The booming technology industry in the Austin metro is driving demand for apartment units across the region. Transaction velocity in the Austin market accelerated during the last four quarters, and sales so far this year are outpacing total sales for 2011.
Approximately 980 units were brought online during the most recent 12-month period, down from the 1,400 units added to inventory in the previous time frame.
Developers have over 20,000 units planned for the metro with two projects scheduled to break ground before year end. Additionally, there are nearly 11,000 units under construction with completion dates scheduled through 2014.
Read more...Austin area apartment 4Q 2012: Marcus & Millichap via Real Estate Center at Texas A&M University
Friday, November 30, 2012
Change is Coming via Multi-Housing News Online
Demand for apartments is set to increase dramatically by 2020; compensation in the apartment industry will continue to rise faster than the rate of inflation; hospitality companies may seek to acquire an apartment REIT or privately held multifamily company by 2020; and over 50 percent of today’s senior leadership will pass the baton by 2020.
These are some futuristic predictions from Chris Lee, president and CEO of Los Angeles-based CEL & Associates Inc., a leading real estate consulting firm. Lee has just completed a book, “Transformational Leadership in the New Age of Real Estate,” which is available through the Institute of Real Estate Management. The book lays out the future of real estate and explains the need for executives of the future to be visionary and supportive of individual entrepreneurship.
“The book was driven by my interactions with 500 real estate clients who are continually probing and asking questions about not only the information we have, but also what the information means, what the future holds and how to prepare for the future,” Lee tells MHN. “Business as usual will not guarantee success tomorrow. Leaders have to be transformational in how they approach the company and capture those opportunities.”
Read more...Change is Coming | Multi-Housing News Online
These are some futuristic predictions from Chris Lee, president and CEO of Los Angeles-based CEL & Associates Inc., a leading real estate consulting firm. Lee has just completed a book, “Transformational Leadership in the New Age of Real Estate,” which is available through the Institute of Real Estate Management. The book lays out the future of real estate and explains the need for executives of the future to be visionary and supportive of individual entrepreneurship.
“The book was driven by my interactions with 500 real estate clients who are continually probing and asking questions about not only the information we have, but also what the information means, what the future holds and how to prepare for the future,” Lee tells MHN. “Business as usual will not guarantee success tomorrow. Leaders have to be transformational in how they approach the company and capture those opportunities.”
Read more...Change is Coming | Multi-Housing News Online
Multifamily Demand Forecast | The Balance Sheet via Yardi Corporate Blog
The pace of continued economic recovery will determine whether the number of U.S. renter households will grow by 1 million or closer to 1.7 million between now and 2015.
That’s the consensus of a recently released report from Freddie Mac’s Multifamily Research department, which also notes that there has been major growth in the single family home rental market. The number of 1-4 unit buildings rented has grown by 3 million – a 16 percent increase – since 2007.
The report casts a rosy glow over the future for multifamily, which has been enjoying low vacancy rates and rising rental incomes in most markets for the last couple of years.
Read more...Multifamily Demand Forecast | The Balance Sheet - Yardi Corporate Blog
That’s the consensus of a recently released report from Freddie Mac’s Multifamily Research department, which also notes that there has been major growth in the single family home rental market. The number of 1-4 unit buildings rented has grown by 3 million – a 16 percent increase – since 2007.
The report casts a rosy glow over the future for multifamily, which has been enjoying low vacancy rates and rising rental incomes in most markets for the last couple of years.
Read more...Multifamily Demand Forecast | The Balance Sheet - Yardi Corporate Blog
Top 10 Growth Markets: Energy and Tech Rule via GlobeSt.com
The cities REAL ESTATE FORUM has chosen to spotlight as leading markets for job growth, based on a consensus from multiple industry studies and reports, have a few things in common. Three are in Texas, while three more are on the West Coast—including two that are across San Francisco Bay from one another. A common thread among all of them is the key drivers of employment growth in their markets: energy, tech or both.
Energy and tech are broad-based terms, the latter in particular. The tech sector may mean biotechnology or the likes of Google and Microsoft. In more than a few of these markets, such as Silicon Valley, it covers both bases.
Read more...GlobeSt.com - Top 10 Growth Markets: Energy and Tech Rule - Underwritten by Zurich NA - Daily News Article
Energy and tech are broad-based terms, the latter in particular. The tech sector may mean biotechnology or the likes of Google and Microsoft. In more than a few of these markets, such as Silicon Valley, it covers both bases.
Read more...GlobeSt.com - Top 10 Growth Markets: Energy and Tech Rule - Underwritten by Zurich NA - Daily News Article
DFW apartments 3Q 2012: Hendricks & Partners via Real Estate Center at Texas A&M University
The DFW apartment supply has increased by 3,920 units so far this year. With another 2,260 units expected in the final quarter 2012, full-year completions are anticipated to exceed the 5,290 apartments that came online in 2011.
In third quarter, multifamily permit issuance reached an annualized total of 13,650 units, 9 percent above the previous quarter.
Average vacancy increased 6.2 percent in the past three months with asking rents in the DFW area rising 1 percent to $826 per month in 3Q.
Read more...DFW apartments 3Q 2012: Hendricks & Partners via Real Estate Center at Texas A&M University
In third quarter, multifamily permit issuance reached an annualized total of 13,650 units, 9 percent above the previous quarter.
Average vacancy increased 6.2 percent in the past three months with asking rents in the DFW area rising 1 percent to $826 per month in 3Q.
Read more...DFW apartments 3Q 2012: Hendricks & Partners via Real Estate Center at Texas A&M University
Dallas 1 of 3 cities to fully recover from recession, Brookings says via Dallas Business Journal
Dallas is one of three U.S. cities that have fully come back since the end of the 2007-2009 economic recession, according to a report released today by the Brookings Institution.
The other U.S. cities to recover are Pittsburgh, Pa., and Knoxville, TN.
According to report, Dallas is "is outperforming the United States on employment change, but is lagging on GDP per capita change," and ranks 91st in the world in Brookings' Economic Performance Rankings with a 1.6 percent rise in GDP and a 2.1 percent increase in employment since in 2011-2012.
Read more...Dallas 1 of 3 cities to fully recover from recession, Brookings says - Dallas Business Journal
The other U.S. cities to recover are Pittsburgh, Pa., and Knoxville, TN.
According to report, Dallas is "is outperforming the United States on employment change, but is lagging on GDP per capita change," and ranks 91st in the world in Brookings' Economic Performance Rankings with a 1.6 percent rise in GDP and a 2.1 percent increase in employment since in 2011-2012.
Read more...Dallas 1 of 3 cities to fully recover from recession, Brookings says - Dallas Business Journal
Thursday, November 29, 2012
Fannie, Freddie Will Live Forever: Street Whispers via Minyanville's Wall Street
If you are waiting for a plan from Washington to wind down mortgage finance giants Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC), don't hold your breath. They aren't going anywhere.
Far from ending their dominance, policymakers are drafting new rules governing the origination and securitization of mortgages that might only strengthen the stronghold of Fannie and Freddie, according to FBR Capital analyst Paul Miller.
"We foresee a continued dominance of the implied government guarantee. While Fannie Mae and Freddie Mac may be ended 'in name,' Congress will keep the infrastructure in place to further its homeownership goals," Miller wrote in a report titled the "Future of the Housing Market: Winners and Losers."
Read more...Fannie, Freddie Will Live Forever: Street Whispers | Real Estate | Minyanville's Wall Street
Far from ending their dominance, policymakers are drafting new rules governing the origination and securitization of mortgages that might only strengthen the stronghold of Fannie and Freddie, according to FBR Capital analyst Paul Miller.
"We foresee a continued dominance of the implied government guarantee. While Fannie Mae and Freddie Mac may be ended 'in name,' Congress will keep the infrastructure in place to further its homeownership goals," Miller wrote in a report titled the "Future of the Housing Market: Winners and Losers."
Read more...Fannie, Freddie Will Live Forever: Street Whispers | Real Estate | Minyanville's Wall Street
LIHTC in Jeopardy - Lihtc, Legislation via Housing Finance
The low-income housing tax credit (LIHTC) has less than a 50 percent chance of survival next year if the affordable housing industry does nothing, said Terri Ludwig, president and CEO of Enterprise Community Partners.
Ludwig sounded the alarm to several hundred developers attending the AHF Live conference in Chicago.
Others have warned that the mighty LIHTC could be eliminated as Congress sets its eyes on tax reform, but Ludwig went further and laid down some tough odds.
She no doubt meant her statement to be a call to arms for the affordable housing industry, the odds something that developers would not be willing to chance.
Read more...LIHTC in Jeopardy - Lihtc, Legislation - Housing Finance
Ludwig sounded the alarm to several hundred developers attending the AHF Live conference in Chicago.
Others have warned that the mighty LIHTC could be eliminated as Congress sets its eyes on tax reform, but Ludwig went further and laid down some tough odds.
She no doubt meant her statement to be a call to arms for the affordable housing industry, the odds something that developers would not be willing to chance.
Read more...LIHTC in Jeopardy - Lihtc, Legislation - Housing Finance
Jobs Numbers Increase, MF Demand Shows Slight Decline via GlobeSt.com
Though the September, 2012 unemployment figure of 7.8% created some buzz (especially in advance of the general election), October figures from the Bureau of Labor Statistics opened even more eyes, stating as it did, that 171,000 new jobs were created in October (above the forecasted 140,000-145,000). Even more interesting is that, despite the increase in jobs and downward creep of unemployment (7.9% in October), the apartment sector is seeing some softening.
Annual rent growth in October was 3.54%, with year-to-date rent growth, through October, at 4.32%. Occupancy also moved down somewhat to 94.4% in October (versus 94.5% in September).
Read more...GlobeSt.com - Jobs Numbers Increase, MF Demand Shows Slight Decline - Daily News Article
Annual rent growth in October was 3.54%, with year-to-date rent growth, through October, at 4.32%. Occupancy also moved down somewhat to 94.4% in October (versus 94.5% in September).
Read more...GlobeSt.com - Jobs Numbers Increase, MF Demand Shows Slight Decline - Daily News Article
Austin apartments 3Q 2012: Hendricks & Partners via Real Estate Center at Texas A&M University
Since June, apartment operators have noted positive net absorption of 650 units, compared with 675 net move-ins during third quarter 2012, according to Hendricks & Partners.
Although there are a considerable number of projects under construction, deliveries have remained steady but low in 2012, with 300 apartments coming online in 3Q 2012.
The average vacancy has plunged to 4.1 percent in 2012. The current quarterly rate is the lowest on record since 2000. Asking rents have advanced 2 percent since the close of 2011 to $933 per month in 3Q 2012.
Read more...Austin apartments 3Q 2012: Hendricks & Partners via Real Estate Center at Texas A&M University
Although there are a considerable number of projects under construction, deliveries have remained steady but low in 2012, with 300 apartments coming online in 3Q 2012.
The average vacancy has plunged to 4.1 percent in 2012. The current quarterly rate is the lowest on record since 2000. Asking rents have advanced 2 percent since the close of 2011 to $933 per month in 3Q 2012.
Read more...Austin apartments 3Q 2012: Hendricks & Partners via Real Estate Center at Texas A&M University
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