Currently, the Houston multifamily market is in the best shape that we’ve seen in a long time. For example, rents are increasing across the board, particularly in Class A properties. In addition, occupancy is at its highest point in years. We’re still trying to backfill supply into a market that has seen historically low deliveries over the last three years, and Houston is creating serious demand for new units. We use the rule of thumb that for every six or seven new jobs created, there is demand for one new apartment. Thus, Houston has added more than 90,000 jobs in the last 12 months, which tells us that we need to add 12-15,000 units annually just to keep up with current demand. So, all in all, Houston’s multifamily market is healthy right now.
read more...Job Growth is Driving a Healthy Multifamily Market in Houston via REBusinessOnline.com
Friday, August 31, 2012
Houston construction contracts July 2012 via NewsTalk Texas
Contracts for future residential construction grew 12.9 percent July 2012 compared to July 2011, while nonresidential contracts fell 37.7 percent and total construction fell 8.3 percent.
McGraw Hill has revised residential and non-residential construction substantially upward for July ’11. As a result, construction activity last year was actually $123.0 million better than originally reported, as can be seen in the table below
Year to date, more than $5.9 billion in total contracts were awarded, up 12 percent from the more than $5.2 billion awarded year to date as of July 2011.
Read more...Houston construction contracts July 2012 via NewsTalk Texas
McGraw Hill has revised residential and non-residential construction substantially upward for July ’11. As a result, construction activity last year was actually $123.0 million better than originally reported, as can be seen in the table below
Year to date, more than $5.9 billion in total contracts were awarded, up 12 percent from the more than $5.2 billion awarded year to date as of July 2011.
Read more...Houston construction contracts July 2012 via NewsTalk Texas
Your Home May Be Your Castle, But Your Rental Unit Is Not via Multi-Housing News Online
When Tenants Reach Beyond the Four Walls they Lease, Landlords Need Full Protection under Insurance Policies
The rental market for residential housing is an unexpected beneficiary of the nationwide mortgage crisis. Demand for rental housing is at a high, with rental units filled with one-time homeowners who recently lost their own houses to foreclosure.
Many of these new renters have long been accustomed to using their living areas as they see fit. As homeowners, they could – if they chose to do so – take advantage of spaces under floorboards, behind drywall or in between ceiling joists. Except for highly unusual situations, their homes were their castles.
Read more...Your Home May Be Your Castle, But Your Rental Unit Is Not | Multi-Housing News Online
The rental market for residential housing is an unexpected beneficiary of the nationwide mortgage crisis. Demand for rental housing is at a high, with rental units filled with one-time homeowners who recently lost their own houses to foreclosure.
Many of these new renters have long been accustomed to using their living areas as they see fit. As homeowners, they could – if they chose to do so – take advantage of spaces under floorboards, behind drywall or in between ceiling joists. Except for highly unusual situations, their homes were their castles.
Read more...Your Home May Be Your Castle, But Your Rental Unit Is Not | Multi-Housing News Online
Occupancy Rates Stabilize, Rent Growth Slows via NREIonline.com
Apartment rents are still growing across the country, but not as quickly as they were in the summer of 2011, when growth in effective rents peaked.
“Things have slowed since a year ago,” says Jay Denton, vice president of research for data firm Axiometrics Inc., based in Salt Lake City. “The growth rate has slowed for rents... The growth for occupancies is starting to flatten out.”
Axiometrics predicts that average apartment rents will settle into a steady pace of growth over the next few years, similar to rental markets in the mid-1990s, as occupancy rates stay very high.
Read more...Occupancy Rates Stabilize, Rent Growth Slows via NREIonline.com
“Things have slowed since a year ago,” says Jay Denton, vice president of research for data firm Axiometrics Inc., based in Salt Lake City. “The growth rate has slowed for rents... The growth for occupancies is starting to flatten out.”
Axiometrics predicts that average apartment rents will settle into a steady pace of growth over the next few years, similar to rental markets in the mid-1990s, as occupancy rates stay very high.
Read more...Occupancy Rates Stabilize, Rent Growth Slows via NREIonline.com
Alternatively Built Multifamily Development Uses Upcycling as a Hook via Multi-Housing News Online
South Africa is the latest country to embrace the emerging trend of alternative building for multifamily developments. As previously reported on CPE and MHN’s City Pages, San Francisco has seen the development of a smaller, prefabricated apartment building providing quick solutions for multifamily infill projects. Citiq Property Developers has taken another path to alternative development, using shipping containers in the process, while not jeopardizing the overall quality of the building.
The company recently announced the fact that its newly finished apartment block in the South African city of Johannesburg, SixtyOne on Countesses, was completed in record time. The shipping container technology has been used before for portable retail areas in festivals and smaller bars but its practicality for development in general might have been underrated. The original purpose shipping containers have also recommends them durability-wise, and the use of still seaworthy units guarantees that the alloys they are made from will hold on for a great amount of time. This process is known as upcycling, which is essentially the conversion of waste materials or currently useless products into new products of better quality or better environmental value.
Read more...Alternatively Built Multifamily Development Uses Upcycling as a Hook | Multi-Housing News Online
The company recently announced the fact that its newly finished apartment block in the South African city of Johannesburg, SixtyOne on Countesses, was completed in record time. The shipping container technology has been used before for portable retail areas in festivals and smaller bars but its practicality for development in general might have been underrated. The original purpose shipping containers have also recommends them durability-wise, and the use of still seaworthy units guarantees that the alloys they are made from will hold on for a great amount of time. This process is known as upcycling, which is essentially the conversion of waste materials or currently useless products into new products of better quality or better environmental value.
Read more...Alternatively Built Multifamily Development Uses Upcycling as a Hook | Multi-Housing News Online
VIDEO: Don’t Overbuild, Multifamily Developers via GlobeSt.TV
With the multifamily sector continuing to gain momentum, Jay Blasberg of Alliant Capital cautions developers not to get overzealous with construction and to practice some conservatism. Blasberg spoke with Carrie Rossenfeld during RealShare Orange County 2012 and also spoke on the panel, “Multifamily Outlook in Orange County.” In the video, Blasberg also discusses:
* Why the residential market needs to pay better attention to creditworthiness
* How multifamily meets the needs of current residents
* How the multifamily sector will change as we continue to move out of the recession
Watch video...GlobeSt.com - VIDEO: Don’t Overbuild, Multifamily Developers - GlobeSt.TV Article
* Why the residential market needs to pay better attention to creditworthiness
* How multifamily meets the needs of current residents
* How the multifamily sector will change as we continue to move out of the recession
Watch video...GlobeSt.com - VIDEO: Don’t Overbuild, Multifamily Developers - GlobeSt.TV Article
MBA Reports That Commercial and Multifamily Mortgage Delinquency Rates Drop For Banks But Rise For CMBS via LoanSafe
Commercial and multifamily mortgage delinquency rates continued to drop for banks and rise for commercial mortgage backed securities (CMBS) during the second quarter of 2012. Delinquency rates also declined for Fannie Mae during the second quarter, and increased by 0.01 percentage points for life companies and 0.04 percentage points for Freddie Mac according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report.
“Commercial and multifamily delinquency rates for life companies, Fannie Mae and Freddie Mac all remain quite low, and the delinquency rate for bank-held loans continues to decline,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “The delinquency rate for loans in CMBS continues to show higher and more sustained aggregate delinquency rates, much of which is driven by the large share of these loans in foreclosure or REO.”
Read more...MBA Reports That Commercial and Multifamily Mortgage Delinquency Rates Drop For Banks But Rise For CMBS | LoanSafe
“Commercial and multifamily delinquency rates for life companies, Fannie Mae and Freddie Mac all remain quite low, and the delinquency rate for bank-held loans continues to decline,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “The delinquency rate for loans in CMBS continues to show higher and more sustained aggregate delinquency rates, much of which is driven by the large share of these loans in foreclosure or REO.”
Read more...MBA Reports That Commercial and Multifamily Mortgage Delinquency Rates Drop For Banks But Rise For CMBS | LoanSafe
Market Is Ripe For Buying Foreclosures as Rentals via GlobeSt.com
Now may be the time for those interested in buying homes for rental purposes to get into the market. According to RealtyTrac’s recently released Foreclosure News Report, the high number of foreclosed properties on the market, along with the wealth of would-be investors kicking tires, means the market could be ripe for this type of investment.
Joel Cone, a staff writer for the report, tells GlobeSt.com that many homeowners are underwater and would appreciate investors seeking rental properties coming in and making them an offer. “An investor can come in and help them out of the distressed situation and get a property that will be a good rental property.”
Read more...GlobeSt.com - Market Is Ripe For Buying Foreclosures as Rentals - Daily News Article
Joel Cone, a staff writer for the report, tells GlobeSt.com that many homeowners are underwater and would appreciate investors seeking rental properties coming in and making them an offer. “An investor can come in and help them out of the distressed situation and get a property that will be a good rental property.”
Read more...GlobeSt.com - Market Is Ripe For Buying Foreclosures as Rentals - Daily News Article
Thursday, August 30, 2012
Commercial Real Estate Remains Highest Rated Investment Alternative via CCIM Institute
Despite declining economic conditions, sector provides long-term stability, according to CCIM and RERC data.
Despite the declining economy and investment environment, CCIM members report that investors continue to seek apartments, medical office buildings, land, and agricultural properties, according to CCIM Institute and Real Estate Research Corp.’s 3Q12 RERC/CCIM Investment Trends Quarterly. CCIMs also reported upticks in retail and office activity in isolated regions.
Read more...Commercial Real Estate Remains Highest Rated Investment Alternative | CCIM Institute
Despite the declining economy and investment environment, CCIM members report that investors continue to seek apartments, medical office buildings, land, and agricultural properties, according to CCIM Institute and Real Estate Research Corp.’s 3Q12 RERC/CCIM Investment Trends Quarterly. CCIMs also reported upticks in retail and office activity in isolated regions.
Read more...Commercial Real Estate Remains Highest Rated Investment Alternative | CCIM Institute
New Deliveries Fail to Impact Rent Growth… Yet via Multifamily Executive Magazine
Dallas-based Axiometrics recently released its latest monthly market performance data and the results show that new units hitting the market have not really made a dent in rent growth thus far.
According to the report, national effective rents increased by only 0.54 percent in July. That makes the year-to-date increase in rents 4.42 percent. But if you look at last summer, the growth is a bit behind this year. Last July was the peak of rent increases, with a 5.32 percent figure. Since last November, rent growth has consistently hovered around the 4 percent mark.
Read more...New Deliveries Fail to Impact Rent Growth… Yet - Rent Trends - Multifamily Executive Magazine
According to the report, national effective rents increased by only 0.54 percent in July. That makes the year-to-date increase in rents 4.42 percent. But if you look at last summer, the growth is a bit behind this year. Last July was the peak of rent increases, with a 5.32 percent figure. Since last November, rent growth has consistently hovered around the 4 percent mark.
Read more...New Deliveries Fail to Impact Rent Growth… Yet - Rent Trends - Multifamily Executive Magazine
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