Urban Core Performance Diverges in High-Development Metros via MPF Research

Apartment construction activity among the nation’s largest and most active apartment markets during this part of the cycle has been disproportionately focused in urban core areas. The total number of apartment units completed in central business districts make up a small share of the total completion volumes of the most active metros. New urban units, however, have yielded high inventory growth rates for these downtown areas. Rapid inventory growth has affected performance in urban core submarkets to varying degrees.

Rad more...Urban Core Performance Diverges in High-Development Metros - MPF Research

Eleventh District Beige Book 7/13/2017 via Dallas Fed

The Eleventh District economy continued to expand at a moderate pace over the past six weeks. Manufacturing output rose, and activity in nonfinancial services increased. Growth in retail sales slowed, while auto sales dipped. Housing demand grew, lending activity increased, and the energy sector saw continued improvement. Crop conditions were mostly favorable. Employment and wages rose, as did prices. Outlooks remained positive, although some contacts noted uncertainty regarding changes in trade and healthcare policy as well as tax reform.

Read more...Eleventh District Beige Book - Dallasfed.org

From Macro to Micro: The Economy Going Forward via GlobeSt.com

Tired of hearing of the Great Wait-and-See as the industry taps its collective foot in preparation for coming regulation? Making long-range acquisition or development decisions can be dicey in such an atmosphere.

In this exclusive Q&A, locally-based research director for RED Capital Group, Dan Hogan takes us through the landscape and provides us with some sure bets–and not so sure bets–all of which can help owners and developers alike navigate the current choppy waters.

Read more...From Macro to Micro: The Economy Going Forward | GlobeSt.com

Renter Interest in Homeownership Rises in Q1 2017 via Multifamily Executive Magazine

According to a new analysis by multifamily data firm TransUnion, 55% of mortgage shoppers in the first quarter of 2017 were identified as “nonhomeowners,” a category that consists largely of renters. This represents a significant shift in the mortgage market over time, up from 50% of mortgage shoppers in the first quarter of 2016 and 45% in Q1 2015.

At the same time, a rising number of potential home buyers are millennials, who have traditionally shown a preference for rental units.

Read more...Renter Interest in Homeownership Rises in Q1 2017 | Multifamily Executive Magazine

Renters Find It Pays to Stay Put via GlobeSt.com

For apartment renters, it can literally pay to renew their existing leases. Zillow said Friday that market-rate rents increased at a faster pace year over year than did rents for tenants who renewed. The firm analyzed 2015 rent data from the US Census American Community Survey, the most recent data available.

The Y-O-Y increase for renters who renewed in ’15 was 3.6%, compared to a 5.6% rise in rent for beginning a new lease. Dollar-wise, that means a renter who had moved in the past year paid an average of $329 more each month than a renter who had lived in the same place for five years or longer.

Read more...Renters Find It Pays to Stay Put | GlobeSt.com

You think DFW apartment rents are too high? You ain't seen nothing yet via Dallas News

Dallas-Fort Worth apartment renters who've been pining for a slowdown in rent increases are going to have to keep waiting.

Despite near-record building activity, apartment landlords continue to dial up monthly rents in the area. During the second quarter, average D-FW apartment rents hit a new high of $1,082 a month, according to the latest data from Richardson-based RealPage.

Read more...You think D-FW apartment rents are too high? You ain't seen nothing yet | Real Estate | Dallas News

Austin Economic Indicators July 6, 2017 via Dallas Fed

Growth in the Austin economy remained soft in May. Following the release of updated retail sales and wage data, growth in the Austin Business-Cycle Index year to date was revised down and remained weak relative to the past several years. Jobs declined slightly and the unemployment rate remained near its 15-year low.

REIS: Effective Rent Rises 1.1% in Q2 2017 via Multifamily Executive Magazine

In all but two of the 79 primary apartment markets covered in Reis’s Apartment Sector Preliminary Trends Release, average effective rents either increased or remained flat in the second quarter of 2017, demonstrating a marked improvement over the previous quarter. Nationwide, the average effective rent grew by 1.1% between Q1 and Q2 2017, and by 3.0% year over year.

Read more...REIS: Effective Rent Rises 1.1% in Q2 2017 | Multifamily Executive Magazine

Houston Economic Indicators June 2017 via Dallas Fed

May data were mixed for the Houston metro area. The business-cycle index continued to signal a moderate expansion. Labor market data indicated job growth, the energy sector improved significantly and low fuel prices helped consumers. However, retail sales and wage and salary data suggest that Houston exited 2016 less robustly than initially believed. Overall, the outlook for Houston is guardedly optimistic.

Renter Demand at Near-Record Levels via GlobeSt.com

Apartment rent growth may have slowed compared to its pace earlier in the cycle, but renter demand is very nearly off the charts. RealPage Inc. on Thursday reported demand for 175,645 apartments across the US in the second quarter, a one-third increase year over year.

Meanwhile, occupancy stood at 95.0% at midyear, essentially full, according to RealPage’s Axiometrics division. Mid-2017 occupancy topped Q1’s 94.5% but slightly lagged the year-ago level of 95.3%, according to Axiometrics data.

Read more...Renter Demand at Near-Record Levels | GlobeSt.com