Rent growth in Houston has decelerated as the city's energy-driven economy has been impacted by low oil prices. While the economy has diversified, the drop in crude oil prices has slowed job and population growth and dampened the apartment market. Rent growth was 3.5% year-over-year in Houston compared to 6.2% nationally, and rents have declined on a trailing three-month basis. The outlook for multifamily fundamentals is uncertain due to slowing rent growth and a large amount of new supply in the pipeline that could pressure rents further, although rent growth is still forecast at 4.7% for 2016. The investment market in Houston is also beginning to sour as deal flow and pricing start
Orlando’s Economic Boom - Yardi Matrix Multifamily Spring Report 2016Adelina Osan
Rents in the Orlando multifamily market hit new highs in 2016, growing at a rate far exceeding the national average as the local population and economy continued to boom. Strong job growth, led by the tourism industry, and major infrastructure projects fueled demand that outpaced new supply. With transaction volume reaching a record high, investors remained attracted to the market's yield potential despite rising prices. The report forecasts continued rent growth and robust market performance in 2016.
The Federal Government has spent almost $32 billion on cybersecurity-related expenditures in the past 10 years. More importantly, the cyber spending boom shows no sign of slowing, as spending increased 281 percent from 2006 to 2014 (an average of 22 percent annually). This historic growth in cyber spending runs counter to the greater trend in Federal Government spending that has led to a relatively modest increase of 4.2 percent annually over the same time period.
As the world becomes increasingly digitized, so has the Federal Government, but individual agencies are not spending on cybersecurity in similar ways. Each agency's funding over the past 10 years tells a unique story.
February 2016 U.S. employment update and outlook JLL
The labor market recorded a soft opening to 2016, adding only 151,000 new jobs, although unemployment fell below 5.0 percent for the first time since 2008.
The Monster Employment Index recorded its 11th consecutive month of year-over-year growth in December at 13%. Several industries such as mining, utilities, and transportation saw strong annual growth. The index also showed increased demand for business and financial operations occupations across many regions and sectors.
Global economic struggles are dampening the US construction recovery. Low growth abroad has reduced investment and consumer spending domestically. While US GDP growth remains steady, construction lags the broader economy and may slow in response to global issues like low commodity prices and China's economic decline. Rising costs also challenge builders as wages and materials prices increase. First quarter construction starts declined from 2015 levels, and some sectors like office have seen significant drops, indicating activity is beginning to flatten due to cautious spending globally. Infrastructure remains a bright spot with increased transportation spending.
In our annual Toronto event, held at the Four Seasons Toronto, we presented Strategic Decisions for an Uncertain Future:
John Nicola, Chairman & CEO addresses several issues facing high net worth families:
• How will the Liberals’ tax changes affect financial planning for Canadians?
• How will inflated prices impact future returns?
• Are there best practices for navigating the current environment?
Rob Edel, Chief Investment Officer provides an investment roadmap for 2018:
• After a record-breaking period for the S&P 500, what signs might indicate an economic downturn?
• What current events could most affect the economy and investment strategy?
• What should one make of bitcoin, marijuana stocks, electric vehicles, and other hot topics for the upcoming year?
The document discusses economic trends in the United States. It notes that the US economy is divided into eight regions, and the finance, insurance and real estate industry and manufacturing industry make up 37% of GDP. Certain regions and states have experienced stronger growth than others in recent years, led by industries like mining, utilities and information. The largest states by GDP are California, Texas, New York, Florida and Illinois.
Canada – Slow growth – Liberal party of Canada - December 7, 2016paul young cpa, cga
This presentation will look at slow economic growth in Canada. The presentation will discuss liberal policies as well as macro and micro indicators when it comes to areas like wages, retail sales, trade, manufacturing sales, employment and housing prices.
The presentation will also reflect 3rd part comment that relate to GDP, debt, housing prices, trade as well as other areas of the economy
Orlando’s Economic Boom - Yardi Matrix Multifamily Spring Report 2016Adelina Osan
Rents in the Orlando multifamily market hit new highs in 2016, growing at a rate far exceeding the national average as the local population and economy continued to boom. Strong job growth, led by the tourism industry, and major infrastructure projects fueled demand that outpaced new supply. With transaction volume reaching a record high, investors remained attracted to the market's yield potential despite rising prices. The report forecasts continued rent growth and robust market performance in 2016.
The Federal Government has spent almost $32 billion on cybersecurity-related expenditures in the past 10 years. More importantly, the cyber spending boom shows no sign of slowing, as spending increased 281 percent from 2006 to 2014 (an average of 22 percent annually). This historic growth in cyber spending runs counter to the greater trend in Federal Government spending that has led to a relatively modest increase of 4.2 percent annually over the same time period.
As the world becomes increasingly digitized, so has the Federal Government, but individual agencies are not spending on cybersecurity in similar ways. Each agency's funding over the past 10 years tells a unique story.
February 2016 U.S. employment update and outlook JLL
The labor market recorded a soft opening to 2016, adding only 151,000 new jobs, although unemployment fell below 5.0 percent for the first time since 2008.
The Monster Employment Index recorded its 11th consecutive month of year-over-year growth in December at 13%. Several industries such as mining, utilities, and transportation saw strong annual growth. The index also showed increased demand for business and financial operations occupations across many regions and sectors.
Global economic struggles are dampening the US construction recovery. Low growth abroad has reduced investment and consumer spending domestically. While US GDP growth remains steady, construction lags the broader economy and may slow in response to global issues like low commodity prices and China's economic decline. Rising costs also challenge builders as wages and materials prices increase. First quarter construction starts declined from 2015 levels, and some sectors like office have seen significant drops, indicating activity is beginning to flatten due to cautious spending globally. Infrastructure remains a bright spot with increased transportation spending.
In our annual Toronto event, held at the Four Seasons Toronto, we presented Strategic Decisions for an Uncertain Future:
John Nicola, Chairman & CEO addresses several issues facing high net worth families:
• How will the Liberals’ tax changes affect financial planning for Canadians?
• How will inflated prices impact future returns?
• Are there best practices for navigating the current environment?
Rob Edel, Chief Investment Officer provides an investment roadmap for 2018:
• After a record-breaking period for the S&P 500, what signs might indicate an economic downturn?
• What current events could most affect the economy and investment strategy?
• What should one make of bitcoin, marijuana stocks, electric vehicles, and other hot topics for the upcoming year?
The document discusses economic trends in the United States. It notes that the US economy is divided into eight regions, and the finance, insurance and real estate industry and manufacturing industry make up 37% of GDP. Certain regions and states have experienced stronger growth than others in recent years, led by industries like mining, utilities and information. The largest states by GDP are California, Texas, New York, Florida and Illinois.
Canada – Slow growth – Liberal party of Canada - December 7, 2016paul young cpa, cga
This presentation will look at slow economic growth in Canada. The presentation will discuss liberal policies as well as macro and micro indicators when it comes to areas like wages, retail sales, trade, manufacturing sales, employment and housing prices.
The presentation will also reflect 3rd part comment that relate to GDP, debt, housing prices, trade as well as other areas of the economy
The document discusses commercial real estate lending trends in 2017. It provides an economic overview of 2016, noting that while global economies moderated, the US GDP maintained moderate growth. Consumer spending was the main driver of growth, while business investment declined. Employment gains were strongest in education, professional services, and leisure/hospitality. Lending conditions tightened for commercial real estate due to increased regulatory oversight.
September 2015 U.S. employment update and outlookJLL
The document summarizes U.S. labor market conditions in August 2015. It finds that job growth was moderately slower than previous months at 173,000 net new jobs, though revisions boosted year-to-date totals. Unemployment fell to 5.1% as the labor force contracted. Wages continued growing above inflation rates, while job openings remained near record highs. Education and health services contributed most new jobs, while manufacturing and mining saw losses. The tech industry remained a leader in employment growth.
In this annual Strategic Outlook seminar, we will discuss what the markets have in store for 2018, and beyond.
Presenters:
John Nicola, Chairman & CEO
John will address several issues facing high net worth families:
- How will the Liberals’ tax changes affect financial planning for Canadians?
- How will inflated prices impact future returns?
- Are there best practices for navigating the current environment?
Rob Edel, Chief Investment Officer
Rob will provide an investment roadmap for 2018:
- After a record-breaking period for the S&P 500, what signs might indicate an economic downturn?
- What current events could most affect the economy and investment strategy?
- What should one make of bitcoin, marijuana stocks, electric vehicles, and other hot topics for the upcoming year?
Home Ownership snapshot (september 2021) v oct 1ARCResearch
This document provides a summary of key trends related to homeownership in the Atlanta region from 2021. It finds that while home prices have risen rapidly during the pandemic, the housing market appears to be cooling in recent months. The homeownership rate has declined over the last 20 years nationally and regionally. From 2012-2019, the number of owner households increased by 135k, driven by households earning $75k or more. The proportion of cost-burdened owners has declined, but this mostly reflects lower-income households being priced out. The Black-White homeownership gap remains wide and has widened in most counties over the past decade.
Following 12 consecutive months of employment growth surpassing 200,000 jobs per month, the U.S. labor market slowed down in March, adding just 126,000 net new jobs. In turn, unemployment stayed stable at 5.5 percent, while total unemployment dropped by an additional 10 basis points to 10.9 percent.
Because external indicators, jobless claims and other labor market measures continue to trend in a positive direction, we believe March may have been an aberrant month, and expect further growth ahead.
The unemployment rate dropped slightly to 4.7 percent, but employers added 235,000 new jobs in February, continuing January's strong employment momentum.
The document discusses the potential economic benefits of expanding broadband access in Garfield County, Colorado. It finds that healthcare and education, which currently make up 6.9% of jobs, have potential for future growth. The county's aging population and remote rural areas far from hospitals could benefit from telemedicine services made possible by improved broadband. Expanding broadband could help the county capitalize on its existing healthcare assets and better serve surrounding communities that rely on its hospitals.
Like other prosperous American cities, greater Seattle currently finds itself in the unenviable position of possessing both enormous amounts of wealth and staggering levels of homelessness. These slides accompany the McKinsey & Company report that looks at homelessness in King County, published in January 2020.
Turbulent Times: Our economic prospects in an uncertain worldCheryl Maitland Muir
In his April 6, 2017 presentation to the Annual Council of Forest Industries Conference, BCBC Chief Policy Officer Jock Finlayson described the state of the global, American and Canadian economies and their potential impact on BC's forest sector.
Description: Industry Challenges: Mortgages and Tariffs
Lauren Baker, Economist, ITR Economics
Rising costs of building materials have become a big challenge for the nation's home building sector. Tariffs and the possibility of an escalating trade war threaten the profitability or homebuilders, the housing recovery and the affordability of homes.
April’s 211,000 net new jobs were a return to the more robust growth rates seen over the past two years, although March figures were revised down once again to 79,000 jobs. Unemployment fell by 10 basis points to another cyclical low of 4.4 percent in April.
The document summarizes key economic indicators and market activity from the previous day. It reports that stocks rebounded after declining the previous day, with the Nasdaq up 1.6%, S&P 500 up 1.3% and Dow up 1.1%. However, trading volumes fell. Bond yields and the dollar increased after a strong jobs report showed the economy added 204,000 jobs in October, easing fears about the impact of the government shutdown.
This presentation looks at different aspects of the Canadian economy as part of helping business and people understand the pressures Canada is facing both domestically as well as internationally.
The presentation will look at retail sales, housing starts, income, employment, government spending, key industry metrics and exports.
This weekly financial digest from BMO Nesbitt Burns provides an economic overview and outlook. It discusses recent economic data from Canada, the US, Europe and Asia. It also analyzes the potential economic impacts of the US presidential election and whether the outcome matters for financial markets. Global bond and equity market returns are provided. The document concludes with BMO Nesbitt Burns' economic and market outlook forecasts.
The document summarizes housing affordability trends in metro Atlanta. Home prices have risen faster than wages since 2011, and fewer affordable homes are being built. While home prices in north Atlanta and northern suburbs have appreciated the most since 2000, prices in southern areas have declined. When factoring in transportation costs, true housing affordability is even more constrained, with over half of average household income spent on housing and transportation across the region.
The document summarizes Utah's economic performance and outlook. It notes that Utah has experienced strong job growth since the recession, ranking 3rd nationally in growth. While the housing market and number of discouraged workers remain issues, key industries like natural resources and construction are growing rapidly. Rising oil prices also pose a potential threat. Overall, the economic fundamentals and diversity of Utah's economy position it for continued growth.
This document summarizes key points from Paul Young's presentation on government policy and household income in Canada in 2016. It includes:
- Job losses forecasted from minimum wage increases range from 50,000 to 185,000 jobs lost.
- Median household incomes grew the most in Nunavut, Saskatchewan, Newfoundland and Labrador, Northwest Territories, Alberta, and Manitoba from 2005-2015. Income growth was lowest in Quebec and Ontario.
- The presentation discusses trends in household income, low income rates, energy poverty, and taxation policies across Canada.
This document summarizes economic indicators for the Houston region. It finds that while the region is slowly recovering from job losses during the recession, employment has not yet returned to pre-recession levels. The energy and health care sectors have fared better than others during the downturn. International passenger travel at Houston airports is growing, driven by increases to Canada, Europe and the Middle East. International trade and oil and gas employment are also rebounding from declines in recent years. However, new home sales have fallen due to the expiration of federal tax credits for homebuyers.
The document summarizes a real estate market update seminar presented by Joshua Wilton of Weichert Realtors in Princeton, NJ. It analyzes the Princeton and greater Princeton real estate markets, including inventory levels, absorption rates, and forecasts for 2010. It also discusses strategies for buying and selling properties and provides an overview of the local, state, and national housing markets.
The document discusses commercial real estate lending trends in 2017. It provides an economic overview of 2016, noting that while global economies moderated, the US GDP maintained moderate growth. Consumer spending was the main driver of growth, while business investment declined. Employment gains were strongest in education, professional services, and leisure/hospitality. Lending conditions tightened for commercial real estate due to increased regulatory oversight.
September 2015 U.S. employment update and outlookJLL
The document summarizes U.S. labor market conditions in August 2015. It finds that job growth was moderately slower than previous months at 173,000 net new jobs, though revisions boosted year-to-date totals. Unemployment fell to 5.1% as the labor force contracted. Wages continued growing above inflation rates, while job openings remained near record highs. Education and health services contributed most new jobs, while manufacturing and mining saw losses. The tech industry remained a leader in employment growth.
In this annual Strategic Outlook seminar, we will discuss what the markets have in store for 2018, and beyond.
Presenters:
John Nicola, Chairman & CEO
John will address several issues facing high net worth families:
- How will the Liberals’ tax changes affect financial planning for Canadians?
- How will inflated prices impact future returns?
- Are there best practices for navigating the current environment?
Rob Edel, Chief Investment Officer
Rob will provide an investment roadmap for 2018:
- After a record-breaking period for the S&P 500, what signs might indicate an economic downturn?
- What current events could most affect the economy and investment strategy?
- What should one make of bitcoin, marijuana stocks, electric vehicles, and other hot topics for the upcoming year?
Home Ownership snapshot (september 2021) v oct 1ARCResearch
This document provides a summary of key trends related to homeownership in the Atlanta region from 2021. It finds that while home prices have risen rapidly during the pandemic, the housing market appears to be cooling in recent months. The homeownership rate has declined over the last 20 years nationally and regionally. From 2012-2019, the number of owner households increased by 135k, driven by households earning $75k or more. The proportion of cost-burdened owners has declined, but this mostly reflects lower-income households being priced out. The Black-White homeownership gap remains wide and has widened in most counties over the past decade.
Following 12 consecutive months of employment growth surpassing 200,000 jobs per month, the U.S. labor market slowed down in March, adding just 126,000 net new jobs. In turn, unemployment stayed stable at 5.5 percent, while total unemployment dropped by an additional 10 basis points to 10.9 percent.
Because external indicators, jobless claims and other labor market measures continue to trend in a positive direction, we believe March may have been an aberrant month, and expect further growth ahead.
The unemployment rate dropped slightly to 4.7 percent, but employers added 235,000 new jobs in February, continuing January's strong employment momentum.
The document discusses the potential economic benefits of expanding broadband access in Garfield County, Colorado. It finds that healthcare and education, which currently make up 6.9% of jobs, have potential for future growth. The county's aging population and remote rural areas far from hospitals could benefit from telemedicine services made possible by improved broadband. Expanding broadband could help the county capitalize on its existing healthcare assets and better serve surrounding communities that rely on its hospitals.
Like other prosperous American cities, greater Seattle currently finds itself in the unenviable position of possessing both enormous amounts of wealth and staggering levels of homelessness. These slides accompany the McKinsey & Company report that looks at homelessness in King County, published in January 2020.
Turbulent Times: Our economic prospects in an uncertain worldCheryl Maitland Muir
In his April 6, 2017 presentation to the Annual Council of Forest Industries Conference, BCBC Chief Policy Officer Jock Finlayson described the state of the global, American and Canadian economies and their potential impact on BC's forest sector.
Description: Industry Challenges: Mortgages and Tariffs
Lauren Baker, Economist, ITR Economics
Rising costs of building materials have become a big challenge for the nation's home building sector. Tariffs and the possibility of an escalating trade war threaten the profitability or homebuilders, the housing recovery and the affordability of homes.
April’s 211,000 net new jobs were a return to the more robust growth rates seen over the past two years, although March figures were revised down once again to 79,000 jobs. Unemployment fell by 10 basis points to another cyclical low of 4.4 percent in April.
The document summarizes key economic indicators and market activity from the previous day. It reports that stocks rebounded after declining the previous day, with the Nasdaq up 1.6%, S&P 500 up 1.3% and Dow up 1.1%. However, trading volumes fell. Bond yields and the dollar increased after a strong jobs report showed the economy added 204,000 jobs in October, easing fears about the impact of the government shutdown.
This presentation looks at different aspects of the Canadian economy as part of helping business and people understand the pressures Canada is facing both domestically as well as internationally.
The presentation will look at retail sales, housing starts, income, employment, government spending, key industry metrics and exports.
This weekly financial digest from BMO Nesbitt Burns provides an economic overview and outlook. It discusses recent economic data from Canada, the US, Europe and Asia. It also analyzes the potential economic impacts of the US presidential election and whether the outcome matters for financial markets. Global bond and equity market returns are provided. The document concludes with BMO Nesbitt Burns' economic and market outlook forecasts.
The document summarizes housing affordability trends in metro Atlanta. Home prices have risen faster than wages since 2011, and fewer affordable homes are being built. While home prices in north Atlanta and northern suburbs have appreciated the most since 2000, prices in southern areas have declined. When factoring in transportation costs, true housing affordability is even more constrained, with over half of average household income spent on housing and transportation across the region.
The document summarizes Utah's economic performance and outlook. It notes that Utah has experienced strong job growth since the recession, ranking 3rd nationally in growth. While the housing market and number of discouraged workers remain issues, key industries like natural resources and construction are growing rapidly. Rising oil prices also pose a potential threat. Overall, the economic fundamentals and diversity of Utah's economy position it for continued growth.
This document summarizes key points from Paul Young's presentation on government policy and household income in Canada in 2016. It includes:
- Job losses forecasted from minimum wage increases range from 50,000 to 185,000 jobs lost.
- Median household incomes grew the most in Nunavut, Saskatchewan, Newfoundland and Labrador, Northwest Territories, Alberta, and Manitoba from 2005-2015. Income growth was lowest in Quebec and Ontario.
- The presentation discusses trends in household income, low income rates, energy poverty, and taxation policies across Canada.
This document summarizes economic indicators for the Houston region. It finds that while the region is slowly recovering from job losses during the recession, employment has not yet returned to pre-recession levels. The energy and health care sectors have fared better than others during the downturn. International passenger travel at Houston airports is growing, driven by increases to Canada, Europe and the Middle East. International trade and oil and gas employment are also rebounding from declines in recent years. However, new home sales have fallen due to the expiration of federal tax credits for homebuyers.
The document summarizes a real estate market update seminar presented by Joshua Wilton of Weichert Realtors in Princeton, NJ. It analyzes the Princeton and greater Princeton real estate markets, including inventory levels, absorption rates, and forecasts for 2010. It also discusses strategies for buying and selling properties and provides an overview of the local, state, and national housing markets.
Austin: A Theory of Everything. How & why Austin is changing and what we shou...Civic Analytics LLC
This document summarizes statistics about Austin's population growth, job growth, and economic performance since 2000. It finds that Austin ranked highly in population growth and job growth nationally and experienced strong GDP growth above the national average. However, it notes that Austin is not creating enough "middle-wage" jobs and that housing costs have risen faster than earnings for lower-educated workers, threatening affordability. The rising costs and income inequality contribute to residential segregation by race/ethnicity.
Extra innings or game over? The outlook for the local and regional economies ...Shay Moser
Lee McPheters, director of the JPMorgan Chase Economic Outlook Center, examined the local and regional economies for 2020.
He's a research Professor of Economics in the W. P. Carey School of Business at Arizona State University and Director of the school’s JPMorgan Chase Economic Outlook Center. The Center maintains the Western Blue Chip Economic Forecast and Greater Phoenix Economic Forecast websites. McPheters also oversees the Job Growth USA website that tracks employment for all industries in the U.S. states and metropolitan areas. The website is frequently used by economists, financial analysts, economic development specialists, and, during election season, fact-checking organizations to evaluate claims by candidates regarding job creation statistics and policies. His writings on the Western region have been quoted in the Wall Street Journal, USA Today, The Economist, Business Week, The New York Times, and Newsweek as well as major metropolitan area newspapers throughout the nation. He has appeared nationally on Good Morning America, Fox News, Marketplace on NPR, and CNN commenting on the economic outlook. As director of the Economic Outlook Center, since 1987 McPheters has delivered a cumulative total of more than 500 speeches and presentations to various public and private audiences at business and academic conferences in Arizona and across the nation.
McPheters has published numerous articles in books and professional journals on various topics, including immigration, executive compensation, monetary policy, international business cycles, and issues in law and economics. At the federal level, his work has been supported by the United States departments of Justice, Transportation, Agriculture, and the Treasury. In Arizona, he has completed research projects for the Arizona Department of Transportation, Sky Harbor International Airport, Boeing, and many other public and corporate sponsors.
McPheters completed his undergraduate studies at San Francisco State University and received his Ph.D. in economics from Virginia Polytechnic Institute. He has been at ASU since 1976, teaching courses at the undergraduate and graduate level in monetary and regional economics. In addition, has held various administrative positions at ASU including Senior Associate Dean for Graduate Programs in the W. P. Carey School of Business from 1991 – 2008.
Economic Growth in Central Texas: The Promise and Reality of Prosperity in ou...Civic Analytics LLC
The document discusses economic growth in Austin, Texas. It finds that Austin has experienced rapid population growth in recent decades, ranking 11th nationally since 2000, primarily due to domestic migration from other parts of Texas and other states. This growth has been fueled by a strong tech sector and job market. However, concerns are raised that not all residents have benefited equally from the economic expansion, and that infrastructure and housing affordability challenges threaten future sustainability unless addressed. The discussion section focuses on improving education levels and workforce training to ensure inclusive economic participation.
The document discusses trends in the US multifamily market in 2009. It summarizes that the global financial crisis severely impacted US employment, with job losses moderating but unemployment remaining high. Apartment vacancy rates increased across many markets due to job losses, but were highest in the Sunbelt and Western markets. Rent growth remained positive in many major coastal markets that saw smaller job losses. Overall, the apartment sector was expected to see rising vacancies in 2010 before occupancy begins recovering in 2011 as the economy and job market improve.
Austin is experiencing rapid population growth, averaging 49% each decade since the 1960s. This growth is fueled mainly by domestic migration, as 61% of new households moving to Austin come from other parts of Texas. Key factors attracting newcomers include a strong economy with 13.9% job growth since 2009, second only to Nashville. While housing costs in Austin remain competitive for now, affordability is declining with median home prices rising 65% in the last decade. High-paying jobs in technology, engineering, healthcare and education are contributing to Austin's status as an attractive place to live and work.
Houston Economy at a Glance November 2013Coy Davidson
This document provides an economic outlook and summary of key indicators for Houston, Texas in 2013. It discusses that most indicators suggest 2013 has been one of the best years on record for Houston, with home sales, auto sales, construction, and airport traffic nearing or reaching record levels. However, some indicators like the rig count and exports have slowed. The document announces an upcoming panel discussion and forecast from the Greater Houston Partnership that will provide further details and outlook on Houston's economy in 2014.
2016 Market Outlook Presentation by REALTOR.com's Jonathan SmokeJessKern
Start your 2016 with a look at what to expect in the residential and commercial real estate markets at our annual Market Outlook. Jonathan Smoke, Chief Economist with REALTOR.com, share his predictions for our industry’s top emerging trends and opportunities.
The document provides an overview of the medical office building (MOB) market in the Houston metro area in Q1 2016. It finds that while the US economy continues expanding, GDP growth has slowed. Nationwide, hospital and MOB jobs are forecast to grow but MOB jobs in Houston are expected to remain flat in 2016 due to declines in the oil/gas industry. In Houston, MOB vacancy rose to 13.2% in Q1 2016 while average rent fell slightly. Overall, the MOB market is showing weakness due to slowing demand despite lower new construction levels.
This document provides an overview of the medical office building market in the Houston metro area in Q1 2016. It finds that while the US economy continues expanding, GDP growth has slowed. Nationwide, hospital and medical office building jobs are still forecast to grow. However, in Houston, medical office jobs are expected to remain flat throughout 2016 due to a slowdown in job growth resulting from declines in the local oil and gas industry, which has significantly impacted the broader Houston economy. The Houston MOB market saw higher vacancy and slightly lower rents in Q1 2016 compared to the previous year. Overall, the outlook for the Houston MOB market remains weak in the near term due to slowing demand, though long-term demand is still viewed positively
2014 Economic Forecast: Leadership's Role in a Changing EconomyMeg Weber
Dr. Hart Hodges presented economic data of trends in professional technical services at a national, state and loval level, including trends of what is and is not working. These trends highlight demographic, economic and other changes affecting the way communities recognize their leaders and how leaders communicate.
Hart Hodges is a professor of economics at WWU and the director of Western’s Center for Economic and Business Research. He is also a partner at Waycross Investment Management Company. In the classroom Hart teaches health economics and environmental economics, as well as the traditional core courses. At the Center, he focuses on applied business economics and connecting the university to the business community in the region. He also enjoys being active in the private sector as a registered investment advisor and fiduciary. He received his PhD from the University of Washington, masters in environmental management from Duke University, and his BA from Williams College. Hart is active in the community, currently serving on the boards of the NW Workforce Development Council and NW Economic Development Council.
The seniors housing industry in Texas continues to adapt to meet the needs of an aging population. Several key points:
- Occupancy rates and rent growth increased across major Texas markets in 2019. Austin saw the highest rent growth at 5.8% year-over-year.
- Absorption was positive, with over 1,600 units absorbed in Texas in the second half of 2019. Dallas saw the highest absorption of 658 units.
- Construction costs for seniors housing have risen 7-10% annually due to labor and materials shortages. Dallas and Houston have over 5,000 units under construction total.
- The population of seniors is growing rapidly in Texas cities like Austin, Dallas, Houston
Houston has experienced strong population and job growth in recent years, ranking first among major US metros. Its diverse economy is led by the energy sector, and the city is also a leader in medical technology, trade, and manufacturing. Unemployment has fallen significantly from its peak during the recession while GDP and corporate facility expansions have increased, demonstrating Houston's economic resilience and competitive business climate.
Houston's economy continues to grow strongly, led by the energy sector. The city added over 97,000 jobs in the past year, lowering the unemployment rate. Population grew to over 6.4 million as of 2013, ranking Houston first nationally in population growth. The energy industry, which makes up over 50% of Houston's employment, has seen crude oil prices rise to around $96 per barrel. Houston's diverse industries and business friendly environment have supported its economic success.
The document discusses the state of Houston's economy in June 2010. It notes that Houston added jobs for the third consecutive month in April 2010, reducing net job losses. Several sectors saw employment growth, including health care, administrative services, arts and entertainment. Home sales increased due to a federal tax credit and low mortgage rates. While the rig count and international air traffic increased, domestic flights and oil prices declined slightly. Overall, the document indicates that Houston's economy was continuing to recover from the recession in early 2010.
Pop estimates 2018_to_post_online_finalARCResearch
The Atlanta region population grew by 75,800 people from 2017 to 2018, a slower rate than the previous year but still strong. Fulton County saw the largest growth at 17,570 new residents. Building permit levels, while down from the previous two years, are recovering from post-recession lows. Most new residential development is occurring in the northern suburbs, while the city of Atlanta is experiencing increased density through multi-family development.
Houston has consistently ranked among the top 10 cities for job and population growth. The document provides statistics showing Houston gained over 82,000 jobs in 2013, has an unemployment rate of 4.6% as of April 2014, and grew its population by over 2% annually from 2012-2014. Houston's economy is led by the energy sector, with over 50% of employment related to energy industries, cementing Houston as the "Energy Capital of the World".
Houston has consistently ranked among the top 10 cities for job and population growth. The document provides statistics showing Houston gained over 82,000 jobs in 2013, has an unemployment rate of 4.6% as of April 2014, and grew its population by over 2% annually from 2012-2014. Houston's economy is led by the energy sector, with over 50% of employment related to oil and natural gas companies, positioning the city as the "Energy Capital of the World".
Similar to Houston’s Energy Angst - Yardi Matrix Multifamily Winter 2016 Report (20)
Houston’s Energy Angst - Yardi Matrix Multifamily Winter 2016 Report
1. Rent Growth Decelerates;
Future Uncertain
Houston’s Energy Angst
Multifamily Winter Report 2016
New Development
Nearly Halved
Investors Sour on
Once Favored Locale
2. 2
HOUSTON MULTIFAMILY
Market Analysis
Winter 2016
Contacts
Paul Fiorilla
Associate Director of Research
Paul.Fiorilla@Yardi.com
(800) 866-1124 x5764
Dana Seeley
Associate Director of Research
Dana.Seeley@Yardi.com
(800) 866-1124 x2035
Jack Kern
Director of Research and Publications
Jack.Kern@Yardi.com
(800) 866-1124 x2444
Author
Adelina Osan
Associate Editor
Energy Price Slump Weighs on Houston
Recent Houston Transactions
After years of outperforming its peers, Houston’s energy-driven economy is
being shaken by low oil prices. Although the economy has diversified in recent
years, the precipitous drop in the price of crude oil has dealt a reverberating
blow that has flattened job growth and dampened the apartment market.
The news isn’t all bad: The metro has a first-rate healthcare system that is
adding skilled workers and there is growth in the hospitality, education and
government sectors. The metro remains a target for international investment,
healthcare expansion, international trade and industrial investment. Projects
such as the Texas 288 tollway, a $2.1 billion public-private partnership between
the Texas Department of Transportation and Blueridge Transportation Group,
will offer easy access to major employment centers such as the Texas Medical
Center, covering a 10-mile stretch from U.S. 59 to the Harris County line. Still, the
energy sector will continue to challenge Houston’s economy, as recovery is not
expected to begin until 2017.
The outlook for multifamily fundamentals is uncertain, as the metro recorded
negative growth on a trailing three-month basis, caused by a dip in Lifestyle
rents. The large amount of construction will pressure rent growth, although
YardiMatrix forecasts 4.7% growth. Meanwhile, the investment market is
beginning to sour on Houston, with deal flow and pricing starting to slip.
City: Houston
Buyer: Nitya Capital
Purchase Price: $63 MM
Price per Unit: $57,861
Village at Piney Point
City: Houston
Buyer: Olympus Property
Purchase Price: $66 MM
Price per Unit: $105,289
The Ranch at Shadow Lake Town Center
Park at Research Forest
City: Kingwood, Texas
Buyer: Cortland Partners
Purchase Price: $64 MM
Price per Unit: $122,780
City: The Woodlands, Texas
Buyer: South Star Properties
Purchase Price: $59 MM
Price per Unit: $149,619
On the cover: Photo by Zview/iStockphoto.com
3. Houston Multifamily | Winter 2016 3
Houston vs. National Rent Growth (Sequential 3 Month, Year-Over-Year)
Rent Trends
„„ Rents grew 3.5% year-over-year to an average of $960 per month as of February 2016, well below the 6.2%
increase nationally. Houston was one of the better-performing metros in the U.S. for several years due to
healthy job and population growth. However, the drop in energy prices led to an immediate and sharp
decline in rent growth beginning in May.
„„ Over the past three quarters, rent growth decelerated from 6% to 3.5%, and the future looks uncertain. On a
trailing three-month basis, Houston was one of only two U.S. metros with negative growth.
„„ Growth has been higher in the working-class Renter by Necessity segment, which rose 5.6% year-over-year
to an average of $812, whereas the higher-end Lifestyle segment rose by only 1.7% and has dropped by 0.4%
over the past three months. The stark contrast is caused by stronger demand for mid-price properties, while
supply is focused on the higher end of the quality scale. Lifestyle rents average $1,144 per month.
„„ We expect the growth rate to moderate and produce 4.7% gains in 2016, but market players should watch for
further effects from energy prices as well as increased supply.
Houston Rent Growth by Asset Class (Sequential 3 Month, Year-Over-Year)
Source: YardiMatrix
Source: YardiMatrix
12,600 Units
15,259 Units
35,540 Units
Planned Prospective Under Construction
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
0
50
100
150
200
250
300
350
2008 2009 2010 2011 2012 2013 2014 2015
Volume in Millions Number of Properties
Transactions: Total Volume (Houston)
0.0%
2.0%
4.0%
6.0%
8.0%
Houston National
Rent: YoY vs National (Houston)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
Lifestyle Rent-by-Necessity
Rent: Lifestyle vs RBN (Houston)
12,600 Units
15,259 Units
35,540 Units
Planned Prospective Under Construction
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
0
50
100
150
200
250
300
350
2008 2009 2010 2011 2012 2013 2014 2015
Volume in Millions Number of Properties
Transactions: Total Volume (Houston)
0.0%
2.0%
4.0%
6.0%
8.0%
Houston National
Rent: YoY vs National (Houston)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
Lifestyle Rent-by-Necessity
Rent: Lifestyle vs RBN (Houston)
4. Houston Multifamily | Winter 2016 4
Houston vs. National Employment Growth (Year-Over-Year)
Economic Snapshot
„„ After outperforming the nation for several years, job growth in Houston remains rather flat: More than 23,000
jobs were added to the metro in 2015, but that was a quarter of what was added during the previous year.The
1.2% rate of growth is far behind the 2.3% national rate.
„„ Employment gains were led by the leisure and hospitality sector, which added 19,600 jobs, followed by
education and health services (19,000) and government (10,000). Home to the largest medical center in the
world, Houston benefits greatly from theTexas Medical Center, as the research facility employs more than
100,000 workers and has an annual budget of $15 billion.
„„ Houston’s continuous growth in industries such as medical research, education, tourism, life sciences,
petrochemicals and international trade is counterbalancing the energy sector’s negative growth. Manufacturing
lost 16,000 jobs last year, though the sector shows prospects of recovery. For example, Japan-based air
conditioner maker Daikin Industries Ltd. plans a $417 million campus expected to employ more than 5,000.
„„ Mining, logging and construction contracted by 5,600 jobs, and the future prospects are dependent on the
direction of crude oil prices, which briefly dropped below $30 a barrel. In late March, the price had recovered to
close to $40 a barrel; if it remains stable, that would stop the bleeding in jobs.
Houston Employment Growth by Sector (Year-Over-Year)
Sources: YardiMatrix, Bureau of Labor Statistics (not seasonally adjusted)
Current Employment Year Change
Code Employment Sector (000) % Share Employment %
70 Leisure and Hospitality 310 10.30% 19,600 6.80%
65 Education and Health Services 378 12.50% 19,100 5.30%
90 Government 394 13.10% 10,200 2.70%
50 Information 34 1.10% 1,400 4.30%
40 Trade, Transportation and Utilities 621 20.60% 800 0.10%
60 Professional and Business Services 471 15.60% 400 0.10%
80 Other Services 103 3.40% -1,500 -1.40%
55 Financial Activities 144 4.80% -5,200 -3.50%
15 Mining, Logging and Construction 319 10.60% -5,600 -1.70%
30 Manufacturing 243 8% -16,000 -6.20%
Sources: YardiMatrix, Bureau of Labor Statistics
2008
2009
2010
2011
2012
2013
2014
2015
-8%
-6%
-4%
-2%
0%
2%
4%
6%
Houston National
Employment Growth: YoY 6mo-avg (Houston)
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
2008 2009 2010 2011 2012 2013 2014 2015
National Houston
Supply: Percentage of Stock (Houston)
12,600 Units
15,259 Units
35,540 Units
Supply: Development Pipeline as of February 2016 (Houston)
$40,000
$60,000
$80,000
$100,000
$120,000
2008 2009 2010 2011 2012 2013 2014 2015
Houston National
Transactions: Price Per Unit (Houston)
5. Houston Multifamily | Winter 2016 5
Houston Rent vs. Own Affordability as a Percentage of Income
Demographics
Affordability
„„ Median home prices in the metro rose to $196,000 in 2015, reaching a peak for the current cycle. Houston
remains relatively affordable compared to most major metros, but as housing prices rise and employment
staggers, affordability issues may come up, as they have across the U.S. in recent years.
„„ Despite steady growth in home prices, owning remains more affordable than renting: The cost comprises
14% of the metro’s median income of $60,900, while rents, averaging $960, take up 19% of the median
income. Rents are highest in River Oaks, far above the metro’s average at $1,784. Located just miles away
from the Texas Medical Center, that area is one of the most expensive in Texas.
Houston Median Home Price
Sources: YardiMatrix, National Association of Realtors, U.S. Dept. of Housing & Urban Development, U.S. Dept. of the Treasury
Source: National Association of Realtors
2010 2011 2012 2013 2014
National 309,347,057 311,721,632 314,112,078 316,497,531 318,857,056
Houston 5,949,076 6,060,721 6,186,923 6,333,809 6,490,180
Source: U.S. Census
Population
„„ Houston is growing at a fast pace, as
young workers are following jobs.
„„ The metro’s population added
156,000 residents in 2014, at 2.5%
more than three times the 0.8% rate
of the U.S., and has grown by 9.1%
since 2010.
Houston vs. National Population
6. Houston Multifamily | Winter 2016 6
Houston vs. National Completions as a Percentage of Total Stock (as of February 2016)
Supply
„„ Despite Houston’s shaky economy, new development remains high. More than 15,000 apartment units were
added in 2015, a 2.6% expansion. That’s slightly above the 2.3% national rate. Meanwhile, roughly another
20,000 units are scheduled to be completed in 2016.
„„ Development has been fueled by high population growth and the strengthening employment market.
Demand mostly comes from the metro’s core, which is seeing the greatest job and population growth.
Another area seeing heavy supply is Houston’s northwest.
„„ The pipeline consists of more than 63,000 units, including over 35,500 currently under construction. Most of
the pipeline was conceived during the market’s bull run, and it remains to be seen whether developers will
put projects on hold or whether banks will rein in construction financing. About 12,600 units are already in the
planning and permitting phase, suggesting a continued pace of new supply for several years.
„„ The West End/Downtown submarket leads supply with 7,200 units. Other submarkets with a large pipeline
include Piney Point Village North (2,200 units) and Katy (2,000 units).
Development Pipeline (as of February 2016)
Source: YardiMatrix
Source: YardiMatrix Source: YardiMatrix
Houston Completions (as of February 2016)
2008
2009
2010
2011
2012
2013
2014
2015
-8%
-6%
-4%
-2%
0%
2%
4%
6%
Houston National
Employment Growth: YoY 6mo-avg (Houston)
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
2008 2009 2010 2011 2012 2013 2014 2015
National Houston
Supply: Percentage of Stock (Houston)
12,600 Units
15,259 Units
35,540 Units
Planned Prospective Under Construction
Supply: Development Pipeline as of February 2016 (Houston)
$40,000
$60,000
$80,000
$100,000
$120,000
2008 2009 2010 2011 2012 2013 2014 2015
Houston National
Transactions: Price Per Unit (Houston)
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
50
100
150
200
250
300
350
Transactions: Total Volume (Houston)
2008
2009
2010
2011
2012
2013
2014
2015
-8%
-6%
-4%
-2%
0%
2%
4%
6%
Houston National
Employment Growth: YoY 6mo-avg (Houston)
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
2008 2009 2010 2011 2012 2013 2014 2015
National Houston
Supply: Percentage of Stock (Houston)
12,600 Units
15,259 Units
35,540 Units
Planned Prospective Under Construction
Supply: Development Pipeline as of February 2016 (Houston)
$40,000
$60,000
$80,000
$100,000
2008 2009 2010 2011 2012 2013 2014 2015
Houston National
$2,500
$3,000
$3,500
$4,000
200
250
300
350
Transactions: Total Volume (Houston)
2008
2009
2010
2011
2012
2013
2014
2015
2%
4%
6%
Employment Growth: YoY 6mo-avg (Houston)
$40,000
$60,000
$80,000
$100,000
$120,000
2008 2
Transactions: Price Per
7. Houston Multifamily | Winter 2016 7
Houston Sales Volume and Number of Properties Sold (as of February 2016)
Transactions
„„ Some $2.8 billion worth of properties changed hands in 2015, far below the $3.5 billion of both 2013 and
2014. It seems that investors are starting to sour a little bit on Houston, only recently one of the darlings of
the value-add crowd.
„„ The average price per unit in Houston, just shy of $80,000, remains well below the national average.
„„ During the past 12 months, investor appetite was highest in West Bellaire, Nassau Bay/Seabrook, The
Woodlands and Jersey Village/Salsuma. Louetta rounded out the top five. The 624-unit Ranch at Shadow
Lake was the most expensive property to change hands in Houston over the past year. Olympus Property
acquired the luxury complex in May for $65.7 million.
Houston vs. National Sales Price per UnitTop Submarkets for Transaction Volume1
Submarket Volume ($MM)
West Bellaire 184
Nassau Bay/Seabrook 158
TheWoodlands 144
JerseyVillage/Salsuma 142
Louetta 116
Sugar Land - South 99
Source: YardiMatrix
1
From 3/1/2015 to 2/29/2016.
Source: YardiMatrix
Source: YardiMatrix
2008
2009
2010
2011
2012
2013
2014
2015
0%
2%
4%
6%
Employment Growth: YoY 6mo-avg (Houston)
$40,000
$60,000
$80,000
$100,000
$120,000
2008 2009 2010 2011 2012 2013 2014 2015
Houston National
Transactions: Price Per Unit (Houston)
0.0%
0.5%
2008 2009 2010 2011 2012 2013 2014 2015
National Houston
12,600 Units
15,259 Units
35,540 Units
Planned Prospective Under Construction
Supply: Development Pipeline as of February 2016 (Houston)
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
0
50
100
150
200
250
300
350
2008 2009 2010 2011 2012 2013 2014 2015
Volume in Millions Number of Properties
Transactions: Total Volume (Houston)
0.0%
2.0%
4.0%
6.0%
8.0%
Houston National
Rent: YoY vs National (Houston)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
Lifestyle Rent-by-Necessity
Rent: Lifestyle vs RBN (Houston)
8. Houston Multifamily | Winter 2016 8
Area # Submarket
1 Greater Third Ward
2 East End
3 Mount Houston
4 Cloverleaf
5 Pasadena
6 South Houston - Crenshaw Park
7 South Houston
8 William P Hobby Airport
9 Pirce Junction
10 Clear Creek
11 Pearland/Friendswood
12 Nassau Bay/Seabrook
13 Deer Park
14 La Porte
15 Atascocita
16 Humble/Westfield
17 Spring
18 The Woodlands - East
19 Porter
20 Kingwood
21 Baytown
22 League City/Dickenson
23 Texas City/San Leon
25 League City - West
26 Alvi
27 Galveston
28 Conroe - East
29 Lake Jackson/Angleton
Area # Submarket
1 West End/Downtown
2 The Heights
3 Museum District
4 Reliant Park
5 Bellaire
6 River Oaks
7 West Bellaire
8 Piney Point Village - South
9 Piney Point Village - North
10 Hunters Creek
11 Bunker Hill Village
12 Spring Valley
13 Rosslyn
14 Missouri City
15 Suger Land - South
16 Sugar Land - West
17 Suger Land - North
Houston Submarkets
Area # Submarket
18 Royal Oaks Country Club
19 Addicks
20 George Bush Park
21 Bear Creek Park
22 Jersey Village/Salsuma
23 Bammel
24 Louetta
25 Richmond
26 Rosenberg
27 Cinco Ranch - South
28 Katy
29 Cinco Ranch - North
30 Tomball
32 Magnolia
33 The Woodlands
34 Conroe - West
9. Read All About It!
Greystar Starts Pre-Leasing
Luxury Community in Houston
Historic Neighborhood
Get the latest Dallas real estate news at
HFF Closes Sale of 270-Unit
Ranch at City Park
Regency Centers in JV for The
Market at Springwoods Village
Kimco’s Grand Parkway
Marketplace Lands Target
Photo by cheng8/iStockphoto.com
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