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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."

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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.

​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.​​​

​​​​​COLLEGE STATION, Tex. (Real Estate Center) –  Los Angeles, Toronto, Queensland, Pittsburgh, Wellington, New York City, Moscow, and College Station. All are homes to 2019 Gold Quill Award winners announced this week by the International Association of Business Communicators (IABC).

The Real Estate Center at Texas A&M University won the award for its quarterly periodical Tierra Grande magazine. The Center was the only Texas winner outside the state’s major metros of Dallas and Houston. It’s the Center’s third Gold Quill in the last four years and its fifth overall.

For more than 40 years, IABC’s Gold Quill Awards have recognized excellence in strategic communication worldwide and are acknowledged as one of the most prestigious awards programs in the industry. Ten countries are represented among the 2019 winners, which come from a cross-section of public and private sector organizations, both large and small.

With only 20 full-time employees, the Center is the largest publicly funded real estate research entity in the U.S. It is part of Texas A&M’s Mays Business School. Tierra Grande is the primary vehicle for conveying research results to the 175,000 Texas real estate licensees who fund the Center.

About winning the Center’s fifth Gold Quill Award, Center Director Gary Maler said, “Talent, maturity, and cohesiveness are ingredients for a winning team. We are fortunate to have retained extremely talented people for decades.”

This year’s judges called Tierra Grande, “A strong entry on all fronts. The team obviously put a lot of effort into the product, to ensure it was vibrant, visual as well as packed with useful information for its target readership.”

Gold Quill winners were selected from among 638 entries reviewed by more than 250 evaluators. Entries were measured against the highest industry standards.

This year’s Gold Quill Awards will be presented during IABC’s World Conference in Vancouver, British Columbia, June 11.

​​​​​Experts estimate 10 percent of farmland in the United States will be passed down over the next five years. That represents approximately 91 million acres, about the size of Montana. 

Estate planning provides the tools that define who gets which assets and when. But, there's a problem.

“Current estimates show 58 percent of Americans have not written a will," says Dr. Erin Kiella, assistant research economist for the Real Estate Center at Texas A&M University.

“Lack of estate plans and insufficient communication between benefactors and heirs, especially for estates with large real estate holdings, could result in substantial amounts of land being sold, divided, or tied up in court proceedings.

“The average Texas landowner is 60 years old. As that age increases, the discussion of estate and succession planning takes on a new sense of urgency," she says.

​A will is the bare minimum estate-planning tool used for real estate assets. Other tools have emerged that not only manage one's assets postmortem but allow the succession process to begin before the final transfer of assets, says Kiella.

Previously, estate planning was instrumental in managing potential federal estate taxes. On January 1, 2019, the federal estate tax threshold increased to $11.4 million per person and $22.8 million for a married couple. That threshold is set to expire in 2025.

If an estate surpasses the threshold, it is taxed anywhere from 18 to 40 percent. The Tax Policy Center estimates this threshold affects only 0.1 percent of those who died in 2018 (about 1,890 people).

​“Given that so few are affected by federal estate taxes, estate planning has shifted focus to the management and minimization of income taxes," says Kiella. “Estate-planning tools can minimize taxes paid on the appreciation of assets, especially when a significant amount of assets is real estate. Many states also have a state estate tax and an inheritance tax. Texas has neither.

“Each estate- and succession-planning tool has advantages and disadvantages. Individuals should work with experienced professionals—estate and tax attorneys, certified financial planners, certified public accountants, and appraisers—to determine the best estate-planning strategy."

Kiella is author of “Leaving a Legacy: Wills and Trusts," an article in the upcoming April issue of Tierra Grande magazine. Read Kiella's article at https://www.recenter.tamu.edu/articles/tierra-grande/Leaving-Legacy. She is working on a follow-up article discussing the use of limited partnerships, limited liability companies, and corporations.