Cap Rates on Apartment Acquisitions Take a Slight Dip in the First Half of 2019 via NREI

For years, apartment experts predicted that yields on investments in apartment rental properties would rise. Years passed, but cap rates in the sector remain historically low, and are getting lower.

“Cap rates have not risen in the last five years,” says Chris Espenshade, managing director with real estate services firm JLL. “Why should we expect they would rise in the next five?”

New investors keep finding reasons to buy apartment properties, and prices for these assets keep rising. That strong demand from buyers seems likely to keep cap rates low.

Read more...Cap Rates on Apartment Acquisitions Take a Slight Dip in the First Half of 2019 via NREI

What Difference Does a Year Make to US Cap Rates? via Real Capital Analytics

What difference does a year make to cap rates? None. The answer is none.

This time a year ago we looked at how Federal Reserve moves to raise interest rates were impacting commercial real estate. The answer at the time was that the rate environment was affecting deal volume and not cap rates. The story is still the same a year later. Even though the direction of interest rates is now entirely opposite, commercial real estate markets are not moving as quickly.

Read more...What Difference Does a Year Make to US Cap Rates? via Real Capital Analytics

Houston's apartment market seeing demand surge via Houston Chronicle

In the first half of the year, renters occupied an additional 10,000 units in the Houston metro, exceeding so-called absorption during all of 2018, commercial real estate firm JLL said in a midyear report. Occupancy has inched up to 90.2 percent, compared with 89.6 percent at the beginning of the year.

Experts attribute the market's improvement to a growing economy.

This Houston market ranked No. 3 (after Dallas/Ft. Worth and Chicago) on a list of cities with the the most multifamily demand, a study from real estate data firm RealPage shows.

Read more...Houston's apartment market seeing demand surge - Houston Chronicle

Gary Shilling: The Recession May Have Already Begun via GlobeSt

A U.S. recession “may already be underway,” and the bond market rally that began in the early 1980s is still intact, says Gary Shilling, founder of the investment advisory firm A. Gary Shilling & Co.

In his latest Insight report released just before Friday’s stronger-than-expected jobs report, Shilling writes that the 10-year Treasury note yield will drop to 1% in a year and the 30-year Treasury bond will drop to 2% a year after the recession starts, delivering double-digit returns. In that case, the 10-year Treasury would gain close to 12%, and the 30-year Treasury bond 14%.

Read more...Gary Shilling: The Recession May Have Already Begun via GlobeSt

Apartment rental demand soars as more millennials believe it’s cheaper than owning a home via CNBC

n the D.C. suburb of Chevy Chase, Maryland, a massive apartment rental and condominium complex is going up, and apparently it can’t happen fast enough. Demand for rental apartments in and near cities across America is soaring, just when most thought it wouldn’t be. The expectation was that rental demand would fall as millennials aged into their homebuying years.

Apartment demand in the second quarter of 2019 spiked 11% from a year ago. That, in turn, pushed rents up an average 3% nationally to $1,390 per month, according to RealPage, a real estate software and analytics company.

Read more... Apartment rental demand soars as more millennials believe it’s cheaper than owning a home via CNBC

Austin Multifamily Report – Summer 2019 via Multi-Housing News Online

Austin’s multifamily market is poised for a stable 2019, with rent growth rising 3.7 percent year-over-year through April, outperforming the national rate by 70 basis points. Developers are struggling to keep up with demand, and the labor shortage is not helping: The occupancy rate in stabilized properties rose 50 basis points over 12 months, to 94.4 percent as of March

Read more...Austin Multifamily Report – Summer 2019 via Multi-Housing News Online

Houston Economic Indicators July 2019 via Dallas Fed

Houston business-cycle and leading indexes pointed to a growing economy in May. Employment, particularly mining-related jobs, accelerated, but the U.S. rig count and oil prices have fallen in recent months. Manufacturers reported negative impacts from tariffs, while measures of global manufacturing showed signs of slowing—including for Houston trade partners. Taken together, the outlook for the region remains positive.

Read more... Houston Economic Indicators July 2019 via dallasfed.org

Austin Economic Indicators July 2019 via Dallas Fed

The Austin economy remained healthy in May. The Austin Business-Cycle Index accelerated and remained above its long-term trend. Labor force growth remained restricted, though recent job growth was strong, particularly in the construction and mining and information sectors. Hourly wages declined further in May, while total construction permits rose.

Read more...Austin Economic Indicators July 2019 via Dallas Fed

Pricing Continues its Monthly Decline via Multi-Housing News Online

The Ten-X Commercial Nowcast shows that commercial real estate pricing continued to languish in May, posting its second consecutive monthly decline. The Ten-X Commercial All-Property Nowcast fell 0.2 percent from the month prior, bringing the annual growth rate to just 0.4 percent.

Read more...Pricing Continues its Monthly Decline via Multi-Housing News Online

Looking for an apartment? Demand in Dallas-Fort Worth reaches 20-year high to lead all U.S. markets via Dallas Morning News

The Dallas-Fort Worth area is the top rental market in the country.

Net apartment leasing in the D-FW area grew by more than 10,400 rental units in the second quarter. That's more apartment demand than any other U.S. metro area and a near record for local rentals, according to new data from Richardson-based RealPage.

Read more...Looking for an apartment? Demand in Dallas-Fort Worth reaches 20-year high to lead all U.S. markets via Dallas Morning News