Multi-Housing News - April 2009 - (Page 13)

market forecast Lone Star State In Texas, the Dallas/Ft. Worth Metroplex might be the best place to ride out the recession By Tom Flood and Mark Johnson, Colliers International The last few months of 2008 saw a rapid evaporation of the momentum gathered earlier in the year. The overall Texas occupancy average ended the year at 88.5 percent, down 160 basis points from year-end 2007. For individual markets, the Dallas market fared best in occupancy and ended the year at 89.1 percent, falling 180 basis points from 90.9 percent in December 2007. Houston held steady for 2008, losing only 10 basis points of occupancy, falling from 88.3 percent to 88.2 percent. The largest drop occurred in Austin, where 2007 ended at 93.7 percent and 2008 wrapped up at 89.0 percent—a 470 basis point drop. Market rents in Texas moved in a positive direction during 2008. The state posted an increase of 3.2 percent in rents, with Houston leading at 5.3 percent growth—partly because almost one percent of the MSA’s (Metropolitan Statistical Area’s) inventory was sidelined by Hurricane Ike earlier that year. Austin had strong market rent growth as well, finishing the year at $881, from $842 in December 2007. This rise of $39, or 4.6 percent, represents the highest market rents in Texas. San Antonio lost 170 occupancy basis points during 2008, finishing at 88.4 percent, and increased market rents by 3 percent to $731. Fort Worth saw similar activity, with occupancy dropping 200 basis points and market rents moving up 1.8 percent to $738. The Dallas area was able to raise market rents 2.2 percent, or $17, from $786 to $803 for 2008. Dallas/Ft. Worth’s favorable conditions With the national recession in full swing, the Dallas/Fort Worth Metroplex might be the best place to ride it out. The Bureau of Labor Statistics reported that 31,000 jobs were created in 2008. While this number certainly will be revised downward, the net job creation number should remain above zero—and in today’s market that’s good news. In 2008, some job creation for the area was announced, but it was quickly followed by layoffs. For example, in mid-2008, AT&T announced relocation of 700 jobs to the Metroplex, then later announced a reduction in jobs nationwide. In 2008, Houston boasted 5.3 percent market rent growth. Featured on MHN’s April cover, 2125 Yale (above) is a 195-unit urban infill development located in Houston’s The Heights neighborhood. Designed by Meeks + Partners for owner/developer Allied Realty Services, Ltd., 2125 Yale is managed by Orion Real Estate Services. One- and two-bedroom apartments range from $1,100 to $2,000 a month. www.multi-housingnews.com | April 2009 13 http://www.multi-housingnews.com

Table of Contents for the Digital Edition of Multi-Housing News - April 2009

Multi-Housing News - April 2009
Contents
From the Editor
Executive Insight: Sue Ansel
Finance: Fannie Mae & Freddie Mac
Quote of the Month
Market Forecast: Texas
Profile: Affordable Developers
Operations: Green Laundry Rooms
Technology: BIM
Kitchen & Bath: Tile Installation
Perspective: Doug Bibby, NMHC

Multi-Housing News - April 2009