|Real Estate Center welcomes new research economist||Real Estate Center welcomes new research economist||2020-01-16T06:00:00Z|
COLLEGE STATION, Tex. (Real Estate Center) – Dr. Adam Perdue is a new research economist for the Real Estate Center at Texas A&M University.
Perdue's research with the Center will focus on public policy and urban, real estate, and spatial economics.
Perdue, a Houston native, received two B.S. degrees—one in civil engineering and one in economics—from the University of Houston (UH).
After working as a transportation engineer in Houston, then in San Antonio, he returned to UH to obtain his M.A. and Ph.D. in economics.
Before coming to work for the Center, Perdue worked as an economist at the UH Institute for Regional Forecasting. He focused on the spatial distribution of Houston economic activity and the local real estate industry.
Perdue also previously worked as an oil and gas consultant for IHS and a real estate consultant for John Burns Real Estate Consulting.
Funded primarily by Texas real estate licensee fees, the Real Estate Center was created by the state legislature to meet the needs of many audiences, including the real estate industry, instructors, researchers, and the public. The Center is part of Mays Business School at Texas A&M University.
|Record New Home Construction Will Highlight 2020 Texas Economy ||Record New Home Construction Will Highlight 2020 Texas Economy ||2019-12-18T06:00:00Z|
COLLEGE STATION, Tex. (Real Estate Center) – Housing will be a bright star in the 2020 Texas economy, showcasing growth for the 10th straight year, according to the Real Estate Center at Texas A&M’s 2020 Texas Housing & Economic Outlook. Texas will post record highs in both housing sales and price levels and lead the nation in new home construction.
“Both the Texas and U.S. economy will likely slow in 2020 yet still register solid growth,” said Dr. Luis Torres, Real Estate Center research economist. “With uncertainty around trade wars and the current crude oil trajectory, two of the strongest economic drivers for Texas will decrease economic momentum. In contrast, one of the star performers of the 2020 economy will be the housing market with double-digit growth in new home construction for the first time since 2017.”
The Real Estate Center projects low mortgage rates and steady employment growth will fuel an increase of 10.3 percent in single-family housing permits in comparison to an almost flat 1.9 percent increase in 2019. Increases in permits, housing starts, and lot development will indicate positive momentum for construction in the year ahead. Though the strong demand for housing over the last few years has reduced affordability, Texas has fared better than other high-growth states. Builders are looking to close the gap by increasing the inventory of homes priced from $150,000 to $350,000.
“Texas has led the nation
in new home construction for the last several years,” said Dr. Jim Gaines, Real
Estate Center chief economist. “However, as in other states, land costs, a
shortage of labor, and development financing have been limitations on
affordable residential development.”
Both Houston and Dallas markets are poised to build more new homes this year. Houston is expected to see an 8.6 percent increase in permits, while Dallas will likely increase by 8.7 percent. That is significant year-over-year growth as these markets experienced negative growth (-1.8 and -1.7, respectively) in 2019. Houston and Dallas will remain the top two markets in the country for single-family housing growth. Even San Antonio and Austin, which saw healthy new-home construction in 2019, will see increases of 10 percent in the coming year.
As a result of the high demand for single-family housing, the Real Estate Center projects an increase in sales by 6.4 percent with a lift of 5.2 percent per square foot price. Austin will still lead the state in sales and price increases, expecting a 9.2 percent growth in sales and a 7.9 percent growth in price per square foot.
In other real estate projections, Texas apartment markets should continue to perform well in 2020, given low inventories of starter homes available for purchase. In the land markets, the Real Estate Center expects a price increase of 0.5 percent, yet projects a 6 percent drop in sales and volume.
Texas’s industrial markets have been strong in recent years. However, uncertainty over U.S.-China trade negotiations could negatively impact the market if there is no resolution. The retail sector should continue to perform well into the new year with muted new construction combined with robust consumer spending.
And finally, the state’s office markets will continue strong. However, Houston will continue to see higher vacancy rates than the rest of the state at 20 percent, experiencing the most challenges with flat oil and gas activity.
View the complete 2020 Texas Housing & Economic Outlook here.
About the Real Estate Center
The Real Estate Center at Texas A&M University provides access to real estate data analysis and insights that help guide decisions for industry businesses and their stakeholders. By looking beyond individual data points, economists and data scientists at the Real Estate Center uncover the valuable insights within the data to provide actionable intelligence for both businesses and the real estate consumer.
Founded by the Texas legislature in 1971, the Real Estate Center conducts research on real estate from a variety of viewpoints, including financial, socioeconomic, public policy, trade, legal, land use, and local market analysis. Results are published across a variety of mediums, including a website, print magazine, online newsletters, and videos. The Center’s premier quarterly periodical – TG – is widely circulated and offers timely insights on Texas real estate.
|Starter-home shortage favors apartments||Starter-home shortage favors apartments||2019-11-05T06:00:00Z|
COLLEGE STATION, Tex. (Real Estate Center) – Fewer starter homes for first-time homebuyers is good news for one real estate sector – apartments.
In its first-ever Texas Quarterly Apartment Report, the Real Estate Center at Texas A&M University examines the apartment outlook for the remainder of 2019 and what's ahead in 2020.
“The supply of single-family starter homes is being constrained. Young adults continue to rent apartments," said Research Economist Dr. Luis Torres. “Overall market trends for the majority of Texans show a combination of positive occupancy and positive rent growth."
Torres added, “The popularity of apartments among young Texans means tighter apartment vacancy rates and higher rents in 2020."
The new report covers apartments in Austin, Dallas-Fort Worth, Houston, and San Antonio.
In the Class A apartment market, the report notes continued rent growth in all the major metros, except San Antonio where rent growth is basically flat. Vacancies are tightening in Austin and Dallas-Fort Worth but loosening in Houston and San Antonio.
“The outlook for the rest of 2019 appears positive for the major Texas metros," said Torres. “Low interest rates plus somewhat slower growth expectations will keep inflation pressure subdued.
“A declining trade environment and a slowing world economy are the greatest headwinds to the Texas economy."
|Real Estate Center Advisory Committee elects new officers||Real Estate Center Advisory Committee elects new officers||2019-07-26T05:00:00Z|
COLLEGE STATION, Tex. (Real Estate Center) – The Real Estate Center's Advisory Committee elected two new officers this week at its biannual meeting.
Alvin Collins of Andrews and Midland was elected chairman, replacing W. Douglas Jennings of Fort Worth.
JJ Clemence of Sugar Land replaces Besa Martin of Boerne as vice chairman.
Collins, broker associate at Legacy Real Estate Brokerage, is the president and owner of Sunray Energy Inc., an oil and gas operating company. He is a member and former president of the Permian Basin Board of Realtors and past chairman of the Issues Mobilization Committee of Texas Realtors. Additionally, he is a member of the Texas Mortgage Industry Advisory Committee. He is a Presidents Circle member of the National Association of Realtors.
Collins received a bachelor of business administration in management and accounting from Texas Wesleyan University and attended Texas Christian University Graduate School. He was appointed to the committee in November 2016, and his term will expire in January 2021.
Clemence is a pricing and fundamental specialist for Enbridge and is a certified internal auditor. She is a member of the Institute of Internal Auditors, treasurer of Enbridge Leadership Development, and a communication officer for the Enbridge Professional Multi-Culture Committee.
She received a bachelor of arts in accounting from Anhui University of Finance and Economics in China and a master of business administration from Baker University in Kansas. She was appointed in August 2018 with her term expiring in January 2023.
The committee has three public members and one each representing residential, commercial, and industrial properties. Others represent real estate brokerage, construction, and finance. Each is appointed by the governor for a six-year term. The Texas Real Estate Commission is represented by an ex-officio member.
Collins represents real estate finance, and Clemence is a public member.
The committee approves the Center's research plans and reviews findings. Members also approve the Center's proposed budget before it is submitted to the university.
|Real Estate Center adds to its trophy case ||Real Estate Center adds to its trophy case ||2019-06-28T05:00:00Z|
COLLEGE STATION, Tex. (Real Estate Center) – The Real Estate Center at Texas A&M University received two Bronze Quill Awards from the Houston Chapter of the International Association of Business Communicators (IABC) on June 27 during ceremonies in the Bayou City.
The Center’s “Helping Texans” Annual Report + Calendar won an Award of Excellence, and the Center’s flagship periodical Tierra Grande magazine earned an Award of Merit.
Fourteen corporations, universities, public relations firms, and nonprofits received awards.
“We celebrate the professionalism and dedication of communicators from across the Houston region and beyond,” said Houston IABC President Andrew Van Chau. “The folks being honored represent some of the best that our vocation has to offer.”
It has been a banner month for the Real Estate Center, part of the university’s Mays Business School. On June 11, Tierra Grande was in the global spotlight when it received a Gold Quill Award of Merit at IABC’s world conference in Vancouver, B.C.