Houston Makes Biggest Jump on Top 20 Cities Where People Are Moving

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Houston Makes Biggest Jump on List of Top 20 Cities Where People Are Moving link

• Houston Hops: Houston leaps seven spots to rank No. 5 on the list of top U.S. destinations for relocation, outpacing all other Texas cities.

• Southern Surge: Over 80% of the top 20 destinations are in the South, with people attracted by low tax rates, warm weather, and affordable housing.

• Austin Absence: Notably, Austin, Texas, which was No. 16 last year, is missing from this year's list, hinting at a possible slowdown in its growth.

Net Demand for Apartments Reach Five-Quarter High link

• Construction Boom: A whopping 1 million apartment units are currently under construction across various markets in the country.

• Completion Peak: The second quarter of 2023 saw the completion of 107,000 units, marking a 50-year high in apartment availability.

• Rising Demand: Despite the surge in supply, apartment demand is on the rise, with net absorption nearing the levels of new supply.

June Marked the Strongest Month for Public REITs Since January link

• Surge in Sectors: The Nareit All Equity REIT Index rose 5.36% in June, with timber REITs (up 15.90%) and office REITs (up 10.38%) leading the way. Retail REITs also saw a significant increase, with shopping center REITs (up 11.04%) and regional malls (up 11.70%) posting strong numbers.

• New Player in the Game: June marked the introduction of a new sector—gaming REITs—to the Nareit All Equity REIT Index. Despite a slight dip of 0.54% for the month, this new sector already accounts for over 3% of the index weight.

• Data Centers Dominate: Data centers, representing the modern economy, have experienced significant growth since 2019 and now make up about 8.7% of the overall index, almost double that of office REITs. The ongoing developments in AI are expected to further boost data center demand.

Multifamily Completions On Track For Strongest Year Since The 1980s link

• Surge in Completions: Multifamily completions are projected to exceed 520,000 units this year, marking the highest level since the late 1980s.

• Southern Boom: The majority of this increase is expected to occur in the southern U.S., indicating a regional shift in multifamily development.

• Potential Slowdown: Despite the current surge, there are indications that multifamily starts may begin to taper off in the latter half of 2023.

Self-Storage Faces Tougher Lending Environment As Demand Returns to Pre-Pandemic Levels link

• Resilience Revealed: The self-storage sector has proven to be recession-resistant, if not recession-proof, with many people accumulating stuff and periodically moving.

• Space Struggles: Many people don't have room for everything within their apartments and houses, leading to a continued reliance on storage units.

• Demographic Details: Gen Xers and female renters are among the top groups who stay put and continue to stash their belongings in storage units.

Dallas firm expects to give back 19 hotels to lenders link

• Financial Fallout: Ashford Hospitality Trust Inc. is set to return 19 hotels to lenders, part of a $982 million mortgage pool that missed a June repayment deadline. The move comes as the firm opts not to inject more cash into these properties.

• Capital Crunch: Keeping the hotels would necessitate a paydown of about $255 million to extend the financing and $80 million in capital expenditures through 2025. The equity in the properties is already negative, based on comparable sales and brokers’ opinion of value.

• Market Mayhem: Many of the hotels are located in markets that have faced significant challenges in their post-pandemic recoveries. Some of these markets are not expected to reach pre-pandemic topline levels until 2025 or 2026.

Residential conversions continue to rise as office values decline link

• Shift in Dynamics: The rise in remote work and changing market conditions have made office-to-residential conversion projects more feasible for developers.

• Repricing Anticipated: With increasing office vacancy rates and declining investor interest, a "fundamental repricing" of office space is expected. Meanwhile, the cost of new residential construction is surpassing the cost of conversion.

• Adaptive Reuse on the Rise: Washington, D.C. leads the way in office-to-multifamily conversion, with 11 buildings converted since 2002 and another 11 in the pipeline. The city added 1,565 new adaptive reuse units between 2020 and 2021, more than any other city during that period.

Realtor Reports Weekly Active Inventory Down 2% YoY; New Listings Down 21% YoY link

• Inventory Drought: Active inventory of homes for sale is down by 2% YoY, indicating a tightening market. The surge in inventory seen in 2022 is not being replicated this year, with 1 in 7 homeowners choosing not to sell due to high mortgage rates.

• Listing Lows: New listings, a measure of sellers putting homes up for sale, are down by a significant 21% from one year ago. This marks a year-long trend of lower new listings compared to the previous year.

• Resilient Economy: Despite higher interest rates dampening homeowner interest in selling, the economy remains relatively resilient. The lack of existing inventory has led to a stronger market for new home sales.

US homes sell above asking price for first time since August link

• Market Flip: For the first time since August of the previous year, the average sale price nationwide has exceeded 100% of the list price.

• Inventory Squeeze: Since the start of 2023, new listings are down 25% and total inventory has decreased by 12% year over year.

• Price Pressure: Despite the national home-price slowdown in the latter half of 2022, home prices in June were back within 0.3% of where they were during the same four-week period last year.