Texas Quarterly Apartment Report 2Q2021 via Real Estate Center

Economic activity in Texas improved during second quarter 2021 and is expected to continue its strong growth for the remainder of the year. Improved hiring in June resulted in solid second-quarter payroll growth, although joblessness in the Lone Star State was still higher than the national average. Moreover, inflation-adjusted headline wage numbers flattened due to supply bottlenecks, generating price pressures and driving up inflation. On the bright side, oil industry activity grew as oil prices increased and the global economic recovery continues. The relative health of the state's economy and favorable business practices attracted migrants and firms from other parts of the country, bolstering population growth and housing demand.

Read more...Texas Quarterly Apartment Report 2Q2021 via Real Estate Center

Supreme Court Strikes Down Eviction Ban via GlobeSt

The Supreme Court has struck down the Biden administration’s Covid-related eviction moratorium, writing in an unsigned, eight-page opinion that Congress must specially authorize any continued ban.

“Congress was on notice that a further extension would almost surely require new legislation, yet it failed to act in the several weeks leading up to the moratorium’s expiration,” the court wrote.

Read more...Supreme Court Strikes Down Eviction Ban via GlobeSt

Are Eviction Bans Driving Up Rents? via GlobeSt

As rents have skyrocketed to record levels this summer, we’re often asked: Are rents surging because of the eviction moratorium?

The answer? Not directly, but it’s likely a contributing factor. To what degree will depend heavily on the property and the location.

Read more...Are Eviction Bans Driving Up Rents? via GlobeSt

Apartment Rents Move Beyond Pre-Pandemic Levels via GlobeSt

Rents grew 9.2% year-over-year in July, pushing beyond pre-pandemic levels, according to the July 2021 Zillow Real Estate Market Report.

The monthly increase in the Zillow Observed Rent Index (ZORI) was the fastest observed by Zillow, which has been tracking data since 2015. In addition, Zillow estimates that the US ZORI in July was 2.9% ($52) higher than where it would have been if the last roughly 18 months had been more ‘normal.’

Read more...Apartment Rents Move Beyond Pre-Pandemic Levels via GlobeSt

ALN Monthly Market Stats August 2021 via ALN Apartment Data

ALN Data just released their July 2021 market stats on occupancy and rents for over 80 markets. In Texas, it includes DFW, Austin, Houston, San Antonio, Lubbock, Amarillo, Abilene, Corpus Christi and more. It is a must read from a great provider of apartment data.

Read more...ALN Monthly Market Stats August 2021 via ALN Apartment Data

Multifamily Set to Continue as Ideal Inflationary Hedge via GlobeSt

The multifamily market is expected to continue its upward rise over the next year as strong demand, limited construction, and rising rents make the asset class an inflationary hedge.

A new report from Walker & Dunlop says low interest rates should continue to support CRE buyers, owners, and tenants, noting that yields remain “highly attractive” as compared to both the public equity and debt markets. And that’s particularly true for multifamily, where net absorption ended the year up 6.8% from 2019.

Read more...Multifamily Set to Continue as Ideal Inflationary Hedge via GlobeSt

Housing Starts Rise but Building Permits Portend Slowing via RealPage

Residential construction starts were up in June, but a lull in building permits points to a slowing of this measure in the near term.

U.S. housing starts increased by 6.3% in June to 1.643 million units despite higher costs for lumber and shortages of labor, appliances and furniture. At the same time, the U.S. Census Bureau reported that building permits for residential construction fell 5.1% from May to 1.598 million units, the lowest seasonally adjusted annual rate for building permits since October.

Read more...Housing Starts Rise but Building Permits Portend Slowing via RealPage

Class C Multifamily Properties Face Greatest Exposure As Moratoria Expire via GlobeSt

Institutional-grade multifamily product will likely emerge from the looming end of eviction and foreclosure moratoria relatively unscathed, but Class C properties in less recovered markets are staring down greater exposure.

That will leave some landlords in the precarious position of deciding whether to evict (and potentially draw big rent increases with new tenants) while assessing the risk of foregone rental arrears, according to a new report from Cushman & Wakefield.

Read more...Class C Multifamily Properties Face Greatest Exposure As Moratoria Expire via GlobeSt

Dallas-Fort Worth Economic Indicators August 2021 via Dallas Fed

DFW economic recovery continued in June. Job growth was mixed, with payrolls contracting in the goods sector. The unemployment rate continued to decline, and the Dallas and Fort Worth business-cycle indexes expanded. Activity in the office market was still finding its footing, while industrial leasing remained remarkably strong.

Read more...Dallas-Fort Worth Economic Indicators August 2021 via Dallas Fed

Austin Economic Indicators August 2021 via Dallas Fed

The Austin economy continued to post a strong performance in June. The Austin Business-Cycle Index accelerated, led by declines in the unemployment rate and recent broad-based job gains. COVID-19 hospitalizations increased markedly since early July. Existing-home sales decelerated in June amid historically tight inventories, and regional consumer spending remained healthy.

Read more...Austin Economic Indicators August 2021 via Dallas Fed