Apartment Rents Have Another 24 Months of High Growth via GlobeSt

“We have never seen anything like this,” said Jerry Fink, managing partner of the Bascom Group, about rent growth over the last 12 months. Fink spoke this week on the Investment Landscape: How Multifamily is Driving Economic Recovery panel at the GlobeSt.com Multifamily conference in Los Angeles this week. The discussion included Jeff Adler, VP of Yardi Matrix; David Harrington, EVP and managing director at Matthews Real Estate Investment Services; Brian Tranetzki, principal and head of multifamily at Taylor Street Advisors and Loryn D. Arkow, partner at law firm Stroock.

Read more...Apartment Rents Have Another 24 Months of High Growth via GlobeSt

Why Institutional Investors Are Bullish on Multifamily via GlobeSt

There are a lot of reasons to invest in multifamily today. Following the pandemic, apartment investors are enjoying substantial rent growth, record low vacancy rates and an attractive supply demand imbalance. But, institutional capital playing in the core and core-plus market, is more attracted to the stability of the asset class over the long term.

Read more...Why Institutional Investors Are Bullish on Multifamily via GlobeSt

Commercial Real-Estate Sales and Values Surge to Records via WSJ

Investors purchased a record amount of commercial real estate in the third quarter, defying warnings that the Covid-19 pandemic would erode these property values and starve the industry of cash.

Instead, purchases of apartment buildings, life-science labs and industrial properties, which serve as e-commerce distribution centers, rocketed commercial sales to more than $193 billion in the quarter. That is up 19% compared with the same three months in 2019, before the pandemic, and the biggest quarter for commercial property sales ever, according to data firm Real Capital Analytics.

Read more...Commercial Real-Estate Sales and Values Surge to Records via WSJ

Could Homeownership Derail the Rental Market In Secondary Cities? via GlobeSt

During the pandemic, people fled the urban core for secondary metros across the country. The great relocation, as some have called it, wasn’t necessarily a new trend; people had been slowly leaving big cities in favor of affordability in smaller cities, and last year, the trend exploded. In response, apartment markets in these cities are seeing high double digit rent growth, record low vacancy rates and new construction activity—but if these new folks in town are headed for homeownership, does the apartment boom already have a ticking clock?

Read more...Could Homeownership Derail the Rental Market In Secondary Cities? via GlobeSt

Surveying the Apartment Landscape For 2022 via GlobeSt

Apartment demand will likely remain robust and rent growth remain elevated in 2022, given the current rates of absorption, rising mortgage rates in 2022, and the lower level of construction activity relative to current demand, according to National Association of Realtors blogger Scholastica (Gay) Cororaton.

Demand for multifamily apartments remains strong so far in the fourth quarter, as of Oct. 19, with a net increase of 1.06 million apartment units occupied since Q2 2020. The multifamily vacancy rate has fallen to 4.6% (6.6% in Q2 2020) and the multifamily median asking rent is up 11.4% year-over-year (1.6% in Q2 2020).

Read more...Surveying the Apartment Landscape For 2022 via GlobeSt

Property Sales Shattered Records In Q3 via GlobeSt

Sales of commercial real estate assets in the US hit record-breaking highs in the third quarter, thanks largely to activity in the apartment and industrial sectors.

Real Capital Analytics’ latest US Capital Trends report shows that deal volume hit $450 billion in the first three quarters of the year, a high watermark for commercial real estate generally. Deal activity has not approached that level since 2007, prior to the Great Financial Crisis.

Read more...Property Sales Shattered Records In Q3 via GlobeSt

Eleventh District Beige Book 10/20/21 via Dallas Fed

Solid expansion continued in the Eleventh District economy, though COVID-19 and labor and supply-chain constraints remained headwinds. Growth in the manufacturing and nonfinancial services sectors was strong, and retail sales rose at an average pace. Home sales were steady at elevated levels. Overall loan volumes rose broadly, and the energy sector continued to experience robust growth. Agricultural conditions were quite strong. Employment growth was robust, and wage growth remained highly elevated amid widespread labor shortages. Notable price increases were seen across sectors, with contacts noting that ongoing supply-chain disruptions continued to drive up costs. Outlooks improved, with most contacts expecting stronger business six months from now, though uncertainty increased.

Read more...Eleventh District Beige Book 10/20/21 via Dallas Fed

Why the Recent Apartment Rent Growth Is Sustainable Over the Long Term via GlobeSt

Last year, apartment rent growth was a tale of two cities, or at least two types of cities. Rents plummeted in major metros—in some cases by double digits—and jumped in small cities and suburbs—in some cases by double digits. This year, rents rebounded back in the big cities and continued to grow in emerging markets. This new period of rent growth is likely to be the new normal over the next 12 months.

Read more...Why the Recent Apartment Rent Growth Is Sustainable Over the Long Term via GlobeSt

Mass Evictions Didn’t Result After U.S. Ban Ended, Despite Fears via WSJ

When the federal moratorium on evictions ended in August, many feared that hundreds of thousands of tenants would soon be out on the streets. More than six weeks later, that hasn’t happened.

Instead, a more modest uptick in evictions reflects how renter protections at the city and state levels still remain in parts of the country, housing attorneys and advocates said. Landlords, meanwhile, say the risk of an eviction epidemic was always overstated and that most building owners have been willing to work with cash-strapped tenants.

Read more...Mass Evictions Didn’t Result After U.S. Ban Ended, Despite Fears via WSJ

Is the Time Ripe for a Sale? via GlobeSt

Values are up. Rents are rising, Cap values are at historical lows in some markets. It’s a strengthening economy. Then there are the prospects of higher interest rates, ongoing inflation, and increased taxes with new regulations perhaps around 1031 exchanges. Growth may be slowing some already.

Is now the time to sell and take profits? Or is there a case for the buy-and-hold investor?

It’s a tricky question that doesn’t have a single answer.

Read more...Is the Time Ripe for a Sale? via GlobeSt

ALN Monthly Market Stats October 2021 via ALN Apartment Data

ALN Data just released their Septembert 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 October 2021 via ALN Apartment Data

Austin Economic Indicators October 2021 via Dallas Fed

The Austin economy continued to expand in August. The Austin Business-Cycle Index increased, led by declines in the unemployment rate. Recent COVID-19 hospitalizations declined further from the latest peak in August. Existing-home sales fell in August for the third consecutive month, and regional consumer spending remained healthy.

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

U.S. Apartment Vacancy Plunges in September to Record Low as Lease Renewals Surge via RealPage

Apartment vacancies nationally dwindled to another record low in September at just 2.7%, according to RealPage, Inc. This marked the fourth consecutive month of record-breaking lows in a dataset going back three decades.

Ultra-low vacancy traces to unprecedented demand from both new renters moving in and existing renters choosing to renew leases.

Read more...U.S. Apartment Vacancy Plunges in September to Record Low as Lease Renewals Surge via RealPage

U.S. Apartment Demand in 3Q Reaches a Stunning High via RealPage

U.S. demand for apartments continued to soar in 3rd quarter 2021. Preliminary calculations from RealPage, Inc. showed that the nation’s occupied apartment count jumped by 255,094 units during the July to September time frame. That’s the biggest quarterly product absorption figure seen in records that go back to the early 1990s.

Read more...U.S. Apartment Demand in 3Q Reaches a Stunning High via RealPage

There is a Severe Shortage of Rental Housing at Every Price Point Now via GlobeSt

Apartment vacancies hit another historic low in September, declining to 2.7% for a fourth consecutive month of record-breaking lows.

New lease demand in the year ending in September 2021 also increased by 50.5%, with apartment resident retention surging to 58.%, an all-time high, according to data from RealPage.

Lease renewals surged last month, keeping vacancy rates low.

Read more...There is a Severe Shortage of Rental Housing at Every Price Point Now via GlobeSt

DFW Economic Indicators September 29, 2021 via Dallas Fed

DFW’s economic recovery remained on track in August. Job growth slowed from July but was robust relative to the historical average. The unemployment rate continued to decline, and the Dallas and Fort Worth business-cycle indexes expanded at above-average rates. Activity in the housing market remained robust, characterized by strong sales, tight inventories and vigorous construction of single-family homes.

Read more...Dallas-Fort Worth Economic Indicators September 29, 2021 via Dallas Fed