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​​​​COLLEGE STATION – Existing-home sales in Texas hit a seven-year high in 2020, but Texas Real Estate Research Center housing experts anticipate those numbers will slow down in 2021.

The state’s housing market stabilized in December, ending the fourth quarter with slower growth than the previous three months, when pent-up demand spurred home sales. Existing homes sold through Texas Multiple Listing Services (MLSs) inched up 0.9 percent from November but ended the year up 7.7 percent compared with 2019 activity amid historically low mortgage rates.

In addition to low mortgage rates, strong population growth in Texas supported housing demand within the state during 2020. Texas added 374,000 residents, more than any other state, and ranked fifth in percentage growth behind smaller states such as Nevada and Idaho. 

"Demographic trends, such as aging millennials and migration from out of state, will help drive Texas housing demand in 2021," said Dr. Luis Torres, research economist for the Texas Real Estate Research Center at Texas A&M University. He said sales are expected to continue to increase in the new year, albeit at a slower rate.

​Nationally, existing-home sales rose 1.3 percent across the country relative to November. According to the National Association of Realtors (NAR), the annual growth rate was 5.6 percent. First-time buyers accounted for 31 percent of December sales, unchanged from the same time in 2019, but down from 32 percent in November 2020.

A significant challenge to the Texas home market in the new year is the state’s depleted inventory levels. Months of inventory sank to 1.8 months in December as the number of new MLS listings added during 2020 declined more than 6 percent from the previous year, starkly contrasting Texas’ greatest annual sales increase since 2013.  

The mismatch between supply and demand has prompted a wave of new home construction. Single-family permits are predicted to rise around 15 percent in 2021, Torres said.

"Homebuilders are trying to satisfy demand in the lower price cohorts by building homes in the suburbs or outer city borders where land costs are lower," Torres said. "This trend was prevalent before the pandemic but has become even more widely adopted over the past year."

Nevertheless, the Center expects the price per square foot to accelerate about 8 percent in 2021.

"Some of the appreciation is due to exhausted inventory at the lower end of the price spectrum forcing buyers toward higher-priced homes," Torres said.

​​Another headwind to Texas’ housing market is the ongoing uncertainty regarding the COVID-19 pandemic. While a second strain of the virus that seems to be more contagious was discovered in December, the mutation does not appear to severely worsen health outcomes. On the bright side, vaccines are rolling out with additional distribution planned, and a second federal stimulus bill approved in the last days of the year should provide some relief to businesses and households.

"Because this recession was caused by a health catastrophe, the recovery path could be different than that of previous recessions. Consumer and business safety expectations will play an important role in the economy's full reopening," said Torres.

Read more about the Texas Real Estate Research Center's research staff's thoughts on the economic impact of COVID-19.

The Texas Real Estate Research Center has more news like this:

• 2021 Texas Housing & Economic Outlook​
• ​Texas Border Economy​ 
• Texas Housing Insight
• Home Price Index

​​AUSTIN – Langdon Street Capital has purchased The Langdon on Parmer, a 225-unit apartment community at 12430 Metric Blvd. 

Built in 2006, the property has one- to three-bedroom units. Rents range from $1,045 to $2,138 per month. 

Amenities include a pool, dog park, media center, business center, and clubhouse. 

JLL represented the seller.

The Texas Real Estate Research Center has more news like this online for free:

​​KYLE – HPI Real Estate Services & Investments is adding 206,000 sf to the Hays Logistics Center.

The second phase is a joint venture with Hillwood Properties LLC. 

Construction will ​​begin by March and wrap up by the summer. 

Zapalac/Reed Construction Co. is the general contractor. David Bessent Architects Inc. is the architect. ​​

The Texas Real Estate Research Center has more industrial news for Austin-Round Rock:

• ​Texas Quarterly Commercial Report
• Local industrial news​

​TAYLOR – RCR Taylor Logistics Park, a 755-acre dual-served unit train and manifest rail-served park on SH 79, has opened. 

The park will receive cars from Un​ion Pacific and BNSF’s inbound and outbound mainline service, offering manifest switching, unit train services, transload, storage, and other ancillary rail service to customers.  

The Texas Real Estate Research Center has more industrial news for Austin-Round Rock:

• ​Texas Quarterly Commercial Report
• Local industrial news​

​​​HOUSTON – ​​​​Denver-based National Storage Affiliates Trust has purchased a 14-property, 8,517-unit self-storage portfolio ​from The Jenkins Organization Inc.​

The portfolio consists of six properties in the Houston area, three in the Austin market, two in the Minneapolis area, and one each in Dallas, San Antonio, and St. Louis. 

JLL brokered the deal. 

Get more Houston-area news on the Texas Real Estate Research Center's website:

• Texas Quarterly Commercial Report​
• Houston-The Woodlands-Sugar Land retail news​

​Source: ​Houston Business Journal

​C​ARROLLTON – Longpoint Realty Partners has broken ground on Point 35/190, a 178,000-sf industrial project at the northwest corner of I-35 and George Bush Fwy. 

The building is designed for one to four tenants and has 32-ft clear heights, 44 dock-high doors, two drive-in ramps, and a 142-ft truck court. 

The project has four acres that can provide trailer parking vehicle parking spaces.

Completion is scheduled for June. Proterra Properties is leasing the project.​​

The Texas Real Estate Research Center has more on DFW's industrial market:

• ​​Texas Quarterly Commercial Report
• ​Dallas-Fort Worth-Arlington industrial news​

​​AUSTIN – Developers Barings and B&Z Development have topped out 701 Rio, a five-story, 120,983-sf office building at 701 Rio Grande St. 

Amenities will include a rooftop te​r​race, fitness center, lockers, showers, and secure bike and scooter storage.

Construction will be complete in July.

The Texas Real Estate Research Center has more office news for Austin-Round Rock:

• ​Texas Quarterly Commercial Report
• Austin-area office news​

HOUSTON – Stonelake Capital Partners has acquired a 127,513-sf industrial property from Graybar Electric​ Co. 

Hannibal Industrial will lease the entire building.

Boyd Commercial represented both the seller and buyer and negotiated the lease. ​​​

Get more Houston-area industrial news on the Texas Real Estate Research Center's website:

• Houston-area industrial news​
• ​​​​​Texas Quarterly Commercial Report

​Source: REBusiness Online

​​​AUSTIN – Texas' unemployment rate fell to 7.2 percent in December 2020, down from 8.1 percent in November 2020.

According to the Texas Workforce Commission, the state added 64,200 nonfarm jobs last month. Texas' private sector added 67,600​​​ positions.

The national unemployment rate was 6.5 percent.

Amarillo had the lowest nonse​asonally adjusted unemployment rate in the state​ at 4.9 percent. McAllen-Edinburg-Mission had the highest at 11.7 percent. 

All employment sectors had seasonally adjusted job losses since December 2019 except for financial activities and professional and business services, which grew 1 and 2 percent, respectively. Mining and logging had the largest job loss with employment falling 17.9 percent.

​​​​​​GREENVILLE – Fritz Industries has sold a one​ million-sf industrial property to EPM Partners.

The 100-acre site at 7121 Shelby Ave. consists of a 626,682-sf warehouse and a 418,482-sf manufacturing building.

Binswanger brokered the deal. Meridian Capital Group arranged acquisition financing through Cerco Funding LLC.​

The Texas Real Estate Research Center has more on DFW's industrial market:

• ​​Texas Quarterly Commercial Report
• ​Dallas-Fort Worth-Arlington industrial news​

​​​AUSTIN – Tesla Inc. is renovating a 30,000-sf facility at 500 E. St. Elmo Rd. 

The South Austin space, currently occupied by Music Lab, will become a Tesla sales room and service center. 

Construction begins June 15 and will be complete by Sept. 15. 

The Texas Real Estate Research Center has more local commercial real estate news like this online:

• ​Texas Quarterly Commercial Report​
• ​​Austin retail news

​​​SAN ANTONIO – Home sales and prices in the metro soared after declining at the beginning of the COVID-19 pandemic. 

Last year, a record 38,448 homes were sold in the area, according to the San Antonio Board of Realtors. That's an 11.2 percent increase over 2019.  

The median price rose 7 percent to a record $250,100. 

Inventory fell to 1.7 months in December. The Texas Real Estate Research Center considers six to 6.5 months of inventory a balanced market. 

Active listings fell from 9,463 in December 2019 to 5,504 last month. ​

The Texas Real Estate Research Center has more information on housing:​

​​​​​COLLEGE STATION – ​​Texas' initial unemployment claims decreased to 48,400 the week ending Jan. 16. This brings the total sinc​e March 21 to 4.2 million, according to data from the U.S. Department of Labor (DOL).

"Although the decline ended three straight weeks of increases, claims still remain elevated and underscore the frailty of the labor market," said Texas Real Estate Research Center Research Economist Dr. Luis Torres.​ 

​The number of Texans who continue to claim unemployment insurance increased to 353,900 the week ending Jan. 9. 

"The job market continues to feel the effects of the pandemic hindering its recovery," said Torres.

The number of laid-off workers receiving benefits through the pandemic unemployment assistance program, which is open to gig workers, freelancers, and self-employed workers who don’t typically receive benefits, increased the week ending Jan. 16.

The Texas Real Estate Research Center has a wealth of economic information online for free.

• 2021 Texas Housing & Economic Outlook
• Podcast 446: COVID-19's impact on Texas housing
• COVID-19 Impact Projections on ​Texas Economy​
• Texas employment data​
• Monthly Review of the Texas Economy​

​​​Source: Texas Real Estate Research Center​​​​

​​​​FARMERS BRANCH – M2G Ventures and Pennybacker Capital LLC have purchased a 1.19 million-sf industrial distribution portfolio from Tuesday Morning.

The purchase includes:

• buildings at 14303, 14621, 14601, and 14639 Inwood Rd.;

• a facility at 4404 S. Beltwood Pkwy.; and 

• ​Tuesday Morning’s 105,000-sf headquarters at 6250 Lyndon B Johnson Fwy. in Dallas.​

Lee & Associates represented the new owners.

The Texas Real Estate Research Center has more on DFW's industrial market:

• ​​Texas Quarterly Commercial Report
• ​Dallas-Fort Worth-Arlington industrial news​

​EULESS – Grand Prairie-based Litex Industries is planning an office and distribution center within the DFW International Logistics Center.

The 425,000-sf industrial facility at 901 20th Ave. near the airport is a project of Cabot Properties Inc. and Stream Realty Partners.

The Texas Real Estate Research Center has more on DFW's industrial market:

• ​​Texas Quarterly Commercial Report
• ​Dallas-Fort Worth-Arlington industrial news​

​​​​PASADENA​ –​​ Chicago-based 29th Street Capital has purchased a 300-unit workforce housing community near Beltway 8 and Port Houston.

JLL represented the seller. 

The Texas Real Estate Research Center​​​​ has more information like this online for free:

• ​​​​Texas Quarterly Apartment Report​​
• Houston multifamily news online

​Source: REBusiness Online

​​NEW BRAUNFELS – The city has broken ground on a 65,000-sf police headquarters at 3030 ​W. San Antonio St.

The headquarters will replace the department’s current 30,000-sf facility on S. Seguin Ave. 

Construction will be complete in mid-2022. 

The Texas Real Estate Research Center​​​​ has more San Antonio real estate news​ online for free. 

​Source:​ Connect Media

​AUSTIN – A joint venture between Canyon Partners Real Estate LLC and Cypress Real Estate Advisors Inc. is developing a 263-unit multifamily community in the Ea​st Riverside submarket. 

Work started on the mid-rise development in December 2020.

The Texas Real Estate Research Center has more news like this online for free:

​AUSTIN – Glen Una Management has purchased Lincoln Oaks, a 296-unit apartment co​mmunity at 11700 Metric Blvd., from Wildhorn Capital. 

The garden-style property offers one- and two-bedroom units. Rents range from $783 to $1,335 per month. 

Amenities include a pool, fitness center, outdoor grilling areas, volleyball courts, and laundry facilities. 

Berkadia represented the seller.

The Texas Real Estate Research Center has more news like this online for free:

​​​COLLEGE STATION – Production of manufactured homes in Texas increased in December, according to the latest Texas Manufactured Housing Survey (TMHS). Manufacturers unanimously pointed toward acceleration in the first half of 2021 as they attempt to whittle down backlogs and as supply-chain disruptions subside.

Despite the boost in production, general business activity was flat but should improve after the holiday season. The volume of new orders and sales recovered from dips in October and November. Manufacturers continued to invest in physical capital but expect this to level off in 2021.

"Most plants in Texas close for the week of Christmas, making December a low month for total number of homes shipped," according to Rob Ripperda, vice president of operations for the Texas Manufactured Housing Association (TMHA). "But manufacturers’ daily floor production is increasing, and they continue shipping more multi-section homes with larger amounts of square footage."

On the employment front, payrolls expanded despite increased labor costs, but employee workweeks showed little change. The industry noted minimal movement in the labor supply and does not anticipate significant improvements in the near future.

In addition to rising labor costs, prices paid for raw materials surged after a reprieve in November. Prices received for finished homes moved similarly. Upstream inflationary pressure, however, may taper in 2021 amid recent lumber tariff reductions.

“With the continuing tightness in affordable site-built homes, the manufactured housing industry has reason to be upbeat about sales in 2021,” said Dr. Harold Hunt, research economist at the Texas Real Estate Research Center.

Respondents’ uncertainty regarding their company outlook calmed in December, but heightened levels are on the horizon. Despite this concern, Texas’ manufactured housing industry remained optimistic about overall activity and growth.

The Center and the TMHA have partnered to produce a monthly survey of business conditions and expectations surrounding the manufactured housing industry.

The Real Estate Center has a wealth of economic information online for free.