The 10 Most Active Apartment Markets of 2014 via Multifamily Executive Magazine

In the first half of 2014, the hottest apartment sales markets were, coincidentally, among the hottest places in the county. With Los Angeles leading the pack and Orange County and San Diego round out the Top 10, Southern California was well represented in the first half of 2014, according to New York research firm Real Capital Analytics. Manhattan and the surrounding boroughs were also strong, finishing second and third, respectively.

Read more...The 10 Most Active Apartment Markets of 2014 - Multifamily Executive Magazine

Austin area apartment 2Q 2014: Marcus & Millichap via Real Estate Center at Texas A&M

Austin remains a magnet for new and expanding tech firms and for young professionals, according to Marcus and Millichap's most recent quarterly report.

In 2013, individuals between 20 and 34 years old accounted for more than a quarter of the metro’s new residents, versus a 10 percent share nationally. This year should be no different, as hiring by notable tech companies attracts renter-age professionals to the area.

Multifamily completions will surge to an estimated 14,120 apartments in 2014, resulting in a 7 percent increase in Austin’s apartment stock. In 2013, apartment deliveries totaled 5,500 units.

Read more...Austin area apartment 2Q 2014: Marcus & Millichap

Regional Economic Growth Builds Momentum via Dallas Fed

The regional economy picked up pace in the second quarter, with payroll employment growing at a faster rate than in the first quarter. The Texas Business Outlook Surveys (TBOS) point to an uptick in activity in June and July. The July Beige Book continued to note healthy growth and optimism in outlooks. A strong energy sector, brisk activity in commercial real estate and lower economic uncertainty all seem to be helping Texas.

Read more...Regional Economic Growth Builds Momentum - Dallas Fed

Q2 2014 GDP Details on Residential and Commercial Real Estate via Calculated Risk

The BEA has released the underlying details for the Q2 advance GDP report.

Investment in single family structures is now back to being the top category for residential investment (see first graph). Home improvement was the top category for twenty one consecutive quarters following the housing bust ... but now investment in single family structures is the top category once again.

However - even though investment in single family structures has increased significantly from the bottom - single family investment is still very low, and still below the bottom for previous recessions. I expect further increases over the next few years.

Read more...Calculated Risk: Q2 2014 GDP Details on Residential and Commercial Real Estate

U.S. Commercial, Multifamily Lending Jumps 34% Over Q1 via WORLD PROPERTY CHANNEL

According to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, second quarter 2014 commercial and multifamily mortgage loan originations were two percent lower than during the same period last year, but 34 percent higher than the first quarter of 2014.

"Year-to-date borrowing by commercial and multifamily real estate owners is running at the same pace as last year," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "Low interest rates and improving property fundamentals are prompting borrowers to act, but the relatively low volume of loans hitting maturity is checking overall demand.

Read more...U.S. Commercial, Multifamily Lending Jumps 34% Over Q1 - WORLD PROPERTY CHANNEL Global News Center

Is Raising Rents Really The Most Profitable Option In The Short Term? via Multifamily Blogs

Years ago, when I was just entering the industry and trying to understand pricing dynamics, at first I couldn't understand why strong communities ever struggled for prospects. It seemed that a really good community would be awash in prospects because, frankly, there are plenty of really bad communities out there they are competing with. But I quickly realized that as that strong community's occupancy went up, so did its pricing, which reduced demand. The decision to raise rents seemed completely logical to me at the time - a great community should be able to charge more, and it would be foolish to leave money on the table by not charging more. But what that did was put the community in a constant marketing push. As occupancy went up, rents went up, and the pool of prospects who would/could pay that level of rent went down. So we always had to push marketing to find those prospects who would fit that new requirement.

After thinking on the issue for years, however, I am unconvinced this solution is necessarily ideal or most profitable.

Read more...Is Raising Rents Really The Most Profitable Option In The Short Term? - Multifamily Blogs

2Q Data Hint at Potential Market Peak via Multifamily Executive Magazine

During the post-recession recovery, two apartment-transaction indicators have clearly been positive: the percentage of the asking price at which properties closed has increased steadily; and the number of months to close has gradually declined. In the past year, though, these two indicators appear weaker, as the CoStar apartment data show (see chart below).

After 2010, average transaction prices rose from about 92 percent of the asking price to more than 100 percent. While this happened, the average number of months to close declined from roughly 2.6 to 2.3. These changes were consistent with the strong multifamily recovery and the increased liquidity associated with it. But, beginning in 2013, the number of months to close went back up to 2.6. Similarly, in the first two quarters of 2014, the average ratio between the transaction and asking prices dropped below 99 percent.

Read more...2Q Data Hint at Potential Market Peak - Multifamily Executive Magazine

Texas Economic Update August 2014 via Dallas Fed

Mine K. Yücel, Dallas Fed senior vice president and director of research, provides updates on the Texas economy.

Watch video...Texas Economic Update - Dallas Fed

San Antonio Apartment Market Update June 2014 via Oconnordata.com

Market Summary

Most key metrics of the San Antonio area multifamily sector recorded positive and negative changes in June 2014.

The occupancy figures recorded both positive and negative values for all the classes. For Class A properties, occupancy increased by 0.01% over the month to close at 91.91%; and decreased by 1.40% over the year. The largest increase on monthly basis was noted for Class C properties with an increase of 0.47%.

Read more...San Antonio Apartment Market Update June 2014

Apartment Market Update from MPF’s Greg Willett: Apartment Demand Kicks Up in San Antonio via Property Management Insider

Demand for apartments in San Antonio came in at a whopping 3,251 units during 2014’s second quarter. That’s the biggest quarterly demand figure seen since MPF Research began tracking the metro market more than 20 years ago. Furthermore, the result marked an abrupt upward shift in momentum, as San Antonio previously was not registering the strong leasing activity seen in the other big apartment markets across Texas. Emphasizing just how lackluster demand had been Q2’s absorption tally represents 89% of all the demand posted in the metro over the past year.

While new properties moving through the initial leasing process accounted for the majority of San Antonio’s apartment demand during Q2, meaningful absorption also occurred in the existing product base’s middle-market and bottom-tier properties.

Read more...Apartment Market Update from MPF’s Greg Willett: Apartment Demand Kicks Up in San Antonio | Property Management Insider