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