Monday, August 30, 2021

Texas Quarterly Apartment Report 2Q2021 via Real Estate Center

Economic activity in Texas improved during second quarter 2021 and is expected to continue its strong growth for the remainder of the year. Improved hiring in June resulted in solid second-quarter payroll growth, although joblessness in the Lone Star State was still higher than the national average. Moreover, inflation-adjusted headline wage numbers flattened due to supply bottlenecks, generating price pressures and driving up inflation. On the bright side, oil industry activity grew as oil prices increased and the global economic recovery continues. The relative health of the state's economy and favorable business practices attracted migrants and firms from other parts of the country, bolstering population growth and housing demand.

Read more...Texas Quarterly Apartment Report 2Q2021 via Real Estate Center

Friday, August 27, 2021

Supreme Court Strikes Down Eviction Ban via GlobeSt

The Supreme Court has struck down the Biden administration’s Covid-related eviction moratorium, writing in an unsigned, eight-page opinion that Congress must specially authorize any continued ban.

“Congress was on notice that a further extension would almost surely require new legislation, yet it failed to act in the several weeks leading up to the moratorium’s expiration,” the court wrote.

Read more...Supreme Court Strikes Down Eviction Ban via GlobeSt

Friday, August 20, 2021

Are Eviction Bans Driving Up Rents? via GlobeSt

As rents have skyrocketed to record levels this summer, we’re often asked: Are rents surging because of the eviction moratorium?

The answer? Not directly, but it’s likely a contributing factor. To what degree will depend heavily on the property and the location.

Read more...Are Eviction Bans Driving Up Rents? via GlobeSt

Apartment Rents Move Beyond Pre-Pandemic Levels via GlobeSt

Rents grew 9.2% year-over-year in July, pushing beyond pre-pandemic levels, according to the July 2021 Zillow Real Estate Market Report.

The monthly increase in the Zillow Observed Rent Index (ZORI) was the fastest observed by Zillow, which has been tracking data since 2015. In addition, Zillow estimates that the US ZORI in July was 2.9% ($52) higher than where it would have been if the last roughly 18 months had been more ‘normal.’

Read more...Apartment Rents Move Beyond Pre-Pandemic Levels via GlobeSt

Tuesday, August 17, 2021

ALN Monthly Market Stats August 2021 via ALN Apartment Data

ALN Data just released their July 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 August 2021 via ALN Apartment Data

Friday, August 13, 2021

Multifamily Set to Continue as Ideal Inflationary Hedge via GlobeSt

The multifamily market is expected to continue its upward rise over the next year as strong demand, limited construction, and rising rents make the asset class an inflationary hedge.

A new report from Walker & Dunlop says low interest rates should continue to support CRE buyers, owners, and tenants, noting that yields remain “highly attractive” as compared to both the public equity and debt markets. And that’s particularly true for multifamily, where net absorption ended the year up 6.8% from 2019.

Read more...Multifamily Set to Continue as Ideal Inflationary Hedge via GlobeSt

Housing Starts Rise but Building Permits Portend Slowing via RealPage

Residential construction starts were up in June, but a lull in building permits points to a slowing of this measure in the near term.

U.S. housing starts increased by 6.3% in June to 1.643 million units despite higher costs for lumber and shortages of labor, appliances and furniture. At the same time, the U.S. Census Bureau reported that building permits for residential construction fell 5.1% from May to 1.598 million units, the lowest seasonally adjusted annual rate for building permits since October.

Read more...Housing Starts Rise but Building Permits Portend Slowing via RealPage

Wednesday, August 11, 2021

Class C Multifamily Properties Face Greatest Exposure As Moratoria Expire via GlobeSt

Institutional-grade multifamily product will likely emerge from the looming end of eviction and foreclosure moratoria relatively unscathed, but Class C properties in less recovered markets are staring down greater exposure.

That will leave some landlords in the precarious position of deciding whether to evict (and potentially draw big rent increases with new tenants) while assessing the risk of foregone rental arrears, according to a new report from Cushman & Wakefield.

Read more...Class C Multifamily Properties Face Greatest Exposure As Moratoria Expire via GlobeSt

Tuesday, August 10, 2021

Dallas-Fort Worth Economic Indicators August 2021 via Dallas Fed

DFW economic recovery continued in June. Job growth was mixed, with payrolls contracting in the goods sector. The unemployment rate continued to decline, and the Dallas and Fort Worth business-cycle indexes expanded. Activity in the office market was still finding its footing, while industrial leasing remained remarkably strong.

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

Austin Economic Indicators August 2021 via Dallas Fed

The Austin economy continued to post a strong performance in June. The Austin Business-Cycle Index accelerated, led by declines in the unemployment rate and recent broad-based job gains. COVID-19 hospitalizations increased markedly since early July. Existing-home sales decelerated in June amid historically tight inventories, and regional consumer spending remained healthy.

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

Houston Economic Indicators August 2021 via Dallas Fed

COVID-19 is increasing in Houston, but it is not clear that this has materially affected economic activity in the region yet. However, initial estimates for June payroll data showed a surprising slowdown in the pace of recovery, particularly for goods-producing sectors like oil and gas, which is seeing increased drilling activity and favorable commodity prices. Home sales and prices were surging in June due to strong demand. Overall, the outlook remains positive, but potential risks near term from the pandemic are increasing rapidly.

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

How Long Will Multifamily Rent Increases Last? via GlobeSt

From getting back on track at the end of 2020 to strong growth in 2021, according to the National Multifamily Housing Council, the ability to raise rents has been on a recent tear in multifamily.

But how long can that keep going?

Several factors have supported the rise. One is historically high costs of buying homes, in large part due to low inventory during the pandemic and a long-term lack of sufficient house construction. Even low interest rates can only do so much when necessary down payments skyrocket. Many people have no choice but to rent.

Read more...How Long Will Multifamily Rent Increases Last? via GlobeSt

Monday, August 9, 2021

Multifamily Investment Reached a Record $53B in Q2 via GlobeSt

Multifamily investment volume increased by 34% quarter-over-quarter in Q2 to reach $52.7 billion, according to CBRE.

This increase in apartment investment has dramatically exceeded expectations. If you subtract fourth-quarter volume—traditionally when most deals are down—second-quarter 2021 posted the highest transaction of any quarter in the last 15 years, CBRE explained.

Read more...Multifamily Investment Reached a Record $53B in Q2 via GlobeSt

Friday, August 6, 2021

Texas Economy Strongly Expands Despite Supply-Chain Disruptions, Hiring Challenges via Dallas Fed

Economic activity continued to expand at a robust pace in July, though growth was constrained by continued supply-chain disruptions and hiring difficulties. Texas employment rose at a healthy pace in June, and the unemployment rate inched down.

The labor market remained tight despite the rollback of supplemental federal unemployment benefits in late June. There has been strong upward pressure on prices and wages, though there were some signs of easing in July. The hot housing market continued to push up apartment rents, housing prices and construction.

Read more...Texas Economy Strongly Expands Despite Supply-Chain Disruptions, Hiring Challenges via Dallas Fed

Wednesday, August 4, 2021

CDC Issues New Eviction Moratorium via MHN

President Biden’s administration has enacted a new federal eviction moratorium that will focus on areas that have been hit the hardest by the Delta variant of COVID-19, the government agency announced last night.

The new order from the Centers for Disease Control and Prevention (CDC) went into effect August 3 and will last through October 3. The moratorium targets renters living in communities that are experiencing a surge in COVID-19 cases and is intended to give renters more time to obtain rent relief and for vaccination rates to increase.

Read more...CDC Issues New Eviction Moratorium via MHN

Tuesday, August 3, 2021

Apartment Rents Increase as Young Workers Head Back to Cities via WSJ

Apartment rents are rising fast, boosted by young professionals returning to cities and an expensive housing market that keeps many of them renting.

Stock prices of publicly traded apartment companies have jumped in stride. The FTSE Nareit Equity Apartments index, which tracks these landlords, is up 42% since January, trouncing the S&P 500’s 17% gain during the same period.

Read more...Apartment Rents Increase as Young Workers Head Back to Cities via WSJ

Top 20 Markets for Multifamily Sales in the First Half of 2021 via WMRE

Data from Real Capital Analytics showed some major reshuffling among the U.S. markets multifamily investors pouring money into during the first half of the year.

As the U.S. continues to go through a bumpy recovery from the pandemic, multifamily investors are trying to figure out the safest markets to place their money in. A recent report from real estate data firm Real Capital Analytics (RCA) shows that the multifamily sector has not only regained the momentum it had pre-2020, the overall investment sales volume for U.S. multifamily properties reached a record high in the second quarter of this year, at $43.3 billion, most of it driven by single-asset sales.

Read more...Top 20 Markets for Multifamily Sales in the First Half of 2021 via WMRE