As another year comes to a close, Apartment List took a look at how Houston’s apartment rents fared in 2015.
Apartment rent growth is slowing amid the oil slump, which comes as housing affordability has become a major concern for renters and city leaders in Houston, according to the San Francisco-based online marketplace.
Read more...Apartment List: How Houston apartment rents fared in 2015 - Houston Business Journal
Thursday, December 31, 2015
Wednesday, December 30, 2015
Landlords Face Slowing Price Gains After U.S. Records Shattered via Bloomberg Business
For commercial real estate investors, the good times may be over.
The Federal Reserve’s first interest-rate increase in nine years has removed a crutch that’s helped sustain 33 consecutive months of price growth of at least 10 percent and padded returns for buildings from office towers to luxury hotels. While values won’t necessarily fall, they aren’t likely to climb much higher next year, according to Tad Philipp, a commercial-property debt analyst at Moody’s Investors Service.
“A lot of the smart money is saying it’s a better time to sell than to buy,” Philipp said in an interview. “The warning light is on that the rate of appreciation is poised to decelerate.”
Read more...Landlords Face Slowing Price Gains After U.S. Records Shattered - Bloomberg Business
The Federal Reserve’s first interest-rate increase in nine years has removed a crutch that’s helped sustain 33 consecutive months of price growth of at least 10 percent and padded returns for buildings from office towers to luxury hotels. While values won’t necessarily fall, they aren’t likely to climb much higher next year, according to Tad Philipp, a commercial-property debt analyst at Moody’s Investors Service.
“A lot of the smart money is saying it’s a better time to sell than to buy,” Philipp said in an interview. “The warning light is on that the rate of appreciation is poised to decelerate.”
Read more...Landlords Face Slowing Price Gains After U.S. Records Shattered - Bloomberg Business
Breaking Supply Wave, Potential Volatility Expected to Test Apartment Market Resilience in Coming Year via CoStar Group
If current projections hold, a total of about 455,000 new apartment units will be added to the inventory in the top 54 markets making up CoStar's national index from the beginning of 2015 through the end of the coming year. Despite the elevated new supply rolling into almost every U.S. metro, continued strong demand from renters is enabling landlords to push up rents in many markets.
As a result of the intense development focus on urban markets, apartment vacancies are beginning to edge higher in certain CBD and secondary business districts, setting the stage for suburban and non-CBD urban locations, such as Oakland, CA, to see more occupancy and rent appreciation. Vacancy rates in these non-CBD locations are expected to remain at least 50 basis points below those in business districts, according to CoStar projections.
Read mmore...Breaking Supply Wave, Potential Volatility Expected to Test Apartment Market Resilience in Coming Year - CoStar Group
As a result of the intense development focus on urban markets, apartment vacancies are beginning to edge higher in certain CBD and secondary business districts, setting the stage for suburban and non-CBD urban locations, such as Oakland, CA, to see more occupancy and rent appreciation. Vacancy rates in these non-CBD locations are expected to remain at least 50 basis points below those in business districts, according to CoStar projections.
Read mmore...Breaking Supply Wave, Potential Volatility Expected to Test Apartment Market Resilience in Coming Year - CoStar Group
Wednesday, December 23, 2015
Dallas: A Market with Multifamily Staying Power via REBusinessOnline
Right now, the Dallas-Fort Worth metropolitan statistical area is one of the hottest multifamily markets in the country with an eye-opening 34,000-plus units currently under construction. Long-term trends suggest that even if construction slows somewhat, demand for north Texas apartments will outstrip supply for the foreseeable future.
The reason is straightforward. Dallas has much going for it that employers find extremely appealing, including a central location equidistant from both coasts, an educated workforce, a diverse economy and a favorable business climate. These underlying advantages are simply not going to change.
Read more...Dallas: A Market with Multifamily Staying Power | REBusinessOnline
The reason is straightforward. Dallas has much going for it that employers find extremely appealing, including a central location equidistant from both coasts, an educated workforce, a diverse economy and a favorable business climate. These underlying advantages are simply not going to change.
Read more...Dallas: A Market with Multifamily Staying Power | REBusinessOnline
Tuesday, December 22, 2015
Texas hunkers down for another oil bust via CNBC
It's easy to see what Texas is bracing for: another oil bust.
But there are early signs the latest crash in crude may not inflict as much damage on Texas as past energy downturns, especially in parts of the Lone Star State that have diversified away from energy-related goods and services.
After California, Texas is the largest economy in the U.S. At nearly $1.5 trillion in gross state product last year, Texas produced more goods and services than South Korea or Australia.
Read more...Texas hunkers down for another oil bust
But there are early signs the latest crash in crude may not inflict as much damage on Texas as past energy downturns, especially in parts of the Lone Star State that have diversified away from energy-related goods and services.
After California, Texas is the largest economy in the U.S. At nearly $1.5 trillion in gross state product last year, Texas produced more goods and services than South Korea or Australia.
Read more...Texas hunkers down for another oil bust
What the Middle Class Money Squeeze Means for the CRE Industry via NREI
The American middle class is losing its hold on the reins of the U.S. economy, not only because of the drop in incomes and net wealth, but also because the commercial real estate industry is catering to the luxury and working class consumers instead.
According to a recent Pew Research Center study, the recession and the housing crisis hit the middle class hard, erasing its wealth gains from the three decades prior. The middle class is defined by the study as adults whose annual household income is two-thirds to double the national median, about $42,000 to $126,000 annually in 2014 dollars for a household of three. This group of people fell from 61 percent of the U.S. population in 1971 to 50 percent in 2015, as the group defined as upper class doubled to 9 percent of the population and the lower-income tier rose from 16 percent to 20 percent of the population during the same timeframe.
Read more...What the Middle Class Money Squeeze Means for the CRE Industry
According to a recent Pew Research Center study, the recession and the housing crisis hit the middle class hard, erasing its wealth gains from the three decades prior. The middle class is defined by the study as adults whose annual household income is two-thirds to double the national median, about $42,000 to $126,000 annually in 2014 dollars for a household of three. This group of people fell from 61 percent of the U.S. population in 1971 to 50 percent in 2015, as the group defined as upper class doubled to 9 percent of the population and the lower-income tier rose from 16 percent to 20 percent of the population during the same timeframe.
Read more...What the Middle Class Money Squeeze Means for the CRE Industry
Monday, December 21, 2015
Regional Economic Outlook Remains Mixed Going into 2016 via Dallas Fed
The Texas economy picked up slightly after weakening at the end of the summer. Employment grew an annualized 2.2 percent in October on top of a revised 1.5 percent in September. The Texas Manufacturing Outlook Survey (TMOS) points to a pickup in manufacturing activity, while the Texas Service Sector Outlook Survey (TSSOS) continues to suggest sustained moderate growth in services. Despite a renewed decline in oil prices and continued strength in the Texas trade-weighted value of the dollar, the Texas economy is expected to grow at a modest pace in coming months.
Read more...Regional Economic Outlook Remains Mixed Going into 2016 - Dallas Fed
Read more...Regional Economic Outlook Remains Mixed Going into 2016 - Dallas Fed
Texas Added 11,100 Jobs in November; State Employment Forecast Remains 1.3% for 2015 via Dallas Fed
Texas added 11,100 jobs in November, according to seasonally adjusted and benchmarked payroll employment numbers released today by the Federal Reserve Bank of Dallas.
The state added a revised 19,500 jobs in October. Through November, jobs have grown at an annualized pace of 1.3 percent after growing 3.6 percent in 2014.
Incorporating November’s employment data, the Texas employment forecast stands at 1.3 percent, suggesting 150,500 jobs will be added in Texas this year. The forecast remained unchanged from October.
Read more...Dallas Fed: Texas Added 11,100 Jobs in November; State Employment Forecast Remains 1.3 Percent for 2015 - Dallas Fed
The state added a revised 19,500 jobs in October. Through November, jobs have grown at an annualized pace of 1.3 percent after growing 3.6 percent in 2014.
Incorporating November’s employment data, the Texas employment forecast stands at 1.3 percent, suggesting 150,500 jobs will be added in Texas this year. The forecast remained unchanged from October.
Read more...Dallas Fed: Texas Added 11,100 Jobs in November; State Employment Forecast Remains 1.3 Percent for 2015 - Dallas Fed
Lawler: "Yes, Houston will have a problem next year" via Calculated Risk
Some thoughts on the Houston housing market from housing economist Tom Lawler:
Earlier this week I sent out a message with a link to the Houston Association of Realtors report showing that MLS-based home sales in the Houston metro market showed a double digit YOY decline for the second straight month in November, and that total property listings were up by over 20% from a year earlier.
Here are some other “macro” numbers (in table or graph form) for the Houston metro area.
Read more...Calculated Risk: Lawler: "Yes, Houston will have a problem next year"
Earlier this week I sent out a message with a link to the Houston Association of Realtors report showing that MLS-based home sales in the Houston metro market showed a double digit YOY decline for the second straight month in November, and that total property listings were up by over 20% from a year earlier.
Here are some other “macro” numbers (in table or graph form) for the Houston metro area.
Read more...Calculated Risk: Lawler: "Yes, Houston will have a problem next year"
Class B Becoming Option A for Renters via GlobeSt.com
In 2016, developers will probably continue their recent focus on creating luxury developments, and push many renters to seek older class B communities that offer similar services and amenities at a more affordable price.
“Today's class B apartment is yesterday's class A apartment,” Peter Vilim, co-founder of Waterton, tells GlobeSt.com. For decades, his Chicago-based company has been taking over top-of-the-line, but slightly older properties, and adding little touches and updates. “That effectively delivers a class A experience in a building considered class B due to its age.”
Read more...Class B Becoming Option A for Renters - Daily News Article - GlobeSt.com
“Today's class B apartment is yesterday's class A apartment,” Peter Vilim, co-founder of Waterton, tells GlobeSt.com. For decades, his Chicago-based company has been taking over top-of-the-line, but slightly older properties, and adding little touches and updates. “That effectively delivers a class A experience in a building considered class B due to its age.”
Read more...Class B Becoming Option A for Renters - Daily News Article - GlobeSt.com
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