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