Multifamily Monday
DFW, San Antonio, and Houston are among 14 US cities that will overcome multifamily oversupply issues and thrive between now and into 2017, says JLL multifamily guru Jeff Price. (Wind and young people looking to rent: two of Earth's remaining renewable resources.)
Jeff tells us apartment absorption for the state’s four major markets (the three above and Austin) will exceed all that's been or will be built between now and 2017. On rent growth: DFW has been about 4% give or take, which Jeff says is as healthy a market as he’s seen in 30 years.
Houston, Dallas, and Austin are in the top five MSAs for new development nationwide. (Best of luck to Rick Perry in not smiling too hard at this week's National Governor's Association meetings.) But, demand supports the new construction because of job growth, Jeff says. Austin and Dallas jobs will level a bit, but so will the multifamily construction starts. Of the three, Houston’s construction pipeline is the biggest, he says.
Sales-wise, 2013 turned out to be a record-breaking year for multifamily, as volumes totaled more than $100B--outpacing 2012’s velocity by nearly 30% and surpassing the 2007 record by nearly $6B. Dallas and Houston ranked fourth and fifth in sales volumes. On Jeff’s horizon: a new grandbaby in Austin and his youngest kiddo is getting married in June.
