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.

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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.

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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.

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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