This Year Marked a Turning Point for Multifamily Fundamentals via GlobeSt

There’s good news in 2023 for multifamily says a CBRE report. Overall demand should hold steady. But a moderating force of new units is coming online, so don’t expect the results of the previous two years.

“It appears 2022 will be a turning point for multifamily fundamentals,” CBRE wrote.

Read more...This Year Marked a Turning Point for Multifamily Fundamentals via GlobeSt

ALN Monthly Market Stats December 2022 via ALN Apartment Data

ALN Data just released their November 2022 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 December 2022 via ALN Apartment Data

Yardi Revises Year-End Multifamily Outlook As Midsize Markets Thrive via GlobeSt

Yardi has revised its 2022 year-end outlook for multifamily rent and occupancy upward from 6.9% to 7.6%, as many midsize markets in the Southeast and Midwest continue to overperform.

At the same time, Yardi has lowered its 2023 expectations from 3.7% to 3.5%.

Read more...Yardi Revises Year-End Multifamily Outlook As Midsize Markets Thrive via GlobeSt

Young Renters Making Trade-Offs in Response to Inflation via MHN

Young American renters are already facing a historic shortage of rental housing and are now encountering inflation in the form of higher rents and higher prices of everyday necessities.

Grubb Properties’ survey of 1,000 renters between the ages of 22 and 35 found that these young renters are taking action and making trade-offs as necessary to address this economic reality.

Read more...Young Renters Making Trade-Offs in Response to Inflation via MHN

Rent prices fall for a third straight month in November: RealPage data via Yahoo News

Apartment rents across the U.S. recorded a third consecutive monthly decline in November, signaling a further cooldown in the U.S. housing market.

The latest data from real estate platform RealPage showed asking rents for new leases nationally fell 0.59% in November, the third-largest monthly cut since 2010 outside of the pandemic-altered months of April and May 2020.

Read more...Rent prices fall for a third straight month in November: RealPage data via Yahoo News

GSEs Unlikely to Meet Allocations via MHN

Multifamily transaction activity has slowed so much in recent months that the government-sponsored enterprises Fannie Mae and Freddie Mac—possibly for the first time ever—may not lend all the capital allocated to them by the federal government.

Through the end of October, Fannie and Freddie were nowhere near the $78 billion in allocations they were granted by the Federal Housing Finance Agency. Fannie originated $54.7 billion and Freddie $51.2 billion in the first 10 months of the year, according to the agencies’ public filings. With many in the multifamily industry putting their pencils on hold through year-end, there is little chance that the agencies will meet their lending capacity, probably ending the year at around $70 billion in originations.

Read more...GSEs Unlikely to Meet Allocations via MHN

Houston Economic Indicators December 2022 via Dallas Fed

Houston has continued to add jobs at a strong pace, with leisure and hospitality leading growth and construction receding slightly in the last three months. Though mortgage rates remain high, home sales, new building permits and home price growth have started to level out. Recent data show positive signs that Houston’s real estate market is stabilizing after the pandemic boom.

Read more... Houston Economic Indicators December 2022 via Dallas Fed

Texas, Florida Are Top Moving Destinations in the US via GlobeSt

Florida and Texas are the most popular moving destinations in the US, according to a new study from Forbes Home analyzing US Census Bureau data.

Read more...Texas, Florida Are Top Moving Destinations in the US via GlobeSt

Austin Economic Indicators December 2022 via Dallas Fed

In October, Austin experienced a rebound in job growth, accompanied by a slight increase in unemployment and a decline in wage growth. On the housing side, demand has weakened further as mortgage rates cause home prices to cool and housing inventory to rise. At the same time, housing affordability continues to fall.

Read more...Austin Economic Indicators December 2022 via Dallas Fed

Eleventh District Beige Book November 2022 via Dallas Fed

Modest growth continued in the Eleventh District economy. Expansion in manufacturing eased slightly while service sector growth ticked up. Retail sales and home sales fell further. Rising interest rates dampened loan demand, with loan volumes declining for the second consecutive reporting period. Activity in the energy sector continued to expand, though growth remained constrained by equipment and labor shortages. Local nonprofits cited higher demand for assistance amid rising household costs. Widespread rains improved drought conditions. While employment expanded at a solid rate and wage growth was generally high, there were reports of a slowdown in hiring and layoffs. Price pressures remained elevated but eased notably in retail. Outlooks were mostly pessimistic except for the energy sector, and uncertainty increased, with contacts voicing concern about inflationary pressures, weakening demand, and labor challenges.

Read more...Eleventh District Beige Book November 2022 via Dallas Fed

Industrial and Multifamily Sectors Stay Resilient Amid Economic Headwinds via GlobeSt

The current economic headwinds have been a cause for alarm in certain sectors. Not so for industrial and multifamily, however. With US industrial vacancy at 4% and multifamily’s pipeline tightening, the data from Lee & Associates’ Q3 2022 Market Report shows both sectors have room for rent growth.

It’s a story about fundamentals that point to continued strength, according to Jeff Rinkov, CEO of the broker-owned real estate services firm.

Read more...Industrial and Multifamily Sectors Stay Resilient Amid Economic Headwinds via GlobeSt

NMHC: Rising Vacancy Rates No Reason to Stop Housing Development via GlobeSt

The current short-term lessening of apartment demand is no reason for the industry to ignore the long-term trend that the country needs more housing, according to a post by the National Multifamily Housing Council (NMHC) last week.

After a tremendous, multi-year run of rent growth, tents have fallen due to slowing demand in the latter part of the year because of economic uncertainty and increasing vacancy rates, NMHC said.

Read more...NMHC: Rising Vacancy Rates No Reason to Stop Housing Development via GlobeSt

ALN Monthly Market Stats November 2022 via ALN Apartment Data

ALN Data just released their October 2022 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 November 2022 via ALN Apartment Data

Voters Approve Rent Control in Florida County via GlobeSt

By a wide margin, voters in Orange County, FL approved an ordinance that prevents owners of existing apartments from raising rents at a rate higher than the inflation rate for the region.

The vote in favor of the rent-control ordinance was 217,168 while 151,936 voted no, margin of 59% to 41%. The ballot question that was approved read as follows:

Read more...Voters Approve Rent Control in Florida County via GlobeSt

Many Deals Pause But Cash Is a Great Motivator via GlobeSt

That commercial real estate transactions slowed in the third quarter of this year shouldn’t surprise. Costs went up as the Fed turned the screws to baseline interest rates and commercial financing did so as well.

But buyers with cash still did deals, according to Crexi, in its quarterly national trends report.

Read more...Many Deals Pause But Cash Is a Great Motivator via GlobeSt

Dallas-Fort Worth Economic Indicators November 2022 via Dallas Fed

Dallas–Fort Worth’s economy expanded in September. Payroll employment rose following declines in August. In October, consumer spending stayed above prepandemic levels. Home prices fell again in August. Demand for industrial space remained robust in the third quarter, while activity in the office market was tepid.

Read more...Dallas-Fort Worth Economic Indicators November 2022 via Dallas Fed

Austin Economic Indicators November 2022 via Dallas Fed

Austin’s economy expanded in September as the Austin Business-Cycle grew, most sectors experienced job growth, wages improved, and the unemployment rate declined. Existing-home price growth is also slowing.

Read more...Austin Economic Indicators November 2022 via Dallas Fed

Apartment Loss to Lease is Plunging. Here's What That Means via GlobeSt

Last week, Federal Reserve Chair Jerome Powell dove into the debate over rent inflation and suggested that while new lease rent growth is slowing, “there’s still some significant (rent) increases coming” via cheaper lease renewals hiked up to market level.

But RealPage data show that’s NOT exactly true for market-rate apartments. U.S. apartments plunged back to the long-term average in “loss to lease” – which means the runway for renewal lease rents will significantly narrow going forward.

Read more...Apartment Loss to Lease is Plunging. Here's What That Means via GlobeSt

Yes, Opportunities Are Still Out There for Multifamily Investors via GlobeSt

The multifamily sector appears to be charging (nearly) full speed ahead into the end of 2022, despite volatility in the capital markets. But will that momentum slow as the cost of capital continues to rise?

Read more...Yes, Opportunities Are Still Out There for Multifamily Investors via GlobeSt

There’s More Multifamily on the Way via GlobeSt

There are changes coming to multifamily that may not seem so desirable in the short run, but which will help stabilize markets and the industry overall.

“Data shows that there are more multifamily than single-family units under construction,” writes Nadia Evangelou, senior economist and director of forecasting at the National Association of Realtors.

Read more...There’s More Multifamily on the Way via GlobeSt

Multifamily’s Imminent Down Cycle Is Overdue via GlobeSt

The long-time, high-flying multifamily housing sector appears on the brink of hitting a down cycle that’s “overdue” – if it’s not already here – according to Phyllis Klein, senior vice president, head of agency production at Capital One.

Klein was part of a panel hosted by Investors Management Group, (IMG), which included three of the nation’s leading experts in real estate investment and lending for a private event in Portland, Ore.

Read more...Multifamily’s Imminent Down Cycle Is Overdue via GlobeSt

As Financial Markets Soften, Multifamily Assets Continue Performing via GlobeSt

The current economic uncertainties have created a “tale of two cities” in the multifamily market, as the overall financial markets waver against record-breaking growth in the sector, panelists said at this year’s GlobeSt multifamily conference.

“What’s different about the current situation is how quickly things have turned,” said Sean Burton, CEO of Cityview, at a panel on institutional investment in the sector.

Read more...Tale Of Two Cities: As Financial Markets Soften, Multifamily Assets Continue Performing via GlobeSt

DFW is expected to be one of the nation’s top real estate markets in 2023 via Dallas News

Dallas-Fort Worth is expected to be one of the nation’s hottest real estate markets next year for investment and development.

D-FW area trails only Nashville in a scorecard of metro areas that property executives expect to prosper. North Texas’ second-place showing in the annual Emerging Trends in Real Estate markets to watch report is a big improvement from last year’s seventh-place ranking.

Read more...DFW is expected to be one of the nation’s top real estate markets in 2023 via Dallas Morning News

Eleventh District Beige Book October 2022 via Dallas Fed

Growth in the Eleventh District economy continued at a modest pace overall. Expansion in manufacturing activity picked up a bit while service sector expansion eased slightly. Retail and home sales fell. Loan demand declined for the first time in nearly two years, amid rising interest rates. The energy sector continued to expand but growth was constrained by equipment and labor shortages. Local nonprofits reported increased demand for assistance as household costs rose. Drought conditions eased but the relief came too late in the growing season for row crop producers. Solid employment growth continued, though some contacts reported a hiring slowdown. Wage growth remained elevated but eased slightly. Selling price growth eased slightly as well, amid reports of greater difficulty passing on cost increases to customers. Outlooks were generally pessimistic outside of the energy industry, and uncertainty remained elevated. Contacts primarily voiced concern about inflation, labor shortages, and weakening demand.

Read more...Eleventh District Beige Book October 2022 via Dallas Fed

'Frozen' Households Hindering Apartment Market via GlobeSt

Rising inflation, including the higher-than-expected report this week, has again cast an eye on housing prices. The country’s housing supply continues to be below what is ideal, according to Caitlin Sugrue Walter of National Multifamily Housing Council (NMHC).

She spoke Oct. 13 at the National Association of Real Estate Editors national conference in Atlanta, discussing the housing supply situation today and what factors will play in meeting its demand, extending to 2035.

Read more...'Frozen' Households Hindering Apartment Market via GlobeSt

Banks Are Pulling Back On CRE Loans via GlobeSt

Banks are pulling back loans from commercial real estate, Walker & Dunlop CEO Willy Walker told CNBC earlier this week.

“You look at the broader commercial real estate markets and where spreads have gone and CMBS and CLOs, that market is for all practical purposes closed down right now,” he told the network’s Squawk on the Street segment. “Spreads have gapped out so much that getting loans securitized through that execution is tough. I think the big question right now is why aren’t banks lending…banks are trading at ridiculously low multiples because they’re not lending.”

Read more...Banks Are Pulling Back On CRE Loans via GlobeSt

Is Apartment Demand Weakening Due to High Rents? Look for These 3 Signals via GlobeSt

We just witnessed the weakest 3rd quarter for apartment leasing in the 30+ years of tracking the U.S. apartment market. Net absorption registered moderately negative, occupancy ticked down and rents flattened. Is the slowdown due to renters hitting an affordability ceiling?

For most of us, our gut reaction to that question is probably, “Yes.” But what does the data tell us?

Read more...Is Apartment Demand Weakening Due to High Rents? Look for These 3 Signals via GlobeSt

Q3 Brought an End to Coasting on 2021 Multifamily Demand via ALN Apartment Data

The multifamily industry managed to ride the wave of an historic 2021 all the way through the first half of this year. Average occupancy remained higher than in the immediate pre-COVID period thanks to last year’s significant jump in occupancy. This leftover cushion allowed rent growth momentum to continue into the summer of 2022 even as national occupancy trended down from its peak in November 2021 and even as national apartment demand was dramatically lower than usual.

Read more...Q3 Brought an End to Coasting on 2021 Multifamily Demand via ALN Apartment Data

ALN Monthly Market Stats October 2022 via ALN Apartment Data

ALN Data just released their September 2022 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 2022 via ALN Apartment Data

Dallas-Fort Worth Economic Indicators 9/28/2022 via Dallas Fed

Dallas–Fort Worth’s rapid economic growth slowed in August. Payrolls contracted, unemployment was unchanged and growth in the business-cycle indexes slowed. Demand for apartments was sluggish in August, though multifamily permit issuance climbed. Single-family permits fell further but remained highly elevated.

Read more...Dallas-Fort Worth Economic Indicators September 28 2022 via Dallas Fed

Austin Economic Indicators October 2022 via Dallas Fed

Austin’s economy slowed in August, as the Austin Business-Cycle Index grew slightly, unemployment declined, and COVID-19 hospitalizations fell. Existing-home sales were stable, while housing inventory recovered, and employment and wage growth declined.

Read more...Austin Economic Indicators October 2022 via Dallas Fed

Any Panic in Q3’s Multifamily Data is an 'Overreaction' via GlobeSt

Apartment demand has proved more sluggish than anticipated, but the market generally is doing what was expected, Greg Willett, First Vice President, National Director IPA Research, Institutional Property Advisors, tells GlobeSt.com.

Third quarter data from Apartments.com, a CoStar company, reported that after four quarters of supply additions outpacing demand, the market is shifting, with national asking rents declining over the last 90 days by 0.4%.

Read more...Any Panic in Q3’s Multifamily Data is an 'Overreaction' via GlobeSt

Higher-Income Tenants Pay the Biggest Rent Hikes and are Least Likely to Miss a Payment via GlobeSt

Here’s one of the most widely misunderstood realities of rental affordability: The renters seeing the largest rent hikes are upper-income households in the most expensive rentals, and despite larger rent increases, they’re least likely to miss a rent payment.

Read more...Higher-Income Tenants Pay the Biggest Rent Hikes and are Least Likely to Miss a Payment via GlobeSt

Median Apartment Rent Sees First Declines in Nearly Two Years via GlobeSt

One-bedroom median apartment rent is on the decline in several markets for the first time in many months.

More than half the cities on Zumper’s list show month-over-month decreases in median one-bedroom rent.

Read more...Median Apartment Rent Sees First Declines in Nearly Two Years via GlobeSt

How the Interest Rate Hike Impacts Multifamily via MHN

As widely anticipated, the Federal Reserve on Wednesday afternoon again lifted the federal funds target by 75 basis points. The announcement of the rate hike is intended to both trim demand and reduce inflation over the coming months. Reaction to the announcement from observers across the multifamily industry was swift.

Read more...How the Interest Rate Hike Impacts Multifamily via MHN

Dallas-Fort Worth Economic Indicators September 2022 via Dallas Fed

Broad-based expansion continued in the Dallas–Fort Worth economy in July. Payroll employment grew at a rapid clip, bolstering growth in the Dallas and Fort Worth business-cycle indexes. Home sales fell for the sixth straight month. Home-price appreciation remained strong in the second quarter, and housing affordability plunged due to a sharp increase in mortgage rates.

Read more...Dallas-Fort Worth Economic Indicators September 2022 via Dallas Fed

Austin Economic Indicators September 2022 via Dallas Fed

Austin’s economy continued to expand in July. The Austin Business-Cycle Index continued to grow as the unemployment rate remained low and employment increased. However, while Austin’s median home price declined slightly in tandem with the rest of the state, its Housing Opportunity Index declined this past quarter due to rising mortgage rates.

Read more...Austin Economic Indicators September 2022 via Dallas Fed

Houston Economic Indicators September 2022 via Dallas Fed

Recent data indicate that Houston continues to add jobs at a blistering pace in 2022. While job growth is broad based, there are signs the housing market is loosening. The growth rate of home values is stabilizing at a high level rather than accelerating, existing-home sales have declined, the apartment vacancy rate is up and the number of single-family permits has softened. The data suggest Houston’s near-term outlook remains healthy despite the recent weakening in real estate.

Read more... Houston Economic Indicators September 2022 via Dallas Fed

Higher Interest Rates Shock Developers via Multifamily Executive Magazine

Building apartments just became a lot more difficult. The interest rates developers pay for construction loans have risen sharply in the past several months, and they are set to increase even higher. At the same time, fewer lenders are making loans. Interest rates are just one part of the rising cost of development, but they are still a major problem for developers. Many are scrambling to protect themselves from rising rates or make up for the cost in some other part of their construction budgets.

Read more...Higher Interest Rates Shock Developers via Multifamily Executive Magazine

Multifamily Rent Growth Stalls in August via Multifamily Executive Magazine

National average asking rents stopped growing last month, according to the latest Yardi Matrix Multifamily Report. The average U.S. asking rent decreased by $1 in August—the first month-over-month decline since June 2020—to $1,718. For the second month in a row, year-over-year growth slid more than a full percentage point to 10.9%.

Read more...Multifamily Rent Growth Stalls in August via Multifamily Executive Magazine

ALN Monthly Market Stats September 2022 via ALN Apartment Data

ALN Data just released their August 2022 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 2022 via ALN Apartment Data

Apartment boom in Dallas-Fort Worth | New report predicts thousands of units needed to house people moving into area via WFAA

If it seems like there are apartments everywhere you look, get used to it. Apparently, we are going to need a lot more of them in the years ahead.

Right now, there are more apartment dwellers in DFW (1.3 Million of them) than anywhere else in the state. Houston has 1.2 Million, Austin has 367,400, and San Antonio has 336,000.

Read more...Apartment boom in Dallas-Fort Worth | New report predicts thousands of units needed to house people moving into area via WFAA

Eleventh District Beige Book September 2022 via Dallas Fed

Growth in the Eleventh District economy continued at a modest pace, though job growth was quite robust. Manufacturing and service sector activity continued to slow, growing at a diminished clip from earlier this year. Retail sales were flat to down, and homes sales remained relatively subdued. Loan demand continued to increase but at a markedly slower pace. Local nonprofits reported increased demand for rent and food assistance amid rising costs. The energy sector expanded further while ongoing drought resulted in significantly lower crop production and culling of livestock herds. Wage growth remained highly elevated due to a tight labor market. Supply chain bottlenecks have begun easing and prices were not rising as fast, though inflation is still high. Outlooks were mixed as uncertainty remained elevated, and contacts voiced concern about slowing demand and the risk of a recession stemming from high prices, weakening consumer sentiment, and rising interest rates.

Read more...Eleventh District Beige Book September 2022 via Dallas Fed

Rising Mortgage Rates Complicate Decision on Buying Versus Renting via WSJ

Home buyers are feeling the pinch of rising costs more than renters.

The median monthly mortgage payment was almost one-and-a-half times as much as the median monthly asking rent in the second quarter, the largest differential in records going back to 2009, according to data tracked by the Mortgage Bankers Association, an industry trade group.

Read more...Rising Mortgage Rates Complicate Decision on Buying Versus Renting via WSJ

Multifamily Likely to Level Off in H2 As Inflation Heats Up via GlobeSt

As economic headwinds mount, the big question on many industry watchers’ lips is whether certain high-flying asset classes will return down to earth.

Continuing rate hikes from the Fed, together with rising inflation and a tense geopolitical picture, have some multifamily investors taking a somewhat more cautious approach to asset acquisitions than since the onset of the pandemic.

Read more...Multifamily Likely to Level Off in H2 As Inflation Heats Up via GlobeSt

Suburban Rents Are Soaring, Leaving US Renters With Few Cheap Options via Bloomberg

For renters encountering soaring housing costs in US city centers, decamping to the suburbs no longer offers much of a reprieve.

The price advantage of renting in the suburbs versus downtowns has shrunk by 53% from three years ago, according to a report Wednesday from brokerage Realtor.com.

Read more...Suburban Rents Are Soaring, Leaving US Renters With Few Cheap Options via Bloomberg

As Expected, Apartment Rent Growth Moderates Slightly in July via RealPage

Peak apartment rent growth is almost certainly now in the rearview mirror, as nearly all measures of rent growth showed deceleration between June and July. But that’s not to say it’s bargain shopping time, as rent growth remains elevated – and likely will throughout the remainder of 2022.

Nationally, effective asking rents ticked up 0.8% between June and July.

Read more...As Expected, Apartment Rent Growth Moderates Slightly in July via RealPage

Is U.S. Rent Growth at a Peak? via RealPage

Apartment rent growth is still strong by many measures, but those headline-grabbing figures recorded in the recent past appear to have peaked.

By most metrics, rents – which have been growing at historic highs in the past two years – appear to have peaked, according to data from RealPage Market Analytics.

Read more...Is U.S. Rent Growth at a Peak? via RealPage

U.S. Apartment Rent Growth Slows for Second Consecutive Month via ConnectCRE

The national median asking apartment rent was up 14% year over year to $2,032 in July, Redfin reported Friday. It’s the smallest annual increase since November, and compares with 15% in June and 16% in May.

On a month-over-month basis, the median asking rent climbed 0.6%, the slowest growth since February and down from a 2.1% increase a year earlier.

Read more...U.S. Apartment Rent Growth Slows for Second Consecutive Month via ConnectCRE

Houston Economic Indicators August 2022 via Dallas Fed

Houston’s energy and mining-related job growth is accelerating as oilfield activity expands. High energy prices have been a boon to the region, and retail fuel prices have begun to ease. The local labor market continues to post strong improvement with above-trend job growth and falling unemploymen

Read more... Houston Economic Indicators August 2022 via Dallas Fed

Rent Inflation Expected to Accelerate Then Moderate in Mid-2023 via Dallas Fed

The Federal Reserve has tightened monetary policy, raising its policy rate to aggressively tackle inflation that has reached a 40-year high. One consequence is sharply rising mortgage rates that are expected to cool demand for home purchases and slow house-price growth.

Read more...Rent Inflation Expected to Accelerate Then Moderate in Mid-2023 via Dallas Fed

Thought the Fed Might Back Off on Rate Hikes Soon? You Were Mistaken via GlobeSt

With some softening in inflation and some slowing in the producer price index, many had started to hope that the Federal Reserve might begin to pull back on the interest rate increases. The CRE industry would welcome that news. Except, it probably isn’t coming. At least not this year.

Read more...Thought the Fed Might Back Off on Rate Hikes Soon? You Were Mistaken via GlobeSt

ALN Monthly Market Stats August 2022 via ALN Apartment Data

ALN Data just released their July 2022 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 2022 via ALN Apartment Data

Austin Economic Indicators August 2022 via Dallas Fed

Austin’s economy recorded solid growth in June. The Austin Business-Cycle Index expanded at a greater rate than in May, as the unemployment rate remained low and Austin’s employment growth accelerated. COVID-19 hospitalizations continued to increase with the transmission of the new variants. House prices in Austin declined slightly, while the state’s prices ticked up in the past month.

Read more...Austin Economic Indicators August 2022 via Dallas Fed

Dallas-Fort Worth Economic Indicators August 2022 via Dallas Fed

The Dallas–Fort Worth economy expanded broadly in June. Payroll employment grew at a 3.2 percent annualized pace, bolstering growth in the Dallas and Fort Worth business-cycle indexes. In late July, dining out was slightly below prepandemic levels, and COVID-19 cases were trending upward. Activity in the office market continued to recover in the second quarter, pushing down vacancy rates, and industrial leasing and construction remained remarkably strong.

Read more...Dallas-Fort Worth Economic Indicators August 2022 via Dallas Fed

July’s Multifamily Rent Increase Was Best in a Decade – Except for Last Year via GlobeSt

Peak apartment rent growth – as well as the historically high-performance levels seen in 2021 – are by all accounts in the rearview mirror, according to data released this week by RealPage.

Effective asking rents increased by 0.8% from June to July, which represents about one-third of how they performed a year earlier. That moderation was as expected, RealPage said.

Read more...July’s Multifamily Rent Increase Was Best in a Decade – Except for Last Year via GlobeSt

Renters Finally See Market Starting to Cool After Record Growth via WSJ

After more than a year of record run-ups in apartment rents, growth is starting to cool off, a trend that could help housing affordability and ease the rise in overall inflation, according to several market measures.

Nationally, average apartment rents rose 9.4% in the second quarter of 2022 compared with the same quarter in 2021, according to data firm CoStar Group. While that is high by historical standards, it is down from the more than 11% annual increases seen the previous two quarters, CoStar said.

Read more...Renters Finally See Market Starting to Cool After Record Growth via WSJ

Signs of Slowdown Growing in Texas; Price Pressures Ease via Dallas Fed

The Texas economy continued expanding in June and July, though at a decelerating pace compared with earlier this year. There are increasing signs of slowing activity—particularly weakening demand in manufacturing—even as overall job growth remains strong.

Business outlooks were negative, and price and wage pressures eased in July. Home prices in some metros appear to have peaked, and apartment rent increases are slowing.

Read more...Signs of Slowdown Growing in Texas; Price Pressures Ease via Dallas Fed

Ten Issues That Will Impact CRE for Rest of 2022 via GlobeSt

LaSalle is expecting a high-impact second half of 2022, according to its Mid-Year Update.

The firm provided the top 10 issues it believes could steer commercial real estate’s direction, including those related to bonds, returns, capital flows, expenses, energy, construction and central banks.

Read more...Ten Issues That Will Impact CRE for Rest of 2022 via GlobeSt

Despite Pressure on Cap Rates, Multifamily Well Positioned for H2 via GlobeSt

With apartment rent growth remaining high at the midpoint of 2022 and continued tight market availability, the multifamily sector is well positioned for the second half of 2022, according to a new report from Freddie Mac. However, there are headwinds appearing.

Read more...Despite Pressure on Cap Rates, Multifamily Well Positioned for H2 via GlobeSt

Apartment Rent Growth Continues to Slow in July via GlobeSt

Continuing a year-long trend, apartment rent growth was slower in July than in June, rising by 1.1%, a slightly slower rate of growth than the previous month, according to the August 2022 Apartment List National Rent Report.

Rents are, however, rising faster than in the years just prior to the pandemic, and for the first seven months are up 6.7 percent, nationally. In 2021 at this point, they were up 12 percent.

Read more...Apartment Rent Growth Continues to Slow in July via GlobeSt

Austin Economic Indicators July 2022 via Dallas Fed

Austin’s economy continued to grow in May, though at a slower pace. The Austin Business-Cycle Index expanded at a moderated rate, as the unemployment rate ticked down to a new low since the pandemic, but Austin’s employment growth slowed from April’s pace. COVID-19 hospitalizations increased notably ahead of the Fourth of July weekend. Permits for new-home construction flattened out in May, while continued increases in home prices pushed affordability further below the national average.

Read more...Austin Economic Indicators July 2022 via Dallas Fed

Houston Economic Indicators July 2022 via Dallas Fed

Houston job growth continues to show strength, but there are otherwise signs of slowing. A preliminary reading of leading indicators for Houston turned negative for the first time since the pandemic, the number of diners at restaurants has slipped, and COVID-19 hospitalizations are accelerating again. While these data suggest slower growth in the second half of 2022, the outlook for Houston remains healthy.

Read more... Houston Economic Indicators July 2022 via Dallas Fed

Apartment Sales Fall Amid Rising Costs, Widening Bid Ask Spread via GlobeSt

Apartment sales fell as the cost of equity and debt financing increased in July, according to the latest data from the National Multifamily Housing Council—but demand still remains strong in most markets relative to supply.

Read more...Apartment Sales Fall Amid Rising Costs, Widening Bid Ask Spread via GlobeSt

Texas Employment Forecast July 2022 via Dallas Fed

The Texas Employment Forecast estimates that jobs will increase 4.5 percent in 2022, with an 80 percent confidence band of 3.8 to 5.2 percent. The forecast is based on projected national GDP, COVID-19 hospitalizations and oil futures prices. This estimate is higher than the previous projection of 4.0 percent. The forecast suggests that 593,800 jobs will be added in the state this year, and employment in December 2022 will be 13.7 million

Read more... Texas Employment Forecast July 2022 via Dallas Fed

Texas Manufacturing Outlook Survey July 2022 via Dallas Fed

Growth in Texas factory activity continued at a modest pace in July, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, was largely unchanged at 3.8, a reading well below average but still indicative of growth.

Other measures of manufacturing activity painted a mixed picture again this month. The new orders index remained negative at -9.2, down from -7.3 in June, suggesting a further decrease in demand.

Read more...Texas Manufacturing Outlook Survey July 2022 via Dallas Fed

Mid-Year Multifamily Review via ALN Apartment Data

Amazingly enough, we are already in the back half of 2022. Both 2020 and 2021 were full of ups, downs, and historic movement across industry metrics. So far, 2022 is stacking up similarly and has resembled almost a hybrid of the two previous years. On the one hand, national average effective rent growth has already outpaced a typical pre-pandemic year – a development very much like last year.

On the other hand, apartment demand has not only receded from last year’s dizzying peak but has fallen short of any recent year with the exception of 2020.

Read more...Mid-Year Multifamily Review via ALN Apartment Data

Eleventh District Beige Book July 2022 via Dallas Fed

Growth in the Eleventh District economy slowed to a modest pace, with part of the deceleration in demand attributed to surging prices, rising interest rates, and higher uncertainty. Manufacturing and service sector activity slowed, and retail spending and homes sales weakened further. Solid apartment and industrial leasing continued, but loan growth eased. The energy sector saw further expansion, while drought dampened agricultural conditions. Employment expanded broadly, and wage growth remained highly elevated due to a tight labor market. Supply-chain bottlenecks and higher energy prices continued to drive up costs, and prices rose at a rapid clip, though pass through was becoming more difficult for firms, eroding margins. Outlooks were mostly negative, and uncertainty surged, with contacts voicing concern about slowing future demand and increased risk of a recession stemming from high prices, supply-side constraints, weakening consumer sentiment, and rising interest rates.

Read more...Eleventh District Beige Book July 2022 via Dallas Fed

ALN Monthly Market Stats July 2022 via ALN Apartment Data

ALN Data just released their June 2022 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 July 2022 via ALN Apartment Data

CRE Property Prices Down 4.9% From Recent Highs via GlobeSt

It’s hard to remember that basic truth of Newtonian physics that what goes up, unless snagged by a high-flying eagle, eventually returns under force of gravity. On the whole, that’s what happened to commercial real estate property prices according to the Green Street Commercial Property Price Index in the second quarter of 2022.

Read more...CRE Property Prices Down 4.9% From Recent Highs via GlobeSt

CoStar Sees Multifamily Demand Cooling Over Next Six Months via GlobeSt

Mark down CoStar as perhaps the first apartment analyst firm to say a “perfect recipe” has been created for the rental market to experience rising vacancy rates in the next six months.

Rent growth continues with a national year over year increase of 9.2% in Q2, down from 11.4% in the first quarter.

Read more...CoStar Sees Multifamily Demand Cooling Over Next Six Months via GlobeSt

Multifamily Rent Increases Come at a Price to Landlords via GlobeSt

Multifamily, with industrial, has been one of the shining parts of commercial real estate since the pandemic turned normal upside down and shook it. The ability to keep driving rent growth has helped push prices up and justified lower cap rates.

But nothing can move one way forever.

Read more...Multifamily Rent Increases Come at a Price to Landlords via GlobeSt

Dallas-Fort Worth Economic Indicators June 30 2022 via Dallas Fed

Robust expansion continued in the Dallas–Fort Worth economy in May. Payroll employment grew at a rapid clip, bolstering growth in the Dallas and Fort Worth business-cycle indexes. Apartment demand was positive in May, buoyed by job and population growth in the metroplex. Multifamily permit issuance dipped but remained high. Home prices climbed further in April.

Read more...Dallas-Fort Worth Economic Indicators June 30 2022 via Dallas Fed

The Apartment Markets at Greatest Risk for Oversupply via GlobeSt

Multifamily construction in the US is at its highest level in 40 years.

Currently, there are 824,000 units in development and 450,000 of them are expected to be delivered this year.

Apartments.com’s National Director of Multifamily Analytics, Jay Lybik, addressed the situation during a session at the National Apartment Association’s Apartmentalize conference in June in San Diego.

Read more...The Apartment Markets at Greatest Risk for Oversupply via GlobeSt

Texas Manufacturing Outlook Survey June 2022 via Dallas Fed

Growth in Texas factory activity decelerated sharply in June, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, fell from 18.8 to 2.3, reaching its lowest reading since May 2020.

Read more...Texas Manufacturing Outlook Survey June 2022 via Dallas Fed

DFW Economic Indicators June 2022 via Dallas Fed

The Dallas–Fort Worth economy expanded robustly in April. Payroll employment grew swiftly, and unemployment dipped further, bolstering growth in the Dallas and Fort Worth business-cycle indexes. Fourth-quarter benchmark revisions indicate that in 2021, DFW payrolls grew nearly 1 percentage point more than previously estimated. Home sales ticked up in April, and housing affordability improved in the first quarter. DFW population growth picked up in 2021 after slowing in 2020.

Read more...Dallas-Fort Worth Economic Indicators June 2022 via Dallas Fed

CRE Lenders Are Dusting Off The MAC Clause Again via GlobeSt

The last time Mark Scott, president of Commercial Mortgage Capital, remembers a lender invoking the Material Adverse Change, or MAC, clause in a deal was during the Great Recession. Now, he’s hearing it more and more in conversations with capital providers. “I’ve had lenders email me and say the market is experiencing a MAC and we are now raising the rate on your loan from 3.5% to 4.5%,” he tells GlobeSt.com. “It is definitely being invoked more now.”

There are other changes in the commercial real estate lending market that Scott says do not bode well for borrowers, or for liquidity in general.

Read more...CRE Lenders Are Dusting Off The MAC Clause Again via GlobeSt

Analysts Agree, May’s Apartment Numbers Are Pretty Good via GlobeSt

Shrugging off inflationary concerns, apartment rents in nearly every market continue to rise, setting all-time highs in year-over-year growth, according to leading apartment analyst firms’ data released this week.

“May’s yearly rents at the market level remain well above historical averages, despite our data showing rents moderating from the record highs posted last year,” Jay Lybik, national director of multifamily analytics, CoStar Group, parent company of Apartments.com, said in prepared remarks.

Read more...Analysts Agree, May’s Apartment Numbers Are Pretty Good via GlobeSt

DFW surpassed Austin in rent price growth over the last 12 months via Star-Telegram

Since the beginning of the year, the average rent in Dallas-Fort Worth has jumped $90 a month, according to ApartmentData.com.

It now costs about $1,475 a month to rent an apartment in the Metroplex, a 6.5% increase since January.

Read more...Dallas-Fort Worth surpassed Austin in rent price growth over the last 12 months via Fort Worth Star-Telegram

Commercial Property Sales Slow as Rising Interest Rates Sink Deals via WSJ

Commercial real estate is showing the first signs of cooling in more than a year, disrupted by rising interest rates that are already causing some deals to collapse.

Property sales were $39.4 billion in April, which was down 16% compared with the same month a year ago, according to MSCI Real Assets. The decline followed 13 consecutive months of increases.

Read more...Commercial Property Sales Slow as Rising Interest Rates Sink Deals via WSJ

May Apartment Rents Posted Largest Increase for 2022 via GlobeSt

Apartment rents are growing more slowly than they did in 2021, but at a pace faster than the years immediately preceding the pandemic, according to the latest national rent report by Apartment List.

Year-over-year rent growth currently stands at a “staggering” 15.3 percent, according to the report, but is down from the 17.8 percent peak it showed at the start of the year.

Read more...May Apartment Rents Posted Largest Increase for 2022 via GlobeSt

Eleventh District Beige Book 6/1/22 via Dallas Fed

Expansion in the Eleventh District economy slowed to a moderate pace during the reporting period. Most notably, home sales slowed, retail sales fell, and growth in manufacturing and nonfinancial services decreased from a solid to a moderate pace. Growth in loan volumes remained strong across most loan types, except for residential real estate, which saw no change in loan volumes over the last six weeks. Activity in the energy sector expanded further, while worsening drought further hampered agricultural conditions. Employment rose robustly, and wage growth continued to be elevated amid labor market tightness. Supply-chain issues and high energy prices continued to drive up costs. Optimism in outlooks waned, and uncertainty stayed elevated amid concerns about inflation, rising interest rates, resolution of supply-chain issues, and expectations of weakening demand.

Read more...Eleventh District Beige Book 6/1/22 via Dallas Fed

10 Economists Offer Their Advice for CRE Investors via WMRE

It’s an understatement to say that there’s a lot of uncertainty right now regarding not only the U.S. economy, but the global economy at large. As the world faces another pandemic wave and the war in Ukraine creates additional geopolitical instability, the U.S. continues to deal with ongoing supply chain disruptions, inflationary pressures and a volatile stock market.

Read more...10 Economists Offer Their Advice for CRE Investors via WMRE

Houston Economic Indicators May 2022 via Dallas Fed

Houston payroll growth slowed in first three months of 2022 amid a sharp drop in unemployment. Both housing and commercial real estate data showed the Houston market continuing to tighten with high demand, limited supply and falling vacancies. Altogether, indicators continue to point to an above-trend year for the Houston economy despite the recent moderation in job growth.

Read more... Houston Economic Indicators May 2022 via Dallas Fed

Rent Growth Has Decoupled from Apartment Demand via ALN Apartment Data

As was first discussed in the ALN newsletter for February, the incredible apartment demand that fueled 15% national average effective rent growth last year did not survive the turn of the calendar to 2022. Despite that, rent growth has persisted at a torrid pace through the first four months of this year.

The extent to which this change in dynamic can be observed in multifamily data depends on the time period being evaluated.

Read more...Rent Growth Has Decoupled from Apartment Demand via ALN Apartment Data

Austin Economic Indicators May 2022 via Dallas Fed

Growth in the Austin economy strengthened in March. The Austin Business-Cycle Index expanded at a faster pace than in February, while the unemployment rate dipped to prepandemic levels. COVID-19 hospitalizations in Austin continued to decline through April, falling to a 10-month low. March housing permits ticked up in the metro as the median home price remained near a record high. Private sector average hourly earnings continued to trend upward.

Read more...Austin Economic Indicators May 2022 via Dallas Fed

ALN Monthly Market Stats May 2022 via ALN Apartment Data

ALN Data just released their April 2022 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 May 2022 via ALN Apartment Data

ALN Monthly Market Stats April 2022 via ALN Apartment Data

ALN Data just released their March 2022 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 April 2022 via ALN Apartment Data

Eleventh District Beige Book 4/20/22 via Dallas Fed

Expansion in the Eleventh District economy accelerated during the reporting period as the impact of the Omicron wave faded. Most notably, growth in nonfinancial services, particularly the leisure and hospitality sector, strengthened. Manufacturing output growth was solid, while retail sales dipped slightly. Loan demand increased strongly, and home sales remained solid despite a spike in mortgage rates. Activity in the energy sector expanded further in part due to the recent run-up in energy prices, while worsening drought hampered agricultural conditions. Employment rose robustly, and wage growth continued to be highly elevated due to labor market tightness. Supply-chain issues remained acute, driving up input and selling prices. Outlooks were mixed, and uncertainty climbed, with rising concern about the effects on future growth of escalating geopolitical tensions, climbing wages, rising interest rates, inflation, lingering supply-chain disruptions, and labor shortages.

Read more...Eleventh District Beige Book 4/20/22 via Dallas Fed

Multifamily Lending to Drop This Year Amid Rising Rates via GlobeSt

After seeing considerable growth in borrowing and lending in the commercial and multifamily sectors in 2021, the Mortgage Bankers Association tells the industry not to expect a repeat performance this year.

“Holding steady” is forecast for commercial mortgage borrowing and lending, with multifamily lending alone expected to decline 11 percent from last year’s estimated record of $470 billion.

Read more...Multifamily Lending to Drop This Year Amid Rising Rates via GlobeSt

Austin Economic Indicators April 2022 via Dallas Fed

Growth in the Austin economy strengthened in February. The Austin Business-Cycle Index expanded at a faster pace, while the unemployment rate remained unchanged. COVID-19 hospitalizations continued to decline through March, and hospitalizations fell to an eight-month low. February housing permits ticked up in the metro as the median home price reached a new high. Private sector average hourly earnings continued to trend upward.

Read more...Austin Economic Indicators April 2022 via Dallas Fed

Expect Another Big Summer for Multifamily via GlobeSt

Multifamily rents have increased significantly for new leases while concessions have tanked—and the sector is showing no signs of cooling off, according to a group of analysts from MRI Software.

“Two years after the onset of the COVID-19 pandemic, the multifamily market finds itself in a familiar position entering peak season: unemployment has returned to historical lows, housing demand continues to be strong, new supply continues to lag need and housing affordability is back in the headlines,” the report says.

Read more...Expect Another Big Summer for Multifamily via GlobeSt

Dallas-Fort Worth Economic Indicators April 2021 via Dallas Fed

Dallas–Fort Worth economic growth remained solid in February. Payroll employment grew at a rapid clip, and unemployment held steady for the third straight month. The Dallas and Fort Worth business-cycle indexes expanded further. Apartment leasing and construction continued to be active.

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

Houston Economic Indicators April 2022 via Dallas Fed

Data for the Houston region continue to imply strong economic momentum in 2022. Leading indicators, broad measures of output and area payrolls continue to register growth well above historical averages. Unemployment reflected recent improvements as the labor force grew. The value and tonnage of exports from the region hit an all-time high, and manufacturing activity at Houston’s largest export partners is showing steady growth. Altogether, the outlook for Houston is positive.

Read more... Houston Economic Indicators April 2022 via Dallas Fed

The Top Destinations For Renters Moving Across State Lines via GlobeSt

US renters are increasingly turning toward so-called feeder cities, with two cities in the Dallas-Fort Worth metro area leading the charge.

Irving and Lewisville were the top cities luring renters last year as a percentage of population, according to a recent analysis by Storage Café’s Francie Chantree.

Read more...The Top Destinations For Renters Moving Across State Lines via GlobeSt

Multifamily Demand Sets New Highs in Q1 via GlobeSt

In a world of growing uncertainty, there’s one thing that seems dependable, at least in commercial real estate: the need for housing keeps rising. First quarter data from RealPage shows historically unprecedented demand, occupancy, and rents in the multifamily market.

Read more...Multifamily Demand Sets New Highs in Q1 via GlobeSt

Industrial Saw Most Cap Rate Compression In H2 2021 via GlobeSt

The industrial sector saw the most cap rate compression in the second half of 2021, driven by skyrocketing e-commerce sales, helping the real estate capital markets end the year on a high note.

“Cap rates declined across the real estate spectrum,” CBRE analysts write in a new report analyzing the firm’s most recent Cap Rate Survey, which was conducted before the Russian invasion of Ukraine.

Read more...Industrial Saw Most Cap Rate Compression In H2 2021 via GlobeSt

Housing inventory in Dallas area sinks from bad to worse, homes getting ‘upwards of 50 offers’ via Dallas Business Journal

The supply of houses in the Dallas area has sunk from bad to worse for buyers, with market inventory decreasing by more than half year over year.

The decrease of 53.3% locally in January is more than three times the national average decrease of 16.5%, according to a new report from Compass real estate brokerage.

Read more...Housing inventory in Dallas area sinks from bad to worse, homes getting ‘upwards of 50 offers’ via Dallas Business Journal

Multifamily Rents Continue To Soar via GlobeSt

Multifamily asking rents defied expectations by ticking up yet another $10 in February to hit a national average of $1,628, according to the latest numbers from Yardi Matrix. Year-over-year growth also posted a 15.4% increase.

Read more...Multifamily Rents Continue To Soar via GlobeSt

ALN Monthly Market Stats March 2022 via ALN Apartment Data

ALN Data just released their February 2022 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 2022 via ALN Apartment Data

Multifamily Investors Adjusting for Lower Profit Margins This Year via GlobeSt

Investors are predicting a solid 2022 for multifamily investment, but one that might include lower profit margins than 2021, according to Lightbox’s Q1 2022 Investor Sentiment Report.

As higher interest rates put upward pressure on borrowing rates and cap rates, earnings will be impacted. But David Scherer, Co-CEO of Origin Investments, said this does not mark the end of what has been a very strong multifamily market.

Read more...Multifamily Investors Adjusting for Lower Profit Margins This Year via GlobeSt

Skyrocketing Apartment Rent Growth Shows Signs of Moderating via RealPage

Apartment rents continued to increase in February 2022, but the pace of growth reverted closer to normal – even as occupancy remained at record highs.

Effective asking rents for new leases in February increased 0.75% month-over-month on a same-store basis. While that was the largest increase for a February on record, it wasn’t by much – and that alone is a notable shift.

Read more...Skyrocketing Apartment Rent Growth Shows Signs of Moderating via RealPage

Sellers Push for Shorter Due Diligence Periods Amid Supply Chain Issues via GlobeSt

It seems that no industry is exempt from the supply chain issues that are plaguing the economy. These challenges are affecting third party companies that provide due diligence support and documentation to buyers during a transaction, essentially elongating the process. As a result, sellers are now requesting shorter due diligence periods as one of the most popular concessions.

Read more...Sellers Push for Shorter Due Diligence Periods Amid Supply Chain Issues via GlobeSt

A Surge In Nonrefundable Offers on Apartment Deals Highlights Strong Competition via GlobeSt

Multifamily has been the darling of commercial real estate for more than a decade, and the pandemic has only served to renew investor confidence in the asset class. As a result, there is record competition in the space. To win deals and provide a certainty of close, investors are more regularly using nonrefundable offers.

Read more...A Surge In Nonrefundable Offers on Apartment Deals Highlights Strong Competition via GlobeSt

US Commercial Property Prices Touch New Highs; Office Lags via Real Capital Analytics

The headline rate of U.S. commercial property price growth extended a rally of accelerating double-digit price growth in January. The RCA CPPI National All-Property Index climbed 20.3% from a year earlier and 1.6% from December, the latest RCA CPPI: US report shows.

Read more...US Commercial Property Prices Touch New Highs; Office Lags via Real Capital Analytics

Deal Flow For Multifamily Hitting Record Levels via GlobeSt

Deal flow for the multifamily asset class has officially hit record levels, as increased competition for assets is pushing investors into smaller markets.

New research from Marcus & Millichap notes a “historic level of trading activity” in 2021 after a 22% contraction the year before. Deal velocity for apartments at $1 million and above rocketed up 50% in 2021, while rents grew by double digits.

Read more...Deal Flow For Multifamily Hitting Record Levels via GlobeSt

Eleventh District Beige Book 3/2/22 via Dallas Fed

Expansion in the Eleventh District economy moderated, with the COVID-19 surge exacerbating labor and supply-chain shortages and disrupting demand in certain sectors. Growth in manufacturing and nonfinancial services continued but at a slower pace, and retail sales declined slightly. Loan demand growth decreased a bit amid rising interest rates. Home sales remained elevated. The energy sector saw further expansion, while worsened drought hampered agricultural conditions. Employment rose fairly robustly, and wage growth pushed to new highs due to widespread labor shortages. Supply-chain issues continued to drive up costs, and prices rose at a rapid clip. Outlooks remained positive, though uncertainty surged and businesses expressed concern that labor market tightness and supply-chain disruptions will not soon be resolved.

Read more...Eleventh District Beige Book 3/2/22 via Dallas Fed

Asking Multifamily Rents Rose 15% in January via GlobeSt

Asking multifamily rents rose a staggering 15% in January nationwide to an average of $1,891, according to new research from Redfin, a jump that reflects the largest annual increase since February 2020. Rents were up 0.7% month over month and 15.2% year over year.

The national median monthly mortgage payment for buyers also climbed 25% year-over-year to $1,595. That’s also the biggest increase Redfin has noted since the firm began tracking such data. Payments are up 3% over December figures.

Read more...Asking Multifamily Rents Rose 15% in January via GlobeSt

ALN Monthly Market Stats February 2022 via ALN Apartment Data

ALN Data just released their January 2022 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 February 2022 via ALN Apartment Data

Inside Multifamily's Booming Year via GlobeSt

Last year finished with record multifamily demand, with the sector setting an annual absorption record of 617,500 units nationally.

Absorption in the fourth quarter hit nearly 150,000 units, according to CBRE, a decline from Q3 numbers but still triple the quarterly average over the last decade. The year’s absorption numbers were also up 238% from 2020 levels and up 97% over 2019 figures. It is also 58% higher than the prior record of 390,000, which was set in 2000.

Read more...Inside Multifamily's Booming Year via GlobeSt

This Will Be an 'Exceptionally' Active Investment Year for Multifamily via GlobeSt

Marcus & Millichap released its 2022 multifamily investment forecast and in a video, John Chang, senior vice president and director of research services, explained that he had just spoken to many investors at the National Multifamily Housing Council’s Strategies Conference.

“I met with numerous apartment investors. The most important feedback from the numerous active investors at the conference was that 2022 will be an exceptionally active investment year, especially for the large apartment market,” Chang said. “I can’t tell you how many times investors told me they had hundreds of millions of dollars ready to deploy.”

Read more...This Will Be an 'Exceptionally' Active Investment Year for Multifamily via GlobeSt

Multifamily Rent Growth Continues to Cool via GlobeSt

If business strategy has included depending on rent rate increases in multifamily, then the Apartment List National Rent Report for February 2022 is something to consider for a potential corrective course.

Year-over-year, apartment growth has been a record, according to the firm, standing at 17.8%. However, the bulk of that occurred earlier in 2021. Over the past four months, rents grew by a collective total of 0.9%. Month-over-month growth in the period was about 0.2%.

Read more...Multifamily Rent Growth Continues to Cool via GlobeSt

The Dallas-Fort Worth housing market gained $151 billion in 2021. Is it overvalued? via Dallas Business Journal

The Dallas-Fort Worth housing market gained $151 billion last year, and is now worth $491 billion more than it was a decade ago, according to a new study by Zillow.

Homes in DFW are worth a total of $782 billion, making the metro area the 11th most valuable out of the 50 largest U.S. metro areas, Zillow’s study says.

Read more...The Dallas-Fort Worth housing market gained $151 billion in 2021. Is it overvalued? via Dallas Business Journal

DFW construction soared by 45% in 2021 via Dallas News

All those construction cranes dotting the North Texas skyline are a clue about where the area ranks in nationwide building activity.

The Dallas-Fort Worth area was second only to New York City for new commercial building and apartment starts in 2021, according to a new estimate from Dodge Data & Analytics.

Read more...D-FW construction soared by 45% in 2021 via Dallas Morning News

Apartment Rents Rose 14% Last Month In the Biggest Jump in Over Two Years via GlobeSt

Average monthly listed rents in the US increased 14.1% year over year to $1,877 in December, according to a report issued by real estate brokerage firm Redfin.

This was the largest annual jump since at least February 2019—the earliest month in Redfin’s rental data.

Read more...Apartment Rents Rose 14% Last Month In the Biggest Jump in Over Two Years via GlobeSt

Multifamily Rents To Moderate in 2022 via GlobeSt

Multifamily rent growth is expected to moderate in 2022, after a year in which national asking rents were up 13.5%.

New research from YardiMatrix predicts that rents will still remain elevated, with gains of around 4.8% over the course of the year. Demand is also expected to remain robust, as job and wage growth will likely remain high.

Read more...Multifamily Rents To Moderate in 2022 via GlobeSt

Drilling Down Into the Hot Apartment Submarkets via GlobeSt

There are hot apartment markets such as Phoenix and Dallas projected to do well this year, but understanding the fundamentals in those areas’ key submarkets can prove even more valuable to investors and developers.

Read more...Drilling Down Into the Hot Apartment Submarkets via GlobeSt

Single Family Rents Up 11.5% Year-Over-Year via GlobeSt

Single family rents were up 11.5% year-over-year in November, CoreLogic reported.

The increase hit a seventh consecutive record high.

“The November 2021 increase was more than three times the November 2020 increase, and while the index growth slowed in the summer of 2020, rent growth returned to its pre-pandemic rate by October 2020, CoreLogic Principal Economist Molly Boesel noted in unveiling the latest CoreLogic Single-Family Rent Index.

Read more...Single Family Rents Up 11.5% Year-Over-Year via GlobeSt

Apartment Execs See More Rent Growth 'Baked In' For 2022 via GlobeSt

Leading multifamily housing operators are coming off a record-breaking year for apartment absorption and experienced near-spectacular rent growth in many markets.

For 2022, they see rent growth baked into their leases, practically regardless of how the economy and housing demand fluctuates this year.

Read more...Apartment Execs See More Rent Growth 'Baked In' For 2022 via GlobeSt

Multifamily Demand Remains Strong via MHN

The multifamily industry gathered in Orlando this week with expectations that its strong fundamental performance will continue, but the market nonetheless is preparing for challenges that include rising interest rates, a national labor shortage, evolving migration patterns and changes in renter preferences.

Read more...Multifamily Demand Remains Strong via MHN

Houston Economic Indicators January 2022 via Dallas Fed

Houston extended its jobs recovery through November, and leading economic indicators suggest further recovery over the next several months. The unemployment rate fell as the area labor force approached prepandemic levels, and the Houston Purchasing Managers Index logged an improvement in intermediate goods inventories for the first time since 2020. However, COVID data have taken a turn for the worse as the omicron variant drives up hospitalizations and absenteeism. While the start of the year is clouded by another COVID surge, the outlook for Houston remains healthy.

Read more... Houston Economic Indicators January 2022 via Dallas Fed

Texas, Arizona Have Recovered All the Jobs Lost When Covid-19 Hit via WSJ

Texas and Arizona have joined two other states in recovering all the jobs they lost at the start of the Covid-19 pandemic, leading a trend that is expected to include another dozen states by the middle of this year.

The states, which also include Utah and Idaho, have benefited from demographic shifts before and during the pandemic—experiencing outsize payroll growth in retail, warehousing, technology and transportation industries. Companies have moved operations to the states, and workers have moved in as well, sometimes leaving more crowded and expensive urban areas.

Read more...Texas, Arizona Have Recovered All the Jobs Lost When Covid-19 Hit via WSJ

ALN Monthly Market Stats January 2022 via ALN Apartment Data

ALN Data just released their December 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 January 2022 via ALN Apartment Data

2022 Multifamily Outlook: Robust Growth to Continue via MHN

Investors looking for income generation, appreciation, diversification and other benefits often turn to commercial real estate. Physical properties tend to perform independent of the stock market and provide a hedge against inflation. Additionally, property owners can enjoy certain tax benefits, such as deducting interest expense on a commercial property loan and offsetting gains with depreciation.

For many individuals, multifamily properties arguably present the most accessible, relatable and rewarding real estate investment available. Everyone needs a home, after all, and owners generally have the ability to increase rental rates yearly as leases renew or residents turn over.

Read more...2022 Multifamily Outlook: Robust Growth to Continue via MHN

Eleventh District Beige Book 1/12/22 via Dallas Fed

Robust expansion continued in the Eleventh District economy, with gains broad based across sectors. Growth in the manufacturing, nonfinancial services, and retail sectors stayed strong, and growth in financial services picked up. Home sales remained elevated, though construction capacity continued to be highly constrained. Solid apartment leasing continued. The energy sector saw further expansion, while drought dampened agricultural conditions. Employment rose robustly, and wage growth remained highly elevated due to widespread labor shortages. Supply-chain bottlenecks continued to drive up costs, and prices rose at a rapid clip. Outlooks improved overall, though uncertainty increased amid a new surge in COVID-19 cases and concern that labor market tightness and supply-chain disruptions will persist well into 2022.

Read more...Eleventh District Beige Book 1/12/22 via Dallas Fed

Austin Economic Indicators January 2022 via Dallas Fed

The Austin economy continued to expand in November. The Austin Business-Cycle Index increased, led by solid employment gains and a lower unemployment rate. The labor force also posted strong growth. Since mid-December, however, COVID-19 hospitalizations have surged. Housing affordability improved in the third quarter, and existing-home sales were positive in November.

Read more...Austin Economic Indicators January 2022 via Dallas Fed

Apartment Demand Smashes Previous Record High by 66% via GlobeSt

For the vast majority of market-rate renters, apartments remain affordable and these renters moving in are bringing big incomes, according to recent data from RealPage.

Demand for market-rate apartments in 2021 soared far above the highest levels on record in the three decades RealPage has tracked the market. Net demand totaled more than 673,000 units⁠—obliterating the previous high set in 2000 by a remarkable 66%.

Read more...Apartment Demand Smashes Previous Record High by 66% via GlobeSt

Sticker Shock Coming for Renters Receiving Concessions via GlobeSt

The multifamily sector has experienced the effects of an increase in pent-up demand this past year, resulting in higher-than-average asking rents as well as concessions, depending on the type of apartment and its location.

Class A concessions peaked in March at 9.9% and have been falling since, but they remain elevated at 9.2% as of October due to competing new supply entering many local submarkets.

Read more...Sticker Shock Coming for Renters Receiving Concessions via GlobeSt

CRE's Growth Forecast for 2022 via GlobeSt

Commercial real estate can be expected to perform well this year despite the prospect of higher interest rates, according to the National Association of Realtors.

While interest rates are expected to broadly rise by about 75 basis points, they will still be low compared to historical levels and should not cause a severe decline in investment activity and the ability of companies to service their debt.

Bottom line: CRE’s underlying demand fundamentals should more than mitigate the impact of the slightly higher interest rates in 2022, according to NAR’s 2022 Commercial Real Estate Outlook report.

Read more...CRE's Growth Forecast for 2022 via GlobeSt