— Weekly Wrap-up —
— Week 7 | 2020 —
Brandon Hiett is a commercial real estate broker and investor who connects individuals, businesses, and strategies together so that they can further their success. The Weekly Wrap-up is a collection of news, articles, and links that I found interesting, insightful, or helpful through-out the week.
— QUOTE of the week —
““Business opportunities are like buses, there's always another one coming.”
― Richard Branson
Keeping an Eye on Multifamily Growth
"It is really no secret that the multifamily sector is booming. Consider that the overall vacancy rate for rental housing in the UnitedStates fell to 6.4% in the fourth quarter of 2019. This represents the lowest vacancy rate since the second quarter of 1985, according to the Census Bureau. New construction of apartment complexes and condos rose 29.8 percent in December to their highest level since 1986. And, approximately 340,000 new apartments are expected to be built in 2020."
Investors Still Willing to Pay Top Dollar for Multifamily
"Multifamily acquisition yields and price per unit have hovered at record lows for several years despite Treasury yields moving up and down by more than 150 basis points during that time. What does that mean for pricing?.... It means investors are willing to pay up even as market conditions change. The average price per unit in 2019 was $155,000, up 8.8% from 2018"
Texas Economic Indicators
The number of Texas jobs generated continued on the rise, with employment growing at an annualized 2.6% in December 2019. According to data released by the Federal Reserve Bank of Dallas, the growth rate is above Texas’ long-run average pace of 2.1%. Job growth was strongest in Austin (9.4%) and Dallas (6.2%). Meanwhile, the unemployment rate niched up to 3.5%.
Commercial, multifamily construction starts rise 11% YOY in top 20 metros: Dodge
The value of commercial and multifamily starts in the top 20 metros increased 11% to $139.6 billion and when considering multifamily and commercial activity together, the top 10 metros were responsible for 45% of all starts. While there has been an increase overall, there also has been a decrease in multifamily starts in 5 of the top 10 major metros like LA (-14%), Boston (-36%), Miami (-11%), Dallas (-25%) and Atlanta (-13%).