earlier sales prices and sales dates are known. The index represents the relative change in the price of property over time rather than its absolute price.

Read more...CoStar reports rising multifamily property prices via Yield PRO

Eleventh District Beige Book 6/2/21 via Dallas Fed

The Eleventh District economy continued to expand at a solid pace during the reporting period. Growth in the manufacturing and nonfinancial services sectors was strong, though activity remained below pre-pandemic levels. Retail sales were mixed. Home sales and single-family construction remained robust, but activity was being constrained by labor, lot, and materials shortages. Apartment demand rose, while office leasing stayed weak. Overall loan volume increased sharply, buoyed by continued strength in real estate lending. Energy activity and agricultural conditions improved. Employment growth was moderate, and upward wage pressures continued as hiring remained a key challenge for many companies. Ongoing supply chain disruptions intensified price pressures, particularly in the construction and manufacturing sectors. Outlooks improved, though there was widespread apprehension about the sustainability of current demand growth in light of supply constraints, difficulty hiring, and rising costs.

Read more...Eleventh District Beige Book 6/2/21 via Dallas Fed