Financing Harder Than Ever to Get, Expert Says via GlobeSt

This is the most difficult time for obtaining financing since Zelman and Associates started measuring this in 2012 and the number of floating-rate mortgage loans is headed to zero.

That is according to Mark Franceski, Managing Director, Zelman & Associates – A Walker & Dunlop Company, who was joined by Matthew Vance, Senior Director and Americas Head of Multifamily Research for CBRE, as part of a panel that last week discussed multifamily housing financing and investing at the Middleburg Housing Summit, hosted by Middleburg Communities.

Read more...Financing Harder Than Ever to Get, Expert Says via GlobeSt

Dallas-Fort Worth Economic Indicators October 2023 via Dallas Fed

The Dallas–Fort Worth economy expanded in August. Employment growth continued at a brisk pace, and unemployment remained low. Apartment demand and single-family housing permits rose in August, while multifamily permits continued to decline in part due to tighter credit conditions and higher financing costs. Housing affordability remained low in the second quarter as a result of high mortgage rates.

Read more...Dallas-Fort Worth Economic Indicators October 2023 via Dallas Fed

Multifamily Loans Loom Large in Regional Bank Risk via GlobeSt

RXR CEO Scott Rechler delivered a sobering message during a keynote presentation at CREtech New York on Tuesday that it’s going to be a bumpy landing—and regional banks aren’t out of the woods yet.

Rechler, who in addition to being one of NYC’s largest building owners sits on the board of the New York Fed, called a recession “likely” in a Q & A conversation with Cherre CEO L.D. Salmanson entitled Recalibrating for the New Normal.

Read more...Multifamily Loans Loom Large in Regional Bank Risk via GlobeSt

Dry Powder Circles Multifamily Deals via GlobeSt

In a testament to how brutal the year has been, only two multifamily markets have produced positive total returns in the last 12 months, according to a new report by Newmark: Fort Lauderdale and Miami at 0.7% and 0.3% respectively, helped by 4.0% income growth. Appreciation declined but West Coast markets like Los Angeles, San Jose and San Francisco all showed double-digit total return losses.

At the same time, the multifamily market is experiencing a pricing reset, just like the rest of the CRE family of assets.

Read more...Dry Powder Circles Multifamily Deals via GlobeSt

Multifamily Is Most Attractive Asset Class, Survey Finds via GlobeSt

Apartments are the place to be, according to investors polled in CBRE’s Global Investor Intentions Survey.

Its “Midyear Pulse Check: U.S. Multifamily Market” report laid out the most common concerns in commercial real estate overall – interest rates, credit availability, state of the economy – but for the first time, the survey taken in late 2022 said that they would target multifamily properties more than any other property type.

Read more...Multifamily Is Most Attractive Asset Class, Survey Finds via GlobeSt

ALN Monthly Market Stats September 2023 via ALN Apartment Data

ALN Data just released their August 2023 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 2023 via ALN Apartment Data

How Concessions are Eroding Multifamily Rents via GlobeSt

Redfin has an interesting look at the current state of multifamily rents. On one hand, they’re still incredibly high in an historical setting. On the other hand, it’s costing them in concessions.

The firm said that the median U.S. asking rent in August was $2,052. The same period in 2022 was the record high, but that was only $2 more. And the asking rent in July 2023 was $2,038.

Read more...How Concessions are Eroding Multifamily Rents via GlobeSt

Austin Economic Indicators September 2023 via Dallas Fed

In July, the Austin economy experienced job growth as most sectors expanded. In addition, the business-cycle index ticked up. Similarly, consumer demand, as measured by retail sales tax revenue and credit card spending, remained stronger in the metro than at the state level.

Read more...Austin Economic Indicators September 2023 via Dallas Fed

Multifamily Rents Poised For Robust Increases Further Ahead via GlobeSt

For the past three years the multifamily sector has experienced a construction boom not seen since the 1970s, which has helped lead to the current moderation of rents.

However that may be about to change.

According to a new report by Greg Willett of Institutional Property Advisors, rents could resume an upward path by spring 2024, with “robust” increases in 2025.

Read more...Multifamily Rents Poised For Robust Increases Further Ahead via GlobeSt

ALN Monthly Market Stats August 2023 via ALN Apartment Data

ALN Data just released their July 2023 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 2023 via ALN Apartment Data

Multifamily’s Rent Growth Slowdown Shows Signs of Leveling Off via GlobeSt

Rent growth declined to below 1% last month, only the second time since the 2010 Great Recession. And it could head down further in the next few months, according to a post by RealPage Chief Economist Jay Parsons. But he expects the rent growth slowdown to level off relatively soon. He explains:

On a month-over-month basis, asking rents have actually risen in every month this year so far, Parsons writes, noting that the year-over-year rent change is cooling quickly because 2023′s increases are so far below 2022′s.

Read more...Multifamily’s Rent Growth Slowdown Shows Signs of Leveling Off via GlobeSt

RealPage Unveils New Multifamily Rental Trends via Realpage

RealPage, a leading global provider of software and data analytics to the real estate industry, released today its findings from a national survey of multifamily renters in America during the company’s annual RealWorld 2023 customer conference in Las Vegas.  

The study found that two-thirds (66%) of multifamily renters are satisfied with their current housing situation, preferring the financial freedom afforded by being able to rent more cheaply than buy in the areas where they want to live, as well as the flexibility for remote work and trying new locations. Gen Z renters (51% in particular), feel that renting is a better option than buying.

Read more...RealPage Unveils New Multifamily Rental Trends via Realpage

How Dallas-Fort Worth became America's boomtown via Axios

Imagine San Diego, San Jose, New Orleans, Pittsburgh and Boise all rolled up into the same metropolitan area.

Zoom in: That would give you a sense of just how many people now live in the Dallas-Fort Worth area's major cities, which aside from the titular pair also include Arlington, Plano and Garland.

Read more...How Dallas-Fort Worth became America's boomtown via Axios

Yardi Matrix Boosts Multifamily Supply Forecast via Multifamily Executive Magazine

Yardi Matrix has increased its multifamily supply forecast for 2023, 2024, and 2025 as the under-construction pipeline continues to expand.

As part of its third quarter update, with starts to date this year not exhibiting any significant signs of a slowdown, it boosted its forecast completions by 6.9% to 484,943 units for 2023 and 6.5% to 506,574 units for 2024.

Read more...Yardi Matrix Boosts Multifamily Supply Forecast via Multifamily Executive Magazine

CBRE: Multifamily Market Continues to Stabilize in Q2 via Multifamily Executive Magazine

With a rebound in absorption and an uptick in vacancy, the multifamily market displayed signs of stabilization in the second quarter, according to new research from CBRE.

In the second quarter, the overall vacancy rate for multifamily increased 10 basis points (bp) from the first quarter to 5%, which is equal to its long-term average. This was less than the 30-bp rise in the first quarter and the 70-bp increase seen in the fourth quarter of 2022, meaning that supply and demand dynamics are stabilizing.

Read more...CBRE: Multifamily Market Continues to Stabilize in Q2 via Multifamily Executive Magazine

DFW Economic Indicators July 2023 via Dallas Fed

The Dallas–Fort Worth economy expanded in June as wages and employment grew and unemployment fell. Housing cooled, with existing-home sales declining and inventories staying flat.

Read more...Dallas-Fort Worth Economic Indicators July 2023 via Dallas Fed

Austin Economic Indicators July 2023 via Dallas Fed

Austin’s job growth slowed in May. In addition, unemployment ticked up and wages declined slightly, suggesting further weakening in the labor market. Austin’s music scene continued to mature, with the average performer's age shifting upward, and the metro population grew in 2022.

Read more...Austin Economic Indicators July 2023 via Dallas Fed

Houston Economic Indicators June 2023 via Dallas Fed

Houston employment grew 2.4 percent in the three months ending in May—slower growth than both the state’s and the nation’s. Houston’s construction sector has not rebounded to prepandemic levels and lags Texas and the U.S. In fact, construction experienced steep employment declines though May in the metro after mortgage rates climbed, home sales dropped, and construction permits slumped. Home-price pressures moderated, and first-quarter vacancies in commercial buildings remained elevated.

Read more...Houston Economic Indicators June 2023 via Dallas Fed

Eleventh District Beige Book July 2023 via Dallas Fed

The Eleventh District economy continued to expand modestly buoyed by gains in the service sector and single-family housing. Manufacturing output and retail sales fell. Credit conditions tightened further, and loan demand continued to decline. Drilling activity dipped due to lower oil and gas prices, while recent rains boosted district agricultural conditions. Local nonprofits continued to cite higher demand for assistance. Employment rose moderately, and wage growth remained high. Input cost and selling price pressures were elevated in the service sector but largely subsided in manufacturing. Perceptions of business conditions continued to worsen as uncertainty rose, and contacts noted that diminishing demand, higher labor costs, the rising cost of credit, and inflation were weighing on outlooks.

Read more...Eleventh District Beige Book July 2023 via Dallas Fed

ALN Monthly Market Stats July 2023 via ALN Apartment Data

ALN Data just released their June 2023 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 2023 via ALN Apartment Data

DFW Economic Indicators June 2023 via Dallas Fed

Expansion continued in the DFW economy in April. Employment growth was strong, and the Dallas and Fort Worth business-cycle indexes rose. Worker Adjustment and Retraining Notification (WARN) data suggest that layoffs have picked up from 2022. Home prices dipped in March. DFW population growth increased in 2022.

Read more...Dallas-Fort Worth Economic Indicators June 2023 via Dallas Fed

Crushing Property Insurance is Hurting Apartment Deals via GlobeSt

The lack of affordable insurance options for property owners of all types increasingly puts needed insurance coverage out of reach and limits the ability of property owners to make needed investments in their properties.

As a result, this stressed insurance market, stubborn inflationary pressures, and rising interest rates have disrupted transactions and negatively impacted valuations.

Read more...Crushing Property Insurance is Hurting Apartment Deals via GlobeSt

Eleventh District Beige Book May 2023 via Dallas Fed

The Eleventh District economy continued to expand modestly. Manufacturing output was flat while revenue in the service and retail sectors grew. Energy reports were mixed with oilfield activity steady, but declines seen on the natural gas side. Housing contacts noted a decent spring selling season and stable prices. Credit conditions tightened further, and loan demand continued to decline. Agricultural conditions improved in some areas but remained strained by drought in others. Local nonprofits cited higher demand for assistance. Overall payrolls rose moderately, and wage growth remained elevated. Outlooks continued to worsen as uncertainty remains on the rise, and contacts voiced concern over waning demand, rising interest rates, and the overall health of the economy.

Read more...Eleventh District Beige Book May 2023 via Dallas Fed

ALN Monthly Market Stats May 2023 via ALN Apartment Data

ALN Data just released their April 2023 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 2023 via ALN Apartment Data

Houston Economic Indicators May 2023 via Dallas Fed

Houston employment grew 3.6 percent over the first three months of 2023, led by services. In the energy sector, the rig count and mining-related jobs are down as the cost of fuel declines from its summer 2022 peak. Houston’s headline inflation was lower than the nation’s in February, in part due to sharp declines in energy prices.

Read more...Houston Economic Indicators May 2023 via Dallas Fed

Austin Economic Indicators May 2023 via Dallas Fed

In March, Austin’s economy experienced strong growth. Employment rebounded from the prior month’s decline, and the business-cycle index increased. Unemployment did not change as the labor force continued to expand. In the housing market, existing-home sales increased, but median prices continued to fall.

Read more...Austin Economic Indicators May 2023 via Dallas Fed

Multifamily Fundamentals Return to Historical Norms via GlobeSt

Nothing about the last business cycle has been normal. A global pandemic, a prolonged zero or near-zero federal funds rate and a decade of outsized rent growth nationwide have skewed multifamily investors’ perception of normal market dynamics. This year, it is officially time to take away the punchbowl. Markets are normalizing, with an expectation of higher long-term interest rates—the Fed increased rates again by 25 basis points at the March meeting—and steady growth metrics.

Read more...Multifamily Fundamentals Return to Historical Norms via GlobeSt

Eleventh District Beige Book April 2023 via Dallas Fed

The Eleventh District economy continued to expand modestly. Manufacturing output rose slightly following a mild contraction in the previous period. Growth in the service sector continued at a modest pace, and retail sales and energy activity were flat. Loan demand weakened further, loan volumes fell, and credit conditions tightened. Agricultural conditions remained strained by drought in some areas. Home sales rose. Local nonprofits cited higher demand for assistance. Overall payrolls rose modestly, though hiring slowed sharply in the service sector. Wage growth remained elevated, while price pressures eased notably. Outlooks worsened, and uncertainty surged, partly due to heightened apprehension about the recent banking sector issues and high interest rates, and their spillover effects on the broader economy.

Read more...Eleventh District Beige Book April 2023 via Dallas Fed

Apartment Demand and New Lease Rent Growth on the Rebound via GlobeSt

The multifamily sector has been a growing disappointment. Not that it was expected to be otherwise. Interest rates up, consumers beset with higher prices and growing concerns over potential layoffs. Companies wondering how close a recession is. Transaction volumes have been down and rent growth slowed. Refinancing properties is tight and expensive.

But there’s some good news for owners and operators, says RealPage. Net apartment demand has recovered and is once again positive in the first quarter of 2023.

Read more...Apartment Demand and New Lease Rent Growth on the Rebound via GlobeSt

How Multifamily is Penciling Deals Amid an Uncertain Capital Market Environment via GlobeSt

The multifamily sector is thriving nationwide as demand for more apartments continues to grow. But it hasn’t escaped the impact of rising interest and cap rates on lenders and investors.

Lending and capital experts at GlobeSt’s Spring Multifamily Conference, shared their take on the impact of interest and cap rates, and their predictions for 2023.

Read more...How Multifamily is Penciling Deals Amid an Uncertain Capital Market Environment via GlobeSt

ALN Monthly Market Stats April 2023 via ALN Apartment Data

ALN Data just released their March 2023 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 2023 via ALN Apartment Data

Dallas County is gaining population again following COVID declines via Dallas News

Dallas County is regaining some of the population it lost during the pandemic.

When the COVID-19 lockdowns started, residents of urban areas across the country sought refuge in less densely populated cities and suburbs, especially those who could work remotely.

Dallas County’s population dropped by about 25,000 residents in 2021 while surrounding suburban counties had some of the largest gains in the country.

Read more...Dallas County is gaining population again following COVID declines via Dallas Morning News

Houston Economic Indicators March 2023 via Dallas Fed

Houston employment rose 3.1 percent in January, and benchmark revisions shifted employment growth up for 2022. Leading indicators sent mixed signals in the new year: employment growth and home sales remained strong, while oil prices and rig counts fell. Exports were down from mid-summer peaks but were still strong. High wage growth and relatively stable unemployment pointed to a still-tight labor market.

Read more...Houston Economic Indicators March 2023 via Dallas Fed

Austin Economic Indicators March 2023 via Dallas Fed

In January, Austin’s employment grew, wages increased and the business-cycle index rose. In contrast, the unemployment rate ticked up, single-family housing permits declined and housing affordability fell.

Read more...Austin Economic Indicators March 2023 via Dallas Fed

DFW Economic Indicators March 2023 via Dallas Fed

The Dallas–Fort Worth economy continues to expand. Payroll employment grew strongly in January, and unemployment held steady. Multifamily permit issuance fell further in January but remained elevated. Apartment demand was weak, while rents were stable in February. Housing affordability declined in fourth quarter 2022, though home price appreciation slowed.

Read more...Dallas-Fort Worth Economic Indicators March 2023 via Dallas Fed

ALN Monthly Market Stats March 2023 via ALN Apartment Data

ALN Data just released their February 2023 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 2023 via ALN Apartment Data

Beyond Population Shifts: Why Multifamily’s Outlook Is Good via GlobeSt

After historical performance, it’s tough to top yourself. Multifamily has faced that challenge, according to Marcus & Millichap’s 2023 Multifamily National Investment Forecast.

How do you beat the performance that multifamily established during the height of the pandemic?

Read more...Beyond Population Shifts: Why Multifamily’s Outlook Is Good via GlobeSt

ALN Monthly Market Stats February 2023 via ALN Apartment Data

ALN Data just released their January 2023 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 2023 via ALN Apartment Data

Eleventh District Beige Book January 2023 via Dallas Fed

Modest growth continued in the Eleventh District economy overall. Growth accelerated in manufacturing but abated in the service sector. Retail sales and home sales fell further, while oil and gas activity expanded. Rising interest rates prompted further deterioration in loan demand. Local nonprofits cited higher demand for assistance amid rising household costs. Rainfall improved agricultural conditions. Employment growth remained moderate overall and wage growth stayed elevated. Prices climbed further although firms expect pressures to moderate somewhat next year but remain elevated. Outlooks were mostly pessimistic except for the energy sector, and many contacts voiced concern about weakened demand, a potential recession, and inflation.

Read more...Eleventh District Beige Book January 2023 via Dallas Fed

How Far Will Apartment Rents Fall This Year? via GlobeSt

With apartment rents clearly decelerating now, the market is waiting to see where the bottom could be.

Greg Willett, First Vice President, National Director IPA Research, tells GlobeSt.com that his base case scenario calls for overall apartment rent growth of 3.1 percent during 2023.

Read more...How Far Will Apartment Rents Fall This Year? via GlobeSt

ALN Monthly Market Stats January 2023 via ALN Apartment Data

ALN Data just released their December 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 January 2023 via ALN Apartment Data

New Apartment Demand 'All But Evaporated' via GlobeSt

Demand for new apartment leases has “all but evaporated” as consumer confidence remains low and inflation continues to rise, according to the latest data from RealPage.

In other words, say farewell to the days of record-high household formations.

Read more...New Apartment Demand 'All But Evaporated' via GlobeSt