Apartment Demand Hits Record Cyclical High via GlobeSt

Consumer demand for apartments hit a record high in the third quarter of this year, with new data from RealPage showing that the nation’s occupied apartment count jumped by a staggering 255,094 units from July to September. The figures mark the biggest quarterly absorption since the 1990s.

Annual demand data as of Q3 registered at 597,354 units, well beyond a prior cyclical peak of 380,000 units recorded in the third quarter of 2018. Annual demand over the decade spanning 2010 to 2020 averaged around 250,000 units.

Read more...Apartment Demand Hits Record Cyclical High via GlobeSt

Ouch! D-FW apartment rents jumped by more than 15% in September via Dallas News

It’s not just homebuyers who are getting hammered by higher prices.

Area renters are also feeling the bite of soaring housing costs.

Dallas-Fort Worth apartment rents surged by 15.5% in September from a year ago, according to a new report by Apartment List.

Read more...Ouch! D-FW apartment rents jumped by more than 15% in September via Dallas Morning News

Bidding wars for rental units? 2021's rental market is also on fire via Dallas Business Journal

It's not uncommon to hear about bidding wars for homes in today's housing market. But "leasing wars" for rental units are popping up in some cities as demand for multifamily housing remains high.

Matt Scott, broker associate at residential real estate services firm Baird & Warner's office in Naperville, Illinois, said in the eight years he's been in the business, he hasn't seen anything like the current environment.

Read more...Bidding wars for rental units? 2021's rental market is also on fire via Dallas Business Journal

CRE Braces for the Climate Disclosures Regs Coming from the SEC via GlobeSt

When SEC chair Gary Gensler testified before the Senate Committee on Banking, Housing, and Urban Affairs recently, he was clear, if not detailed, that disclosures about climate risk, as well as human capital and cybersecurity, were on the short list.

“I’ve asked staff to develop proposals for the Commission’s consideration on these potential disclosures,” he said. “These proposals will be informed by economic analysis and will be put out to public comment, so that we can have robust public discussion as to what information matters most to investors in these areas.”

Read more...CRE Braces for the Climate Disclosures Regs Coming from the SEC via GlobeSt

Record Apartment Rent Growth Pulls Back Just a Bit in August via GlobeSt

Apartment rents on average are nearly $200 per month higher than they were a year earlier, according to a record-setting Zillow Observed Rent Index (ZORI) for August, issued this week.

August’s 11.5 percent annual appreciation is the largest in Zillow records going back to 2015. Typical U.S. rents measured by the Zillow Observed Rent Index (ZORI) are $1,874, meaning a $200 YoY rent spike was within reach.

Read more...Record Apartment Rent Growth Pulls Back Just a Bit in August via GlobeSt

Five Apartment Markets Likely to Overheat via GlobeSt

Phoenix, Raleigh-Durham, Las Vegas, Tampa and Denver are to be considered the most likely apartment markets to overheat in the coming months, according to Kimberly Byrum, Principal-Multifamily, Zonda Advisory, who presented Tuesday at the MFE Conference hosted by Zonda in Las Vegas.

She said that high occupancy is driving unprecedented rent growth in asking rents, primarily on new lease activity. “Will it hold?” Byrum said. “Let’s see how many leases are being signed at these rates?”

Read more...Five Apartment Markets Likely to Overheat via GlobeSt

Soaring Rents Make It a Very Good Time to Own an Apartment Building via WSJ

Despite a yearlong national eviction ban and continuing pandemic, it has rarely been a better time to be a big apartment-building landlord.

National asking rents rose 10.3% in August, measured on an annual basis, according to Real Page, a rental-management software company, which analyzed more than 13 million professionally managed apartments. That marked the first double-digit increase in the more than 20 years this data has been collected, and in several hot cities the rent increases were much greater than the national figure.

Read more...Soaring Rents Make It a Very Good Time to Own an Apartment Building via WSJ

ALN Monthly Market Stats September 2021 via ALN Apartment Data

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

Houston Economic Indicators September 2021 via Dallas Fed

There are signs that Houston’s third wave of COVID-19 infections that began in late July was depressing local economic activity by the end of August, albeit modestly. Payroll growth in July accelerated as Houston’s recovery continued. On the negative side, surveys of business input prices continued to log near-record rises in price pressures. Overall, the outlook remains positive, but near-term risks from COVID-19 are rapidly rising.

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

Apartment Retention Rates Surge to Near Lockdown-Era Peaks via GlobeSt

Apartment retention rates are soaring back to lockdown-era highs, as more renters are determining that staying in place is often the best and most affordable option – given a remarkable lack of alternatives for all types of housing and for all price points.

The share of renters choosing to renew expiring leases in August 2021 surged 4 percentage points year-over-year, the largest increase on record.

Read more...Apartment Retention Rates Surge to Near Lockdown-Era Peaks via GlobeSt

Many Apartment Renters Fear They Will Never Become Homeowner via GlobeSt

Ask housing providers about consumers’ preference for renting versus owning and they will likely say that their product’s popularity is where the country is heading.

Multifamily operators suggest empty-nester trends, the desire of younger professionals to live downtown and the convenience that comes with the opportunity to not have to deal with maintenance and repairs.

Read more...Many Apartment Renters Fear They Will Never Become Homeowner via GlobeSt

Eleventh District Beige Book 9/8/21 via Dallas Fed

Solid expansion continued in the Eleventh District economy, though surging COVID-19 cases has added uncertainty to outlooks. Growth in the manufacturing and nonfinancial services sectors remained strong, and retail sales rose in August after holding steady in recent months. Home sales remained solid but eased. Overall loan volumes rose broadly, led by commercial real estate lending. Energy activity rose steadily, and agricultural conditions were very strong. Employment growth was robust, and wage growth remained elevated amid widespread labor shortages. Ongoing supply chain disruptions continued to drive up prices, though pressures eased slightly over the reporting period. Outlooks improved, though uncertainty increased.

Read more...Eleventh District Beige Book 9/8/21 via Dallas Fed

Texas leads U.S. in rent relief disbursal at more than 50% paid out, but hurdles remain via Dallas News

For Texas renters and landlords struggling amid the ongoing pandemic, rental relief can’t come quickly enough. And the state has now disbursed more than half of its available funds to residents across nearly all Texas counties, according to the Texas Department of Housing and Community Affairs.

The state agency has paid out $755 million of its $1.3 billion in rental assistance as of this week, benefiting more than 124,000 households. About $40 million in funds have also been approved and are in the process of being paid out to applicants.

Read more...Texas leads U.S. in rent relief disbursal at more than 50% paid out, but hurdles remain via Dallas Morning News

Apartment Rents Continue Their Upward Tear via GlobeSt

Apartment rents across the US increased by 2.1% from July to August⁠—a slight cool-down from 2.5% the month before⁠—but still continuing a trajectory of rent growth that began with a flash at the beginning of the year.

According to a new report from Apartment List, national median rent growth has increased by 13.8% since January, a staggering increase when compared to typical pre-pandemic growth, which averaged around 3.6% from 2017 to 2019.

Read more...Apartment Rents Continue Their Upward Tear via GlobeSt

Led By Multifamily, CRE Deal Volume Skyrockets 74% in July via GlobeSt

Overall deal volume was up 74% year-over-year and well over the average set across each July since 2005, according to Real Capital Analytics data, with apartment sales constituting 35% of all investment. Apartment pricing also gained the most ground last month, with prices of assets up 13.5% year-over-year.

Multifamily investment volume has skyrocketed this year, netting a 34% quarter-over quarter increase, according to CBRE. In response, cap rates have decreased, and some bidders are aggressively pushing up pricing as inflation fears persist.

Read more...Led By Multifamily, CRE Deal Volume Skyrockets 74% in July via GlobeSt

Austin Economic Indicators September 2021 via Dallas Fed

The Austin economy accelerated in July. The Austin Business-Cycle Index grew at a strong pace, led by declines in the unemployment rate and recent broad-based job gains. COVID-19 hospitalizations surged to an all-time high. Existing-home sales fell in July for the second consecutive month, and regional consumer spending remained healthy.

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

Dallas-Fort Worth Economic Indicators September 2021 via Dallas Fed

Recovery in the DFW economy continued at a healthy pace in July. The Dallas and Fort Worth business-cycle indexes expanded, buoyed by strong job growth. With the surge in leasing activity, apartment rents in DFW climbed. Daily COVID-19 cases were rising swiftly in August, though mobility was little changed, and consumer spending remained above prepandemic levels.

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