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